Document:

vc_s8ex.htm

    VECTREN
CORPORATION

     

    RETIREMENT SAVINGS
PLAN

     

    (AMENDED AND
RESTATED

     

    EFFECTIVE AS OF JANUARY 1,
2009)

     

    

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
 

    
      
        	 
      TABLE OF CONTENTS
	 
      	 
      	 
      
	 
      	 
      	
                PAGE

              
	 
      	 
      	 
      
	
                ARTICLE
      I

              	
                INTRODUCTION

              	
                1

              
	 
      	 
      	 
      
	
                ARTICLE
      II

              	
                DEFINITIONS

              	
                2

              
	
                2.1

              	
                Actual
      Deferral Percentage

              	
                2

              
	
                2.2

              	
                Annual
      Additions

              	
                2

              
	
                2.3

              	
                Appropriate
      Form

              	
                2

              
	
                2.4

              	
                Beneficiary

              	
                2

              
	
                2.5

              	
                Break
      in Service

              	
                3

              
	
                2.6

              	
                Company

              	
                3

              
	
                2.7

              	
                Company
      Matched Contribution Percentage

              	
                3

              
	
                2.8

              	
                Company
      Matched Contributions

              	
                3

              
	
                2.9

              	
                Company
      Matching Contributions Account

              	
                3

              
	
                2.10

              	
                Company
      Non-Matching Contributions Account

              	
                3

              
	
                2.11

              	
                Company
      Stock Fund

              	
                3

              
	
                2.12

              	
                Compensation

              	
                4

              
	
                2.13

              	
                Compensation
      Redirection Account

              	
                4

              
	
                2.14

              	
                Compensation
      Redirection Agreement

              	
                4

              
	
                2.15

              	
                Compensation
      Redirection Amount

              	
                4

              
	
                2.16

              	
                Compensation
      Redirection Contribution

              	
                4

              
	
                2.17

              	
                Computation
      Period

              	
                4

              
	
                2.18

              	
                Current
      Year ACP Method

              	
                5

              
	
                2.19

              	
                Current
      Year ADP Method

              	
                5

              
	
                2.20

              	
                Date
      of Employment

              	
                5

              
	
                2.21

              	
                Effective
      Date

              	
                5

              
	
                2.22

              	
                Employee

              	
                5

              
	
                2.23

              	
                ESOP

              	
                6

              
	
                2.24

              	
                Fund

              	
                6

              
	
                2.25

              	
                Group

              	
                6

              
	
                2.26

              	
                Highly
      Compensated Participant

              	
                7

              
	
                2.27

              	
                Hour
      of Service

              	
                7

              
	
                2.28

              	
                Normal
      Retirement Age

              	
                9

              
	
                2.29

              	
                One
      Year Service Break

              	
                9

              
	
                2.30

              	
                Participant

              	
                9

              
	
                2.31

              	
                Participant
      Accounts

              	
                9

              
	
                2.32

              	
                Participating
      Companies

              	
                9

              
	
                2.33

              	
                Period
      of Separation

              	
                9

              
	
                2.34

              	
                Period
      of Service

              	
                9

              
	
                2.35

              	
                Period
      of Severance

              	
                9

              
	
                2.36

              	
                Plan

              	
                10

              
	
                2.37

              	
                Plan
      Administrator

              	
                10

              
	
                2.38

              	
                Plan
      Year

              	
                10

              
	
                2.39

              	
                Primary
      Beneficiary

              	
                10

              
	
                2.40

              	
                Prior
      Year ACP Method

              	
                10

              
	 
      	 
      	 
      

      

      

      
        
           

        

        
          -i-

          
            

          

        

        
           

        

      

      

      
        	
                2.41

              	
                Prior
      Year ADP Method

              	
                10

              
	
                2.42

              	
                Prior
      Year's Non-Highly Compensated Participant

              	
                11

              
	
                2.43

              	
                Reemployed
      Individual

              	
                11

              
	
                2.44

              	
                Rollover
      Contribution Account

              	
                11

              
	
                2.45

              	
                Section
      415 Compensation

              	
                11

              
	
                2.46

              	
                Spouse

              	
                14

              
	
                2.47

              	
                Termination
      Date

              	
                14

              
	
                2.48

              	
                Top
      Paid Group

              	
                14

              
	
                2.49

              	
                Total
      Disability or Totally Disabled

              	
                14

              
	
                2.50

              	
                Trust
      Agreement

              	
                14

              
	
                2.51

              	
                Trustee

              	
                15

              
	
                2.52

              	
                Trust
      Fund

              	
                15

              
	
                2.53

              	
                Union

              	
                15

              
	
                2.54

              	
                Valuation
      Date

              	
                15

              
	
                2.55

              	
                Vectren
      Stock

              	
                15

              
	
                2.56

              	
                Year
      of Service

              	
                15

              
	
                ARTICLE
      III

              	
                ELIGIBILITY

              	
                15

              
	
                3.1

              	
                Requirements
      for Eligibility.

              	
                15

              
	
                3.2

              	
                Commencement
      of Participation.

              	
                16

              
	
                3.3

              	
                Reemployment

              	
                16

              
	
                3.4

              	
                Change
      in Status

              	
                17

              
	
                3.5

              	
                Limited
      Participant

              	
                17

              
	
                ARTICLE
      IV

              	
                COMPENSATION
      REDIRECTION

              	
                18

              
	
                4.1

              	
                Compensation
      Redirection.

              	
                18

              
	
                4.2

              	
                Change
      in Compensation Redirection Agreements

              	
                21

              
	
                4.3

              	
                Revocation
      of Compensation Redirection Agreements

              	
                21

              
	
                4.4

              	
                Catch-Up
      Contributions

              	
                21

              
	
                ARTICLE
      V

              	
                COMPANY
      CONTRIBUTIONS

              	
                21

              
	
                5.1

              	
                Amount
      of Company Contributions

              	
                21

              
	
                5.2

              	
                Company
      Matching Contributions.

              	
                22

              
	
                5.3

              	
                Company
      Non-Matching Contributions.

              	
                24

              
	
                5.4

              	
                Remittance
      of Company Contributions

              	
                26

              
	
                5.5

              	
                Maximum
      Contributions

              	
                26

              
	
                5.6

              	
                Return
      of Compensation Redirection Amounts

              	
                27

              
	
                5.7

              	
                Return
      of Company Matched Contributions

              	
                28

              
	
                5.8

              	
                Maximum
      Redirection Amounts

              	
                30

              
	
                5.9

              	
                Investment
      Fund Priority of Excess Contributions

              	
                31

              
	
                5.10

              	
                ESOP
      and ESOP I Accounts Transfers

              	
                31

              
	
                5.11

              	
                Transfer
      of Assets from Other Plans

              	
                31

              
	
                5.12

              	
                Rehire
      after Military Service

              	
                32

              
	
                5.13

              	
                Death
      or Disability While Performing Military Service.

              	
                34

              
	
                ARTICLE
      VI

              	
                INVESTMENT
      OF CONTRIBUTIONS

              	
                34

              
	
                6.1

              	
                Investment
      of Contributions.

              	
                35

              
	 
      	 
      	 
      

      

       

      
        
          
          

        

        
          -ii-

          
            

          

        

        
          
          

        

      

      
 

      
        	
                6.2

              	
                Change
      in Investment Election

              	
                35

              
	
                6.3

              	
                Change
      of Investment of Prior Contributions

              	
                36

              
	
                6.4

              	
                Special
      Rules for ESOP Subaccounts and ESOP Dividend Subaccounts

              	
                36

              
	
                6.5

              	
                Company
      Stock Fund

              	
                36

              
	
                ARTICLE
      VII

              	
                PARTICIPANT
      ACCOUNTS

              	
                36

              
	
                7.1

              	
                Maintenance
      of Participant Accounts

              	
                36

              
	
                7.2

              	
                Valuation
      of Participant Accounts

              	
                36

              
	
                7.3

              	
                Nature
      of Participant's Interest in Trust Fund

              	
                37

              
	
                ARTICLE
      VIII

              	
                WITHDRAWALS

              	
                37

              
	
                8.1

              	
                Right
      to In-Service Withdrawals

              	
                37

              
	
                8.2

              	
                Hardship
      Withdrawals

              	
                38

              
	
                8.3

              	
                Age
      591⁄2 Withdrawal

              	
                39

              
	
                8.4

              	
                Withdrawal
      of Automatic Enrollment Contributions

              	
                39

              
	
                8.5

              	
                Form
      of Payment

              	
                40

              
	
                ARTICLE
      IX

              	
                DISTRIBUTIONS

              	
                40

              
	
                9.1

              	
                Benefits
      on Retirement, Vested Resignation, Vested Discharge or Total
      Disability

              	
                40

              
	
                9.2

              	
                Benefits
      on Death

              	
                41

              
	
                9.3

              	
                Vested
      and Non-Vested Benefits

              	
                41

              
	
                9.4

              	
                Forfeiture
      Accounts and Forfeitures.

              	
                45

              
	
                9.5

              	
                Application
      of Forfeitures

              	
                46

              
	
                9.6

              	
                Form
      of Payment

              	
                46

              
	
                9.7

              	
                Designation
      of Beneficiary

              	
                47

              
	
                9.8

              	
                Payment
      of Benefits

              	
                47

              
	
                9.9

              	
                Death
      Distribution Provisions

              	
                48

              
	
                9.10

              	
                Minimum
      Distribution Amount

              	
                49

              
	
                9.11

              	
                Incapacity

              	
                49

              
	
                9.12

              	
                Identity
      of Payee

              	
                49

              
	
                9.13

              	
                Direct
      Transfers

              	
                49

              
	
                ARTICLE
      X

              	
                ADOPTION
      AND WITHDRAWAL BY PARTICIPATING COMPANIES

              	
                51

              
	
                10.1

              	
                Adoption
      by Participating Companies

              	
                51

              
	
                10.2

              	
                Withdrawal
      by Participating Company

              	
                51

              
	
                ARTICLE
      XI

              	
                CLAIMS

              	
                51

              
	
                11.1

              	
                Procedure

              	
                51

              
	
                ARTICLE
      XII

              	
                ADMINISTRATION
      OF PLAN

              	
                53

              
	
                12.1

              	
                Plan
      Administrator.

              	
                53

              
	
                12.2

              	
                Delegation
      of Duties

              	
                53

              
	
                12.3

              	
                Duties
      of Plan Administrator

              	
                53

              
	
                12.4

              	
                Communications
      to Trustee

              	
                54

              
	
                12.5

              	
                Compliance
      with Law

              	
                54

              
	 
      	 
      	 
      

      

      

      
        
           

        

        
          -iii-

          
            

          

        

        
           

        

      

      

      
        	
                12.6

              	
                Waiver
      of Time Deadlines

              	
                54

              
	
                ARTICLE
      XIII

              	
                DUTIES
      OF THE TRUSTEE

              	
                54

              
	
                13.1

              	
                General
      Provisions

              	
                54

              
	
                13.2

              	
                Trust
      Agreement

              	
                55

              
	
                13.3

              	
                Appointment
      of Investment Manager

              	
                55

              
	
                13.4

              	
                Voting
      of Common Stock in Company Stock Fund

              	
                55

              
	
                ARTICLE
      XIV

              	
                MISCELLANEOUS

              	
                56

              
	
                14.1

              	
                Payment
      of Expenses

              	
                56

              
	
                14.2

              	
                Forms

              	
                56

              
	
                14.3

              	
                No
      Right of Employment

              	
                56

              
	
                14.4

              	
                Construction

              	
                56

              
	
                14.5

              	
                Copies
      of Documents

              	
                56

              
	
                14.6

              	
                Jurisdiction

              	
                56

              
	
                14.7

              	
                Nonalienation
      of Benefits.

              	
                56

              
	
                14.8

              	
                Qualified
      Domestic Relations Orders.

              	
                57

              
	
                14.9

              	
                Non-Diversion

              	
                59

              
	
                14.10

              	
                Non-Liability
      of Participating Companies

              	
                60

              
	
                14.11

              	
                Illegal
      or Invalid Provisions

              	
                60

              
	
                14.12

              	
                Execution
      of Counterparts

              	
                60

              
	
                14.13

              	
                Tax
      Approval

              	
                60

              
	
                14.14

              	
                Non-Liability
      of Shareholders

              	
                60

              
	
                14.15

              	
                Rights
      of Third Parties

              	
                60

              
	
                14.16

              	
                Titles

              	
                61

              
	
                14.17

              	
                Successors
      and Assigns

              	
                61

              
	
                14.18

              	
                Forms
      and Proofs; Notice of Address

              	
                61

              
	
                ARTICLE
      XV

              	
                AMENDMENT,
      TERMINATION OR MERGER

              	
                61

              
	
                15.1

              	
                Right
      To Amend or Terminate

              	
                61

              
	
                15.2

              	
                Distribution
      upon Termination

              	
                62

              
	
                15.3

              	
                Plan
      Merger or Consolidation

              	
                62

              
	
                ARTICLE
      XVI

              	
                PARTICIPANT
      LOANS

              	
                63

              
	
                16.1

              	
                Authorization
      by Plan Administrator

              	
                63

              
	
                16.2

              	
                Terms
      and Conditions

              	
                64

              
	
                16.3

              	
                Accounting
      for Loans

              	
                67

              
	
                ARTICLE
      XVII

              	
                TOP-HEAVY
      RULES

              	
                67

              
	
                17.1

              	
                Application

              	
                67

              
	
                17.2

              	
                Determination

              	
                68

              
	
                17.3

              	
                Accrued
      Benefits

              	
                69

              
	
                17.4

              	
                Vesting
      Provisions

              	
                70

              
	
                17.5

              	
                Minimum
      Contribution

              	
                70

              
	
                ARTICLE
      XVIII

              	
                MINIMUM
      DISTRIBUTION REQUIREMENTS

              	
                71

              
	
                18.1

              	
                General
      Rules.

              	
                71

              

      

      

      

      
        
           

        

        
          -iv-

          
            

          

        

        
           

        

      

      

      
        	
                18.2

              	
                Time
      and Manner of Distribution.

              	
                71

              
	
                18.3

              	
                Required
      Minimum Distributions During Participant's Lifetime.

              	
                72

              
	
                18.4

              	
                Required
      Minimum Distributions After Participant's Death.

              	
                73

              
	
                18.5

              	
                Special
      Rule for Required Minimum Distributions in 2009.

              	
                74

              
	
                18.6

              	
                Definitions.

              	
                75

              
	
                ARTICLE
      XIX

              	
                ESOP
      PROVISIONS

              	
                75

              
	
                19.1

              	
                Establishment
      of ESOP

              	
                75

              
	
                19.2

              	
                Payment
      and Reinvestment of Dividends

              	
                76

              
	
                19.3

              	
                Special
      Allocation Rules

              	
                76

              
	
                19.4

              	
                Right
      of First Refusal

              	
                77

              
	
                19.5

              	
                Put
      Options

              	
                78

              
	
                19.6

              	
                Diversification
      of ESOP Contributions Subaccount

              	
                78

              
	
                19.7

              	
                Special
      Forfeiture Rules

              	
                79

              
	
                19.8

              	
                Tender
      Offer.

              	
                79

              
	
                19.9

              	
                Additional
      Definitions

              	
                80

              

      

      

      
        
           

        

        
          -v-

          
            

          

        

        
           

        

      

    VECTREN
CORPORATION

    RETIREMENT SAVINGS
PLAN

    (AMENDED AND RESTATED
EFFECTIVE AS OF JANUARY 1, 2009)

     

    ARTICLE
I

    INTRODUCTION

     

    This Plan
was initially established effective July 1, 1986 to provide retirement
benefits to the non-collective bargaining employees of Indiana Gas Company,
Inc.  The Indiana Gas Company, Inc. Retirement Savings Plan for
Bargaining Unit Employees (the "Bargaining Savings Plan") was initially
established effective July 1, 1988 to provide retirement benefits to the
collective bargaining employees of Indiana Gas Company,
Inc.  Effective October 1, 1994, Indiana Gas Company, Inc. merged
the Bargaining Savings Plan into this Plan.  Effective October 1,
1997, sponsorship of the Plan was transferred from Indiana Gas Company, Inc. to
Indiana Energy, Inc.  Vectren Corporation ("Vectren") is the successor
corporation to Indiana Energy, Inc.  Effective April 1, 2000, the
name of the Plan was changed to the Vectren Corporation Retirement Savings
Plan.  Effective July 1, 2000, the 401(k) Plan for Salaried
Employees of Southern Indiana Gas and Electric Company (the "SIGEC Plan"), the
SIGCORP, Inc. 401(k) Profit Sharing Plan (the "SIGCORP Plan") and the SIGECo
Advanced Communication, Inc. Non-Standardized 401(k) Profit Sharing Plan (the
"SIGECo Advanced Communication Plan") were merged into, and became a part of,
this Plan.  Effective January 1, 2002, the SIGCORP Communication
Services, Inc. Non-Standardized 401(k) Profit Sharing Plan (the "SIGCORP
Communication Services Plan") and the SIGCORP Energy Services, LLC
Non-Standardized 401(k) Profit Sharing Plan (the "SIGCORP Energy Services Plan")
were merged into, and became a part of, this Plan.  This Plan shall be
deemed to be the continuation of the Bargaining Savings Plan, the SIGEC Plan,
the SIGCORP Plan, the SIGECo Advanced Communication Plan, the SIGCORP
Communication Services Plan and the SIGCORP Energy Services Plan for the
affected employees.

     

    The
purpose of the Plan is to assist eligible employees to provide additional
security for their retirement.

     

    It is
intended that the Plan and the Trust Agreement which is part of the Plan meet
the requirements of the Employee Retirement Income Security Act of 1974, as now
in effect or hereafter amended and regulations promulgated thereunder ("ERISA")
and be qualified and exempt as a profit sharing and stock bonus plan with a cash
or deferred arrangement under Section 401(a), Section 401(k) and Section 501(a)
of the Internal Revenue Code of 1986, as now in effect or hereafter amended and
regulations promulgated thereunder, (the "Code").

     

    Pursuant
to rights reserved under Section 15.1 of the Plan, Vectren amends and restates
the Plan in its entirety, effective as of January 1, 2009 (except as otherwise
expressly provided herein), to provide as follows:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
II

    DEFINITIONS

     

    
      	
              2.1

            	
              Actual Deferral
      Percentage means for each Plan Year the average of the ratios
      (calculated separately to the nearest one hundredth percent (.01%) for
      each Participant) of:

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      Compensation Redirection Amount of each such Participant for such Plan
      Year relating to Compensation which, but for the election, would have been
      paid in such Plan Year, to

            

    

     

    
      	
               
      

            	
              (b)

            	
              such
      Participant's Section 415 Compensation for such Plan
  Year;

            

    

     

    provided, however, that if a
Highly Compensated Participant also participates in another qualified retirement
plan with a salary deferral feature maintained by the Group under Section 401(a)
and Section 401(k) of the Code, his Actual Deferral Percentage shall be
determined as if all such qualified plans with a salary deferral feature were a
single plan.

     

    
      	
              2.2

            	
              Annual
      Additions mean, with respect to any Participant for any Plan Year
      and with respect to the Plan and to all other qualified defined
      contribution plans maintained by the Group, the sum
  of:

            

    

     

    
      	
               
      

            	
              (a)

            	
              Group
      contributions to the Plan and all other qualified defined contributions
      plans maintained by the Group, including Compensation Redirection Amounts,
      and forfeitures, if applicable, for such Participant for such Plan Year;
      and

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      amount of such Participant's non-deductible contributions,
    and

            

    

     

    
      	
               
      

            	
              (c)

            	
              amounts
      allocated to an individual medical account as defined in Section 415(1)(2)
      of the Code which is part of a pension or annuity plan maintained by the
      Group; and

            

    

     

    
      	
               
      

            	
              (d)

            	
              amounts
      derived from contributions paid or accrued which are attributable to
      post-retirement medical benefits allocated to the separate account of a
      key employee as defined in Section 419A(d)(3) of the Code under a welfare
      benefit fund as defined in Section 419(e) of the Code maintained by the
      Group.

            

    

     

    
      	
              2.3

            	
              Appropriate
      Form means the form prescribed by the Plan Administrator for
      purposes of any specific request or authorization under the Plan and shall
      include the giving of telephonic or electronic instructions where
      authorized by the Plan Administrator.  The giving of electronic
      instructions shall be permitted even if the Plan would otherwise require
      an Appropriate Form to be signed, as long as the electronic instructions
      and the identity of the party giving such instructions can be
      authenticated.

            

    

     

    
      	
              2.4

            	
              Beneficiary
      means the person or persons to whom the benefits of deceased Participants
      are payable under Section 9.2.

            

    

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    
      	
              2.5

            	
              Break in
      Service means after an Employee becomes eligible to participate in
      the Plan any Plan Year in which such Employee completes less than five
      hundred (500) Hours of Service for the
Group.

            

    

     

    
      	
              2.6

            	
              Company means
      Vectren Corporation and each other individual Participating Company and,
      as used herein with reference to an individual Participant, it shall be
      construed to mean that Participant's employer at the time of reference or
      his last employer prior to his Termination Date.  If at the time
      of reference a Participant is concurrently employed by more than one (1)
      Participating Company, it shall be construed to mean all such employers
      acting collectively and not
individually.

            

    

     

    
      	
              2.7

            	
              Company Matched
      Contribution Percentage means for each Plan Year the average of the
      ratios (calculated separately for each Participant to the nearest one
      hundredth of one percent (.01%))
of:

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      Company Matched Contributions allocated to each such Participant for such
      Plan Year, to

            

    

     

    
      	
               
      

            	
              (b)

            	
              such
      Participant's Section 415 Compensation for such Plan
  Year;

            

    

     

    provided, however, that if a
Highly Compensated Participant also participates in another qualified retirement
plan maintained by the Group which provides for employer matching contributions
or employee after-tax contributions, the Plan Participants' Company Matched
Contribution Percentages shall be determined as if all such qualified plans were
a single plan and Subsection (a) shall include any employee after-tax
contributions made by the Participants, if any, to such other qualified plans
for such Plan Year.

     

    
      	
              2.8

            	
              Company Matched
      Contributions means the matching contributions made by the
      Participating Companies under Section
5.2.

            

    

     

    
      	
              2.9

            	
              Company Matching
      Contributions Account means for each Participant the contributions
      made by the Participating Companies under Section 5.2; provided, however, that
      the Company Matching Contributions Account shall also be credited with any
      amounts transferred on his behalf to the Plan from the ESOP under Section
      5.10; provided, further, that
      any amounts transferred from the ESOP shall be fully vested and
      non-forfeitable at all times.

            

    

     

    
      	
              2.10

            	
              Company Non-Matching
      Contributions Account means the contributions made by the
      Participating Companies for each Participant under Section
      5.3.

            

    

     

    
      	
              2.11

            	
              Company Stock
      Fund means an investment fund of the Trust Fund which shall be
      invested principally in shares of Vectren Stock which shares shall be
      purchased on the open market, unless Vectren Corporation makes available
      for purchase by the Plan authorized but unissued shares of Vectren Stock
      at a price per share equal to its closing price as reported in The Wall Street
      Journal as of the trading day immediately preceding the date of
      such purchase.

            

    

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    
      	
              2.12

            	
              Compensation
      means, for each Participant, the total cash salary or wages (including
      overtime, bonuses, Compensation Redirection Amounts and salary reductions
      under Sections 125, 132(f)(4), 402(e)(3), 402(h)(1)(B) and 402(k) of the
      Code and payments for accrued bona fide sick, vacation, or other leave,
      but only if the Participant would have been able to use the leave if
      employment with the Participating Companies had continued and if paid on
      the Participant's final paycheck, but excluding non-cash salary, severance
      payments, fringe benefits, and nonqualified deferred compensation) paid by
      the Participating Companies to such Participant in a payroll period; provided, however, that
      bonuses paid to a Participant whose terms of employment are governed by a
      collective bargaining agreement between the Company and the International
      Brotherhood of Electrical Workers, Local 1393 and the United Steelworkers
      of America, AFL-CIO-CLC, Locals 7441 and 12213, or the Company and the
      Teamsters, Chauffeurs, Warehouseman and Helpers, Local 135 will be
      included as Compensation for purposes of deferrals made pursuant to a
      Compensation Redirection Agreement, but shall not be considered
      Compensation eligible for Company Matching Contributions or, effective
      December 1, 2008, Company Non-Matching
  Contributions.

            

    

     

    
      In
addition to other applicable limitations set forth in this Plan, and
notwithstanding any other provision of this Plan to the contrary, to the extent
required by Code Section 401(a)(17), the Compensation of a Participant for any
Plan Year taken into account for all purposes under the Plan other than for
purposes of Compensation Redirection under Section 4.1 shall not exceed two
hundred forty-five thousand dollars ($245,000) as adjusted for cost-of-living
increases in accordance with Code Section 401(a)(17)(B).

    

     

    
    

    
      	
              2.13

            	
              Compensation
      Redirection Account means for each Participant the account
      established by the Trustee to reflect the Company contributions made on
      his behalf under Article IV and Section 5.1.  A Participant's
      interest in his Compensation Redirection Account shall be fully vested and
      non-forfeitable at all times.

            

    

     

    
      	
              2.14

            	
              Compensation
      Redirection Agreement means the agreement between a Participant and
      the Participating Companies in which such Participant designates the
      percentage or dollar amount of his Compensation to be contributed to the
      Plan.

            

    

     

    
      	
              2.15

            	
              Compensation
      Redirection Amount means the amount of reduction in a Participant's
      Compensation resulting from a Compensation Redirection Agreement between a
      Participant and the Participating Companies pursuant to Section 4.1 or as
      a result of a Participant's deemed acceptance of a 3% Automatic
      Compensation Redirection Contribution pursuant to Section
    4.1.

            

    

     

    
      	
              2.16

            	
              Compensation
      Redirection Contribution means the percentage reduction in a
      Participant's Compensation resulting from the Compensation Redirection
      Agreement between a Participant and the Participating Companies pursuant
      to Section 4.1 or as a result of a Participant's deemed acceptance of a 3%
      Automatic Compensation Redirection Contribution pursuant to Section
      4.1.

            

    

     

    
      	
              2.17

            	
              Computation
      Period means, for all purposes of the Plan, the consecutive twelve
      (12) month period commencing on the date on which such Employee first
      completes an Hour

            

    

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              of
      Service and any Plan Year beginning after the date on which such Employee
      first completes an Hour of Service.

            

    

     

    
      	
              2.18

            	
              Current Year ACP
      Method means, with respect to a Plan Year, the calculation of the
      average of the Company Matched Contribution Percentages for all Employees
      who are eligible to be Participants in that Plan Year, other than Highly
      Compensated Participants, based on the Company Matched Contributions made
      on behalf of and the Section 415 Compensation earned by each such Employee
      during the Plan Year to which such calculation
  relates.

            

    

     

    
      	
              2.19

            	
              Current Year ADP
      Method means, with respect to a Plan Year, the calculation of the
      Actual Deferral Percentage for all Employees who are eligible to be
      Participants in that Plan Year, other than Highly Compensated
      Participants, based on the Compensation Redirection Amounts of and the
      Section 415 Compensation earned by each such Employee during the Plan Year
      to which such calculation relates.

            

    

     

    
      	
              2.20

            	
              Date of
      Employment means any date on which an Employee first completes an
      Hour of Service.

            

    

     

    
      	
              2.21

            	
              Effective Date
      means July 1, 1986.

            

    

     

    
      	
              2.22

            	
              Employee means
      any person who is employed by and receives Compensation from a
      Participating Company but shall exclude any employee who is categorized
      for payroll purposes as an "intern" or "co-op" or who is designated in
      good faith by the applicable Participating Company as an independent
      contractor, regardless of whether such person is later determined to be a
      common law employee of the Participating Companies for tax
      purposes.  Any employee who is part of a collective bargaining
      unit shall not be considered an Employee unless and until the applicable
      Participating Company and the collective bargaining representative for
      that unit agree in writing to eligibility for participation
      hereunder.

            

    

     

    Employee shall also
include any individual deemed to be a leased employee (as defined below) of the
Group but only to the extent required by the Code; provided, however, that such
leased employee shall not become a Participant unless he is an Employee without
regard to this sentence and he satisfies the eligibility requirements of Article
III.  For purposes of this Plan, the term "leased employee" means any
person (other than an employee of the recipient) who pursuant to an agreement
between the recipient and any other person ("leasing organization") has
performed services for the recipient (or for the recipient and related persons
determined in accordance with Section 414(n)(6) of the Code) on a substantially
full-time basis for a period of at least one year, and such services are
performed under the primary direction or control by the recipient employer;
provided, however, that a
leased employee shall not be considered an employee of the recipient if (a) such
employee is covered by a money purchase pension plan providing a nonintegrated
employer contribution rate of at least ten percent (10%) of Compensation,
immediate participation and full and immediate vesting and (b) leased employees
do not constitute more than twenty percent (20%) of the recipient's non-highly
compensated workforce.  Contributions or benefits provided to a leased
employee by the leasing

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    organization
which are attributable to services performed for the recipient employer shall be
treated as provided by the recipient employer.

     

    Employee does not
include:

     

    
      	
               
      

            	
              (a)

            	
              an
      individual who is a nonresident alien and who receives no earned income
      (within the meaning of Code Section 911(d)(2)) from a Participating
      Company which constitutes income from sources within the United States
      within the meaning of Code Section
861(a)(3);

            

    

     

    
      	
               
      

            	
              (b)

            	
              any
      person who is a member of the board of directors, or is
      a  member of the board of directors of any Participating Company
      or of any committee approved by such board of directors, and who is not an
      Employee of the Company or any Participating Company;
  and

            

    

     

    
      	
               
      

            	
              (c)

            	
              any
      person employed pursuant to a written agreement which provides that he
      shall not be eligible for any retirement benefits under the Plan from a
      Participating Company.

            

    

     

    
      	
              2.23

            	
              ESOP means the
      Indiana Gas Company, Inc. Employee Stock Ownership Plan II and the Indiana
      Gas Company, Inc. Employee Stock Ownership Plan which were terminated on
      June 15, 1988 and July 9, 1989 respectively and from which the
      Plan Participants were permitted to transfer their account balances to
      this Plan or the Bargaining Savings Plan (which Bargaining Savings Plan
      was merged into this Plan).

            

    

     

    
      	
              2.24

            	
              Fund means a
      separate investment fund, including but not limited to the Company Stock
      Fund, which forms part of the Trust Fund established by the Trustee at the
      direction of the Plan
Administrator.

            

    

     

    
      	
              2.25

            	
              Group means all
      the Participating Companies at the time of reference.  Solely
      for the purpose of:

            

    

     

    
      	
               
      

            	
              (a)

            	
              computing
      an Employee's Years of Service and Hours of Service to determine his
      eligibility to participate in the Plan, rights to vested benefits, and his
      right to make withdrawals pursuant to Section
  8.2;

            

    

     

    
      	
               
      

            	
              (b)

            	
              applying
      the limitations contained in Section
5.5;

            

    

     

    
      	
               
      

            	
              (c)

            	
              determining
      whether the Plan is a Top-Heavy Plan under Section 17.2 and, thus, subject
      to the provisions of Article XVII;

            

    

     

    
      	
               
      

            	
              (d)

            	
              determining
      a Participant's Termination Date;
and

            

    

     

    
      	
               
      

            	
              (e)

            	
              determining
      whether a Participant is a Highly Compensated
  Participant,

            

    

     

    Group shall also
include any entity which, together with a Participating Company, constitutes a
member of a controlled group of corporations (as defined in Section 414(b) of
the Code), a member of a group of trades or businesses (whether or not
incorporated)

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    which is
under common control (as defined in Section 414(c) of the Code), a member of an
affiliated service group (as defined in Section 414(m) of the Code) or any other
entity required to be aggregated with a Participating Company pursuant to
Section 414(o) of the Code, but only to the extent required by the
Code.

     

    
      	
              2.26

            	
              Highly Compensated
      Participant means for each Plan Year, any Employee described in
      Section 414(q) of the Code who:

            

    

     

    
      	
               
      

            	
              (a)

            	
              is
      a five percent (5%) or more owner (as then defined in Section 416(i)(1) of
      the Code) of a member of the Group at any time during that Plan Year or
      the immediately preceding Plan Year;
or

            

    

     

    
      	
               
      

            	
              (b)

            	
              received
      more than eighty thousand dollars ($80,000), as automatically adjusted
      pursuant to Sections 414(q)(1) and 415(d) of the Code without the
      necessity of any amendment to the Plan, of Section 415 Compensation from
      the Group in the immediately preceding Plan Year and was in the Top Paid
      Group for that immediately preceding Plan
Year.

            

    

     

    For
purposes of determining whether an Employee is a Highly Compensated Participant
and notwithstanding anything else contained in this Section, the following rules
shall apply:

     

    
      	
               
      

            	
              (c)

            	
              A
      former Employee shall be treated as a Highly Compensated Participant if he
      was a Highly Compensated Participant in the Plan Year during which his
      employment with the Group terminated or in any Plan Year during which
      occurs or commencing after his fifty-fifth (55th)
  birthday.

            

    

     

    
      	
               
      

            	
              (d)

            	
              An
      Employee shall only be deemed to be a Highly Compensated Participant to
      the extent required by the Code.

            

    

     

    
      	
              2.27

            	
              Hour of Service
      means and shall include:

            

    

     

    
      	
               
      

            	
              (a)

            	
              each
      hour for which an Employee is directly or indirectly paid, or entitled to
      payment, for the performance of duties assigned to him by the Group; these
      hours shall be credited to the Employee for the Computation Period in
      which the duties are performed; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              each
      hour for which an Employee is directly or indirectly paid, or entitled to
      payment, by the Group on account of a period of time during which no
      duties are performed (irrespective of whether the employment relationship
      has terminated) due to vacation, holiday, illness, incapacity (including
      disability but excluding any disability payments made pursuant to the Plan
      or pursuant to any other qualified retirement plans maintained by the
      Group), layoff, jury duty, military duty or leave of absence; provided,
      however, that no Hours of Service shall be credited under this Subsection
      if the payment is made or due solely as reimbursement for medical or
      medically-related expenses incurred by such Employee or to comply with
      applicable workmen's compensation, unemployment compensation or disability
      insurance laws, if any; no more than five hundred
  one

            

    

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              (501)
      Hours of Service shall be credited under this Subsection for any single
      continuous period (whether or not such period occurs in a single
      Computation Period); hours under this Subsection shall be calculated and
      credited pursuant to Section 2530.200b-2 of the Department of Labor
      Regulations which are incorporated herein by this reference;
      and

            

    

     

    
      	
               
      

            	
              (c)

            	
              each
      hour for which back pay, irrespective of mitigation of damages, is either
      awarded to an Employee or agreed to by the Group to the extent that such
      award or agreement is intended to compensate that Employee for periods
      during which that Employee would have been engaged in the performance of
      duties for the Group; the same Hours of Service shall not be credited both
      under Subsection (a) or Subsection (b), as the case may be, and under this
      Subsection.

            

    

     

    Solely
for purposes of determining whether a Break in Service for participation and
vesting purposes has occurred in any Computation Period, an individual who is
absent from work for maternity or paternity reasons shall receive credit for the
Hours of Service which would otherwise have been credited to such individual but
for such absence or, in any case in which such Hours of Service cannot be
determined, eight (8) Hours of Service per day of such absence.  For
purposes of this paragraph, an absence from work for maternity or paternity
reasons means an absence by reason of the pregnancy of the individual, by reason
of the birth of a child of the individual, by reason of the placement of a child
with the individual in connection with the adoption of such child by that
individual or for purposes of caring for such child for a period beginning
immediately following such birth or placement.  The Hours of Service
credited under this paragraph shall be credited in the Computation Period in
which the absence begins if the crediting is necessary to prevent a Break in
Service in that Computation Period or, in all other cases, in the next following
Computation Period.

     

    To the
extent required under the Family and Medical Leave Act of 1993 ("FMLA") and
solely for purposes of determining whether a Break in Service for participation
and vesting purposes has occurred in any computation period, an individual who
is absent from work on unpaid leave under the FMLA shall receive credit for the
Hours of Service which would otherwise have been credited to such individual but
for such absence or, in any case in which such Hours of Service cannot be
determined, eight (8) Hours of Service per each regularly scheduled work day of
such absence.

     

    Hours of
Service shall be determined from the records of the Group or in accordance with
the method or methods adopted by the Plan Administrator, which method or methods
shall be uniformly, consistently and nondiscriminatorily applied; provided, however, that in
determining the Hours of Service of any Employee whose Compensation is not based
on hours worked, during a period of time when such hours cannot be accurately
determined, each such Employee shall be credited with not less than forty-five
(45) Hours of Service per week or ten (10) Hours of Service per
day.  Hours of Service determined under this Section shall be credited
for all purposes for which a determination as to Hours of Service is
relevant.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    
      
        	
                2.28

              	
                Normal Retirement
      Age means age sixty-five (65).  A Participant's interest
      in his Participant Account shall automatically be fully vested and
      non-forfeitable upon the attainment of Normal Retirement Age regardless of
      his Years of Service.

              

      

    

     

    
      	
              2.29

            	
              One Year Service
      Break means a consecutive twelve (12) month Period of
      Severance.

            

    

     

    
      	
              2.30

            	
              Participant
      means any Employee of a Participating Company who is eligible to and who
      has elected to participate in the Plan under Article
  III.

            

    

     

    
      	
              2.31

            	
              Participant
      Accounts means and shall include for each Participant his
      Compensation Redirection Account, Company Matching Contributions Account,
      Company Non-Matching Contributions Account and Rollover Contribution
      Account.  The earnings, losses, appreciation and depreciation
      attributable to such Participant Accounts shall be credited on his behalf
      by the Trustee.

            

    

     

    
      	
              2.32

            	
              Participating
      Companies means Vectren Corporation and any entity which becomes a
      Participating Company in accordance with Article X and as set forth under
      Exhibit A.

            

    

     

    
      	
              2.33

            	
              Period of
      Separation means, for an Employee, the period of time commencing
      with the date such Employee separates from service with the Group and
      ending with the date such Employee resumes his employment with the
      Group.

            

    

     

    
      	
              2.34

            	
              Period of
      Service means, for an Employee, the period commencing on the later
      of the following dates:

            

    

     

    
      	
               
      

            	
              (a)

            	
              such
      Employee's Date of Employment; or

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      date on which such Employee's employer is required to be aggregated with
      the Group under Code Section 414(b), (c), (m) or (o), whichever is
      applicable,

            

    

     

    and
ending on the date a Period of Severance begins, including any Period of
Separation of less than twelve (12) consecutive months; provided, however, that in the
case of any person who terminates his employment with the Group but later
resumes his employment with the Group, the Period of Service before such
resumption of employment shall be aggregated only if that person is a
Re-employed Individual.  Notwithstanding anything contained herein to
the contrary, a Participant's Period of Service shall be equal to the sum of
(i) a Participant's Years of Service that he completes on the earlier of
December 31, 2002 or the date on which his employment by the Group
terminates and (ii) the Participant's Period of Service completed for the
period beginning on the later of January 1, 2002 or his Date of
Employment.

     

    
      	
              2.35

            	
              Period of
      Severance means, for an Employee, the period of time commencing
      with the earlier of:

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      date on which such Employee terminates his employment with the Group by
      reason of quitting, retirement, death or discharge,
  or

            

    

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              (b)

            	
              the
      date twelve (12) consecutive months after the date a person remains absent
      from service with the Group (with or without pay) for any reason other
      than quitting, retirement, death or
discharge,

            

    

     

    and
ending, in the case of an Employee who terminates his employment with the Group
by reason other than death, with the date such Employee resumes his employment
with the Group.  Solely for purposes of determining whether a One Year
Service Break for participation and vesting purposes has occurred, an Employee
who is absent from work for maternity or paternity reasons shall receive credit
of at least one (1) year.  For purposes of this Section, an absence
from work for maternity and paternity reasons means an absence:

     

    
      	
               
      

            	
              (c)

            	
              by
      reason of the pregnancy of the
Employee,

            

    

     

    
      	
               
      

            	
              (d)

            	
              by
      reason of the birth of a child of the
Employee,

            

    

     

    
      	
               
      

            	
              (e)

            	
              by
      reason of the placement of a child with the Employee in connection with
      the adoption of that child by the Employee,
or

            

    

     

    
      	
               
      

            	
              (f)

            	
              for
      purposes of caring for such a child for the period beginning immediately
      following such birth or placement.

            

    

     

    
      	
              2.36

            	
              Plan means the
      qualified defined contribution plan embodied herein, as it may be
      hereafter amended from time to
time.

            

    

     

    
      	
              2.37

            	
              Plan
      Administrator means Vectren Corporation.  The Plan
      Administrator shall be a "named fiduciary" for purposes of Section
      402(a)(1) of ERISA, responsible for the administration, operation and
      interpretation of the Plan.

            

    

     

    
      	
              2.38

            	
              Plan Year means
      the calendar year.

            

    

     

    
      	
              2.39

            	
              Primary
      Beneficiary means an individual who is named as a primary
      Beneficiary under the Plan and has an unconditional right to all or a
      portion of the Participant's Participant Account balance under the Plan
      upon the death of the Participant.

            

    

     

    
      	
              2.40

            	
              Prior Year ACP
      Method means, with respect to a Plan Year, the calculation of the
      average of the Company Matched  Contribution Percentages of the
      Prior Year's Non-Highly Compensated Participants, based on the Company
      Matched Contributions made on behalf of and the Section 415 Compensation
      earned by each Prior Year's Non-Highly Compensated Participant during the
      immediately preceding Plan Year.

            

    

     

    
      	
              2.41

            	
              Prior Year ADP
      Method means, with respect to a Plan Year, the calculation of the
      Actual Deferral Percentage for all Prior Year's Non-Highly Compensated
      Participants, based on the Compensation Redirection Amounts of and the
      Section 415 Compensation earned by each Prior Year's Non-Highly
      Compensated Participant during the immediately preceding Plan
      Year.

            

    

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    
      	
              2.42

            	
              Prior Year's
      Non-Highly Compensated Participant means, with respect to any Plan
      Year, each individual who was in the immediately preceding Plan
      Year:

            

    

     

    
      	
               
      

            	
              (a)

            	
              an
      Employee eligible to participate in this Plan;
  and

            

    

     

    
      	
               
      

            	
              (b)

            	
              not
      a Highly Compensated Participant, as determined in accordance with the
      definition of "Highly Compensated Participant" in effect with respect to
      such immediately preceding Plan
Year.

            

    

     

    An
individual may be a Prior Year's Non-Highly Compensated Participant even though
he is not an Employee or Participant in the current Plan Year or even though he
would be treated as a Highly Compensated Participant in the current Plan
Year.

     

    
      	
              2.43

            	
              Reemployed
      Individual means a person who, after having terminated his
      employment with the Group, resumes his employment with the
      Group:

            

    

     

    
      	
               
      

            	
              (a)

            	
              with
      any vested interest in his Participant Accounts,
  or

            

    

     

    
      	
               
      

            	
              (b)

            	
              with
      no such vested interest but who resumes his employment with the Group
      either:

            

    

     

    
      	
               
      

            	
              (i)

            	
              before
      a One Year Service Break,

            

    

     

    
      	
               
      

            	
              (ii)

            	
              after
      a One Year Service Break but before his latest Period of Severance equals
      or exceeds his Period of Service,
or

            

    

     

    
      	
               
      

            	
              (iii)

            	
              after
      a One Year Service Break but before the number of his consecutive One Year
      Service Breaks equals or exceeds the greater of five (5) or his Period of
      Service.

            

    

     

    
      	
              2.44

            	
              Rollover Contribution
      Account means for each Participant the rollovers transferred in
      accordance with Section 5.11.  A Participant's Rollover
      Contribution Account shall be fully vested and non-forfeitable at all
      times.

            

    

     

    
      	
              2.45

            	
              Section 415
      Compensation means, effective as of January 1, 2008, for each Plan
      Year, compensation as defined in Section 415(c)(3) of the
      Code.

            

    

     

    
      	
               
      

            	
              (a)

            	
              In
      general, Section 415(c)(3) of the Code defines compensation as all of a
      Participant's wages, salaries, fees for professional services and other
      amounts received (without regard to whether or not an amount is paid in
      cash) for personal services actually rendered in the course of employment
      with the Group, to the extent that the amounts are includible in gross
      income (or to the extent amounts would have been received and includible
      in gross income but for an election under Section 125(a), 132(f)(4),
      402(e)(3), 402(h)(1)(B), or 402(k) of the Code), including but not limited
      to commissions, compensation for services on the basis of a percentage of
      profits, bonuses, fringe benefits and reimbursement or other expense
      allowances under a nonaccountable plan as described in applicable Treasury
      Regulations.

            

    

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              (b)

            	
              Section
      415 Compensation shall also
include:

            

    

     

    
      	
               
      

            	
              (i)

            	
              earned
      income received by the Participant from the Group from sources outside the
      United States (as defined in Section 91l(b) of the Code), whether or not
      excludible from gross income under Section 911 of the Code or deductible
      under Section 913 of the Code;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              amounts
      described in Section 104(a)(3), Section 105(a) and Section 105(h) of the
      Code, but only to the extent that these amounts are includible in the
      gross income of such Participant from the
Group;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              amounts
      paid or reimbursed by the Group for moving expenses incurred by such
      Participant, but only to the extent that these amounts are not deductible
      by such Participant under Section 217 of the
  Code;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              the
      value of a nonstatutory option granted to a Participant by the Group, but
      only to the extent that the value of the option is includible in the gross
      income of the Participant for the taxable year in which
      granted;

            

    

     

    
      	
               
      

            	
              (v)

            	
              the
      amount includible in the gross income of a Participant from the Group upon
      making the election described in Section 83(b) of the
  Code;

            

    

     

    
      	
               
      

            	
              (vi)

            	
              the
      amount received by the Participant from the Group and includible in gross
      income under the rules of Section 409A of the Code or because the amount
      is constructively received by the
Participant;

            

    

     

    
      	
               
      

            	
              (vii)

            	
              any
      amounts received by such Participant from the Group pursuant to an
      unfunded nonqualified deferred compensation plan in the taxable year in
      which such amounts are includible in the gross income of such
      Participant;

            

    

     

    
      	
               
      

            	
              (viii)

            	
              amounts
      paid by the Group to a Participant by the later of two and one-half
      (2-1/2) months after the Participant's severance from employment or the
      end of the Plan Year that includes the date of the Participant's severance
      from employment, if such amounts, absent a severance from employment,
      would have been paid to the Participant prior to the severance from
      employment if the Participant had continued in employment with the Group
      and are regular compensation for services during the Participant's regular
      working hours, or compensation for services outside the Participant's
      regular working hours (such as overtime or shift differential),
      commissions, bonuses, or other similar
payments;

            

    

     

    
      	
               
      

            	
              (ix)

            	
              amounts
      paid by the Group to a Participant by the later of two and one-half
      (2-1/2) months after the Participant's severance from employment or the
      end of the Plan Year that includes the date of the Participant's severance
      from employment, if such amounts, absent a severance from employment,
      would have been included in the Participant's compensation if they were
      paid prior to the Participant's severance from employment and are
      either:

            

    

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    
      
        	
                (A)

              	
                payments
      for unused accrued bona fide sick, vacation, or other leave, but only if
      the Participant would have been able to use the leave if employment had
      continued; or

              

      

    

     

    
      
        	
                (B)

              	
                payments
      pursuant to a nonqualified unfunded deferred compensation plan, but only
      if the payments would have been paid to the Participant at the same time
      if the Participant had continued employment with the Group and only to the
      extent that the payment is includible in the Participant's gross
      income;

              

      

    

     

    
      	
               
      

            	
              (x)

            	
              payments
      by the Group to an individual who does not currently perform services for
      the Group by reason of qualified military service (within the meaning of
      Code Section 414(u)(1)) to the extent these payments do not exceed the
      amounts the individual would have received if the individual had continued
      to perform services for the Group rather than entering qualified military
      service; and

            

    

     

    
      	
               
      

            	
              (xi)

            	
              payments
      by the Group to a Participant who is "permanently and totally disabled,"
      as defined in Section 22(e)(3) of the Code, to the extent that either the
      Participant was not a Highly Compensated Participant immediately before
      becoming disabled or such payments are made on behalf of all Participants
      who are permanently and totally
disabled.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Section 415
      Compensation does not
include:

            

    

     

    
      	
               
      

            	
              (i)

            	
              any
      payments not described in subsection (b)(viii), (ix), (x) or (xi) that are
      paid after severance from employment, even if they are paid within two and
      one-half (2-1/2) months following severance from
    employment;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              except
      as otherwise provided in subsection (a) above, other contributions made by
      the Group to a qualified plan of deferred compensation to the extent that,
      before the application of the Code Section 415 limitations to that plan,
      the contributions are not includible in the gross income of such
      Participant for the taxable year in which contributed; in addition,
      contributions by the Group made on behalf of such Participant to a
      simplified employee pension plan described in Section 408(k) of the Code
      for the taxable year in which contributed; additionally, any distributions
      from a qualified plan of deferred compensation, regardless of whether such
      amounts are includible in the gross income of such Participant when
      distributed;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              amounts
      realized from the exercise of a nonqualified stock option, or when
      restricted stock (or property) held by the Participant either becomes
      freely transferable or is no longer subject to a substantial risk of
      forfeiture;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              amounts
      realized from the sale, exchange or other disposition of stock acquired
      under a qualified stock option; and

            

    

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              (v)

            	
              except
      as otherwise provided in subsection (a) above, other amounts which receive
      special federal income tax treatment under the Code, such as premiums for
      group term life insurance (but only to the extent that those premiums are
      not includible in the gross income of such
  Participant).

            

    

     

    
      	
               
      

            	
              (d)

            	
              In
      no event shall the Section 415 Compensation of a Participant for a Plan
      Year exceed the applicable limit established by Section 401(a)(17) of the
      Code that applies to such Plan Year, as adjusted for cost-of-living
      increases in accordance with Section 401(a)(17)(B) of the
      Code.

            

    

     

    
      	
              2.46

            	
              Spouse means
      the person of the opposite sex to whom an Employee is lawfully married, or
      was lawfully married at the date of his death, as defined under the
      Federal Defense of Marriage Act.

            

    

     

    
      	
              2.47

            	
              Termination
      Date means the date on which a Participant's employment with the
      Group is terminated for any reason, including layoff or retirement, the
      date on which the Participant has experienced a Total Disability, or the
      date that the Participant's employment terminates due to
      death.

            

    

     

    
      	
              2.48

            	
              Top Paid Group
      means in a Plan Year the Employees who are in the top twenty percent (20%)
      of the Group's Employees in terms of Section 415 Compensation for such
      Plan Year; provided, however, that
      for purposes of determining the number of Employees to be included in the
      Top Paid Group, the following Employees shall be excluded to the extent
      permitted by Section 414(q)(4) of the
Code:

            

    

     

    
      	
               
      

            	
              (a)

            	
              Employees
      who have not completed six (6) months of service with the
      Group;

            

    

     

    
      	
               
      

            	
              (b)

            	
              Employees
      who normally work less than seventeen and one-half (17-1/2) hours per week
      or less than six (6) months during a Plan
Year;

            

    

     

    
      	
               
      

            	
              (c)

            	
              Employees
      who have not attained age twenty-one
(21);

            

    

     

    
      	
               
      

            	
              (d)

            	
              except
      as provided by regulations promulgated under the Code, Employees who are
      covered by a collectively bargained agreement;
  and

            

    

     

    
      	
               
      

            	
              (e)

            	
              Employees
      who are non-resident aliens and who receive no earned income (within the
      meaning of Section 911(d)(2) of the Code) from the Group which constitutes
      income from sources in the United States (within the meaning of Section
      861(a)(3) of the Code).

            

    

     

    
      	
              2.49

            	
              Total Disability or
      Totally Disabled means a Participant's mental or physical condition
      which entitles him to disability benefits under the long term disability
      plan maintained by the Participating
Companies.

            

    

     

    
      	
              2.50

            	
              Trust Agreement
      means the agreement entered into between Vectren Corporation and the
      Trustee to carry out the purposes of the Plan, as set forth herein, which
      Trust Agreement, as it may be amended hereafter from time to time, shall
      form a part of the Plan.

            

    

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    
      	
              2.51

            	
              Trustee mean
      the Trustee of the Trust Fund and its successors and
      substitutes.

            

    

     

    
      	
              2.52

            	
              Trust Fund
      means the cash and other assets of the Plan held and administered by the
      Trustee in accordance with the provisions of the Trust Agreement and of
      the Plan.

            

    

     

    
      	
              2.53

            	
              Union
      means:

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      International Brotherhood of Electrical Workers, Local
  702;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      International Brotherhood of Electrical Workers, Local
    1393;

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      United Steelworkers of America AFL-CIO-CLC, Local
  7441;

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      United Steelworkers of America AFL-CIO-CLC, Local
  12213;

            

    

     

    
      	
               
      

            	
              (e)

            	
              Utility
      Workers Union of America, Local
175;

            

    

     

    
      	
               
      

            	
              (f)

            	
              Teamsters,
      Chauffeurs, Warehousemen, and Helpers Local No. 135;
  and

            

    

     

    
      	
               
      

            	
              (g)

            	
              any
      other collective bargaining unit with respect to which the Participating
      Companies and that collective bargaining unit have agreed to its
      participation in this Plan.

            

    

     

    
      	
              2.54

            	
              Valuation Date
      means and shall include each business
date.

            

    

     

    
      	
              2.55

            	
              Vectren Stock
      means the common stock of Vectren
Corporation.

            

    

     

    
      	
              2.56

            	
              Year of Service
      means any Computation Period during which an Employee completes one
      thousand (1,000) Hours of Service; provided, however, that
      for eligibility purposes, an Employee shall not be deemed to have
      completed a Year of Service in a Computation Period until the last day of
      the Computation Period.

            

    

     

    ARTICLE
III

    ELIGIBILITY

     

    
      	
              3.1

            	
              Requirements for
      Eligibility.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Each
      Employee whose terms of employment are covered by a collective bargaining
      agreement between a Participating Company and a Union who is expected to
      complete at least one thousand (1,000) Hours of Service during his first
      Computation Period is eligible to become a Participant in the Plan once he
      completes at least one (1) Hour of Service.  Such an Employee
      who is not expected to complete at least one thousand (1,000) Hours of
      Service during his first Computation Period is eligible to become a
      Participant in the Plan once he completes at least one (1) Year of
      Service.  An Employee who meets the eligibility requirements of
      this Section 3.1(a) shall become a Participant in the Plan at the
      applicable time specified under Section 3.2 (b) or
  (c).

            

    

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              (b)

            	
              Each
      Employee whose terms of employment are not covered by a collective
      bargaining agreement between a Participating Company and a Union who is
      expected to complete at least one thousand (1,000) Hours of Service during
      his first Computation Period is eligible to become a Participant in the
      Plan once he completes at least one (1) Hour of Service.  Such
      an Employee who is not expected to complete at least one thousand (1,000)
      Hours of Service during his first Computation Period is eligible to become
      a Participant in the Plan once he completes at least a one (1) year Period
      of Service.  An Employee who meets the eligibility requirements
      of this Section 3.1(b) shall become a Participant in the Plan at the
      applicable time specified under Section 3.2
(a).

            

    

     

    
      	
              3.2

            	
              Commencement of
      Participation.

            

    

     

    
      	
               
      

            	
              (a)

            	
              An
      Employee whose terms of employment are not covered by a collective
      bargaining agreement shall become a Participant in the Plan as soon as
      practicable following satisfaction of the requirements for eligibility set
      forth in Section 3.1(b).

            

    

     

    
      	
               
      

            	
              (b)

            	
              An
      Employee whose terms of employment are covered by a collective bargaining
      agreement between a Participating Company and the International
      Brotherhood of Electrical Workers, Local No. 1393, United Steelworkers of
      America AFL-CIO-CLC Locals No. 12213 or 7441, or Teamsters, Chauffeurs,
      Warehousemen, and Helpers Local No. 135 shall become a Participant in the
      Plan on the date which is six (6) months following the date on which such
      Employee satisfies the requirements for eligibility set forth in Section
      3.1(a).

            

    

     

    
      	
               
      

            	
              (c)

            	
              An
      Employee whose terms of employment are covered by a collective bargaining
      agreement between a Participating Company and the Utility Workers Union of
      America, Local No. 175 or the International Brotherhood of Electrical
      Workers, Local No. 702 shall become a Participant in the Plan on first day
      of the month following the date on which such Employee satisfies the
      requirements for eligibility set forth in Section
  3.1(a).

            

    

     

    
      	
              3.3

            	
              Reemployment.  Upon
      reemployment, a former Employee who had completed the eligibility
      requirements in Section 3.1 shall be eligible to participate in the Plan
      as of the later of:

            

    

     

    
      	
               
      

            	
              (a)

            	
              his
      reemployment date by the Participating Companies,
  or

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      date on which he would have otherwise been eligible to participate in the
      Plan had his employment by the Participating Companies not been
      terminated;

            

    

     

    provided, however, that, for
purposes of determining the vested balance of the Company Matching and
Non-Matching Contributions Accounts of a reemployed Employee whose terms of
employment are not covered by a collective bargaining agreement between a
Participating Company and a Union and who did not have a vested interest in his
Compensation Redirection Account or Company Matching or Non-Matching
Contributions Accounts at the time he incurred a One Year Service Break, his
Period of

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

    Service
accrued before the One Year Service Break shall be disregarded on his
reemployment if the number of such Employee's consecutive One Year Service
Breaks equals or exceeds the greater of five (5) or his Period of Service
completed before the One Year Service Breaks; provided, further, that, for
purposes of determining the vested balance of the Company Matching and
Non-Matching Contributions Accounts of a reemployed Employee whose terms of
employment are covered by a collective bargaining agreement between a
Participating Company and a Union and who did not have a vested interest in his
Compensation Redirection Account or Company Matching or Non-Matching
Contributions Accounts at the time he incurred a Break in Service, his Years of
Service accrued before the Break in Service shall be disregarded on his
reemployment if the number of such Employee's consecutive one (1) year Breaks in
Service equals or exceeds the greater of five (5) or his Years of Service
completed before the Break in Service.

     

    
      	
              3.4

            	
              Change in
      Status.  If a Participant hereunder ceases to be an
      Employee due to a change in his employment status, while remaining an
      employee of the Group (as defined for
      purposes of Article XVII), he shall become an inactive Participant
      hereunder until such time as he again becomes an Employee, and during the
      period in which he is an inactive Participant he shall no longer be
      entitled to redirect his Compensation to the Plan; provided, however, that
      his Participant Account shall continue to be adjusted in accordance with
      Article VII; provided, further, that
      the employment of such an inactive Participant shall not be deemed
      terminated until he ceases to be employed by the Group (as such term is
      defined for purposes of Article XVII).  If a Participant or an
      Employee is employed by a Participating Company that ceases to be a
      Participating Company or which ceases to be a member of the Group, the
      Participant shall cease to be an Employee and shall be deemed terminated
      by the Group on the date the Participating Company ceases to be a
      Participating Company in the Plan.

            

    

     

    If an
Employee who is not a Participant becomes a Participant due to a change in his
employment status or due to the adoption of the Plan by a Participating Company
in accordance with Section 10.1, he shall become eligible to participate in this
Plan immediately; provided, however, that his
participation shall not commence until the applicable time set forth in Section
3.2.

     

    
      	
              3.5

            	
              Limited
      Participant.  An Employee who is not eligible to become a
      Participant in the Plan but on whose behalf amounts are transferred to the
      Plan from another qualified retirement plan in accordance with Section
      5.11 shall be deemed to be a limited Participant under the Plan with
      respect to such transferred
amounts.

            

    

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

    
       
ARTICLE
IV

      COMPENSATION
REDIRECTION

    

     

    
      	
              4.1

            	
              Compensation
      Redirection.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Automatic
      Enrollment.

            

    

     

    
      	
               
      

            	
              (i)

            	
              Effective
      for (A) any Employee who first becomes a Participant in the Plan on or
      after December 1, 2004, (B) any former Employee who becomes a
      Participant in the Plan pursuant to Section 3.3, or (C) any Employee who
      becomes a Participant in the Plan pursuant to Section 3.4, and who
      has not entered into a Compensation Redirection Agreement under Section
      4.1(b) or affirmatively elected not to make such contributions, such
      Participant shall be deemed to have elected to contribute three percent
      (3%) of his Compensation (a "3% Automatic Compensation Redirection
      Contribution") to the Plan as a Compensation Redirection
      Amount.  The deemed election of a 3% Automatic Compensation
      Redirection Contribution of such Participant shall be effective as soon as
      administratively practicable following the date of becoming a Participant
      under Section 3.2, 3.3 or 3.4, as applicable, in accordance with the
      procedures adopted by the Plan Administrator.  A Participating
      Company shall provide the notice described in (iii), below, regarding such
      deemed election to such Participant within a reasonable period prior to
      the date such deemed election becomes effective.  Such 3%
      Automatic Compensation Redirection Contribution election shall be invested
      in the default investment Fund designated by the Plan Administrator or its
      designee unless the Participant changes such default investment Fund as
      allowed under Article VI.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Contributions
      pursuant to the automatic enrollment provisions of this Section 4.1(a)
      shall remain in effect until the Participant affirmatively
      elects:

            

    

     

    
      	
               
      

            	
              (A)

            	
              a
      different Compensation Redirection Contribution by entering a Compensation
      Redirection Agreement with a Participating Company in accordance with
      Section 4.1(b); or

            

    

     

    
      	
               
      

            	
              (B)

            	
              not
      to make such contributions (a "zero percent Compensation Redirection
      Contribution") under Section 4.1(b)  For purposes of this
      subparagraph (B), a Participant's election to make a withdrawal in
      accordance with Section 8.4 shall be deemed to be an affirmative election
      to make a zero percent Compensation Redirection
    Contribution.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              For
      purposes of the automatic enrollment provisions of this Section 4.1(a),
      the Plan Administrator shall provide to:  (A) each eligible
      Employee who has never contributed to the Plan, (B) each former Employee
      who becomes a Participant in the Plan pursuant to Section 3.3, and/or (C)
      each Employee who becomes a Participant in the Plan pursuant to Section
      3.4 a notice that describes:

            

    

     

    
      	
               
      

            	
              (A)

            	
              the
      terms of the automatic enrollment
provisions;

            

    

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              (B)

            	
              the
      rights of each Participant to modify or terminate the automatic
      contributions under this Section
4.1(a);

            

    

     

    
      	
               
      

            	
              (C)

            	
              the
      procedure for exercising that
right;

            

    

     

    
      	
               
      

            	
              (D)

            	
              the
      timing for implementation of any such election;
  and

            

    

     

    
      	
               
      

            	
              (E)

            	
              the
      Participant's right to request a withdrawal under Section 8.4, if
      applicable.

            

    

     

    
      	
               
      

            	
              (iv)

            	
              The
      Plan Administrator may from time to time establish procedures to govern
      the administration of the automatic enrollment provisions under this
      Section 4.1(a).  A Participant may make or change investment
      instructions for any contributions made under this Section 4.1(a) pursuant
      to Article VI.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Compensation
      Redirection Agreements.

            

    

     

    
      	
               
      

            	
              (i)

            	
              In
      lieu of the 3% Automatic Compensation Redirection Contribution election
      under Section 4.1(a), a Participant may elect to have a portion of his
      Compensation contributed to the Plan as a Compensation Redirection Amount
      by entering into a Compensation Redirection Agreement with a Participating
      Company.  Such Compensation Redirection Agreement shall specify
      a whole percentage of his Compensation to be contributed to the Plan, from
      one percent (1%) to fifty percent (50%) (in multiples of one (1)
      percentage point); provided, however, that a
      Participant whose terms of employment are covered by a collective
      bargaining agreement entered into with a Participating Company may make
      additional elections as provided in Section 4.1(b)(ii),
      below.  Such contributions are subject to the limitations set
      forth in Sections 5.5 and 5.8 of the
Plan.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              In
      addition to the Compensation Redirection Amount elected in Section
      4.1(b)(i) or the 3% Automatic Compensation Redirection Contribution under
      Section 4.1(a), and subject to the limitations set forth in Sections 5.5
      and 5.8 of the Plan and provided that such election will not result in a
      deferral which would cause the limits of Code Section 402(g) to be
      exceeded:

            

    

     

    
      	
               
      

            	
              (A)

            	
              a
      Participant whose terms of employment are covered by a collective
      bargaining agreement entered into between a Participating Company and the
      International Brotherhood of Electrical Workers, Local No. 702 may elect
      to defer between one percent (1%) and one hundred percent (100%), in whole
      percentage increments, of his Performance Incentive Plan payout as an
      additional Compensation Redirection Amount, to the extent allowed by the
      applicable collective bargaining
agreement;

            

    

     

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              (B)

            	
              a
      Participant whose terms of employment are covered by a collective
      bargaining agreement entered into between a Participating Company and the
      Utility Workers Union of America, Local No. 175 may elect to defer between
      one percent (1%) and one hundred percent (100%), in whole percentage
      increments, of any of the guaranteed annual payment or any incentive plan
      payment earned by such Participant as an additional Compensation
      Redirection Amount, to the extent allowed by the applicable collective
      bargaining agreement;

            

    

     

    
      	
               
      

            	
              (C)

            	
              a
      Participant whose terms of employment are covered by a collective
      bargaining agreement entered into between a Participating Company and the
      International Brotherhood of Electrical Workers, Local No. 1393, the
      United Steelworkers of America, AFL-CIO-CLC, Local Nos. 7441 and 12213 may
      elect to defer between one percent (1%) and one hundred percent (100%), in
      whole percentage increments, any bonuses paid to the Participant by a
      Participating Company as an additional Compensation Redirection Amount, to
      the extent allowed by the applicable collective bargaining agreement;
      and

            

    

     

    
      	
               
      

            	
              (D)

            	
              a
      Participant whose terms of employment are covered by a collective
      bargaining agreement entered into between a Participating Company and the
      Teamsters, Chauffeurs, Warehousemen and Helpers Local No. 135 may elect to
      defer between one percent (1%) and ninety percent (90%), in whole
      percentage increments, any bonuses paid to the Participant by a
      Participating Company as an additional Compensation Redirection Amount, to
      the extent allowed by the applicable collective bargaining
      agreement.

            

    

     

    Company
Matching Contributions will not be made with respect to any amounts deferred
into the Plan pursuant to subparagraphs (A), (C) and (D) of this Section
4.1(b)(ii).

     

    
      	
               
      

            	
              (iii)

            	
              Except
      for occasional, bona fide
      administrative considerations, as provided under Treasury Regulation
      Section 1.401(k)-1(a)(3)(iii)(C)(2), contributions made pursuant to a
      Compensation Redirection Agreement cannot precede the earlier
      of:

            

    

     

    
      	
               
      

            	
              (A)

            	
              the
      performance of services relating to the contribution;
  and

            

    

     

    
      	
               
      

            	
              (B)

            	
              the
      date the Compensation that is subject to the Compensation Redirection
      Agreement would be currently available to the Participant in the absence
      of an election to defer.

            

    

     

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

    
      	
              4.2

            	
              Change in Compensation
      Redirection Agreements.  By following the procedures
      established by the Plan Administrator, a Participant may prospectively
      change his Compensation Redirection Agreement within the limits set forth
      in Section 4.1.  The Plan Administrator may, as of any payroll
      period, modify the Compensation Redirection Agreements of any Participant
      if necessary to comply with the limits contained in Sections 5.5, 5.6,
      5.7, and 5.8; provided, however, that
      any modification by the Plan Administrator shall be determined in a
      uniform and non-discriminatory manner; provided, further, that
      any modification may result in the Compensation Redirection Contribution
      of a Participant reduced to a fractional percentage in order to permit
      such Participant to maximize his Compensation Redirection
      Amount.

            

    

     

    
      	
              4.3

            	
              Revocation of
      Compensation Redirection Agreements.  As of any payroll
      period, a Participant may cease having his Compensation redirected to the
      Plan and revoke his Compensation Redirection Agreement by following the
      procedures established by the Plan Administrator or its designate in
      advance of the date on which the revocation is to be
      effective.  In order for a Participant to reinstate his
      Compensation Redirection Agreement, such Participant shall follow the
      procedures outlined in Section 3.3 as though he were a new
      Participant.

            

    

     

    
      	
              4.4

            	
              Catch-Up
      Contributions.  All Employees who are eligible to make
      contributions to their Compensation Redirection Accounts under this Plan
      and who have attained age fifty (50) before the close of the Plan Year
      shall be eligible to make catch-up contributions in accordance with, and
      subject to the limitations of, Section 414(v) of the Code.  Such
      catch-up contributions shall not be taken into account for purposes of the
      provisions of the Plan implementing the required limitations of Sections
      402(g) and 415 of the Code and shall also be disregarded for purposes of
      determining any Company Matching Contributions under Section 5.2 of this
      Plan.  The Plan shall not be treated as failing to satisfy the
      provisions of the Plan implementing the requirements of Section 401(k)(3),
      401(k)(11), 401(k)(12), 410(b), or 416 of the Code, as applicable, by
      reason of the making of such catch-up
  contributions.

            

    

     

    ARTICLE
V

    COMPANY
CONTRIBUTIONS

     

    
      	
              5.1

            	
              Amount of Company
      Contributions.  Subject to the limitations set forth
      below, the Participating Companies shall contribute with respect to each
      payroll period an amount equal to one hundred percent (100%) of that
      Participant's Compensation Redirection Amount; provided, however, that
      the amount of contributions by any Participating Companies under this
      Section and under Sections 5.2 and 5.3 with respect to any Plan Year shall
      not exceed an amount equal to the maximum amount deductible by such
      Participating Companies under Section 404 of the Code for such Plan Year
      as an expense for federal income tax purposes; provided, further, that,
      except with respect to contributions based on Compensation paid on a
      Participant's final paycheck as described in
      Section 2.12, no contributions shall be made under this Section after the
      effective date of a Participant's Termination Date with the Participating
      Companies.

            

    

     

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

    
    

     

    
      	
              5.2

            	
              Company Matching
      Contributions.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Non-Union
      Employees.  Subject to the limitations of Section 5.5 and
      Section 5.7, the Company Matching Contributions with respect to each Plan
      Year for a Participant whose terms of employment are not governed by a
      collective bargaining agreement entered into by a Participating Company
      and a Union shall be an amount equal to fifty percent (50%) of that
      portion of such Participant's Compensation Redirection Amount, excluding
      catch-up contributions, not in excess of six percent (6%) of his
      Compensation in such Plan Year to be allocated to his Company Matching
      Contributions Account.  Notwithstanding anything contained in
      this Section to the contrary and subject to the limitations of Sections
      5.5 and 5.7, the Participating Companies shall make a year-end
      reconciliation or "true-up" Company Matching Contribution, effective as of
      the last day of the Plan Year, on behalf of each Participant who made a
      Compensation Redirection Contribution with respect to such Plan Year,
      equal to the excess, if any, of: (1) fifty percent (50%) of the
      Participant's Compensation Redirection Amount for such Plan Year to the
      extent such Compensation Redirection Amount does not exceed six percent
      (6%) of the Participant's Compensation for such Plan Year, over (2) the
      Company Matching Contributions previously contributed for such Participant
      for the Plan Year pursuant to this Section 5.2(a).  Any such
      reconciliation or "true-up" shall be made once annually and paid in
      accordance with Section 5.4 and shall be subject to any applicable
      limitation under Code Section 401(a)(17).  Notwithstanding
      anything contained in this Section 5.2 to the contrary, if the Plan
      Administrator reduces or returns in accordance with Section 5.6 the
      Compensation Redirection Amounts of a Participant in order to comply with
      Section 5.6, Section 415 of the Code or Section 402(g) of the Code, the
      Participating Companies shall be required to forfeit any Company Matched
      Contributions attributable to the reduced or returned Compensation
      Redirection Amounts but only to the extent that the Participant
      Compensation Redirection Amounts for such Plan Year (after adjustment to
      reflect the required reductions and returns) is not in excess of six
      percent (6%) of his Compensation for such Plan
  Year.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Union
      Employees.

            

    

     

    
      	
               
      

            	
              (i)

            	
              Subject
      to the limitations of Section 5.5 and Section 5.7 and except as provided
      below, the Participating Companies shall also contribute, with respect to
      each Plan Year for a Participant whose terms of employment are governed by
      a collective bargaining agreement entered into by the Participating
      Companies and a Union during which a Participant has in effect a
      Compensation Redirection Agreement, an amount equal to fifty percent (50%)
      of that portion of such Participant's Compensation Redirection Amount,
      excluding catch-up contributions, that is not in excess
  of:

            

    

     

    
      	
               
      

            	
              (A)

            	
              for
      the Teamsters, Chauffeurs, Warehousemen, and Helpers Local No. 135, five
      percent (5%) of his Compensation for such Plan Year and, effective
      September 24, 2009, six percent (6%) of his Compensation for such Plan
      Year,

            

    

     

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (B)

            	
              for
      the International Brotherhood of Electrical Workers Local No. 702, five
      percent (5%) of his Compensation for such Plan
  Year,

            

    

     

    
      	
               
      

            	
              (C)

            	
              for
      the International Brotherhood of Electrical Workers Local No. 1393, United
      Steelworkers of America Local No. 12213, and for United Steelworkers of
      America Local No. 7441, effective December 1, 2008, five percent (5%) of
      his Compensation for such Plan Year for those Participants in these
      designated Unions hired prior to July 21,
2009,

            

    

     

    
      	
               
      

            	
              (D)

            	
              for
      the International Brotherhood of Electrical Workers Local No. 1393, United
      Steelworkers of America Local No. 12213, and United Steelworkers of
      America Local No. 7441, effective December 1, 2008, six percent (6%) of
      his Compensation for such Plan Year for those Participants hired on or
      after July 21, 2009,

            

    

     

    to be
allocated to his Company Matching Contributions Account.

     

    
      	
               
      

            	
              (ii)

            	
              Notwithstanding
      Section 5.2(b)(i):

            

    

     

    
      	
               
      

            	
              (A)

            	
              Participants
      whose terms of employment are governed by a collective bargaining
      agreement entered into by the Participating Companies and International
      Brotherhood of Electrical Workers Local No. 702 shall not be eligible for
      any Company Matching Contributions relating to amounts deferred by the
      Participant as Compensation Redirection Amounts under the Performance
      Incentive Plan; and

            

    

     

    
      	
               
      

            	
              (B)

            	
              Participants
      whose terms of employment are governed by a collective bargaining
      agreement entered into by the Participating Companies and the
      International Brotherhood of Electrical Workers Local No. 1393, the United
      Steelworkers of America, AFL-CIO-CLC Locals Nos. 7441 and 12213, or the
      Teamsters, Chauffeurs, Warehousemen and Helpers Local 135 shall not be
      eligible for any Company Matching Contributions relating to bonus amounts
      deferred by the Participant as Compensation Redirection Amounts and paid
      by a Participating Company.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              Notwithstanding
      anything contained in this Section to the contrary and subject to the
      limitations of Section 5.5 and Section 5.7, the Company Matching
      Contributions with respect to each Plan Year made on behalf of
      Participants whose terms of employment are governed by a collective
      bargaining agreement entered into by the Participating Companies and
      the

            

    

     

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

    
 

    
      	
               
      

            	
              Utility
      Workers Union of America, Local 175 shall be an amount equal to one
      hundred percent (100%) of that portion of such Participant's Compensation
      Redirection Amount, excluding catch-up contributions, to be allocated to
      his Company Matching Contributions Account; provided, however, that
      the maximum annual Company Matching Contribution under this sentence for
      any Participant in any Plan Year shall be one thousand dollars
      ($1,000.00).

            

    

     

    
      	
               
      

            	
              (iv)

            	
              Notwithstanding
      anything contained in this Section to the contrary and subject to the
      limitations of Sections 5.5 and 5.7, the Participating Companies shall
      make a year-end reconciliation or "true-up" Company Matching Contribution,
      effective as of the last day of the Plan Year, on behalf of each
      Participant who made a Compensation Redirection Contribution with respect
      to such Plan Year, equal to the excess, if any, of: (1) fifty percent
      (50%) of the Participant's Compensation Redirection Amount for such Plan
      Year to the extent such Compensation Redirection Amount does not exceed
      the applicable percentage under paragraph (i), above, of such
      Participant's Compensation for the Plan Year, over (2) the Company
      Matching Contributions previously contributed for such Participant for the
      Plan Year pursuant to this Section 5.2(b).  Any such
      reconciliation or "true-up" shall be made once annually and paid in
      accordance with Section 5.4 and shall be subject to any applicable
      limitation under Code Section
401(a)(17).

            

    

     

    
      	
              5.3

            	
              Company Non-Matching
      Contributions.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Contributions for
      Non-Union Employees.  The Participating Companies shall
      also contribute for a Participant (regardless of the number of Hours of
      Service completed by such Participant) whose terms of employment are not
      governed by a collective bargaining agreement entered into by a
      Participating Company and a Union an amount equal to three percent (3%) of
      his Compensation in each payroll period; provided, however, that
      this three percent (3%) contribution shall not be made on behalf of any
      Participant who is listed on Exhibit B; provided, further, that
      the Participants employed by the Participating Companies listed on
      Exhibit C shall not be eligible for the annual contribution described
      in this Subsection (a).

            

    

     

    
      	
               
      

            	
              (b)

            	
              Certain Union
      Participants.

            

    

     

    
      	
               
      

            	
              (i)

            	
              Subject
      to the limits of Section 5.5, the Participating Companies shall also
      contribute in each Plan Year on December 15 of such Plan Year or as
      soon as practicable thereafter for a Participant whose terms of employment
      are governed by a collective bargaining agreement entered into by the
      Participating Companies and the Utility Workers Union of America, Local
      175 (regardless of the number of Hours of Service completed by such
      Participant) and who is employed on December 1 of such Plan Year an
      amount equal to the amount determined in accordance with the following
      schedule:

            

    

     

    
      
        
        

      

      
        -24-

        
          

        

      

      
        
        

      

    

    

     

    
      	 	
              Contribution Date

            	
              For Year

            	
              Amount of Contribution

            	 
	 	
              December 15,
      2008

            	
              2009

            	
              $1,300

            	 
	 	 December
      15. 2009	2010 	$1,300 	 

    

    

    provided, however, that, to the
extent any contribution required under this Section 5.3(b)(i) with respect to a
Participant for a Plan Year would otherwise be limited by Section 5.5, such
Participant shall, if he remains employed in the following Plan Year, be
entitled to an additional contribution for that following Plan Year in an amount
equal to the amount by which his previous Plan Year contribution was limited by
Section 5.5.

     

    
      	
               
      

            	
              (ii)

            	
              To
      the extent required by the applicable collective bargaining agreement,
      effective December 1, 2008 and subject to the limits of Section 5.5, the
      Participating Companies shall also contribute each payroll period for a
      Participant whose terms of employment are governed by a collective
      bargaining agreement entered into by the Participating Companies and the
      International Brotherhood of Electrical Workers Local No. 1393, the United
      Steelworkers of America Local No. 12213, and/or the United Steelworkers of
      America Local No. 7441 and who was hired on or after July 21, 2009
      (regardless of the number of Hours of Service completed by such
      Participant) equal to three percent (3%) of such Participant's
      Compensation in each payroll period; provided, however, that
      such Participant's Compensation for purposes of determining the amount of
      the Non-Matching Contribution under this Section 5.3(b)(ii) shall exclude
      any bonus amounts deferred by the Participant as Compensation Redirection
      Amounts and paid by a Participating
Company.

            

    

     

    To the
extent any contribution required under this Section 5.3(b)(ii) with respect to a
Participant for a Plan Year would otherwise be limited by Section 5.5, such
Participant shall, if he remains employed in the following Plan Year, be
entitled to an additional contribution for that following Plan Year in an amount
equal to the amount by which his previous Plan Year contribution was limited by
Section 5.5.

     

    
      	
               
      

            	
              (iii)

            	
              To
      the extent required by the applicable collective bargaining agreement,
      effective September 24, 2009 and subject to the limits of Section 5.5, the
      Participating Companies shall also contribute each payroll period for a
      Participant whose terms of employment are governed by a collective
      bargaining agreement entered into by the Participating Companies and
      Teamsters, Chauffeurs, Warehousemen and Helpers Local 135 and who was
      hired on or after September 24, 2009 an amount equal to three percent (3%)
      of such Participant's Compensation in each payroll period; provided, however, that
      such Participant's Compensation for purposes of determining the amount of
      the Non-Matching Contribution under this Section 5.3(b)(iii) shall exclude
      any bonus amounts deferred by the Participant
      as Compensation Redirection Amounts and paid by a Participating
      Company.

            

    

     

    
      
        
        

      

      
        -25-

        
          

        

      

      
        
        

      

    

    
    

    To the
extent any contribution required under this Section 5.3(b)(iii) with respect to
a Participant for a Plan Year would otherwise be limited by Section 5.5, such
Participant shall, if he remains employed in the following Plan Year, be
entitled to an additional contribution for that following Plan Year in an amount
equal to the amount by which his previous Plan Year contribution was limited by
Section 5.5.

     

    
      	
               
      

            	
              (c)

            	
              Discretionary Profit
      Sharing Contributions.  The Chief Executive Officer or
      President of any of the Participating Companies listed on Exhibit C
      may, in its sole discretion, elect to contribute additional amounts on
      behalf of Participants employed by each such Participating Company to the
      Plan as additional Company contributions.  Any additional
      Company contribution made to the Plan shall be allocated among the
      Participants employed by each such Participating Company on the last
      calendar day of the Plan Year based on the respective Compensation of each
      eligible Participant in the Plan Year and shall be allocated to such
      Participant's Company Non-Matching Contributions
      Account.  Contributions made under this Subsection shall be paid
      into the Plan as soon as practicable after completion of the Plan Year for
      which the contribution relates.

            

    

     

    
      	
              5.4

            	
              Remittance of Company
      Contributions.  Company contributions required under
      Section 5.1 shall be remitted to the Trustee as soon as practicable after
      such amounts are withheld from the pay of Participants, but no later than
      the date required under 29 CFR §2510.3-102.  Company
      contributions required under Section 5.2 shall be remitted to the Trustee
      on a payroll-period-by-payroll-period basis no later than thirty (30)
      calendar days after the month during which the Compensation upon which the
      contributions are based would have been paid to the Participants, and any
      contribution based on a Plan Year reconciliation of the amount of the
      contribution shall be remitted to the Trustee no later than the date the
      Company's federal income tax return is due (including extensions) for that
      Plan Year.  Such contributions shall then be allocated among the
      investment Funds as directed by the Participants.  Company
      contributions under Section 5.3(a) and (b) shall be remitted to the
      Trustee as soon as practicable after the end of the payroll period to
      which the Company contributions relate, but in any event no later than the
      date the Company's federal income tax return is due (including extensions)
      for that Plan Year during which occurs the payroll period and shall then
      be allocated among investment Funds as directed by the Participants; provided, however, that
      Company contributions under Section 5.3(b)(i) shall be contributed as
      provided in such Section.  Company contributions under Section
      5.3(c) shall be remitted to the Trustee no later than the due date for the
      Company's federal income tax return (including extensions) for that Plan
      Year during which the annual contribution is
  accrued.

            

    

     

    
      	
              5.5

            	
              Maximum
      Contributions.  Notwithstanding any other provisions of
      the Plan, the Annual Additions allocated to any Participant in any Plan
      Year under the Plan and under any other qualified defined contribution
      plans maintained by the Group shall not exceed the lesser
    of:

            

    

     

    
      	 	
              (a)

            	
              One
      hundred percent (100%) of such Participant's Section 415 Compensation from
      the Group in that Plan Year, or

            

    

     

    
      
        
        

      

      
        -26-

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (b)

            	
              Forty-nine
      thousand dollars ($49,000), as adjusted for cost of living increases
      pursuant to Section 415(d) of the
Code.

            

    

     

    Notwithstanding
anything contained herein to the contrary, the limit on Annual Additions shall
be increased to any greater amount permitted by Section 415 of the Code which
Code Section is incorporated herein by reference.

     

    
      	
              5.6

            	
              Return of Compensation
      Redirection Amounts.  Unless the Plan Administrator
      properly elects at such time and in such manner as prescribed by the
      Secretary of the Treasury to apply the Current Year ADP Method instead, if
      after making the adjustments required by Section 5.8 the average of the
      Actual Deferral Percentages for the group of Highly Compensated
      Participants who are eligible to be Participants in a Plan Year would be
      more than the greater of:

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      average of the immediately preceding Plan Year's Actual Deferral
      Percentages of all Prior Year's Non-Highly Compensated Participants
      multiplied by one and twenty-five one hundredths (l.25),
  or

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      lesser of:

            

    

     

    
      	
               
      

            	
              (i)

            	
              two
      percent (2%) plus the immediately preceding Plan Year's Actual Deferral
      Percentage of all Prior Year's Non-Highly Compensated Participants,
      or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      immediately preceding Plan Year's Actual Deferral Percentage of all Prior
      Year's Non-Highly Compensated Participants multiplied by two
      (2),

            

    

     

    the
Compensation Redirection Contributions of the Highly Compensated Participants
shall be reduced to the extent necessary so that the Actual Deferral Percentage
for the group of Highly Compensated Participants is not more than the greater of
Subsection (a) or (b) above.

     

    Reduction
of Compensation Redirection Contributions shall be accomplished first by
determining the maximum deferral for the group of Highly Compensated
Participants permitted by Subsection (a) or (b) above and then reducing the
Compensation Redirection Contribution of the Highly Compensated Participants
with the highest Compensation Redirection Contributions by one tenth of one
percent (0.1%).  If after making the above reduction the limitations
are still exceeded, the Compensation Redirection Contributions of the Highly
Compensated Participants shall be further reduced in one tenth of one percent
(0.1%) increments until the limitations of this Section 5.6 are not
exceeded.

     

    Correction
of excess Compensation Redirection Amounts shall be accomplished as
follows.  First, the Plan Administrator shall calculate the total
dollar amount of the Compensation Redirection Amounts of Highly Compensated
Participants that

     

    
      
        
        

      

      
        -27-

        
          

        

      

      
        
        

      

    

    would
otherwise be reduced as the result of the reduction of the Compensation
Redirection Contributions of those Highly Compensated Participants in accordance
with this Section 5.6 (the "Total Excess Contributions") without attributing any
such dollar reduction to a particular Highly Compensated
Participant.  The Compensation Redirection Amounts of the Highly
Compensated Participant with the highest dollar amount of Compensation
Redirection Amounts shall then be reduced by the amount required to cause that
Highly Compensated Participant's Compensation Redirection Amounts to equal the
dollar amount of the Compensation Redirection Amounts of the Highly Compensated
Participant with the next highest dollar amount of Compensation Redirection
Amounts.  If the total amount of the reductions of Compensation
Redirection Amounts in the preceding sentence is less than the Total Excess
Contributions, the process in the preceding sentence shall be
repeated.  In no event shall the reductions required under the
preceding two (2) sentences exceed the Total Excess Contributions.

     

    The
amount by which a Participant's Compensation Redirection Amount exceeds the
amount permitted under this Section, plus the allocable gain or loss determined
in accordance with Code Section 401(k) and the regulations promulgated
thereunder allocated to such excess Compensation Redirection Amount, shall be
returned to such Participant no later than the end of the Plan Year immediately
following the Plan Year for which the excess Compensation Redirection Amount was
made.  Any Company Matched Contributions that are attributable to
excess Compensation Redirection Amounts and that are not returned in accordance
with Section 5.7 shall be treated as a mistaken contribution, shall be
forfeited, shall be credited to and held in a suspense account and shall be
applied to reduce the amount of Company Matched Contributions otherwise required
of the Participating Companies for the next following Plan Years(s) until
exhausted.  The Plan Administrator shall apply the discrimination test
of this Section separately for the collective bargaining groups of
Employees.  To the extent permitted by applicable regulations, the
Plan Administrator may elect to test each collective bargaining group separately
or to aggregate one (1) or more of the groups for a combined
test.  For the purposes of determining whether the discrimination test
described in this Section is satisfied, all elective contributions that are made
under two (2) or more plans that are aggregated for the purposes of Code Section
401(a)(4) or 410(b) (other than Code Section 410(b)(2)(A)(ii)) are to be treated
as made under a single plan and that if two (2) or more plans are permissively
aggregated for purposes of Code Section 401(k), the aggregated plans must also
satisfy Code Sections 401(a)(4) and 410(b) as though they were a single
plan.

     

    
      	
              5.7

            	
              Return of Company
      Matched Contributions.  Unless the Plan Administrator
      properly elects at such time and in such manner as prescribed by the
      Secretary of the Treasury to apply the Current Year ACP Method instead, if
      after making the adjustments required by Section 5.6 the average of the
      Company Matched Contribution Percentages for the group of Highly
      Compensated Participants in a Plan Year would be more than the greater
      of:

            

    

     

    
      	 	
              (a)

            	
              the
      average of the immediately preceding Plan Year's Company Matched
      Contribution Percentages of all Prior Year's Non-Highly Compensated
      Participants multiplied by one and twenty-five one hundredths (1.25),
      or

            

    

     

    
      
        
        

      

      
        -28-

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (b)

            	
              the
      lesser of:

            

    

     

    
      	
               
      

            	
              (i)

            	
              two
      percent (2%) plus the average of the immediately preceding Plan Year's
      Company Matched Contribution Percentages of all Prior Year's Non-Highly
      Compensated Participants, or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      average of the immediately preceding Plan Year's Company Matched
      Contribution Percentages of all Prior Year's Non-Highly Compensated
      Participants multiplied by two (2),

            

    

     

    the
Company Matched Contributions of the Highly Compensated Participants shall be
reduced to the extent necessary so that the average of the Company Matched
Contribution Percentages for the group of Highly Compensated Participants is not
more than the greater of Subsection (a) or (b) above.

     

    Reduction
of excess Company Matched Contributions shall be accomplished first by
determining the maximum average percentage for the group of Highly Compensated
Participants permitted by Subsection (a) or (b) above and then reducing the
Company Matched Contributions of the Highly Compensated Participants with the
highest Company Matched Contribution Percentage so that their Company Matched
Contribution Percentage is reduced by one tenth of one percent
(0.1%).  If after making the above reduction the limitations are still
exceeded, the Company Matched Contribution Percentages of the Highly Compensated
Participants shall be further reduced in one tenth of one percent (0.1%)
increments until the limitations are not exceeded.

     

    The
amount of excess Company Matched Contributions to be corrected with respect to a
Highly Compensated Participant shall be determined as follows.  First,
the Plan Administrator shall calculate the total dollar amount of the Company
Matched Contributions of Highly Compensated Participants that would otherwise be
reduced as the result of the reduction of Company Matched Contributions
Percentages in accordance with this Section 5.7 (the "Total Excess Aggregate
Contributions") without attributing any such dollar reduction to a particular
Highly Compensated Participant.  The Company Matched Contributions of
the Highly Compensated Participant with the highest dollar amount of Company
Matched Contributions shall then be reduced by the amount required to cause that
Highly Compensated Participant's Company Matched Contributions to equal the
dollar amount of the Company Matched Contributions of the Highly Compensated
Participant with the next highest dollar amount of Company Matched
Contributions.  If the total amount of the reductions of Company
Matched Contributions in the preceding sentence is less than the Total Excess
Aggregate Contributions, the process in the preceding sentence shall be
repeated.  In
no event shall the reductions required under the preceding two (2) sentences
exceed the Total Excess Aggregate Contributions.

     

    Excess
Company Matched Contributions shall be corrected by taking the following
actions:

     

    
      
        
        

      

      
        -29-

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (c)

            	
              First,
      Company Matched Contributions that are not forfeitable under Section 9.3,
      plus income attributable thereto, shall be refunded to the affected
      Participants no later than the end of the Plan Year immediately following
      the Plan Year for which such excess Company Matched Contributions were
      made; and

            

    

     

    
      	
               
      

            	
              (d)

            	
              Second,
      Company Matched Contributions that are forfeitable under Section 9.3, plus
      income attributable thereto, shall be forfeited and applied to reduce the
      amount of Company Matched Contributions otherwise required of the
      Participating Companies to whom they relate for the next following Plan
      Year(s) until exhausted.

            

    

     

    The
income attributable to excess Company Matched Contributions shall be determined
in accordance with Code Section 401(m) and the regulations promulgated
thereunder.

     

    To the
extent permitted by the Code and applicable regulations, the Plan Administrator
shall not be required to apply the discrimination test of this Section for the
collective bargaining groups of Employees.  For purposes of this
Section, all Company Matched Contributions that are made under two (2) or more
plans that are aggregated for purposes of Code Sections 401(a)(4) and 410(b)
(other than Code Section 410(b)(2)(A)(ii)) are to be treated as made under a
single plan, and if two (2) or more plans are permissively aggregated for
purposes of Code Section 401(m), the aggregated plans shall also satisfy Code
Sections 401(a)(4) and 410(b) as though they were a single plan.

     

    
      	
              5.8

            	
              Maximum Redirection
      Amounts.  Notwithstanding anything contained in the Plan
      to the contrary, the maximum Compensation Redirection Amount which a
      Participant may elect to have redirected under Section 4.1 and under any
      other qualified retirement plan, whether or not maintained by a member of
      the Group, in any calendar year is the applicable limit in effect for
      Section 402(g) of the Code (the "Section 402(g) Limit"), except as
      permitted under Section 414(v) of the Code, if permitted.  If
      due to a mistake in fact Compensation Redirection Amounts in excess of the
      Section 402(g) Limit are allocated in a calendar year to the Participant
      Account of any Participant, the Trustee shall return to such Participant
      the portion of his Compensation Redirection Amount in excess of the
      Section 402(g) Limit, plus the allocable gain or loss determined in
      accordance with Code Section 402(g) and the regulations promulgated
      thereunder allocated to such excess Compensation Redirection Amount, not
      later than the April 15 immediately following the calendar year
      during which such excess contribution was made.  If in a
      calendar year a Participant's Compensation Redirection Amount under the
      Plan, when aggregated with any other elective deferrals made by such
      Participant in such calendar year to any other qualified retirement plan
      under Section 401(k), Section 403(b) and Section 408(k) of the Code,
      whether or not maintained by a member of the
  Group,

            

    

     

    
      
        
        

      

      
        -30-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              would
      otherwise exceed the Section 402(g) Limit, such Participant may before the
      March 1 immediately following such calendar year notify the Plan
      Administrator on the Appropriate Form as to the portion of the amount in
      excess of the Section 402(g) Limit to be allocated to the Plan, and the
      Plan Administrator may, but is not required to, direct the Trustee to pay
      to such Participant the amount of the excess which was allocated to the
      Plan by such Participant plus the allocable gain or loss determined in
      accordance with Code Section 402(g) and the regulations promulgated
      thereunder allocated to such excess Compensation Redirection Amount,
      before the April 15 immediately following the calendar year during
      which the excess contribution was made.  The Section 402(g)
      Limit contained in this Section shall automatically be adjusted in
      accordance with Sections 402(g)(5) and 415(d) of the
  Code.

            

    

     

    
      	
              5.9

            	
              Investment Fund
      Priority of Excess Contributions.  If contributions to
      the Plan exceed the permissible limits described in Sections 5.5, 5.6,
      5.7, and 5.8 and contributions are refunded to a Participant, the
      investment Funds in which such Participant's Participant Accounts are
      allocated shall be liquidated pro
rata.

            

    

     

    
      	
              5.10

            	
              ESOP and ESOP I
      Accounts Transfers.  Any amounts which were previously
      transferred to this Plan from the ESOP or ESOP I shall be credited to the
      Company Matching Contributions Accounts of the Employees requesting the
      transfer as of the Effective Date with respect to amounts transferred from
      the ESOP and as of March 31, 1989 with respect to amounts transferred
      from ESOP I, and such transferred amounts shall be fully vested and
      non-forfeitable at all times.

            

    

     

    
      	
              5.11

            	
              Transfer of Assets
      from Other Plans.  An Employee may, with the consent of
      the Plan Administrator, transfer (roll over) a distribution which he
      received from another defined contribution plan qualified under Section
      401(a) or under Section 403(a) of the Code to the Plan; provided, however,
      that:

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      Employee was not an owner-employee under such plan within the meaning of
      Section 401(c)(1) of the Code;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      transfer is made to the Plan no later than the sixtieth (60th) calendar
      day after distribution was made to that Employee from such
      plan;

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      distribution from such plan constituted that Employee's entire interest in
      such plan and was distributed within one (1) taxable year to that Employee
      as a qualifying lump-sum distribution within the meaning of Section
      402(e)(4)(A) of the Code;

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      amount transferred to the Plan does not include any nondeductible amounts
      contributed by that Employee to such
plan;

            

    

     

    
      	
               
      

            	
              (e)

            	
              the
      transfer is made in cash to the Trustee;
and

            

    

     

    
      	
               
      

            	
              (f)

            	
              if
      the assets are transferred directly by the Trustee from such other
      qualified plan to the Trustee, the Employee is required to provide the
      Plan Administrator documentation establishing that such other plan does
      not permit distribution in any
      form other than a single lump sum payment or installments unless the
      transfer would be deemed to be a rollover under the
      Code.

            

    

     

    
      
        
        

      

      
        -31-

        
          

        

      

      
        
        

      

    

    
    

     

    Such a
transfer (rollover) may also be made through an Individual Retirement Account
qualified under Section 408 of the Code where that Individual Retirement Account
was used as conduit from the prior plan, the transfer is made in accordance with
the rules provided at Subsections (a) through (f) above and the transfer does
not include any personal contributions or earnings thereon which that Employee
may have made to that Individual Retirement Account.  Any monies
rolled over shall be credited to the Participant's Rollover Contribution Account
and shall be fully vested and non-forfeitable at all times.  The Plan
will accept a direct rollover of an eligible rollover distribution from
(i) an annuity contract described in Section 403(b) of the Code, excluding
after-tax employee contributions, and (ii) an eligible plan under Section
457(b) of the Code which is maintained by a state, political subdivision of a
state, or any agency or instrumentality of a state or political subdivision of a
state.

     

    
      	
              5.12

            	
              Rehire after Military
      Service.  Notwithstanding any provisions of this Plan to
      the contrary, contributions, benefits, and service credit with respect to
      qualified military service shall be provided in accordance with the
      Uniformed Services Employment and Reemployment Rights Act of 1994
      ("USERRA") [as codified at Chapter 43, Title 38, of the United States
      Code], Code Section 414(u), and, effective January 1, 2007, Code Section
      401(a)(37), as amended from time to
time.

            

    

     

    
      	
               
      

            	
              (a)

            	
              For
      purposes of this Section, "qualified military service" means any service
      in the uniformed services as defined in USERRA by any individual if such
      individual is entitled to reemployment rights under USERRA with respect to
      such service.

            

    

     

    
      	
               
      

            	
              (b)

            	
              A
      Participant, whose employment is interrupted by qualified military service
      or who is on a leave of absence for qualified military service who timely
      resumes employment with the Participating Companies in accordance with
      USERRA, may elect to make up Compensation Redirection Amounts contributed
      to his Compensation Redirection Account to
      the Plan in accordance with Code Section 414(u) reduced by Compensation
      Redirection Amounts contributed to his Compensation Redirection
      Account, if any,
      actually made for the Participant during the period of such interruption
      or leave.  Except to the extent otherwise provided under Code
      Section 414(u), this right applies for five (5) years following such
      resumption of employment (or, if shorter, for a period equal to three (3)
      times the period of the interruption or leave). Such contribution
      by the Participant may only be made during such period and while the
      Participant is employed by the Participating
  Companies.

            

    

     

    
      	
               
      

            	
              (c)

            	
              If
      such Participant elects to make such make-up contributions, then the
      Participating Companies shall make-up the related Participating Companies
      Matched Contributions which would have been required had such
      contributions actually been made during the period of qualified military
      service.  The make-up Participating Companies Matched
      Contributions by the Participating Companies shall
      be made as soon as practicable after the Participant makes such make-up
      contributions.

            

    

    
    

     

    
      	
               
      

            	
              (d)

            	
              If
      the Participant timely resumes employment in accordance with USERRA after
      a qualified military leave, the Participating Companies shall make any
      contributions to such Participant's Company Non-Matching Contributions
      Account that would have been made if the Participant had remained employed
      during the Participant's qualified military service.  Such
      contributions must be made no later than ninety (90) days after the date
      of such reemployment or, if later, when contributions are normally due for
      the year in which the qualified military service was
      performed.

            

    

     

    
      
        
        

      

      
        -32-

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (e)

            	
              In
      determining the amount of any such Participant make-up contribution to his
      Compensation Redirection Account or Participating Companies contribution
      to such Participant's Company Matching Contributions Account and
      Non-Matching Contributions Account, a Participant shall be treated as
      receiving Compensation from the Participating Companies during such period
      of qualified military service equal to (i) the Compensation the
      Participant would have received during such period if the Participant were
      not in qualified military service, determined based on the rate of pay the
      Participant would have received from the Participating Companies but for
      the absence during the period of qualified military service, or (ii) if
      the Compensation the Participant would have received during such period is
      not reasonably certain, the Participant's average Compensation from the
      Participating Companies during the twelve (12) month period immediately
      preceding the qualified military service (or, if shorter, the period of
      employment immediately preceding the qualified military
      service).

            

    

     

    
      	
               
      

            	
              (f)

            	
              To
      the extent provided under Code Section 401(a)(37), in the case of a
      Participant whose employment is interrupted by qualified military service
      and who dies while performing qualified military service, the survivor of
      such Participant shall be entitled to any additional benefit (other than
      benefit accruals) provided under the Plan as if the Participant timely
      resumed employment in accordance with USERRA and then, on the next day,
      terminated employment on account of
death.

            

    

     

    
      	
               
      

            	
              (g)

            	
              A
      Participant whose employment is interrupted by qualified military service
      or who is on a leave of absence for qualified military service and who
      receives a differential wage payment within the meaning of Code Section
      414(u)(12)(D) from the Participating Companies, shall be treated as a
      Participant who is eligible to make contributions to his Compensation
      Redirection Account and the differential wage payment shall be treated as
      Compensation and Section 415 Compensation.  This provision shall
      be applied to all similarly situated individuals in a reasonably
      equivalent manner.  However, such individual shall be treated as
      having a severance from employment during any period the individual is
      performing qualified military service for purposes of electing to take a
      distribution from the Plan.  An individual who elects to take a
      distribution on account of qualified military service may not make a
      contribution to his Compensation
      Redirection Account during the six (6) month period beginning on the date
      of the distribution.

            

    

     

    
    

     

    
      	
              5.13

            	
              Death or Disability
      While Performing Military
Service.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Treatment of
      Reemployment.  Effective on or after January 1, 2009, an
      individual who becomes Totally Disabled or dies while performing qualified
      military service (as defined in Section 414(u)(5) of the Code) shall be
      treated as if he or she timely resumed employment in accordance with his
      or her reemployment rights under USERRA on the day preceding such Total
      Disability or death and terminated employment with the Participating
      Companies on the actual date of Total Disability or death.  In
      the case of such treatment, any full or partial compliance with respect to
      benefit accrual requirements under Code Section 414(u)(8) with respect to
      such individual shall be treated for purposes of Code Section 414(u)(1) as
      if such compliance was required under USERRA.  Such treatment
      shall apply to all individuals performing qualified military service with
      respect to the Participating
Companies.

            

    

     

    
      
        
        

      

      
        -33-

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (b)

            	
              Company Matching
      Contribution.  The amount of the Company Matching
      Contribution for an individual described in subsection (a) shall be based
      on the such individual's average Compensation Redirection Amounts for the
      lesser of the 12-month period of service with the Participating Companies
      immediately prior to such qualified military service or the actual length
      of continuous service with the Participating
  Companies.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Company Non-Matching
      Contribution.  In determining the amount of the Company
      Non-Matching Contribution for an individual described in subsection (a),
      such individual shall be treated as receiving Compensation from the
      Participating Companies during the period of such individual's qualified
      military service equal to:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Compensation the individual would have received during such period if the
      individual were not in qualified military service, determined based on the
      rate of pay the individual would have received from the Participating
      Companies but for the absence during the period of qualified military
      service; or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              if
      the Compensation the individual would have received during such period is
      not reasonably certain, the individual's average Compensation from the
      Participating Companies during the 12-month period immediately preceding
      the qualified military service (or, if shorter, the period of employment
      immediately preceding the qualified military
  service).

            

    

     

    ARTICLE
VI

    INVESTMENT OF
CONTRIBUTIONS

     

    
      	
              6.1

            	
              Investment of
      Contributions.

            

    

     

    
      	 	
              (a)

            	
              Each
      Participant, at the date he initially elects to become a Participant in
      the Plan, shall direct in accordance with procedures adopted by the Plan
      Administrator that the amount of Company contributions made on his behalf
      under Sections 5.1, 5.2 and 5.3 and the amounts credited to his Rollover
      Contribution Account in accordance with Section 5.11, if any, be invested
      among the Funds, made available under the Plan in five percent (5%)
      increments (effective January 1, 2010, in increments as designated by the
      Plan Administrator).

            

    

     

    
      
        
        

      

      
        -34-

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (b)

            	
              Investment in the
      default fund.

            

    

     

    
      	
               
      

            	
              (i)

            	
              In
      the absence of an investment direction by a Participant or alternate payee
      pursuant to this Section for such Participant's Participant Account, then
      such Participant Account shall be invested in the default fund designated
      by the Plan Administrator, or its designee, and communicated to
      Participants until such time as the Participant directs the Plan
      Administrator regarding the investment of his
  Accounts.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              If
      a Participant was automatically enrolled in the Plan with a deemed 3%
      Automatic Compensation Redirection Contribution and does not direct the
      investment of the Company contributions made on his behalf, then such 3%
      Automatic Compensation Redirection Contribution shall be invested in the
      default fund designated by the Plan Administrator, or its designee, and
      communicated to Participants until such time as the Participant directs
      the Plan Administrator regarding the investment of his
      Accounts.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              If
      at the date on which a Participant is credited with the Company
      contributions under Section 5.3 the Participant does not have an
      investment election in effect, such Company contributions shall be
      initially invested in the default fund designated by the Plan
      Administrator, or its designee, and communicated to Participants until
      such time as such Participant directs the Plan Administrator regarding the
      investment of his Participant
Accounts.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Any
      amounts transferred from the ESOP and ESOP I in accordance with Section
      5.10 were automatically invested in the Company Stock Fund.  It
      is intended that this Article VI shall permit a Participant to direct the
      investment of his Participant Account into and out of the Company Stock
      Fund as of any trading day, without regard to such Participant's Years of
      Service or Period of Service, so as to satisfy the requirements of Section
      401(a)(35) of the Code.

            

    

     

    
      	
              6.2

            	
              Change in Investment
      Election.  Any investment election given by a Participant
      shall continue in effect until changed by such Participant.  A
      Participant, in accordance with procedures established by the Plan
      Administrator, may change his current investment election as to future
      contributions within the limits of Section 6.1.  Such a change
      in investment election shall be effective as soon as practicable after the
      change election is made.

            

    

     

    
      	
              6.3

            	
              Change of Investment
      of Prior Contributions.  Subject to Section 6.1, a
      Participant may change, in accordance with procedures established by the
      Plan Administrator, his investment election as to amounts previously
      contributed to his Participant Account in five percent (5%) increments
      (effective January 1, 2010, in increments as designated by the Plan
      Administrator) or in specified dollar amounts.  All such changes
      shall be effected as soon as practicable after the request is
      made.

            

    

     

    
      
        
        

      

      
        -35-

        
          

        

      

      
        
        

      

    

     

    
      	
              6.4

            	
              Special Rules for ESOP
      Subaccounts and ESOP Dividend Subaccounts.  Amounts held
      in each Participant's ESOP Subaccount (as defined in Section 19.9) and
      ESOP Dividend Subaccount (as defined in Section 19.9) shall be invested
      primarily in the Company Stock Fund accordance with Article XIX; provided, however, that
      the Plan Administrator may direct the Trustee to invest the portion of a
      Participant's ESOP Dividend Subaccount in any Fund pending distribution of
      that portion of the ESOP Dividend Subaccount in cash to the Participant
      pursuant to that Participant's election under Section
    19.2(a).

            

    

     

    
      	
              6.5

            	
              Company Stock
      Fund.  Notwithstanding anything contained in this Article
      VI, effective April 6, 2009, Participants shall not be permitted to invest
      more than ten percent (10%) of their future contributions to their
      Participant Accounts in the Company Stock Fund.  Furthermore, in
      the event a Participant's investment in the Company Stock Fund exceeds ten
      percent (10%) of the total amount of his Participant Accounts, such
      Participant may not allocate any additional amounts in his Participant
      Accounts to the Company Stock Fund until such time as the Company Stock
      Fund constitutes less than ten percent (10%) of the total amount in his
      Participant Accounts.  Effective as of January 1, 2007, it is
      intended that this Article VI shall permit a Participant to direct the
      investment of his Participant Account into and out of the Company Stock
      Fund as of any trading day, without regard to such Participant's Years of
      Service or Period of Service, so as to satisfy the requirements of Section
      401(a)(35) of the Code.

            

    

     

    ARTICLE
VII

    PARTICIPANT
ACCOUNTS

     

    
      	
              7.1

            	
              Maintenance of
      Participant Accounts.  The Plan Administrator shall
      maintain, or cause to be maintained, a Compensation Redirection Account, a
      Company Matching Contributions Account, a Company Non-Matching
      Contributions Account and, if applicable, a Rollover Contribution Account
      for each Participant.  Each such Account shall be maintained so
      as to reflect the investments in each of the investment Funds maintained
      pursuant to this Plan.

            

    

     

    
      	
              7.2

            	
              Valuation of
      Participant Accounts.  As of each Valuation Date the Plan
      Administrator or its designate shall, by uniform methods, adjust, or cause
      to be adjusted, the Participant Accounts of each Participant or former
      Participant with a Participant Account balance as of such Valuation Date
      to reflect contributions, withdrawals, distributions, income earned,
      expenses incurred by the Plan not directly paid by the Participating
      Companies and any increase or decrease in the fair market value of Trust
      Fund assets since the last Valuation Date.  Any income or losses
      with respect to each Fund shall be allocated proportionately among all
      Participant Accounts invested in such Fund in accordance with the value of
      such Participant Accounts attributable to such Fund's investments at the
      last

            

    

     

    
      
        
        

      

      
        -36-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              Valuation
      Date; provided, however, that
      for purposes of allocating income or losses in a calendar year quarter,
      the value of the Participant Accounts as of the preceding calendar year
      quarter shall be adjusted by the Plan Administrator or its designate, by
      uniform and non-discriminatory methods, to account for contributions to
      and distributions from the Participant Accounts during such
      quarter.  Notwithstanding the above, dividends (whether paid in
      cash or property) and distributions of shares pursuant to stock splits,
      stock dividends or recapitalizations made with respect to shares of
      Vectren Corporation common stock held in Company Stock Fund shall be
      credited to the Participant Accounts in which the shares on which the
      dividends or distributions were made are held, and any income earned in
      Company Stock Fund with respect to uninvested cash held in Company Stock
      Fund shall be allocated among all Participant Accounts invested in Company
      Stock Fund in accordance with the amount of uninvested cash in such
      Participant Accounts credited to Company Stock Fund at the last Valuation
      Date.  Each Participant shall be provided a statement as soon as
      practicable following each Valuation Date reflecting any contributions,
      withdrawals, distributions, income earned and increase or decrease in the
      value of his Participant Accounts since the last preceding Valuation
      Date.

            

    

     

    
      	
              7.3

            	
              Nature of
      Participant's Interest in Trust Fund.  The maintenance of
      Participant Accounts is for accounting purposes only, and a segregation of
      Plan assets shall not be required.  The rights of the
      Participants under the Plan are the rights to the benefits provided in the
      Plan, and the fact of maintenance of individual Participant Accounts shall
      not vest any right, title or interest in the assets of the Plan, in and of
      itself.

            

    

     

    ARTICLE
VIII

    WITHDRAWALS

     

    
      	
              8.1

            	
              Right to In-Service
      Withdrawals.  Subject to the limitations imposed by
      Section 8.2 and by this Section, a Participant employed by the Group may
      request an in-service withdrawal of his vested interest in his Participant
      Accounts, by following the procedures established by the Plan
      Administrator.  The in-service withdrawal shall be effected as
      soon as practicable after the request is made.  All payments
      shall be made based on the valuation of his Participant Accounts as of the
      Valuation Date coinciding with or immediately preceding the withdrawal
      date.  Except for withdrawals pursuant to Sections 8.2 and 8.4,
      a Participant may elect to withdraw assets from his Participant Accounts
      only once in any twelve (12) month period.  Except for
      withdrawals pursuant to Sections 8.2 and 8.4, any withdrawal shall be for
      at least two hundred fifty dollars ($250).  Except as provided
      below, withdrawals prior to January 1, 2010 shall be charged against the
      Participant Accounts in accordance with the following order of
      priority:

            

    

     

    
      	
               
      

            	
              (a)

            	
              Compensation
      Redirection Account; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              Rollover
      Contribution Account; and

            

    

     

    
      	
               
      

            	
              (c)

            	
              Company
      Non-Matching Contributions Account, if vested under Article IX;
      and

            

    

     

    
      	
               
      

            	
              (d)

            	
              Company
      Matching Contributions Account, if vested under Article
  IX.

            

    

     

    
      	
               
      

            	
              Effective
      January 1, 2010, withdrawals shall be charged against the Participant
      Accounts pro rata.

            

    

     

    Withdrawals
by a Participant shall be charged against the investment funds in which his
applicable Participant Account is invested pro rata.

     

    
      
        
        

      

      
        -37-

        
          

        

      

      
        
        

      

    

     

    Notwithstanding
anything contained herein to the contrary, earnings accrued after December 31,
1988 attributable to a Participant's Compensation Redirection Account may not be
withdrawn.

     

    
      	
              8.2

            	
              Hardship
      Withdrawals.  Hardship withdrawals shall be permitted
      only if the distribution both is made on account of an immediate and heavy
      financial need of the Participant and is necessary to satisfy such
      financial need.  The determinations of the existence of an
      immediate and heavy financial need and of the amount necessary to meet the
      need shall be made by the Plan Administrator or its designate in
      accordance with the deemed hardship standards under Treasury Regulations
      Sections 1.401(k)-1(d)(3)(iii)(B) and 1.401(k)-1(d)(3)(iv)(E) and the
      limitations imposed by this Section.  A distribution shall be
      deemed to be made on account of an immediate and heavy financial need only
      if the Appropriate Form submitted by the Participant demonstrates to the
      satisfaction of the Plan Administrator or its designate that the
      distribution is needed on account
of:

            

    

     

    
      	
               
      

            	
              (a)

            	
              uninsured
      medical expenses as described in Section 213(d) of the Code incurred by
      the Participant, the Spouse of the Participant, any dependents of the
      Participant as defined in Section 152 of the Code (determined without
      regard to subsections (b)(1), (b)(2), or (d)(1)(B)) or the Participant's
      Primary Beneficiary under the Plan.

            

    

     

    
      	
               
      

            	
              (b)

            	
              purchase
      (excluding mortgage payments) of a principal residence for the
      Participant;

            

    

     

    
      	
               
      

            	
              (c)

            	
              payment
      of tuition for the twelve (12) month period immediately following the date
      the withdrawal is to be made; provided, however, that
      such tuition shall be restricted to post-secondary education for the
      Participant, the Spouse of the Participant, any dependents of the
      Participant as defined in Section 152 of the Code (determined without
      regard to subsections (b)(1), (b)(2), or (d)(1)(B)) or the Primary
      Beneficiary of the Participant;

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      need to prevent the eviction of the Participant from his principal
      residence or foreclosure on the mortgage of the Participant's principal
      residence;

            

    

     

    
      	
               
      

            	
              (e)

            	
              payment
      for burial or funeral expenses for the Participant's deceased parent,
      spouse, children or dependents (as defined in Section 152 of the Code
      without regard to Section 152(d)(1)(B)) or the Primary Beneficiary of the
      Participant; or

            

    

     

    
      	
               
      

            	
              (f)

            	
              expenses
      for the repair of damage to the Participant's principal residence that
      would qualify for the casualty deduction under Section 165 of the Code
      (determined without regard to whether the loss exceeds ten percent (10%)
      of adjusted gross income).

            

    

     

    
      	
               
      

            	
              A
      withdrawal shall be deemed to be necessary to satisfy an immediate and
      heavy financial need only if the Appropriate Form as submitted by the
      Participant demonstrates to the satisfaction of the Plan Administrator or
      its designate that all of the following requirements are
      satisfied:

            

    

     

    
      
        
        

      

      
        -38-

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (g)

            	
              the
      distribution is not in excess of the amount of the immediate and heavy
      financial need of the Participant; provided, however, that
      for purposes of determining the amount needed to meet the hardship, the
      Plan Administrator may take into account the expected tax consequences of
      the distribution;

            

    

     

    
      	
               
      

            	
              (h)

            	
              the
      Participant has obtained all distributions, other than hardship
      distributions, and all nontaxable loans currently available under all tax
      qualified retirement plans maintained by the Group, and has in effect an
      election to receive cash payment of Dividends (as defined in Section 19.9)
      in accordance with Section 19.2;
and

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Plan and all other tax qualified retirement plans maintained by the Group
      provide that the Participant's Compensation Redirection Amounts and all
      Participant contributions will be suspended for at least twelve (12)
      consecutive months (six (6) consecutive months in the case of withdrawals
      made on or after December 1, 2009) following the date of payment under
      Section 8.5.

            

    

     

    
      	
              8.3

            	
              Age 591⁄2
      Withdrawal.  Notwithstanding the above, a Participant who
      is still employed by the Group, who has completed five (5) or more Years
      of Service with the Group and who has attained at least age fifty-nine and
      one-half (591⁄2) may once in any twelve (12) month period elect a partial or
      complete withdrawal, without penalty or suspension, from his Participant
      Accounts.

            

    

     

    
      	
              8.4

            	
              Withdrawal of
      Automatic Enrollment Contributions.  Effective for any
      Participant who first makes a 3% Automatic Compensation Redirection
      Contribution to the Plan on or after January 1, 2010 and notwithstanding
      any provision of this Section or the Plan to the contrary and to the
      extent permitted under Code Section 414(w) and the guidance issued
      thereunder, a Participant on whose behalf the Company has made
      contributions of a Participant's Compensation Redirection Amount due to
      such Participant's deemed election of a 3% Automatic Compensation
      Redirection Contribution under Section 4.1 (to the extent such
      contributions are made under an "eligible automatic contribution
      arrangement" within the meaning of Code Section 414(w) and the guidance
      issued thereunder) may elect, by making an election with the Plan
      Administrator (or its designee) within ninety (90) days after the first
      date on which such 3% Automatic Compensation Redirection Contribution
      would have otherwise been included in the Participant's income had the
      deemed election under Section 4.1 not been made, to withdraw such
      contributions made through the effective date of the election made
      pursuant to this Section (described below), as adjusted for applicable
      earnings and losses through the date of the withdrawal.  The
      effective date of the election made pursuant to this Section is the
      earlier of (i) the pay date for the second payroll period that begins
      after the date on which the Participant files an election for a withdrawal
      under this Section with the Plan Administrator, and (ii) the first pay
      date that occurs after 30 days after the date on which the Participant
      files an election for a withdrawal under this Section with the
      Plan Administrator.  In the case of any withdrawal made under
      this Section, Company Matching Contributions with respect to the amount
      withdrawn (adjusted for allocable gains and losses) shall be forfeited
      pursuant to Section 9.4.

            

    

     

    
      
        
        

      

      
        -39-

        
          

        

      

      
        
        

      

    

    
    

     

    
      	
              8.5

            	
              Form of
      Payment.  All withdrawals pursuant to this Article shall
      be paid in cash in a lump sum; provided, however, that a
      Participant may, by giving prior written notice to the Plan Administrator
      on the Appropriate Form and within such time limit as the Plan
      Administrator shall prescribe, elect to have that portion of his
      withdrawal which is charged against Company Stock Fund paid in shares of
      Vectren Corporation common stock, with the value of any fractional shares
      and any uninvested funds held in his name in Company Stock Fund paid in
      cash.

            

    

     

    ARTICLE
IX

    DISTRIBUTIONS

     

    
      	
              9.1

            	
              Benefits on
      Retirement, Vested Resignation, Vested Discharge or Total
      Disability.  If a Participant's Termination Date occurs
      for any reason other than his
death:

            

    

     

    
      	
               
      

            	
              (a)

            	
              on
      or after his attainment of Normal Retirement Age;
  or

            

    

     

    
      	
               
      

            	
              (b)

            	
              on
      or after his completion of at least a five (5) year Period of Service or
      at least five (5) Years of Service, as applicable; provided, however, that
      for purposes of this Section, any
Participant:

            

    

     

    
      	
               
      

            	
              (i)

            	
              employed
      by Indiana Energy or any of its subsidiaries on July 1, 1998,
      or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              in
      the Bargaining Savings Plan employed by the Participating Companies on
      January 1, 1989, or

            

    

     

    
      	
               
      

            	
              (iii)

            	
              who
      is entitled to special benefits under Section 4.11 of the Pension Plan for
      Salaried Employees of Southern Indiana Gas and Electric Company,
      or

            

    

     

    
      	
               
      

            	
              (iv)

            	
              effective
      on and after January 1, 2001, whose employment was terminated
      involuntarily under Project Springboard implemented by the Participating
      Companies, or

            

    

     

    
      	
               
      

            	
              (v)

            	
              employed
      by Vectren Communications Services, Inc. whose employment was terminated
      by the Company on March 15, 2002,
or

            

    

     

    
      	
               
      

            	
              (vi)

            	
              who
      was employed by Vectren Communications Services, Inc. on June 30,
      2004

            

    

     

    shall be
deemed to have completed at least a five (5) year Period of Service, regardless
of the actual Period of Service completed by such Participant; or

     

    
      	
               
      

            	
              (c)

            	
              by
      reason of his incurring a Total
Disability,

            

    

     

    
      	
               
      

            	
              the
      balances in his Participant Accounts shall become distributable at the
      time as provided in Section 9.8 to or for the benefit of such Participant
      in either of the following methods as elected by that
      Participant:

            

    

     

    
      	
               
      

            	
              (d)

            	
              by
      payment in a single lump sum, or

            

    

     

    
      
        
        

      

      
        -40-

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (e)

            	
              by
      payment in a series of substantially equal annual, semi-annual, quarterly,
      or, effective August 1, 2009, monthly installments over a period not
      exceeding ten (10) years; provided, however, that
      the duration of such installments shall not exceed the life expectancy of
      that Participant or the joint life expectancy of such Participant and his
      designated Beneficiary; provided, further, that
      installment payments of less than two hundred fifty dollars ($250) shall
      not be permitted.  Effective August 1, 2009, a Participant who
      elects to receive any form of installment payments may subsequently elect
      to receive the remaining balance in his Participant Account in a single
      lump sum as soon as administratively feasible on or after the date of
      receipt of his election by the Plan
  Administrator.

            

    

     

    For
purposes of this Section, the balances held in a Participant's Participant
Accounts as of his Termination Date shall be equal to his balances held in his
Participant Accounts as of the later Valuation Date preceding the distribution
date as of which the value may be determined.  If a Participant dies
before receiving all of his benefits payable in accordance with this Section,
any remaining portion of his Participant Accounts shall be paid as soon as
practicable to or for the benefit of the Beneficiary designated by that
Participant in accordance with Section 9.7 in such form as is selected by such
Beneficiary and over a period which is permitted by Section 9.8.

     

    
      	
              9.2

            	
              Benefits on
      Death.  If a Participant's Termination Date occurs by
      reason of his death, the balances in his Participant Accounts as of the
      most recent Valuation Date preceding the distribution as of which the
      value maybe determined shall be distributed to the
      Beneficiary.

            

    

     

    
      	
              9.3

            	
              Vested and Non-Vested
      Benefits.  If a Participant's Termination Date occurs for
      any reason other than his death:

            

    

     

    
      	
               
      

            	
              (a)

            	
              before
      his completion of at least a five (5) year Period of Service or at least
      five (5) Years of Service, as applicable; provided, however, that
      for purposes of this Subsection:

            

    

     

    
      	
               
      

            	
              (i)

            	
              any
      non-collective bargaining Participant in this Plan employed by Indiana
      Energy or any of its subsidiaries on July 1, 1988,
  or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              any
      participant in the Bargaining Savings Plan employed by the Participating
      Companies on January 1, 1989,
or

            

    

     

    
      	
               
      

            	
              (iii)

            	
              any
      Participant who is entitled to special benefits under Section 4.11 of the
      Pension Plan for Salaried Employees of Southern Indiana Gas and Electric
      Company, or

            

    

     

    
      	
               
      

            	
              (iv)

            	
              effective
      on and after January 1, 2001 any Participant whose employment was
      terminated involuntarily under Project Springboard implemented by the
      Participating Companies, or

            

    

     

    
      	
               
      

            	
              (v)

            	
              any
      Participant employed by Vectren Communications Services, Inc. whose
      employment is terminated by the Company on March 15, 2002,
    or

            

    

     

    
      
        
        

      

      
        -41-

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (vi)

            	
              any
      Participant who was employed by Vectren Communications Services, Inc. on
      June 30, 2004

            

    

     

    shall be
deemed to have completed at least a five (5) year Period of Service, regardless
of the Period of Service completed by such Participant;

     

    
      	
               
      

            	
              (b)

            	
              before
      his attainment of Normal Retirement Age;
or

            

    

     

    
      	
               
      

            	
              (c)

            	
              not
      by reason of his incurring a Total
Disability,

            

    

     

    the
vested balance in his Company Matching Contributions Account and Company
Non-Matching Contributions Account (as determined below) shall be applied as
provided in Section 9.4, and the vested balances in his Participant Accounts as
of the Valuation Date coincidental with or next following his Termination Date
(after all adjustments then required under the Plan have been made) shall become
distributable to or for his benefit or, in the event of his subsequent death, to
or for the benefit of his Beneficiary pursuant to either of the methods set
forth in Section 9.1 as selected by such Participant or, if applicable, his
Beneficiary.

     

    The
vested balance of a Participant shall be determined in the following
manner:

     

    
      	
               
      

            	
              (i)

            	
              Compensation
      Redirection Account.  Each Participant's Compensation
      Redirection Account shall be immediately nonforfeitable within the meaning
      of Treasury Regulation Section 1.401(k)-1(c)(2), shall be disregarded
      for purposes of applying Code Section 411(a)(2) to other contributions or
      benefits, and shall remain nonforfeitable even if the Participant makes no
      additional contributions to his Compensation Redirection Account under
      this Plan or elective deferrals under any other cash or deferred
      arrangement.  An amount shall be immediately nonforfeitable
      within the meaning of Treasury Regulation Section 1.401(k)-1(c)(2) if it
      is immediately nonforfeitable within the meaning of Section 411 of the
      Code and would be nonforfeitable under the Plan regardless of the age and
      service of the Participant or whether the Participant is employed on a
      specific date.  A Compensation Redirection Amount that is
      subject to forfeiture or suspension permitted by Section 41l(a)(3) of the
      Code does not satisfy the requirements of Treasury Regulation
      Section 1.401(k)-1(c).

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Non-Union
      Participants.  The vested balance of a Participant whose
      terms of employment are not covered by a collective bargaining agreement
      entered into by a Participating Company and a Union in his Company Matching
      Contributions Account and his Company Non-Matching Contributions Account
      shall be based on his Period of Service and determined in accordance with
      the following schedules:

            

    

     

    
      
        
        

      

      
        -42-

        
          

        

      

      
        
        

      

    

    
    

     

    
      	
              Company
      Matching Contributions Account

            
	
              Completed
      Period of Service

            	
              Vested
      Percentage of a Non-Union Participant's Company Matching Contributions
      Account

            
	
              Less
      than One (1)

            	
              Zero
      Percent (0%)

            
	
              One
      (1)

            	
              Twenty
      Percent (20%)

            
	
              Two
      (2)

            	
              Forty
      Percent (40%)

            
	
              Three
      (3)

            	
              Sixty
      Percent (60%)

            
	
              Four
      (4)

            	
              Eighty
      Percent (80%)

            
	
              Five
      (5) or More

            	
              One
      Hundred Percent (100%)

            

    

    

     

    
      	
              Company
      Non-Matching Contributions Account

            
	
              Completed
      Period of Service

            	
              Vested
      Percentage of a Participant's Company Non-Matching Contributions
      Account

            
	
              Less
      than Five (5)

            	
              Zero
      Percent (0%)

            
	
              Five
      (5) or More

            	
              One
      Hundred Percent (100%)

            

    

    

    provided, however, that with
respect to a Participant whose terms of employment are not covered by a
collective bargaining agreement entered into by a Participating Company and a
Union and who has at least one (1) Hour of Service on or after January 1,
2007, the vested percentage of the Participant's Company Non-Matching
Contributions Account shall be determined in accordance with the following
schedule:

    

    
      	
              Company
      Non-Matching Contributions Account

            
	
               

               

              Completed
      Period of Service

            	
              Vested
      Percentage of a Participant's Company Non-Matching Contributions
      Account

            
	
              Less
      than One (1)

            	
              Zero
      Percent (0%)

            
	
              One
      (1)

            	
              Twenty
      Percent (20%)

            
	
              Two
      (2)

            	
              Forty
      Percent (40%)

            
	
              Three
      (3)

            	
              Sixty
      Percent (60%)

            
	
              Four
      (4)

            	
              Eighty
      Percent (80%)

            
	
              Five
      (5) or More

            	
              One
      Hundred Percent (100%)

            

    

    

    
      	
               
      

            	
              (iii)

            	
              Indiana Gas Company
      Union Participants.  The vested balance of a Participant
      whose terms of employment are covered by a collective bargaining agreement
      entered into by a Participating Company and the International Brotherhood
      of Electrical Workers, Local 1393, United Steelworkers of America
      AFL-CIO-CLC, Locals 7441 and 12213 and the Utility
      Workers Union of America, Local 175 shall be based upon his Years of
      Service and determined in accordance with the following
      schedule:

            

    

     

    
    

     

    
      
        
        

      

      
        -43-

        
          

        

      

      
        
        

      

    

     

    
      	
              Completed
      Years of Service

            	
              Vested
      Percentage of a Participant's Company Non-Matching Contributions Account
      and Company Matching Contributions Account

            
	
              Less
      than Five (5)

            	
              Zero
      Percent (0%)

            
	
              Five
      (5) or More

            	
              One
      Hundred Percent (100%)

            

    

    

    provided, however, that for
Company Matching Contributions made on and after January 1, 1999 and for
Company Non-Matching Contributions effective on or after December 1, 2008, the
vested percentage of the Participant's Company Matching Contributions Account
and Company Non-Matching Contributions Account shall be determined in accordance
with the following schedule:

     

    
      	
              Completed
      Years of Service

            	
              Vested
      Percentage of a Participant's Company Non-Matching Contributions Account
      and Company Matching Contributions Account

            
	
              Less
      than One (1)

            	
              Zero
      Percent (0%)

            
	
              One
      (1)

            	
              Twenty
      Percent (20%)

            
	
              Two
      (2)

            	
              Forty
      Percent (40%)

            
	
              Three
      (3)

            	
              Sixty
      Percent (60%)

            
	
              Four
      (4)

            	
              Eighty
      Percent (80%)

            
	
              Five
      (5) or More

            	
              One
      Hundred Percent (100%)

            

    

    

    
      	
               
      

            	
              (iv)

            	
              SIGCORP Union
      Participants.

            

    

     

    
      	
               
      

            	
              (A)

            	
              Effective
      on or after September 24, 2009, the vested balance of the Company
      Non-Matching Contributions Account of a Participant whose terms of
      employment are covered by a collective bargaining agreement entered into
      by a Participating Company and the Teamsters, Chauffeurs, Warehousemen,
      and Helpers, Local No. 135 for Company Non-Matching Contributions shall be
      based upon his Years of Service and determined in accordance with the
      following schedule:

            

    

     

    
      	
               

               

              Completed
      Years of Service

            	
              Vested
      Percentage of a Participant's Company Non-Matching Contributions
      Account

            
	
              Less
      than One (1)

            	
              Zero
      Percent (0%)

            
	
              One
      (1)

            	
              Twenty
      Percent (20%)

            
	
              Two
      (2)

            	
              Forty
      Percent (40%)

            
	
              Three
      (3)

            	
              Sixty
      Percent (60%)

            
	
              Four(4)

            	
              Eighty
      Percent (80%)

            
	
              Five
      (5) or More

            	
              One
      Hundred Percent (100%)

            

    

     

    
      
        
        

      

      
        -44-

        
          

        

      

      
        
        

      

    

    
 

    
      	
               
      

            	
              (B)

            	
              The
      vested balance of the Company Matching Contributions Account of a
      Participant whose terms of employment are covered by a collective
      bargaining agreement entered into by a Participating Company and the
      Teamsters, Chauffeurs, Warehousemen, and Helpers, Local No. 135 and the
      International Brotherhood of Electrical Workers, Local 702 for Company
      Matching Contributions shall be based upon his Years of Service and
      determined in accordance with the following
  schedule:

            

    

     

    
      	
               

               

               

               

              Completed
      Years of Service

            	
              Vested
      Percentage of a Participant's Company Matching Contributions
      Account

            
	
              Less
      than One (1)

            	
              Zero
      Percent (0%)

            
	
              One
      (1)

            	
              Twenty
      Percent (20%)

            
	
              Two
      (2)

            	
              Forty
      Percent (40%)

            
	
              Three
      (3)

            	
              Sixty
      Percent (60%)

            
	
              Four(4)

            	
              Eighty
      Percent (80%)

            
	
              Five
      (5) or More

            	
              One
      Hundred Percent (100%)

            

    

    

    
      	
               
      

            	
              (v)

            	
              Rollover Contribution
      Account.  A Participant's Rollover Contribution Account
      shall be fully vested and nonforfeitable at all
  times.

            

    

     

    
      	
              9.4

            	
              Forfeiture Accounts
      and Forfeitures.

            

    

     

    
      	
               
      

            	
              (a)

            	
              The
      portion of the Company Non-Matching and Matching Contributions Accounts of
      a Participant whose terms of employment are not covered by a collective
      bargaining agreement entered into by a Participating Company and a Union
      that is not distributable to him on account of the provisions of Section
      9.3 shall be credited to a forfeiture account established and maintained
      by the Trustee in such Participant's name as of the Valuation Date
      coincidental with or next following his Termination Date.  If
      such Participant does not resume his employment with a member of the Group
      before incurring five (5) or more consecutive One Year Service Breaks or,
      if earlier, the date he receives a distribution of his vested Participant
      Account balances in accordance with Section 9.3, the balance in his
      forfeiture account shall be forfeited and shall then be allocated in
      accordance with the provisions of Section 9.5.  If such
      Participant returns to employment with a member of the Group before
      incurring five (5) or more consecutive One Year Service Breaks and repays
      to the Plan the amount, if any, of any distribution from the Plan upon his
      earlier termination of employment before the expiration of a five (5) year
      period beginning on his reemployment
date

            

    

     

    
      
        
        

      

      
        -45-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              or,
      if earlier, the date he completes five (5) consecutive One Year Service
      Breaks, the balance in his forfeiture account as of the next following
      Valuation Date (after all adjustments then required under the Plan have
      been made) shall be returned to his Company Matching Contributions Account
      and Company Non-Matching Contributions Account, whichever is applicable,
      and shall be distributable upon his next Termination Date to or for his
      benefit or, in the event of his death, to or for the benefit of his
      Beneficiary in accordance with the provisions of this
      Article.  If a Participant returns to employment with a member
      of the Group after the allocation of his forfeiture account but before
      completing five (5) or more consecutive One Year Service Breaks, the
      amount which was forfeited by reason of this Section shall be reinstated
      as the beginning balances of his Company Matching Contributions Account
      and Company Non-Matching Contributions Account as of his date of
      re-employment and shall be distributable upon his next Termination Date to
      or for his benefit or, in the event of his death, to or for the benefit of
      his Beneficiary in accordance with the provisions of this
      Article.  Any amount required to be reinstated by reason of the
      preceding sentence shall be paid by the
  Companies.

            

    

     

    
      	
               
      

            	
              (b)

            	
              The
      provisions of this Section 9.4 shall apply to Participants whose terms of
      employment are covered by a collective bargaining agreement between a
      Participating Company and a Union by substituting the term "one (1) year
      Breaks in Service" for the term "One Year Service
  Breaks."

            

    

     

    
      	
               
      

            	
              (c)

            	
              Deemed
      Cashouts.  A Participant whose vested interest in his
      Participant Account is zero (0) any time after his Termination Date
      occurs shall be deemed to have received a distribution of such
      amount.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Forfeitures Due to
      Withdrawal of Automatic Enrollment Contributions.  With
      respect to any Participant who elects to withdraw a 3% Automatic
      Compensation Redirection Contribution pursuant to Section 8.4 of the Plan
      on or after December 1, 2009, the portion of the Company Matching
      Contributions Account of a Participant that is forfeited pursuant to
      Section 8.4 shall be credited to a forfeiture account established and
      maintained by the Trustee as of the Valuation Date coincidental with or
      next following the date of a withdrawal under Section 8.4.  Such
      forfeiture shall be allocated in accordance with the provisions of Section
      9.5.

            

    

     

    
      	
              9.5

            	
              Application of
      Forfeitures.  The balance in the Company Matching and
      Non-Matching Contributions Accounts which is forfeited by a Participant in
      accordance with Sections 8.4 and 9.4 shall be applied in the Plan Year of
      forfeiture and in succeeding Plan Years to reduce the amount of
      contributions, if any, required by the Companies under Section 9.4 and the
      amount of the Company contributions, if any, required of the Participating
      Companies under Section 5.2 and Section 5.3, until
    exhausted.

            

    

     

    
      	
              9.6

            	
              Form of
      Payment.  Distributions made in accordance with this
      Article shall be made in cash; provided, however, that
      if a Participant or, if applicable, his Beneficiary elects to receive his
      benefits in a single lump sum payment, the distribution of the portion, if
      any, of a Participant's Participant Accounts held in the Company Stock
      Fund shall be made in

            

    

     

    
      
        
        

      

      
        -46-

        
          

        

      

      
        
        

      

    

    
 

    
      	
               
      

            	
              whole
      shares of Vectren Corporation common stock with fractional shares and any
      uninvested funds held in his name in the Company Stock Fund paid in cash
      unless such Participant or, if applicable, his Beneficiary elects
      otherwise.

            

    

     

    
      	
              9.7

            	
              Designation of
      Beneficiary.  Each Participant, by signing an Appropriate
      Form furnished by the Plan Administrator, may designate any legal or
      natural person or persons (who may be designated contingently or
      successively) as his Beneficiary to whom his vested benefits are to be
      paid if he dies before he receives all of his vested
      benefits.  A Beneficiary designation form shall be effective
      only when the signed form is filed with the Plan Administrator while the
      Participant is still alive and shall cancel any Beneficiary designation
      forms signed earlier.  If a Participant fails to designate a
      Beneficiary or if a deceased Participant's Beneficiary dies before
      complete payment of such Participant's vested benefits, the Plan
      Administrator, in its sole discretion, shall direct the Trustee to pay
      such deceased Participant's benefits to his Spouse, if then living; if not
      living, to such deceased Participant's surviving children, in equal
      shares; and if no surviving children, to such deceased Participant's
      estate.  Notwithstanding anything else contained in this Section
      to the contrary, the Beneficiary of a married Participant shall be his
      Spouse unless his Spouse consents to the naming of another Beneficiary in
      a writing witnessed by a representative of the Plan Administrator or by a
      Notary Public.

            

    

     

    
      	
              9.8

            	
              Payment of
      Benefits.  The payment of benefits under this Article
      shall commence as soon as practicable after the Participant's Termination
      Date; provided, however, that
      if the aggregate value of a Participant's Participant Accounts at the
      first date on which the Accounts may be distributed is greater than five
      thousand dollars ($5,000), payment of benefits to a Participant shall not
      commence before his Normal Retirement Age without his written
      consent.  If the aggregate value of a Participant's Participant
      Accounts is equal to or less than five thousand dollars ($5,000), payment
      shall be made in a single lump sum payment; provided, however, that
      unless the Participant affirmatively elects a (i) lump sum distribution or
      (ii) a direct rollover into an eligible retirement plan, the Participant's
      Participant Accounts shall be distributed by direct rollover into an
      individual retirement plan designated by the Plan Administrator in
      accordance with Section 401(a)(31)(B) of the Code; provided, further, that
      if the aggregate value of a Participant's Participant Accounts is equal to
      or less than one thousand dollars ($1,000), payment shall automatically be
      made in a single lump sum payment.  For purposes of determining
      whether a Participant's Participant Accounts are immediately
      distributable, the portion of the Participant's Participant Accounts
      attributable to his Rollover Contribution Account, if any, shall be
      disregarded.  If a Participant dies before his benefit
      commencement date but after his Termination Date, payment of benefits
      shall be made in accordance with this Section as if such deceased
      Participant's date of death was his Termination
      Date.  Notwithstanding anything else contained in this Section
      to the contrary, payment of benefits to which a Participant or, if
      deceased, his Beneficiary is entitled hereunder shall commence not later
      than the sixtieth (60th) calendar day after the last calendar day of the
      Plan Year in which:

            

    

     

    
      	
               
      

            	
              (a)

            	
              such
      Participant attains the Normal Retirement
Age,

            

    

     

    
      	
               
      

            	
              (b)

            	
              occurs
      the tenth (10th) anniversary of the Plan Year in which such Participant
      commenced his participation in the Plan,
or

            

    

     

    
      	
               
      

            	
              (c)

            	
              occurs
      such Participant's Termination Date with the
  Group.

            

    

     

    
      
        
        

      

      
        -47-

        
          

        

      

      
        
        

      

    

     

    whichever
is last to occur; provided, however, that except
as otherwise provided in Section 9.10, the payment of benefits to a Participant
shall commence no later than April 1 of the calendar year immediately following
such Participant's taxable year in which occurs such Participant's Termination
Date or in which such Participant attains age seventy and one-half (70-1/2),
whichever is last to occur; provided, further, that in the
case of a five percent (5%) owner of a Participating Company (within the meaning
of Section 416 of the Code) or a Participant who reaches age seventy and
one-half (70-1/2) before January 1, 1999, distribution shall be required to
commence no later than the April 1 immediately following the Participant's
taxable year in which the Participant reaches age seventy and one-half
(70-1/2).  Notwithstanding anything contained in this Plan to the
contrary, if a qualified domestic relations order (as described in Section 14.7)
provides for the payment of all or a portion of a Participant's Participant
Accounts immediately or any other time prior to the Participant's termination of
employment with the Group, the Plan Administrator shall follow the terms of the
order to the extent permitted by the Code or ERISA.

     

    
      	
              9.9

            	
              Death Distribution
      Provisions.  The following distribution provisions shall
      take effect upon the death of a
Participant:

            

    

     

    
      	
               
      

            	
              (a)

            	
              If
      such Participant dies after distribution of his vested benefits has
      commenced, the remaining portion of such vested benefits shall continue to
      be distributed at least as rapidly as under the method of distribution
      being used before such Participant's
death.

            

    

     

    
      	
               
      

            	
              (b)

            	
              If
      such Participant dies before distribution of his vested benefits
      commences, such Participant's vested benefits shall be distributed no
      later than five (5) years after such Participant's death except to the
      extent that an election is made to receive distributions in accordance
      with Subparagraphs (i) or
(ii) below:

            

    

     

    
      	
               
      

            	
              (i)

            	
              effective
      for distributions commencing prior to January 1, 2010, if any portion of
      such Participant's interest is payable to a designated Beneficiary,
      distributions may be made in substantially equal installments over a
      period not exceeding ten (10) years; provided, however, that
      the duration of such installments shall not exceed the life or life
      expectancy of that designated
Beneficiary;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              if
      the designated Beneficiary is such Participant's surviving Spouse, the
      date distributions are required to begin in accordance with Subsection (b)
      above shall not be earlier than the date on which such Participant would
      have attained age seventy and one-half (70-1/2) and, if that Spouse dies
      before payments begin, subsequent distributions shall be made as if that
      Spouse had been such Participant.

            

    

     

    
      	
               
      

            	
              (c)

            	
              For
      purposes of Subsection (b) above, payments shall be calculated by use of
      the return multiples specified in Section 1.72-9 of the Treasury
      Regulations.  Life expectancy of a surviving Spouse may be
      recalculated annually; provided, however, that
      in the case of any other designated Beneficiary, life expectancy shall not
      be recalculated.

            

    

     

    
      
        
        

      

      
        -48-

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (d)

            	
              For
      purposes of Subsections (a), (b) and (c) above, any amount paid to a child
      of such Participant shall be treated as if it had been paid to such
      Participant's surviving Spouse if the amount becomes payable to such
      surviving Spouse when that child reaches the age of majority in the State
      of Indiana.

            

    

     

    
      	
              9.10

            	
              Minimum Distribution
      Amount.  If the method of distribution of a Participant's
      benefits is in a form other than a lump sum payment, then the amount to be
      distributed to such Participant or to his Beneficiary shall be no less
      than the amount equal to the quotient obtained by dividing such
      Participant's entire interest by the life expectancy of such Participant
      or the joint and last survivor expectancy of such Participant and his
      designated Beneficiary; provided, however, that
      at least fifty percent (50%) of the present value of the amount available
      for distribution shall be paid within the life expectancy of such
      Participant.  Life expectancy and joint and last survivor
      expectancy shall be computed by the use of the return multiples contained
      in Section 1.72-9 of the Treasury Regulations.  For purposes of
      this computation, a Participant's or his Spouse's life expectancy may be
      recalculated no more frequently than annually, but the life expectancy of
      a nonspouse Beneficiary shall not be
      recalculated.  Notwithstanding anything contained herein to the
      contrary, Plan distributions shall be made in accordance and consistent
      with the requirements of Article XVIII of this Plan and Section 401(a)(9)
      of the Code and the Treasury Regulations thereunder, including the minimum
      distribution incidental death benefit requirements of Treasury Regulation
      §1.401(a)(9)-2, which requirements are incorporated herein by
      reference.

            

    

     

    
      	
              9.11

            	
              Incapacity.  If
      any person who is entitled to receive any benefits hereunder is, in the
      judgment of the Plan Administrator, legally, physically or mentally
      incapable of personally receiving and acknowledging any distribution, the
      Plan Administrator shall instruct the Trustee to make distribution to such
      other person or persons or to such institution or institutions as in the
      judgment of the Plan Administrator shall then be maintaining or have
      custody over such distributee.

            

    

     

    
      	
              9.12

            	
              Identity of
      Payee.  Except as otherwise provided by ERISA, the
      determination of the Plan Administrator as to the identity of the proper
      payee for any payment and the amount properly payable shall be conclusive,
      and payment in accordance with such determination shall, to the extent
      thereof, constitute a complete discharge of all obligations under the
      Plan.

            

    

     

    
      	
              9.13

            	
              Direct
      Transfers.  Notwithstanding any provision of the Plan to
      the contrary that would otherwise limit a distributee's election under
      this Section, a distributee may elect, at the time and in the manner
      prescribed by the Plan Administrator, to have any portion of an eligible
      rollover distribution paid directly to an eligible retirement plan
      specified by the distributee in a direct rollover.  A
      distributee shall have at least thirty (30) calendar
  days

            

    

     

    
      
        
        

      

      
        -49-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              to
      make a rollover decision; provided, however, that
      the distributee may waive all or part of the thirty (30) day election
      period.  For purposes of this Section, the following terms shall
      have the meanings set forth below:

            

    

     

    
      	
               
      

            	
              (a)

            	
              Eligible rollover
      distribution:  An eligible rollover distribution is any
      distribution of all or any portion of the balance to the credit of the
      distributee, except that an eligible rollover distribution does not
      include:  (1) any distribution that is one of a series of
      substantially equal periodic payments (not less frequently than annually)
      made for the life (or life expectancy) of the distributee or the joint
      lives (or joint life expectancies) of the distributee and the
      distributee's designated beneficiary, or for a specified period of ten
      (10) years or more; (2) any distribution to the extent such distribution
      is required under Section 401(a)(9) of the Code; (3) hardship withdrawal
      made under Article VIII to a Participant who has not reached age
      fifty-nine and one-half (59-1/2), and (4) the portion of any distribution
      that is not includible in gross
income.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Eligible retirement
      plan:  An eligible retirement plan is an individual
      retirement account described in Section 408(a) of the Code, an individual
      retirement annuity described in Section 408(b) of the Code, an annuity
      plan described in Section 403(a) of the Code, a Roth individual retirement
      account described in Section 408A of the Code, or a qualified trust
      described in Section 401(a) of the Code, that accepts the distributee's
      eligible rollover distribution.  However, in the case of an
      eligible rollover distribution to the surviving Spouse, an eligible
      retirement plan is an individual retirement account or individual
      retirement annuity.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Distributee:  A
      distributee includes an Employee or former Employee.  In
      addition, the Employee's or former Employee's surviving Spouse and the
      Employee's or former Employee's Spouse or former Spouse who is an
      alternate payee under a qualified domestic relations order, as defined in
      Section 414(p) of the Code, are distributees with regard to the interest
      of the Spouse or former Spouse.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Direct
      rollover:  A direct rollover is a payment by the Plan to
      the eligible retirement plan specified by the
  distributee.

            

    

     

    The Plan
shall permit, as provided under Code Section 402(c)(11), an eligible rollover
distribution of all or any portion of the balance to the credit of the
distributee representing the account balance of a deceased Participant to an
Individual Retirement Account or Individual Retirement Annuity ("IRA") of an
non-Spouse Beneficiary who is a designated Beneficiary of the Participant within
the meaning of Code Section 401(a)(9)(E), provided that the distributed amount
satisfies all the requirements to be an eligible rollover distribution other
than the requirement that the distribution be made to the Participant or the
Participant's Spouse.  The direct rollover must be made to an IRA
established on behalf of the designated Beneficiary that will be treated as an
inherited IRA pursuant to the provisions of Code Section
402(c)(11).

    ARTICLE
X

    ADOPTION
AND WITHDRAWAL BY PARTICIPATING COMPANIES

     

    
      	
              10.1

            	
              Adoption by
      Participating Companies.  Any entity which, together with
      Vectren Corporation, constitutes a member of a controlled group of
      corporations within the meaning of Section 414(b) of the Code may, with
      the approval of the Chief Executive Officer or the President of Vectren
      Corporation, adopt the Plan and Trust Agreement and participate as a
      Participating Company in the Plan by the execution of an agreement of
      adoption of the Plan and Trust Agreement which shall specify the effective
      date of that party's participation.  A listing of the
      Participating Companies who have adopted the Plan is shown in Exhibit
      A.

            

    

     

    
      
        
        

      

      
        -50-

        
          

        

      

      
        
        

      

    

     

    
      	
              10.2

            	
              Withdrawal by
      Participating Company.  Any Participating Company in the
      Plan may, by resolution of its Board of Directors or other governing body,
      withdraw from participation as a Participating Company in the
      Plan.  Any entity that ceases to be a member of the Group shall
      automatically cease to be a Participating Company in the Plan effective as
      of the date it is no longer a member of the Group with Vectren
      Corporation.

            

    

     

    ARTICLE
XI

    CLAIMS

     

    
      	
              11.1

            	
              Procedure.  In
      order to provide for the payment of any benefits to which a Participant or
      other person may be entitled under the Plan, the Plan Administrator shall
      be given timely notice of that Participant's retirement, Total Disability,
      termination or death and of any other event upon which occurrence benefits
      may be payable under the Plan.

            

    

     

    
      	
               
      

            	
              (a)

            	
              A
      written request for a Plan benefit made by a Participant, beneficiary or
      any other person is a claim; the person making such claim is a
      Claimant.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Each
      claim shall be filed with the Plan Administrator which shall, within
      ninety (90) calendar days after its receipt thereof (forty-five (45)
      calendar days in the case of a claim based on Total Disability) ("Claim
      Period"), either accept it or deny it (wholly or partially) and within
      that time notify the Claimant in writing of such acceptance or
      denial.  The Claim Period may be extended for another ninety
      (90) calendar day period (thirty (30) calendar days in the case of a claim
      based on Total Disability) if it is found that special circumstances
      require an extension of time for processing.  In the case of a
      claim based on Total Disability, the Claim Period may be extended for an
      additional thirty (30) calendar day period if it is found that special
      circumstances require a further extension of time for
      processing.  In case of any extension of the Claim Period,
      before the expiration of the Claim Period, the Claimant shall be informed
      in writing of the reasons for such extension and the date on which a final
      decision is expected.  In addition, with respect to the
      extension of the Claim Period for a claim involving Total Disability, the
      Claimant shall also be informed in writing of the standards for payment,
      the unresolved issues that prevent a decision, and the information needed
      to resolve those issues.  The Claimant will have forty-five (45)
      days to provide any specified information to the Plan
      Administrator.

            

    

     

    
      	
               
      

            	
              (c)

            	
              If
      a claim is wholly or partially denied, a Claimant shall be furnished with
      a written notice setting forth in a manner calculated to be understood by
      the Claimant:

            

    

     

    
      
        
        

      

      
        -51-

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (i)

            	
              the
      specific reason(s) for denial;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              specific
      reference(s) to pertinent Plan provision(s) on which any denial is
      based;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              a
      description of any additional material or information necessary for the
      Claimant to perfect the claim, if any, and an explanation of why such
      material or information is
necessary;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              an
      explanation of the Plan's claim review procedures;
  and

            

    

     

    
      	
               
      

            	
              (v)

            	
              in
      the case of the denial of a claim based on Total Disability, the specific
      internal rule, guideline, protocol, or other similar criterion, if any,
      relied upon in making the denial, or a statement that such rule,
      guideline, protocol, or other similar criterion was relied upon, with a
      copy free of charge upon request.

            

    

     

    
      	
               
      

            	
              (d)

            	
              If
      a Claimant does not receive written notification of acceptance, denial or
      extension during the Claim Period or any extension thereof, he may request
      review as if his claim had been entirely denied as of the expiration date
      of such Claim Period or extension
thereof.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Upon
      denial, a Claimant is entitled, either in person or by his duly authorized
      representative, to:

            

    

     

    
      	
               
      

            	
              (i)

            	
              request
      a review of the claim by the Plan Administrator upon written application
      for review made to the Plan Administrator; in the case of a denial as to
      which written notice of denial has been given to the Claimant, any such
      request for review of the claim shall be made within sixty (60) calendar
      days after receipt by the Claimant of the written denial notice (one
      hundred eighty (180) calendar days in the case of denial relating to a
      claim based on Total Disability);

            

    

     

    
      	
               
      

            	
              (ii)

            	
              review
      pertinent documents relating to the denial;
and

            

    

     

    
      	
               
      

            	
              (iii)

            	
              submit
      issues and comments in writing.

            

    

     

    
      	
               
      

            	
              (f)

            	
              The
      Plan Administrator shall make its decision with respect to a claim review
      promptly, but not later than sixty (60) calendar days after receipt of the
      written review request (forty-five (45) calendar days in the case of the
      review of a claim involving Total Disability).  Such sixty (60)
      calendar day period (or forty-five (45) calendar day period as the case
      may be) may be extended for another period of sixty (60) calendar days
      (forty-five (45) calendar days in the case of a claim involving Total
      Disability) if the Plan Administrator reviewing the claims
      finds

            

    

     

    
      
        
        

      

      
        -52-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              that
      special circumstances require an extension of time for
      processing.  In such case, before the expiration of the initial
      sixty (60) calendar day period (or forty-five (45) day calendar period as
      the case may be), the Claimant shall be informed, in writing, of the
      reasons for such extension.  The final decision of the Plan
      Administrator shall be in writing, giving specific reasons for the
      decision and making specific references to the pertinent Plan provisions
      on which the final decision is
based.

            

    

     

    
      	
               
      

            	
              (g)

            	
              All
      claims procedures shall be governed by the regulations promulgated by the
      Secretary of Labor.

            

    

     

    ARTICLE
XII

    ADMINISTRATION OF
PLAN

     

    
      	
              12.1

            	
              Plan
      Administrator.

            

    

     

    
      	
               
      

            	
              (a)

            	
              The
      Plan Administrator shall serve as administrator and named fiduciary of the
      Plan within the meaning of ERISA for and on behalf of the Participating
      Companies and of the Participants and their Beneficiaries.  The
      Plan Administrator shall have the authority to control and manage the
      operation and administration of the Plan and is authorized to accept
      service of legal process.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Benefits
      under the Plan shall be paid if the Plan Administrator decides, in its
      sole discretion, that the Claimant is entitled to such
      benefits.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Any
      action by the Plan Administrator, which is not found to be an abuse of
      discretion, shall be final, conclusive, and binding on all individuals
      affected thereby.  The Plan Administrator may take any such
      action in such manner and to such extent as the Plan Administrator in its
      sole discretion may deem expedient, and the Plan Administrator shall be
      the sole and final judge of such
expediency.

            

    

     

    
      	
              12.2

            	
              Delegation of
      Duties.  The Plan Administrator may also appoint or
      designate such agents as it may deem necessary for the effective exercise
      of its duties and may delegate to such agents any powers and duties, both
      ministerial and discretionary, as is permitted under ERISA and as the Plan
      Administrator may deem expedient or appropriate; provided, however, that
      the ultimate responsibilities for the administration of the Plan shall
      remain with the Plan Administrator.

            

    

     

    
      	
              12.3

            	
              Duties of Plan
      Administrator.  Other than the management of the Trust
      Fund, with which the Trustee shall be charged, the Plan Administrator
      shall have complete control of the administration of the Plan, with all
      powers and authority (including discretion with respect to the exercise of
      that power and authority) necessary, advisable, desirable, or convenient
      to enable it properly to carry out its duties in that
      respect.  Not in limitation, but in amplification of the
      foregoing, the Plan Administrator shall have the power and authority
      to:

            

    

     

    
      	
               
      

            	
              (a)

            	
              make
      rules and regulations with respect to the Plan not inconsistent with the
      Plan, the Code, or ERISA and to amend or rescind such rules and
      regulations;

            

    

     

    
      	
               
      

            	
              (b)

            	
              determine,
      consistently therewith, all questions of law or fact that may arise as to
      the eligibility, benefits, status, and rights of any person claiming
      benefits or rights under the Plan, including without limitation,
      Participants, former Participants, surviving Spouses of Participants,
      Beneficiaries, Employees, and former
Employees;

            

    

     

    
      
        
        

      

      
        -53-

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (c)

            	
              direct
      the Trustee to make payments from the Trust Fund to Participants, their
      Beneficiaries, and other persons as the Plan Administrator may
      determine;

            

    

     

    
      	
               
      

            	
              (d)

            	
              subject
      to and consistent with the Code and ERISA, construe and interpret the Plan
      and to correct any defects, supply any omissions, or reconcile any
      inconsistencies in the Plan; and

            

    

     

    
      	
               
      

            	
              (e)

            	
              determine
      the amount of contributions to the Trust Fund which shall be made by the
      Participating Companies.

            

    

     

    All
disbursements by the Trustee, except for the ordinary expenses of administration
of the Trust Fund, shall be made upon, and in accordance with, the written
directions of the Plan Administrator.  Except as otherwise provided in
Section 11.1, decisions of the Plan Administrator upon all matters within the
scope of its authority shall be final and binding upon the Participating
Companies and upon each and every person who may be or become interested in the
Plan or who may claim any rights or benefits hereunder.

     

    
      	
              12.4

            	
              Communications to
      Trustee.  Such instructions and directions as the Plan
      Administrator shall give to the Trustee from time to time or as may be
      requested by the Trustee shall be in writing and, except as otherwise
      provided by ERISA, the Trustee shall be protected fully in acting upon any
      such written directions and
instructions.

            

    

     

    
      	
              12.5

            	
              Compliance with
      Law.  The Plan Administrator shall exercise such
      authority and responsibility as it deems appropriate in order to comply
      with ERISA and with the Code.

            

    

     

    
      	
              12.6

            	
              Waiver of Time
      Deadlines.  The Plan Administrator shall have the right
      to waive any time deadlines required by the Plan which the Plan
      Administrator, in its sole discretion and by applying uniform and
      non-discriminatory standards, believes would be desirable and in the best
      interests of the Participants and of the
Plan.

            

    

     

    ARTICLE
XIII

    DUTIES OF THE
TRUSTEE

     

    
      	
              13.1

            	
              General
      Provisions.  The assets of the Trust Fund shall be held
      by the Trustee in accordance with the Trust Agreement.  In
      accordance with guidelines established by the Plan Administrator, the
      Trustee shall cause the Trust Fund to consist of one (1) or more
      Funds.  The Plan Administrator, or its designee, may add
      additional Funds or delete Funds.  Funds may be invested through
      the medium of any common, collective, or commingled fund maintained by the
      Trustee which is invested principally in property of the kind specified
      for such Fund.  The Plan Administrator, or its
      designee,  shall establish investment guidelines or policies
      applicable to each such Fund.  A portion of each
      Fund

            

    

     

    
      
        
        

      

      
        -54-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              may
      be maintained in cash or cash equivalents.  Income or losses
      from investments in each Fund shall be credited or debited to the same
      Fund.

            

    

     

    
      	
              13.2

            	
              Trust
      Agreement.  Vectren Corporation shall enter into a Trust
      Agreement with the Trustee under which the Trustee shall receive
      contributions made by each Participating Company pursuant to the Plan and
      shall hold, invest, reinvest and distribute the Trust Fund in accordance
      with the terms and provisions of the Plan and of that Trust
      Agreement.  All benefits under the Plan shall be distributed
      solely from the Trust Fund, and the Participating Companies shall have no
      liability therefor other than the obligation to make contributions to the
      Trust Fund as provided in the Plan.  Vectren Corporation shall
      determine the form and terms of any such Trust Agreement and may modify
      any such Trust Agreement from time to time to accomplish the purposes of
      the Plan without the consent of any other person; provided, however, that
      any such modification shall not cause or permit any part of the Trust Fund
      to be diverted to purposes other than those expressly permitted by the
      Plan, by the Code and by ERISA.

            

    

     

    
      	
              13.3

            	
              Appointment of
      Investment Manager.  Notwithstanding anything to the
      contrary herein contained, Vectren Corporation or its designee may appoint
      an investment manager or managers to manage all or a portion of the assets
      of the Trust Fund for which the Trustee is responsible for the investment
      thereof.  The Trustee shall follow the directions of any such
      investment manager regarding the investment and reinvestment of the Trust
      Fund, or such portion thereof as shall be under management by such
      investment manager.  The Trustee shall be under no duty or
      obligation to review any investment to be acquired, held or disposed of
      pursuant to such directions nor to make any recommendations with respect
      to the disposition or continued retention of any such
      investment.

            

    

     

    
      	
              13.4

            	
              Voting of Common Stock
      in Company Stock Fund.  Not less than thirty (30)
      calendar days prior to each annual or special meeting of the shareholders
      of Vectren Corporation, the Plan Administrator shall furnish or cause to
      be furnished to the Trustee and to each Participant for whom all or a
      portion of whose Participant Accounts are invested in Company Stock Fund
      as of the record date established by Vectren Corporation, a copy of the
      proxy material supplied by Vectren Corporation and a card to be returned
      to the Trustee which shall request instructions from each Participant as
      to how any Vectren Stock, including fractional shares, allocated to his
      Participant Accounts shall be voted.  Upon receipt of such
      instruction cards from the Participants, the Trustee shall vote or may
      grant Vectren Corporation's management a proxy to vote such Vectren Stock
      as such Participants have directed.  For the purposes of voting
      Vectren Stock held in Company Stock Fund or granting Vectren Corporation's
      management a proxy to vote such Vectren Stock, the Trustee shall combine
      the directions of Participants as to the voting fractional shares of
      Vectren Stock allocated to their Participant Accounts to the maximum
      extent possible and the Trustee shall vote the resulting aggregate of the
      whole shares of Vectren Stock so combined in accordance with such
      directions.  The Trustee shall vote any allocated Vectren Sock
      with respect to any business or issue for which it lacks a specific
      direction from any Participant in the same proportion that it votes the
      shares of Vectren Stock for which it received direction from the
      Participants.

            

    

     

    
      
        
        

      

      
        -55-

        
          

        

      

      
        
        

      

    

    
      ARTICLE
XIV

      MISCELLANEOUS

    

     

    
      	
              14.1

            	
              Payment of
      Expenses.  To the extent permitted under ERISA and under
      the Code, the expenses of the Plan and the Trust Fund shall be paid from
      the Trust Fund as directed by the Company; provided, however, that
      notwithstanding the above, Vectren Corporation may, but is not required
      to, elect to have such expenses paid directly by each Participating
      Company in its pro rata share, or charge any expenses directly relating to
      the Participant Accounts of a Participant to that Participant's
      Participant Account as allowed under the Code and
  ERISA.

            

    

     

    
      	
              14.2

            	
              Forms.  All
      forms required to be submitted under the Plan shall be prepared by the
      Plan Administrator or by its designate and submitted in accordance with
      its directions.

            

    

     

    
      	
              14.3

            	
              No Right of
      Employment.  Neither the Plan nor any action taken under
      it shall be construed as giving any Employee or any other person any
      right, legal or equitable, under the Plan against the Group or against any
      shareholder, officer, director, agent or Employee of the Group, except as
      specifically provided for in the Plan.  Nothing in the Plan
      shall be construed as giving any Employee the right to remain in the
      employ of the Group or to change the terms of his employment by the
      Group.

            

    

     

    
      	
              14.4

            	
              Construction.  In
      the construction of the Plan, the masculine includes the feminine and the
      singular includes the plural in all cases in which such meanings are
      appropriate.

            

    

     

    
      	
              14.5

            	
              Copies of
      Documents.  Copies of the Plan and of the Trust Agreement
      shall be made available to Participants during regular business hours at
      the Participating Companies' principal offices and at such other locations
      as the Plan Administrator may designate.  No documents (at any
      time published or distributed to any Employee, Participant, former
      Participant, Spouse, Beneficiary or any other person) which summarize and
      explain the material provisions of the Plan shall be construed or
      interpreted in any way as constituting the Plan, and in the event of any
      conflict between such documents and the terms of the Plan, the terms of
      the Plan shall govern.

            

    

     

    
      	
              14.6

            	
              Jurisdiction.  The
      Plan shall be construed and enforced in accordance with the laws of
      Indiana, except as otherwise required by
ERISA.

            

    

     

    
      	
              14.7

            	
              Nonalienation of
      Benefits.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Except
      as provided in this Section and Section 14.8 or as permitted by applicable
      law, no benefit under the Plan, prior to actual receipt thereof by a
      Participant or a Beneficiary, shall be subject to any debt, liability,
      contract, engagement, or tort of any Participant or his Beneficiary, nor
      subject to anticipation, sale, assignment, transfer, encumbrance, pledge,
      charge, attachment, garnishment, execution, alienation, or other voluntary
      or involuntary alienation or other legal or equitable process, nor
      transferable by operation of law.  Any action by way of
      anticipation, sale, assignment, transfer, encumbrance, pledge, charge,
      attachment, garnishment, execution, alienation, or other voluntary or
      involuntary alienation shall be void and of no
  effect.

            

    

     

    
      
        
        

      

      
        -56-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              (b)

            	
              The
      benefits of a Participant under the Plan may be reduced to the extent
      permitted under Code Section 401(a)(13), which, in general, provides a
      reduction to satisfy the Participant's liability to the Plan due
      to:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Participant's conviction of a crime involving the
  Plan,

            

    

     

    
      	
               
      

            	
              (ii)

            	
              a
      judgment, consent order, or decree in an action for violation of fiduciary
      standards, or

            

    

     

    
      	
               
      

            	
              (iii)

            	
              a
      settlement involving the Department of Labor or the Pension Benefit
      Guaranty Corporation.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Notwithstanding
      any other provision of the Plan, any benefit payable to a Participant or a
      Beneficiary shall be reduced by any benefit paid or payable from the
      benefits of the Participant under the Plan pursuant to this Section or
      Section 14.8.  The Plan Administrator, in its sole discretion,
      may direct the Trustee to separately account for any benefit payable
      pursuant to this Section or Section
14.8.

            

    

     

    
      	
              14.8

            	
              Qualified Domestic
      Relations Orders.

            

    

     

    
      	
               
      

            	
              (a)

            	
              The
      benefits of a Participant shall be paid to an "Alternate Payee" as defined
      in Code Section 414(p) pursuant to the applicable requirements of any
      "Qualified Domestic Relations Order" under Code Sections 401(a)(13) and
      414(p).  The Alternate Payee may direct the investment of his or
      her portion of the benefit under the Plan and may designate a Beneficiary,
      as applicable.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Notwithstanding
      any other provision of the Plan, the Plan may make a distribution to an
      Alternate Payee pursuant to a Qualified Domestic Relations Order as soon
      as practicable following a determination by the Plan Administrator that
      the requirements for a Qualified Domestic Relations Order have been
      satisfied.  Such Qualified Domestic Relations Order may provides
      for payment, including the immediate payment, of a Participant's vested
      amounts to an Alternate Payee before the date on which the Participant
      terminates employment with the Group.  If the Alternate Payee is
      the current or former Spouse of the Participant ("Spouse Alternate
      Payee"), at least thirty (30) days and not more than one hundred eighty
      (180) days before a distribution to the Spouse Alternate Payee, the Plan
      Administrator shall provide the Spouse Alternate Payee with notice of his
      right to make a direct rollover (as permitted under Section 9.13), unless
      otherwise waived by the Spouse Alternate Payee.  Distribution
      may commence fewer than thirty (30) days after the direct rollover notice
      is given to the Spouse Alternate Payee, provided
  that:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Plan Administrator clearly informs the Spouse Alternate Payee that the
      Spouse Alternate Payee has a right to a period of at least thirty (30)
      days after receiving such notice and explanation to consider the decision
      of whether or not to elect a direct rollover,
  and

            

    

     

    
      
        
        

      

      
        -57-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              (ii)

            	
              the
      Spouse Alternate Payee, after having received such notice, affirmatively
      elects to receive a distribution.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Procedures regarding
      Qualified Domestic Relations
Orders.

            

    

     

    
      	
               
      

            	
              (i)

            	
              If
      the Plan receives any order which may be a Qualified Domestic Relations
      Order, the Plan Administrator
shall:

            

    

     

    
      	
               
      

            	
              (A)

            	
              promptly
      notify the Participant and any prospective Alternate Payee of (i) the
      receipt of such order, and (ii) the procedures under the Plan for
      determining whether such order is a Qualified Domestic Relations Order;
      and

            

    

     

    
      	
               
      

            	
              (B)

            	
              within
      a reasonable period after receipt of such order, and in accordance with
      regulations which the Secretary of Labor may prescribe, determine whether
      such order is a Qualified Domestic Relations Order and notify the
      Participant and each Alternate Payee of such
  decision.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              The
      Plan Administrator shall establish reasonable procedures to determine
      whether any order is a Qualified Domestic Relations Order and to
      administer the distribution of benefits with respect to such
      orders.  The procedures
shall:

            

    

     

    
      	
               
      

            	
              (A)

            	
              be
      in writing,

            

    

     

    
      	
               
      

            	
              (B)

            	
              provide
      prompt notice of such procedures to each person specified in the order as
      entitled to the payment of benefits, at the address specified in the
      order, and

            

    

     

    
      	
               
      

            	
              (C)

            	
              permit
      an Alternate Payee to designate a representative for receipt of copies of
      notices that are sent to Alternate Payees with respect to a Qualified
      Domestic Relations Order.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              During
      any period of time in which the issue of whether an order is a Qualified
      Domestic Relations Order is being determined by the Plan Administrator, a
      court of competent jurisdiction, or otherwise, the Plan Administrator
      shall provide the Trustee with written direction to separately account
      under the Trust for the amounts, if any, which would be payable to an
      Alternate Payee during such period if such order is determined to be a
      Qualified Domestic Relations Order.  If within the eighteen (18)
      month period beginning on the date on which the first payment would be
      required to be made under the order, the order, or modification thereof,
      is determined to be a Qualified Domestic Relations Order, the Plan
      Administrator shall pay such separately accounted amounts, plus any
      interest thereon, to the Alternate Payee or Payees entitled
      thereto.  If within the eighteen (18) month period the order is
      determined to not be a Qualified Domestic Relations Order, or if
      such

            

    

     

    
      
        
        

      

      
        -58-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              issue
      has not been resolved, the Plan Administrator shall direct the Trustee to
      pay such separately accounted amounts, plus any interest thereon, to the
      Participant or Beneficiary entitled to such amounts as if there had been
      no order.  Any determination that an order is a Qualified
      Domestic Relations Order after the close of the eighteen (18) month period
      shall have only prospective application.  Notwithstanding the
      preceding provisions, and in accordance with such regulations as the
      Secretary of the Treasury may prescribe, the Plan Administrator, in the
      sole discretion of the Plan Administrator, may delay payment of any
      amounts payable under the Plan to a Participant (i) to the end of said
      eighteen (18) month period, if an order is found to be defective within
      said eighteen (18) month period and the Plan Administrator has notice that
      the parties with respect to the order are attempting to rectify any
      defects in the order, or (ii) for a reasonable period of time, if the Plan
      Administrator receives notice that an order which may be a Qualified
      Domestic Relations Order is being sought with respect to the Participant;
      provided,
      however,
      for these purposes, a court stay to the Plan Administrator during the time
      an appeal is pending is notice that the parties with respect to an order
      are attempting to cure any defects in an order, and the Plan Administrator
      shall honor a restraining order prohibiting the disposition of any amounts
      with respect to a Participant pending resolution of a dispute with respect
      to an order which may be a Qualified Domestic Relations
    Order.

            

    

     

    
      	
               
      

            	
              (iv)

            	
              Any
      expenses incurred by reason of the Trustee's compliance with a Qualified
      Domestic Relations Order shall be charged to the Participant Accounts of
      the Participant to which the Qualified Domestic Relations Order relates in
      accordance with Section 14.1.

            

    

     

    
      	
               
      

            	
              (v)

            	
              To
      the extent so provided in any Qualified Domestic Relations Order, the
      former spouse of a Participant shall be treated as the surviving spouse of
      the Participant under the Plan for purposes of Code Sections 401(a)(11)
      and 417 and the spouse of the Participant shall not be treated as a spouse
      of the Participant for such
purposes.

            

    

     

    
      	
              14.9

            	
              Non-Diversion.  Irrespective
      of anything contained in the Plan or in the separate Trust Agreement, as
      now expressed or hereafter amended, it shall be impossible for any part of
      the Trust Fund to be used for, or diverted to, any purpose not for the
      exclusive benefit of Participants or, if deceased, of their designated
      Beneficiaries at any time, either by the operation, amendment, revocation
      or termination of the Plan; and no part of the Trust Fund shall be paid,
      distributed or made available to the Participating Companies at any time,
      except as expressly provided in the Plan and permitted under ERISA and
      under the Code.

            

    

     

    
      	
              14.10

            	
              Non-Liability of
      Participating Companies.  Except as otherwise provided by
      ERISA, no liability whatsoever shall attach to or be incurred by any
      shareholder, officer or director, as such, of the Participating Companies
      under or by reason of any provision of the Plan or any act with reference
      to the Plan, and any and all rights and claims against
  the

            

    

     

    
      
        
        

      

      
        -59-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              Participating
      Companies, or any shareholder, officer or director thereof, as such,
      whether arising at common law or in equity or created by statute,
      constitution or otherwise, are hereby expressly waived and released to the
      fullest extent permitted by law by every Participant and by any
      Beneficiary claiming through him as a condition of and part of the
      consideration for the payments by the Participating Companies under the
      Plan and for the receipt of benefits
hereunder.

            

    

     

    
      	
              14.11

            	
              Illegal or Invalid
      Provisions.  If any provision of the Plan shall be held
      illegal or invalid for any reason, such illegality or invalidity shall not
      affect the remaining parts of the Plan and it shall be construed and
      enforced as if such illegal or invalid provision had never been inserted
      herein.

            

    

     

    
      	
              14.12

            	
              Execution of
      Counterparts.  The Plan may be executed in any number of
      counterparts, each of which shall be deemed to be an
      original.  All the counterparts shall constitute but one (1) and
      the same instrument, and the Plan may be sufficiently evidenced by any one
      (1) counterpart.

            

    

     

    
      	
              14.13

            	
              Tax
      Approval.  If for any reason the Key District Director of
      the Internal Revenue Service should at any time fail to approve any of the
      terms, conditions or amendments contained in or implied from the Plan for
      qualification under Sections 401(a) and 501(a) of the Code, then Vectren
      Corporation shall be authorized to make such modifications, alterations
      and amendments of the Plan as are necessary to obtain or to retain such
      approval and such modifications, alterations and amendments shall be
      effective retroactively to the Effective Date or to such later date as is
      required to obtain or to retain such
approval.

            

    

     

    
      	
              14.14

            	
              Non-Liability of
      Shareholders.  Except as otherwise provided by ERISA, no
      liability whatsoever shall attach to, or be incurred by, any past, present
      or future shareholder, officer or director, as such, of the Participating
      Companies under or by reason of any of the terms, conditions or agreements
      contained in or implied from the Plan, and any and all liability of, and
      any and all rights and claims against, the Participating Companies or any
      shareholder, officer or director of Participating Companies, as such,
      whether arising at common law or in equity or created by statute or
      constitution or otherwise, shall be deemed to have been expressly waived
      and released to the fullest extent permitted by law by every Participant
      or, if deceased, by his Beneficiary as a condition of, and as a part of
      the consideration for, the contributions made by the Participating
      Companies pursuant to Article V.

            

    

     

    
      	
              14.15

            	
              Rights of Third
      Parties.  Except as otherwise provided by ERISA and by
      Sections 14.7, nothing expressed or implied in the Plan is intended or
      shall be construed to confer upon or to give to any person, other than the
      Participating Companies, the Trustee and all Participants or, if deceased,
      their Beneficiaries any right, remedy or claim under or by reason of any
      provisions of the Plan, and all provisions of the Plan shall be for the
      sole and exclusive benefit of the Participating Companies, the Trustee and
      all Participants or, if deceased, their
      Beneficiaries.  Notwithstanding any provisions in the Plan to
      the contrary, the Spouse or other Beneficiary of any Participant shall
      have absolutely no

            

    

     

    
      
        
        

      

      
        -60-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              rights
      whatsoever under the Plan before the death of such Participant except to
      the extent required under a qualified domestic relations order as provided
      in Section 14.8.

            

    

     

    
      	
              14.16

            	
              Titles.  Titles
      of the Articles and Sections of the Plan are for general information only,
      and the Plan shall not be construed by reference to such
      titles.

            

    

     

    
      	
              14.17

            	
              Successors and
      Assigns.  The Plan shall be binding upon the successors
      and assigns of the Participating
Companies.

            

    

     

    
      	
              14.18

            	
              Forms and Proofs;
      Notice of Address.  Each Participant or Beneficiary of a
      deceased Participant eligible to receive any distributions hereunder shall
      complete such forms and furnish such proofs, receipts and releases as
      shall be required by the Plan Administrator or by the Participating
      Companies.  Failure to furnish such information or to sign such
      documents shall not result in any forfeiture but shall be deemed to be a
      voluntary election to postpone distributions hereunder.  No
      interest shall be paid on distributions as to which the time of commencing
      payment has been postponed as herein provided.  Each
      Participant, former or retired Participant and the Spouse or other
      beneficiary of any deceased Participant shall file with the Plan
      Administrator in writing his post-office address and each change of
      post-office address.  Any communication, statement or notice
      addressed to such person at his latest post-office address as filed with
      the Plan Administrator shall be binding upon such person for all purposes
      of the Plan, and neither the Trustee nor the Participating Companies shall
      be obligated to search for or to ascertain the whereabouts of any such
      person.

            

    

     

    ARTICLE
XV

    AMENDMENT, TERMINATION OR
MERGER

     

    
      	
              15.1

            	
              Right To Amend or
      Terminate.  The Chief Executive Officer, President, or
      Chief Administrative Officer of Vectren Corporation reserves the right to
      alter, amend or modify, revoke or terminate, in whole or in part, the Plan
      and the Trust Agreement that was established currently with the Plan to
      effectuate and implement the Plan by executing a written instrument
      evidencing such action and filing a copy thereof with each of the other
      Participating Companies and with the Trustee; provided, however, that
      the Board of Directors of Vectren Corporation must approve any amendment
      that results in an increase in benefits and/or costs to the Participating
      Companies which the Chief Executive Officer, President, or Chief
      Administrative Officer of Vectren Corporation determines, in his or her
      sole discretion, to be material.  Notwithstanding the foregoing,
      no such alteration, amendment or modification, in whole or in part, of the
      Plan or of the Trust Agreement
shall:

            

    

     

    
      	
               
      

            	
              (a)

            	
              cause
      any part of the Trust Fund to be used for or diverted to any purpose other
      than for the exclusive benefit of Participants or other persons entitled
      to the benefits under the Plan except as expressly provided in the Plan
      and permitted under ERISA and under the
Code;

            

    

     

    
      
        
        

      

      
        -61-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              (b)

            	
              retroactively
      affect adversely the rights of any Participant or his Beneficiary to any
      benefits under the Plan, unless such amendment is determined to be
      necessary or desirable to comply with ERISA or with the
    Code;

            

    

     

    
      	
               
      

            	
              (c)

            	
              change
      the vesting schedule in Section 9.3 or in Section 17.4 unless each
      Participant who has completed three (3) or more Years of Service as of the
      effective date of such amendment is permitted to elect, within sixty (60)
      calendar days after the latest of the date on which the amendment is
      adopted, the date on which the amendment is effective or the date on which
      he is notified in writing by the Plan Administrator of his rights under
      this Subsection, to have his vested interest determined without regard to
      such amendment; or

            

    

     

    
      	
               
      

            	
              (d)

            	
              decrease
      a Participant's Participant Account balance or eliminate an optional form
      of distribution for the accrued benefits of a Participant determined as of
      the date of the alteration, amendment or
  modification.

            

    

     

    
      	
              15.2

            	
              Distribution upon
      Termination.  In the event of the termination, in whole
      or in part, of the Plan by Vectren Corporation or in the event of the
      permanent discontinuance of contributions to the Plan, Vectren Corporation
      may direct the Trustee to segregate the assets allocable to the respective
      Participating Companies concerned.  The assets in the Trust Fund
      shall be valued as of the date of such partial or total termination or
      permanent discontinuance.  That portion of the assets in the
      Trust Fund attributable to the Participants directly affected by the
      partial or total termination or permanent discontinuance (except such part
      thereof as is used for the payment of expenses), which shall remain
      non-forfeitable and fully vested, shall be, if permitted by the Code,
      distributed as though all Participants directly affected by the partial or
      total termination or permanent discontinuance had retired on the date of
      such partial or total termination or permanent
      discontinuance.  That portion of the assets in the Trust Fund
      attributable to the Participants directly affected by the partial or total
      termination or permanent discontinuance shall be that fractional share of
      the assets (determined as of the date of the partial or total termination
      or permanent discontinuance) which is expressed by a fraction, the
      numerator of which is the aggregate present value of the Participant
      Accounts of all Participants directly affected by the partial or total
      termination or permanent discontinuance and the denominator of which is
      the aggregate present value of the Participant Accounts of all
      Participants, both present values and all Participant Account values to be
      determined as of the date of the partial or total termination or permanent
      discontinuance.

            

    

     

    
      	
              15.3

            	
              Plan Merger or
      Consolidation.  Vectren Corporation expressly reserves
      the right, by action of its Chief Executive Officer or its President, to
      merge or to consolidate the Plan with, or to transfer the assets or
      liabilities of the Plan to, any other similar qualified retirement plan at
      any time, except that no such merger, consolidation or transfer shall be
      authorized unless each Participant in the Plan would receive a benefit
      immediately after the merger, consolidation or transfer (if the merged,
      consolidated or transferred plan then terminated) equal to or greater than
      the benefit to which he would have been entitled immediately before the
      merger, consolidation or transfer (if the Plan then
      terminated).  Subject to the foregoing limitations regarding
      benefits before and after a merger,

            

    

     

    
      
        
        

      

      
        -62-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              consolidation
      or transfer of assets, if any Participating Company (the "Transferee")
      acquires all or substantially all of the assets of another Participating
      Company (the "Transferor") by purchase, merger, liquidation or otherwise
      and if, as a result of such acquisition, a substantial number of the
      Employees of the Transferor are employed by the Transferee, the Transferor
      and the Transferee may, by duly adopted resolutions of their Boards of
      Directors, take whatever steps they deem necessary or appropriate,
      consistent with any requirements imposed under ERISA and under the Code,
      to cause the Trustee to transfer on its records of the Trust Fund the
      assets and liabilities allocable to the Transferor under the Plan to the
      Transferee.

            

    

     

    ARTICLE
XVI

    PARTICIPANT
LOANS

     

    
      	
              16.1

            	
              Authorization by Plan
      Administrator.  The Plan Administrator or its designee
      may, in its sole discretion, in accordance with rules adopted and
      consistently applied in a uniform and nondiscriminatory manner, direct the
      Trustee to loan a Participant, who is actively employed by the Group, an
      amount from his vested Participant Accounts which is not less than one
      thousand dollars ($1,000) and which, when added to any other loan
      outstanding to such Participant under any other qualified retirement plans
      maintained by the Group, does not exceed the lesser
  of:

            

    

     

    
      	
               
      

            	
              (a)

            	
              fifty
      thousand dollars ($50,000), reduced by the excess
  of:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      highest outstanding loan balance of loans from the Plan during the one (1)
      year period ending on the day preceding the date as of which such loan was
      made, over

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      outstanding loan balance of loans from the Plan on the date such loan is
      made;

            

    

     

    or

     

    
      	
               
      

            	
              (b)

            	
              fifty
      percent (50%) of the sum of his vested Participant Accounts balances as of
      the Valuation Date coincident with or immediately preceding the effective
      date of the loan and as adjusted to reflect any withdrawals or other
      distributions from his Participant Accounts since such Valuation
      Date);

            

    

     

    provided, however, that the
aforesaid loan privileges shall also be extended to any party in interest
(within the meaning of Section 3(14) of ERISA) to the Plan, who is a former
Participant with undistributed vested Participant Accounts, who is the
Beneficiary of a deceased Participant with undistributed vested Participant
Accounts, or who is an alternate payee under any court order which has been
determined by the Plan Administrator to be a qualified domestic relations order
with an interest in all or a portion of a Participant's undistributed vested
Participant Accounts, but only to the extent of that alternate payee's vested
interest in that Participant's Participant Accounts under such court order, and
references to the term "Participant" in this Article shall include, where
appropriate, such other individuals eligible for loans under this Article; provided, further, that if the
Plan Administrator determines that the class of individuals for whom
loans

     

    
      
        
        

      

      
        -63-

        
          

        

      

      
        
        

      

    

    may be
granted (exclusive of active Employees) is disproportionately represented by
former Highly Compensated Participants, the Plan Administrator shall also make
loans available to other former Participants, Beneficiaries and alternate
payees, regardless whether they are a party in interest (within the meaning of
Section 3(14) of ERISA).

     

    
      	
              16.2

            	
              Terms and
      Conditions.  With respect to loans made, extended,
      renewed or modified in accordance with Section 16.1, the following
      restrictions shall apply in addition to any restrictions imposed pursuant
      to Section 4975(d)(1) of the Code or pursuant to Section 408(b)(1) of
      ERISA:

            

    

     

    
      	
               
      

            	
              (a)

            	
              Loans
      shall be made available to all Participants who are actively employed by
      the Group and, if parties in interest (within the meaning of Section 3(14)
      of ERISA) to the Plan, to former Participants, Beneficiaries of deceased
      Participants and alternate payees on a reasonably equivalent basis without
      regard to race, color, religion, sex, age or national origin and after
      giving consideration only to those factors which would be considered in a
      normal commercial setting by an entity in the business of making similar
      types of loans, including but not limited to the applicant's
      credit-worthiness and financial
need.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Loans
      shall not be made available to Participants who are Highly Compensated
      Participants within the meaning of Section 414(q) of the Code, officers or
      shareholders of the Group in an amount greater than the amount made
      available to other Participants.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Loans
      shall be made in accordance with the specific provisions regarding such
      loans as set forth in this Article and with rules containing strict
      objective criteria which are adopted by the Plan Administrator and
      consistently applied in a uniform and nondiscriminatory manner, which
      rules are hereby incorporated by reference and made a part of the
      Plan.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Loans
      shall be adequately secured, but in no event shall more than fifty percent
      (50%) of the borrowing Participant's or, where applicable, Beneficiary's
      or alternate payee's, as the case may be, vested interest in the
      Participant Accounts in the Plan immediately after the origination of the
      loan be considered as security.  The adequacy of such security
      shall be determined by the Plan Administrator, in its sole discretion, in
      light of the type and amount of security which would be required in the
      case of an otherwise identical transaction in a normal commercial setting
      between unrelated parties on arms-length terms.  No security
      shall be accepted under the Plan other that vested Participant Account
      balances.

            

    

     

    
      	
               
      

            	
              (e)

            	
              The
      loan program established pursuant to this Article shall at all times be
      administered for the exclusive purpose of providing benefits to
      Participants and their Beneficiaries based on an evaluation of all
      relevant facts and circumstances by the Plan
  Administrator.

            

    

     

    
      
        
        

      

      
        -64-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              (f)

            	
              An
      application for a loan by a Participant shall be made by a written request
      filed with the Plan Administrator at least ten (10) calendar days in
      advance of the date as of which the loan is to be
    effective.

            

    

     

    
      	
               
      

            	
              (g)

            	
              The
      entire unpaid balance of any loan made under this Section and all interest
      due thereon, including all arrearages thereon, shall, at the option of the
      Plan Administrator, immediately become due and payable without further
      notice or demand, upon the occurrence, with respect to the borrowing
      Participant, of any of the following events of
  default:

            

    

     

    
      	
               
      

            	
              (i)

            	
              any
      payment of principal and accrued interest on the loan remains due and
      unpaid for a period often (10) calendar days after the same becomes due
      and payable under the terms of the
loan;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      commencement of a proceeding in bankruptcy, receivership or insolvency by
      or against the borrowing
Participant;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              the
      termination of the employment of the borrowing Participant with the
      Participating Companies for any
      reason;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              the
      borrowing Participant attempts to make an assignment, for the benefit of
      creditors, of his interest in his Participant
  Accounts;

            

    

     

    
      	
               
      

            	
              (v)

            	
              a
      qualified domestic relations order (as such term is defined in Section
      414(p) of the Code) with respect to the borrowing Participant is received
      by the Plan Administrator; or

            

    

     

    
      	
               
      

            	
              (vi)

            	
              any
      loan proceeds are used, directly or indirectly, by the borrowing
      Participant to purchase or carry securities (as such term is defined for
      purposes of Regulation G of the Federal Reserve Board as promulgated
      pursuant to Section 7 of the Securities and Exchange Act of
      1934).

            

    

     

    Any
payments of principal and interest of the loan not paid when due shall bear
interest thereafter, to the fullest extent permitted by law, at the rate
specified by the terms of the loan.  The payment and acceptance of any
sum or sums at any time on account of the loan after an event of default, or any
failure to act to enforce the rights granted hereunder upon an event of default,
shall not be a waiver of the right of acceleration set forth in this
Subparagraph.

     

    
      	
               
      

            	
              (h)

            	
              If
      an event of default and an acceleration of the unpaid balance of the loan
      and interest due thereon shall occur (as described above in Subparagraph
      (g)) but only to the extent permitted by applicable Treasury Regulations,
      the Plan Administrator shall have the right to direct the Trustee to
      pursue any remedies available to a creditor at law or under the terms of
      the loan, including the right to execute on the security for the loan, and
      to apply any amounts credited to the Participant Accounts of the borrowing
      individual at the time of execution or at any time thereafter in
      satisfaction of the unpaid balance of the loan and interest due thereon;
      provided,
      however,
      that the Plan Administrator shall not have
the

            

    

     

    
      
        
        

      

      
        -65-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              right
      to direct the Trustee to execute on any amounts credited to the borrowing
      Participant's Participant Accounts prior to the date on which such
      Participant dies, becomes Totally Disabled, terminates his employment with
      the Participating Companies, or attains age fifty-nine and one-half (591⁄2);
      provided,
      further,
      that if a Participant fails timely to make loan payments, the Plan
      Administrator shall for tax purposes treat all or a portion of the loan
      balance as a deemed distribution to the extent required by applicable
      Treasury Regulations.

            

    

     

    
      	
               
      

            	
              (i)

            	
              The
      period of repayment for each loan shall be arrived at by mutual agreement
      between the Plan Administrator and the borrowing individual, but such
      period shall not in any case exceed five (5) years or, if the borrower is
      a Participant, extend beyond the date the Participant is expected to reach
      age seventy and one-half (70-1/2); provided, however, that
      if the loan proceeds are used by a borrowing Participant to acquire any
      dwelling unit which within a reasonable time period is to be used
      (determined at the time that the loan is made) as a principal residence by
      such Participant or by a member of the family (as defined in Section
      267(c)(4) of the Code) of such Participant, the term of that loan may be
      for a period longer than five (5) years but not beyond the date on which
      that borrowing Participant is expected to reach age seventy and one-half
      (70-1/2).

            

    

     

    
      	
               
      

            	
              (j)

            	
              Loans
      shall bear a reasonable rate of interest to provide the Plan with a return
      commensurate with the interest rates charged by entities in the business
      of lending money for loans which would be made under similar
      circumstances.  The interest rate of loans shall be determined
      by the Plan Administrator in accordance with the parameters described
      above.  Each loan shall bear interest at a reasonable rate to be
      fixed by the Plan Administrator.  The Plan Administrator shall
      not discriminate among Participants in the matter of interest rates, but
      loans granted at different times may bear different interest rates if, in
      the opinion of the Plan Administrator, the difference in rates is
      justified by a change in general economic conditions or other relevant
      factors, so long as such different interest rates are reasonable and do
      not discriminate in favor of highly compensated
    Participants.

            

    

     

    
      	
               
      

            	
              (k)

            	
              No
      more than one (1) loan may be outstanding at any point in
      time.

            

    

     

    
      	
               
      

            	
              (l)

            	
              Each
      loan shall be evidenced by such documentation as may be required by the
      Plan Administrator.

            

    

     

    
      	
               
      

            	
              (m)

            	
              No
      distribution (other than a withdrawal under Section 8.2 of an amount not
      security for a loan under the Plan) shall be made to any Participant or
      former Participant or to a Spouse or other Beneficiary of any deceased
      Participant unless and until all unpaid loans, including accrued interest
      thereon, have been liquidated.

            

    

     

    
      	
               
      

            	
              (n)

            	
              Each
      loan shall have such additional terms as to default, prepayment and
      security as the Plan Administrator, in its sole discretion, may
      determine.

            

    

     

    
      
        
        

      

      
        -66-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              (o)

            	
              The
      installments constituting repayments of any outstanding loan under this
      Section shall be made through regular payroll deductions from amounts
      otherwise payable to a borrowing Participant by the Participating
      Companies so as to assure that the loan is amortized in level payments,
      made not less frequently than quarterly, over the term of the loan; provided, however, that
      if a borrowing Participant is not receiving any Compensation from the
      Participating Companies during a period in which any loan is outstanding
      due to being placed on layoff or on unpaid leave of absence, that
      borrowing Participant shall be required to make installment payments, no
      less frequent than quarterly, equivalent in value and timing to the
      payments which would otherwise have been deducted from his paychecks by
      the Participating Companies; provided, further, that,
      during such period as the borrowing Participant is on a military leave of
      absence under USERRA, all loan repayment obligations shall be suspended in
      accordance with USERRA.  The installments constituting monthly
      repayments of an outstanding loan to a Beneficiary of a deceased
      Participant or to an alternate payee under this Article or to a borrowing
      Participant who is not receiving any Compensation from which payroll
      deductions can be made shall be made by personal check, money order or a
      certified or cashier's check delivered to the office of the Plan
      Administrator on or before their respective due dates.  Cash
      payments shall not be accepted.

            

    

     

    
      	
               
      

            	
              (p)

            	
              Each
      such loan shall require substantially level amortization over its
      term.

            

    

     

    
      	
              16.3

            	
              Accounting for
      Loans.  There shall be a fifty dollar ($50) charge
      assessed against the Participant Accounts of a Participant for whom a loan
      is approved.  A Participant loan subaccount shall be established
      as of the date a loan is made to a Participant in accordance with this
      Article.  The Participant loan subaccount shall be charged
      against the Participant Accounts pro rata based on the amounts credited to
      such Participant's Participant Accounts immediately prior to the
      loan.

            

    

     

    The loan
shall be treated as an investment of the funds credited to the Participant
Accounts of such borrowing Participant.  Cash equal to the amount of
any loan granted under this Section shall be obtained by liquidating the
borrowing Participant's Participant Account investments in the investment funds
pro rata.

     

    Loan
payments, both principal and interest, shall be transferred back to the
investment funds and Participant Accounts from which the loan proceeds were
obtained pro rata as soon as practicable after receipt of the payments by the
Plan Administrator; provided, however, that a loan
payment of a Participant shall be reinvested in the investment funds in
accordance with the investment election in effect for such Participant under
Section 6.1 on the date of each such loan payment.

     

    ARTICLE
XVII

    TOP-HEAVY
RULES

     

    
      	
              17.1

            	
              Application.  The
      rules set forth in this Article shall be applicable with respect to any
      Plan Year in which the Plan is determined to be a Top-Heavy Plan; provided, however,

            

    

     

    
      
        
        

      

      
        -67-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              that
      the provisions of this Article shall be applied only to the extent
      necessary to comply with Section 416 of the Code and in a manner
      consistent with all requirements imposed under Section 416 of the
      Code.

            

    

     

    
      	
              17.2

            	
              Determination.  The
      Plan shall be considered a Top-Heavy Plan with respect to any Plan Year if
      as of the last calendar day of the immediately preceding Plan Year or, if
      the determination is to be made for the Plan's first Plan Year, the last
      calendar day of the first Plan Year (the "determination
      date"):

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      present value of the accrued benefits of key employees (as such term is
      defined below) exceeds sixty percent (60%) of the present value of the
      accrued benefits of all Plan Participants (excluding former key employees
      (as such term is defined below)); provided, however, that
      the accrued benefits of any Participant who has not performed any services
      for the Group during a five (5) year period ending on the determination
      date (as such term is defined above) shall be disregarded,
    or

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      Plan is part of a required aggregation group (as such term is defined
      below) and the required aggregation group is
  top-heavy;

            

    

     

    provided, however, that the
Plan shall not be considered a Top-Heavy Plan with respect to any Plan Year in
which the Plan is part of a required or permissive aggregation group (as such
term is defined below) which is not top-heavy.  For purposes of this
Article, the term "key employee" shall include for any Plan Year any Employee or
former Employee who at any time during the Plan Year or any of the four (4)
preceding Plan Years is:

     

    
      	
               
      

            	
              (c)

            	
              an
      officer of a Company whose Section 415 Compensation from the Group is
      greater than fifty percent (50%) of the maximum dollar limitation under
      Section 415(b)(1)(A) of the Code in effect for the calendar year in which
      the determination date (as such term is defined above)
    falls,

            

    

     

    
      	
               
      

            	
              (d)

            	
              one
      (1) of the ten (10) Employees who own (or who is considered as owning
      within the meaning of Section 318 of the Code) the largest interest in a
      Company, whose ownership interest in such Company is at least one-half of
      one percent (0.5%) and whose Section 415 Compensation from the Group is
      equal to or greater than the maximum dollar limitation under Section
      415(c)(1)(A) of the Code in effect for the calendar year in which the
      determination date (as such term is defined above) falls; provided, however, that
      if two (2) Employees have the same interest in a Company, the Employee
      whose Section 415 Compensation from the Group is greater shall be treated
      as having a larger interest in that
Company,

            

    

     

    
      	
               
      

            	
              (e)

            	
              a
      five percent (5%) owner (determined without regard to Sections 414(b), (c)
      and (m) of the Code) of a Company,
or

            

    

     

    
      	
               
      

            	
              (f)

            	
              a
      one percent (1%) owner (determined without regard to Sections 414(b), (c)
      and (m) of the Code) of a Company whose Section 415 Compensation from the
      Group is in excess of one hundred fifty thousand dollars
      ($150,000);

            

    

     

    
      
        
        

      

      
        -68-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              provided, however, that
      the Beneficiary of any deceased Employee or of any deceased former
      Employee who was included as a key employee by reason of this Section
      shall also be included as a key employee; provided, further, that
      an Employee or former Employee shall only be included as a key employee to
      the extent required by Section 416(i) of the Code.  For
      purposes of this Section, the term "required aggregation group" shall
      include:

            

    

     

    
      	
               
      

            	
              (g)

            	
              all
      qualified retirement plans maintained by the Group in which a key employee
      (as such term is defined above) is a participant; provided, however, that
      the term "required aggregation group" shall also include all qualified
      retirement plans previously maintained by the Group but terminated within
      the five (5) year period ending on the determination date (as such term is
      defined above) in which a key employee (as such term is defined above) was
      a participant; and

            

    

     

    
      	
               
      

            	
              (h)

            	
              any
      other qualified retirement plans maintained by the Group which enable any
      qualified retirement plan described in Subsection (g) above to meet the
      requirements of Section 401(a)(4) or Section 410 of the
    Code.

            

    

     

    For
purposes of this Section, the term "permissive aggregation group" shall include
all qualified retirement plans that are part of a required aggregation group (as
such term is defined above) and any other qualified retirement plan or plans
maintained by the Group if such group will continue to meet the requirements of
Sections 401(a)(4) and 410 of the Code.  Solely for the purpose of
determining if the Plan or any other qualified retirement plan included in a
required aggregation group of which the Plan is a part is Top-Heavy (within the
meaning of Section 416(g) of the Code), the Accrued Benefit of any Employee
other than a key employee (within the meaning of Section 416(i)(1) of the Code)
shall be determined under:

     

    
      	
               
      

            	
              (i)

            	
              the
      method, if any, that uniformly applies for accrual purposes under all
      qualified retirement plans maintained by the Group,
  or

            

    

     

    
      	
               
      

            	
              (j)

            	
              if
      there is no such method, as if such benefit accrued not more rapidly than
      the slowest accrual rate permitted under the fractional accrual rule of
      Section 411(b)(1)(C)of the Code.

            

    

     

    
      	
              17.3

            	
              Accrued
      Benefits.  For purposes of this Article, accrued benefits
      with respect to any Plan Year shall be determined as of the determination
      date (as such term is defined in Section 17.2) for that Plan Year based on
      the Participant Account balances as of the most recent Valuation Date
      within a consecutive twelve (12) month period ending on such determination
      date; provided, however, that
      such Participant Account balances shall be adjusted to the extent required
      by Section 416 of the Code to increase the Participant Account balances by
      the amount of any Company contributions and of any rollovers (other than
      rollovers initiated by a Participant from any qualified retirement plan
      maintained by an unrelated employer) made and allocated after the
      Valuation Date but on or before such determination date and by any
      distributions made to a Participant before the most recent Valuation Date
      during any of the five (5) consecutive Plan Years immediately preceding
      the Plan Year for which the determination as to whether the
      Plan

            

    

     

    
      
        
        

      

      
        -69-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              is
      a Top-Heavy Plan is being made (including distributions from a terminated
      plan which if not terminated would have been part of a required
      aggregation group (as such term is defined in Section 17.2)) and to reduce
      the Participant Account balances by any rollovers made on or before the
      Valuation Date which are initiated by a Participant from any qualified
      retirement plan maintained by an unrelated
  employer.

            

    

     

    
      	
              17.4

            	
              Vesting
      Provisions.  With respect to any Plan Year in which the
      Plan is determined to be a Top-Heavy Plan, a Participant's vested
      percentage in his Participant Account shall not be less than one hundred
      percent (100%) after he has completed at least three (3) Years of Service
      or a three (3) year or more Period of Service, as the case may be; provided, however, that
      if the Plan becomes a Top-Heavy Plan and subsequently ceases to be
      such:

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      vesting schedule shown above shall continue to apply but only with respect
      to those Participants who had completed three (3) or more Years of Service
      or a three (3) year or more Period of Service, as the case may be, as of
      the last calendar day of the final Top-Heavy Plan
  Year,

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      vesting schedule shown above shall continue to apply but only with respect
      to the accrued benefits of all other Participants as of the last calendar
      day of the final Top-Heavy Plan Year,
and

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      vesting schedule in Section 9.3 shall apply to any additional accrued
      benefits of the Participants described in Subsection (b) above which
      accrue after the final Top-Heavy Plan
Year.

            

    

     

    
      	
              17.5

            	
              Minimum
      Contribution.  The minimum amount of Company
      contributions and forfeitures, if applicable, to be allocated to the
      Participant Account of any non-key employee (as such term is defined in
      Section 17.2), regardless of his Section 415 Compensation, regardless of
      his Hours of Service, and regardless whether he is accruing a top heavy
      minimum benefit under any qualified defined benefit plan maintained by the
      Group, who is eligible to participate in the Plan during the Plan Year and
      who had not terminated employment with the Group as of the last calendar
      day of the Plan Year, including any Company contributions and forfeitures,
      if applicable, allocated to such Participant under any other qualified
      defined contribution plans maintained by the Group, in any Plan Year
      during which the Plan is a Top-Heavy Plan shall not be less than three
      percent (3%) of such Participant's Section 415 Compensation in such Plan
      Year; provided, however, that
      the percentage of Section 415 Compensation allocated to the Participant
      Account of any Participant who is not a key employee (as such term is
      defined in Section 17.2) under this Section with respect to such Plan Year
      shall not exceed the highest percentage of Section 415 Compensation
      allocated to the Participant Account of any Participant who is a key
      employee (as such term is defined in Section 17.2) in such Plan Year,
      including Company contributions made under Section
  5.1.

            

    

     

    
      
        
        

      

      
        -70-

        
          

        

      

      
        
        

      

    

    
      ARTICLE
XVIII

    

    MINIMUM
DISTRIBUTION REQUIREMENTS

     

    
      	
              18.1

            	
              General
      Rules.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Precedence.  The
      requirements of this Article will take precedence over any inconsistent
      provisions of the Plan.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Requirements of
      Treasury Regulations Incorporated.  All distributions
      required under this Article will be determined and made in accordance with
      the Treasury Regulations under Section 401(a)(9) of the
    Code.

            

    

     

    
      	
               
      

            	
              (c)

            	
              TEFRA Section
      242(b)(2) Elections.  Notwithstanding the other
      provisions of this Article, distributions may be made under a designation
      made before January 1, 1984, in accordance with Section 242(b)(2) of
      the Tax Equity and Fiscal Responsibility Act ("TEFRA") and the provisions
      of the Plan that relate to Section 242(b)(2) of
  TEFRA.

            

    

     

    
      	
              18.2

            	
              Time and Manner of
      Distribution.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Required Beginning
      Date.  The Participant's entire nonforfeitable interest
      will be distributed, or begin to be distributed, to the Participant no
      later than the Participant's required beginning date (as defined in
      Section 18.6).

            

    

     

    
      	
               
      

            	
              (b)

            	
              Death of Participant
      Before Distributions Begin.  If the Participant dies
      before distributions begin, the Participant's entire nonforfeitable
      interest will be distributed, or begin to be distributed, no later than as
      follows:

            

    

     

    
      	
               
      

            	
              (i)

            	
              If
      the Participant's surviving Spouse is the Participant's sole designated
      Beneficiary (as defined in Section 18.5), then distributions to the
      surviving Spouse will begin by December 31 of the calendar year
      immediately following the calendar year in which the Participant died, or
      by December 31 of the calendar year in which the Participant would
      have attained age seventy and one-half (70-1/2) , if
  later.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              If
      the Participant's surviving Spouse is not the Participant's sole
      designated Beneficiary, then distributions to the designated Beneficiary
      will begin by December 31 of the calendar year immediately following
      the calendar year in which the Participant
died.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              If
      there is no designated Beneficiary as of September 30 of the year
      following the year of the Participant's death, the Participant's entire
      nonforfeitable interest will be distributed by December 31 of the
      calendar year containing the fifth (5th)
      anniversary of the Participant's death; provided, however, that
      calendar year 2009 shall not be included in determining such fifth (5th)
      anniversary of the Participant's
death.

            

    

     

    
      
        
        

      

      
        -71-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              (iv)

            	
              If
      the Participant's surviving Spouse is the Participant's sole designated
      Beneficiary and the surviving Spouse dies after the Participant but before
      distributions to the surviving Spouse begin, this Section 18.2(b), other
      than Section 18.2(b)(i), will apply as if the surviving Spouse were the
      Participant.

            

    

     

    For
purposes of this Section 18.2(b) and Section 18.4, unless Section 18.2(b)(iv)
applies, distributions are considered to begin on the Participant's required
beginning date.  If Section 18.2(b)(iv) applies, distributions are
considered to begin on the date distributions are required to begin to the
surviving Spouse under Section 18.2(b)(i).  If distributions under an
annuity purchased from an insurance company irrevocably commence to the
Participant before the Participant's required beginning date (or to the
Participant's surviving Spouse before the date distributions are required to
begin to the surviving Spouse under Section 18.2(b)(i)), the date distributions
are considered to begin is the date distributions actually
commence.

     

    
      	
               
      

            	
              (c)

            	
              Forms of
      Distribution.  Unless the Participant's interest is
      distributed in the form of an annuity purchased from an insurance company
      or in a single sum on or before the required beginning date, as of the
      first distribution calendar year (as defined in Section 18.5)
      distributions will be made in accordance with Sections 18.3 and 18.4 of
      this Article.  If the Participant's interest is distributed in
      the form of an annuity purchased from an insurance company, distributions
      thereunder will be made in accordance with the requirements of Section
      401(a)(9) of the Code and the Treasury
  Regulations.

            

    

     

    
      	
              18.3

            	
              Required Minimum
      Distributions During Participant's
  Lifetime.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Amount of Required
      Minimum Distribution For Each Distribution Calendar
      Year.  During the Participant's lifetime, the minimum
      amount that will be distributed for each distribution calendar year is the
      lesser of:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      quotient obtained by dividing the Participant's Account Balance by the
      distribution period in the Uniform Lifetime Table set forth in Section
      1.401(a)(9)-9 of the Treasury Regulations, using the Participant's age as
      of the Participant's birthday in the distribution calendar year;
      or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              if
      the Participant's sole designated Beneficiary for the distribution
      calendar year is the Participant's Spouse, the quotient obtained by
      dividing the Participant's Account Balance by the number in the Joint and
      Last Survivor Table set forth in Section 1.401(a)(9)-9 of the Treasury
      Regulations, using the Participant's and Spouse's attained ages as of the
      Participant's and Spouse's birthdays in the distribution calendar year;
      provided,
      however,
      that under no circumstances shall the distribution exceed the
      nonforfeitable portion of the Participant's Account
    Balance.

            

    

     

    
      
        
        

      

      
        -72-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              (b)

            	
              Lifetime Required
      Minimum Distributions Continue Through Year of Participant's
      Death.  Required minimum distributions will be determined
      under this Section 18.3 beginning with the first distribution calendar
      year and up to and including the distribution calendar year that includes
      the Participant's date of death.

            

    

     

    
      	
              18.4

            	
              Required Minimum
      Distributions After Participant's
Death.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Death On or After Date
      Distributions Begin.

            

    

     

    
      	
               
      

            	
              (i)

            	
              Participant Survived
      by Designated Beneficiary.  If the Participant dies on or
      after the date distributions begin and there is a designated Beneficiary,
      the minimum amount that will be distributed for each distribution calendar
      year after the year of the Participant's death is the quotient obtained by
      dividing the Participant's Account Balance by the longer of the remaining
      life expectancy (as defined in Section 18.6) of the Participant or the
      remaining life expectancy of the Participant's designated Beneficiary,
      determined as follows:

            

    

     

    
      	
               
      

            	
              (A)

            	
              The
      Participant's remaining life expectancy is calculated using the age of the
      Participant in the year of death, reduced by one (1) for each subsequent
      year.

            

    

     

    
      	
               
      

            	
              (B)

            	
              If
      the Participant's surviving Spouse is the Participant's sole designated
      Beneficiary, the remaining life expectancy of the surviving Spouse is
      calculated for each distribution calendar year after the year of the
      Participant's death using the surviving Spouse's age as of the Spouse's
      birthday in that year.  For distribution calendar years after
      the year of the surviving Spouse's death, the remaining life expectancy of
      the surviving Spouse is calculated using the age of the surviving Spouse
      as of the Spouse's birthday in the calendar year of the Spouse's death,
      reduced by one (1) for each subsequent calendar
  year.

            

    

     

    
      	
               
      

            	
              (C)

            	
              If
      the Participant's surviving Spouse is not the Participant's sole
      designated Beneficiary, the designated Beneficiary's remaining life
      expectancy is calculated using the age of the Beneficiary in the year
      following the year of the Participant's death, reduced by one (1) for each
      subsequent year.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              No Designated
      Beneficiary.  If the Participant dies on or after the
      date distributions begin and there is no designated Beneficiary as of
      September 30 of the year after the year of the Participant's death, the
      minimum amount that will be distributed for each distribution calendar
      year after the year of the Participant's death is the quotient obtained by
      dividing the Participant's Account Balance by the Participant's remaining
      life

            

    

     

    
      
        
        

      

      
        -73-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              expectancy
      calculated using the age of the Participant in the year of death, reduced
      by one (i) for each subsequent
year.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Death Before Date
      Distributions Begin.

            

    

     

    
      	
               
      

            	
              (i)

            	
              Participant Survived
      by Designated Beneficiary.  If the Participant dies
      before the date distributions begin and there is a designated Beneficiary,
      the minimum amount that will be distributed for each distribution calendar
      year after the year of the Participant's death is the quotient obtained by
      dividing the Participant's Account Balance by the remaining life
      expectancy of the Participant's designated Beneficiary, determined as
      provided in Section 18.4(a).

            

    

     

    
      	
               
      

            	
              (ii)

            	
              No Designated
      Beneficiary.  If the Participant dies before the date
      distributions begin and there is no designated Beneficiary as of September
      30 of the year following the year of the Participant's death, distribution
      of the Participant's entire nonforfeitable interest will be completed by
      December 31 of the calendar year containing the fifth (5th)
      anniversary of the Participant's death; provided, however, that
      calendar year 2009 shall not be included in determining such fifth (5th)
      anniversary of the Participant's
death.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              Death of Surviving
      Spouse Before Distributions to Surviving Spouse Are Required to
      Begin.  If the Participant dies before the date
      distributions begin, the Participant's surviving Spouse is the
      Participant's sole designated Beneficiary, and the surviving Spouse dies
      before distributions are required to begin to the surviving Spouse under
      Section 18.2(b)(i), this Section 18.4(b) will apply as if the surviving
      Spouse were the Participant.

            

    

     

    
      	
              18.5

            	
              Special Rule for
      Required Minimum Distributions in
2009.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Required
      minimum distribution payments shall not be made for Participants and
      Beneficiaries for 2009 unless such Participants and/or Beneficiaries
      voluntarily elect to receive such payments by following the procedures
      established by the Plan
Administrator.

            

    

     

    
      	
               
      

            	
              (b)

            	
              To
      the extent a required minimum distribution payment is paid in
      installments, for 2009 distributions, such payments shall continue unless
      such Participant and/or Beneficiary elects to suspend such installment
      payments by following the procedures established by the Plan
      Administrator.

            

    

     

    
      	
               
      

            	
              (c)

            	
              A
      distribution that would otherwise constitute a required minimum
      distribution for 2009, may be directly rolled over to an eligible
      retirement plan by following the procedures established by the Plan
      Administrator.

            

    

     

    
      
        
        

      

      
        -74-

        
          

        

      

      
        
        

      

    

    
      	
              18.6

            	
              Definitions.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Designated
      Beneficiary.  The individual who is designated as the
      Beneficiary under Section 9.7 of the Plan and is the designated
      Beneficiary under Section 401(a)(9) of the Code and Section 1.401(a)(9)-l,
      Q&A-4, of the Treasury
Regulations.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Distribution calendar
      year.  A calendar year for which a minimum distribution
      is required.  For distributions beginning before the
      Participant's death, the first distribution calendar year is the calendar
      year immediately preceding the calendar year which contains the
      Participant's required beginning date.  For distributions
      beginning after the Participant's death, the first distribution calendar
      year is the calendar year in which distributions are required to begin
      under Section 18.2(b).  The required minimum distribution for
      the Participant's first distribution calendar year will be made on or
      before the Participant's required beginning date.  The required
      minimum distribution for other distribution calendar years, including the
      required minimum distribution for the distribution calendar year in which
      the Participant's required beginning date occurs, will be made on or
      before December 31 of that distribution calendar
  year.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Life
      expectancy.  Life expectancy as computed by use of the
      Single Life Table in Section 1.401(a)(9)-9 of the Treasury
      Regulations.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Participant's Account
      Balance.  The aggregate value of that Participant's
      Participant Accounts as of the last Valuation Date in the calendar year
      immediately preceding the distribution calendar year ("valuation calendar
      year") increased by the amount of any contributions made and allocated or
      forfeitures allocated to the Participant Accounts as of dates in the
      valuation calendar year after the Valuation Date and decreased by
      distributions made in the valuation calendar year after the Valuation
      Date.  The Participant's Account Balance for the valuation
      calendar year includes any amounts rolled over or transferred to the Plan
      either in the valuation calendar year or in the distribution calendar year
      if distributed or transferred in the valuation calendar
    year.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Required beginning
      date.  The date specified in Section 9.8 of the
      Plan.

            

    

     

    ARTICLE
XIX

    ESOP
PROVISIONS

     

    
      	
              19.1

            	
              Establishment of
      ESOP.  The portion of this Plan held and invested in
      Company Stock Fund shall continue to be invested primarily in Vectren
      Stock and is intended to be an employee stock ownership plan within the
      meaning of Code Section 4975(e)(7) and shall be subject to the terms and
      conditions set forth in this Article XIX.  Any amount
      transferred from Company Stock Fund to any other investment fund shall no
      longer be treated as part of an employee stock ownership plan and shall
      cease to be subject to this Article
XIX.

            

    

     

    
      
        
        

      

      
        -75-

        
          

        

      

      
        
        

      

    

    
      	
              19.2

            	
              Payment and
      Reinvestment of Dividends.  Any cash Dividends (as that
      term is defined in Section 19.9) paid with respect to shares of Vectren
      Stock allocated to a Participant's ESOP Subaccount (as that term is
      defined in Section 19.9) may, as determined by the Plan Administrator, be
      either paid directly in cash to Participants on a non-discriminatory basis
      or paid to the Trust Fund.  If any Dividend is paid to the Trust
      Fund, the Plan Administrator may, in its discretion (and in accordance
      with such rules as it may adopt and uniformly apply), give all
      Participants (and their Beneficiaries) who have vested ESOP Subaccount
      balances the option either to (a) receive a cash distribution of
      Dividends paid with respect to Vectren Stock allocated to the
      Participant's or Beneficiary's ESOP Dividend Subaccounts (as that term is
      defined in Section 19.9), with such distribution made as soon as
      administratively practicable after the Dividend is paid to the Trust Fund
      but no later than ninety (90) days after the end of the Plan Year in which
      the Dividend is paid to the Trust Fund, or (b) have such cash
      Dividends reinvested in Vectren
Stock.

            

    

     

    
      	
              19.3

            	
              Special Allocation
      Rules.  Notwithstanding any other provision in this Plan
      to the contrary, no Vectren Stock acquired by this Plan in a sale to which
      Section 1042 of the Code applies may be allocated directly or indirectly
      under this Plan:

            

    

     

    
      	
               
      

            	
              (a)

            	
              during
      the non allocation period (as such term is defined below), for the benefit
      of:

            

    

     

    
      	
               
      

            	
              (i)

            	
              any
      Participant who makes an election under Section 1042(a) of the Code with
      respect to Vectren Stock sold to this Plan,
or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              any
      Participant who is related to the Participant making the election under
      Section 1042(a) of the Code or to the deceased Participant (within the
      meaning of Section 267(b) of the Code); provided, however, that
      this Subsection (a)(ii) shall not apply to any Participant who is a
      lineal descendent of a Participant as long as the aggregate amount
      allocated to the benefit of all such lineal descendants during the non
      allocation period (as such term is defined below) does not exceed more
      than five percent (5%) of the Vectren Stock (or amounts allocated in lieu
      thereof) held by this Plan which are attributable to the sale to this Plan
      by any person related to such descendants (within the meaning of Section
      267(c)(4) of the Code) in a transaction to which Section 1042 of the Code
      applies,

            

    

     

    or

     

    
      	
               
      

            	
              (b)

            	
              for
      the benefit of any Participant who owns (after the application of the
      attribution rules contained in Section 318(a) of the Code, but
      disregarding Section 318(a)(2)(B)(i) of the Code) more than twenty five
      percent (25%) of:

            

    

     

    
      	
               
      

            	
              (i)

            	
              any
      class of the outstanding stock of Vectren Corporation or of any other
      corporation which is a member of a controlled group of corporations
      (within the meaning of Section 409(l)(4) of the Code) which includes
      Vectren Corporation, or

            

    

     

    
      
        
        

      

      
        -76-

        
          

        

      

      
        
        

      

    

    
 

    
      	
               
      

            	
              (ii)

            	
              the
      total value of any class of outstanding stock of Vectren Corporation or of
      any other corporation which is a member of the controlled group of
      corporations (within the meaning of Section 409(l)(4) of the Code) which
      includes Vectren Corporation.

            

    

     

    For
purposes of this Section 19.3, the "non allocation period" shall mean a period
beginning on the date of the sale of the Vectren Stock to the Plan and ending on
the later of:

     

    
      	
               
      

            	
              (c)

            	
              the
      date which is ten (10) years after the sale of the Vectren Stock to this
      Plan to which Section 1042 of the Code applies,
  or

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      date of the Plan allocation of Vectren Stock attributable to the final
      payment of any acquisition indebtedness incurred in connection with a sale
      of such Vectren Stock to this Plan to which Section 1042 of the Code
      applies.

            

    

     

    For
purposes of this Section 19.3, a Participant shall be deemed to be a twenty-five
percent (25%) or greater shareholder if such Participant owns more than
twenty-five percent (25%) of the shares at any time during a one (1) year period
ending:

     

    
      	
               
      

            	
              (e)

            	
              on
      the date of a sale of the Vectren Stock to this Plan to which Section 1042
      of the Code applies, or

            

    

     

    
      	
               
      

            	
              (f)

            	
              on
      the date as of which the Vectren Stock sold to this Plan through a sale to
      which Section 1042 of the Code applies is allocated to
      Participants.

            

    

     

    The
provisions contained in this Section 19.3 shall be interpreted consistent with
and in accordance with Section 409(n) of the Code.

     

    
      	
              19.4

            	
              Right of First
      Refusal.  If any recipient of shares of Vectren Stock
      from this Plan elects at any time to sell all or any part of such shares,
      the Trustee shall have a right of first refusal to purchase all or any
      part of such shares of Vectren Stock for the Trust Fund.  The
      price to be paid by the Trustee for shares of Vectren Stock purchased
      pursuant to this Section 19.4 shall be no less than the greater
      of:

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      fair market value of such shares of Vectren Stock at the date of their
      purchase, or

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      price offered to the recipient by another potential buyer (other than an
      Employer) making a good faith, bona fide offer to
      buy such shares of Vectren Stock, and the terms of the purchase may not be
      less favorable to the recipient than the terms offered in the bona fide
      offer.  This right of first refusal shall lapse no later than
      fourteen (14) calendar days after the recipient gives written notice to
      the Trustee that an offer by a third party to purchase his shares of
      Vectren Stock has been received.  The right of first refusal
      granted by this Section 19.4 shall only exist if the Vectren Stock is not
      publicly traded within the meaning of Treasury Regulations §
      54.4975-7(b)(1)(iv).

            

    

     

    
      
        
        

      

      
        -77-

        
          

        

      

      
        
        

      

    

    
      	
              19.5

            	
              Put
      Options.  Vectren Corporation shall issue a put option to
      any Participant, Beneficiary, surviving Spouse or estate of a deceased
      Participant, or any other person (including distributees of an estate) to
      whom shares of Vectren Stock distributed under this Plan may pass by
      reason of a Participant's death (herein collectively referred to as the
      "Recipient").  This put option shall permit the Recipient to
      sell such Vectren Stock to Vectren Corporation, at any time during two (2)
      option periods, at the then fair market value.  The first put
      option period shall be a period of at least sixty (60) calendar days
      beginning on the actual date of distribution of such Vectren Stock to the
      Recipient.  The second put option period shall be a period of at
      least sixty (60) calendar days beginning after the determination of the
      fair market value of such Vectren Stock is made by the Plan Administrator
      (and notice of same is given in writing to the Recipient) for the next
      succeeding Plan Year.  Such Recipient shall be deemed to have a
      put option as herein provided with respect to the shares of Vectren Stock
      and may exercise this put option by delivering to Vectren Corporation a
      written notice of his election to sell such shares of Vectren Stock, or
      any portion thereof, together with the certificates representing the
      shares of Vectren Stock to be sold duly endorsed for
      transfer.  Vectren Corporation shall be obligated to purchase
      the shares of Vectren Stock, or the designated portion thereof, at their
      fair market value at the date the put option is exercised; provided, however, that
      Vectren Corporation may grant the Trustee an option to assume on behalf of
      this Plan and Trust Vectren Corporation's rights and obligations with
      respect to the put option at the date the put option is actually exercised
      by the Recipient.  Except as hereinafter provided, Vectren
      Corporation (or the Trustee, if it assumes Vectren Corporation's
      obligation) shall pay for the shares of Vectren Stock so sold to it by
      check within thirty (30) calendar days following the date of
      sale.  Notwithstanding anything contained herein to the
      contrary, Vectren Corporation (or, if applicable, the Trustee) may pay the
      purchase price in substantially equal periodic payments (not less
      frequently than annually) over a period beginning not later than thirty
      (30) calendar days after the exercise of the put option and not exceeding
      five (5) years as long as reasonable interest is paid on the unpaid
      amounts and adequate security is provided to the Recipient.  If
      the Vectren Stock is readily tradeable on an established market on the
      date of distribution, the put option granted by this Section 19.5 shall
      not exist; provided, however, that
      if the Vectren Stock ceases to be publicly traded within either of the
      sixty (60) day calendar periods as provided herein, Vectren Corporation
      shall notify the Recipient in writing within a reasonable time after the
      Vectren Stock ceases to be so publicly traded that the Vectren Stock shall
      be subject to the put option for the remainder of the applicable sixty
      (60) day calendar period.  If the date of actual written notice
      to the Recipient by Vectren Corporation is later than ten (10) calendar
      days after the Vectren Stock ceases to be so publicly traded, the put
      option shall automatically be extended to the extent that the date on
      which written notice is actually given to the Recipient is more than ten
      (10) calendar days later.

            

    

     

    
      	
              19.6

            	
              Diversification of
      ESOP Contributions Subaccount.  This Section 19.6 shall
      apply for Plan Years beginning prior to January 1, 2007.  It is
      intended that Article VI of this Plan shall permit a Participant to direct
      the investment and reinvestment of his entire
  ESOP

            

    

     

    
      
        
        

      

      
        -78-

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              Subaccount
      and the portion of his ESOP Dividend Subaccount that he had previously
      directed be reinvested in Vectren Stock pursuant to Section 19.2(b) as of
      any business day so as to satisfy the requirements of Section 401(a)(28)
      of the Code.  To the extent Article VI is amended in any manner
      so that Section 401(a)(28) of the Code is no longer satisfied with respect
      to a Participant's ESOP Subaccount or the portion of his ESOP Dividend
      Subaccount that he previously directed be reinvested in Vectren Stock
      pursuant to Section 19.2(b), this Section 19.6 shall apply and a
      Participant who has attained age fifty five (55) and who has completed at
      least ten (10) years of participation in this Plan shall be permitted to
      elect that during a six (6) year period beginning with the Plan Year
      during which he had obtained age fifty five (55) or, if later, during
      which he completed his tenth (10th) year of participation in this Plan
      that a portion of his vested ESOP Subaccount and ESOP Dividend Subaccount
      be reinvested in any Fund (or, if such reinvestment would not satisfy the
      requirements of Section 401(a)(28)(B)(ii)(II) of the Code, that it be
      distributed).  In the first Plan Year for which the Participant
      has an election under this Section 19.6, the Participant may elect
      reinvestment of up to twenty-five percent (25%) of his vested ESOP
      Subaccount and ESOP Dividend Subaccount as of the end of such Plan
      Year.  In the second (2nd), third (3rd), fourth (4th) and fifth
      (5th) Plan Year for which the Participant has an election under this
      Section 19.6, the Participant may elect reinvestment which, when
      aggregated to any earlier reinvestment rights granted by reason of this
      Section 19.6, does not exceed twenty-five percent (25%) of the vested
      balance held in his ESOP Subaccount and ESOP Dividend Subaccount as of the
      end of the Plan Year for which the election is made.  In the
      final Plan Year for which a Participant has an election under this Section
      19.6, the Participant may elect reinvestment of an amount which, when
      aggregated with any other reinvestment rights granted made by reason of
      this Section 19.6, does not exceed fifty percent (50%) of his vested ESOP
      Subaccount and ESOP Dividend Subaccount balance as of the end of such Plan
      Year.  The Trustee shall provide Participants eligible for an
      election under this Section 19.6 with information relating to the election
      before the end of the first Plan Year for which the election
      relates.  A Participant electing reinvestment under this Section
      19.6 shall have until the ninetieth (90th) calendar day immediately
      following the end of the Plan Year for which the election is made to make
      his election.  Any distribution made by reason of this Section
      19.6 shall be in cash and shall be made within one hundred eighty (180)
      calendar days after the end of the Plan Year for which the election is
      made.

            

    

     

    
      	
              19.7

            	
              Special Forfeiture
      Rules.  If any portion of a Participant's Account is
      forfeited in accordance with Section 9.4, any Vectren Stock in his ESOP
      Subaccount or ESOP Dividend Subaccount shall be forfeited only after the
      portion of his Account invested other than in Company Stock Fund is
      forfeited.

            

    

     

    
      	
              19.8

            	
              Tender
      Offer.

            

    

     

    Each
Participant (or, if applicable, his Beneficiary) shall have the right to direct
the Trustee as to whether the shares of Vectren Stock which are allocated to his
ESOP Subaccount or ESOP Dividend Subaccount are to be tendered pursuant to any
tender offer made for the Vectren Stock.  The Trustee shall as soon as
practical (and in no event later than five (5) calendar days) after its receipt
of the tender offer documents cause to be prepared and delivered to each
Participant (and, if applicable, his Beneficiary) who

     

    
      
        
        

      

      
        -79-

        
          

        

      

      
        
        

      

    

    has an
ESOP Subaccount or ESOP Dividend Subaccount as of the date of the tender offer a
copy of all relevant information as to the tender offer and a written election
form which will direct the Trustee as to whether it should tender the shares of
Vectren Stock held in such Participant's ESOP Subaccount or ESOP Dividend
Subaccount.  To the extent permitted by applicable law, the shares of
Vectren Stock for which no direction is received by the Participant (or, if
applicable, his Beneficiary) or held by the Trustee in any unallocated account
shall be tendered in proportion to the tendering directions received by the
Trustee with respect to the allocated shares of Vectren Stock.  The
Trustee shall take steps to keep a Participant's decision whether or not to
tender shares of Vectren Stock confidential and shall not provide the
information to the Employer.

     

    
      	
              19.9

            	
              Additional
      Definitions.  For purposes of this Article XIX, the
      following capitalized terms shall have the following
    meanings:

            

    

     

    
      	
               
      

            	
              (a)

            	
              Dividends shall
      mean, with respect to Vectren Stock, any dividend as described in Code
      Section 316 unless otherwise provided in Code Section
    404(k).

            

    

     

    
      	
               
      

            	
              (b)

            	
              ESOP Dividend
      Subaccount shall mean with respect to a Participant the portion of
      his Participant Account to which Dividends are allocated and either
      reinvested in Vectren Stock or distributed to the
      Participant.  A Participant's ESOP Dividend Subaccount shall be
      fully vested and nonforfeitable at all
times.

            

    

     

    
      	
               
      

            	
              (c)

            	
              ESOP Subaccount
      shall mean with respect to a Participant the portion of his Account
      invested in Company Stock Fund, other than his ESOP Dividend
      Subaccount.

            

    

     

    This
amended and restated Plan has been adopted this 10th day of December, 2009 to be
effective as of January 1, 2009.

     

    
       

      
        
          	 
      	
                  VECTREN
      CORPORATION

                
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                  By:

                	
                   /s/
      Niel C. Ellerbrook 

                
	 
      	 
      	
                  Niel
      C. Ellerbrook

                  Chief
      Executive Officer

                

        

      

      

    

     

     

    
      
        
        

         

      

      
        -80-

        
          

        

      

      
         

      

    

    VECTREN
CORPORATION

    RETIREMENT
SAVINGS PLAN

     

    EXHIBIT
A

     

    The
following are the Participating Companies in the Plan:

     

    (1)           Vectren
Corporation, effective July 1, 1986

     

    (2)           Indiana
Gas Company, Inc., effective July 1, 1986

     

    (3)           Vectren
Enterprises, Inc. (formerly IEI Investments, Inc.), effective April 28,
1986

     

    (4)           Southern
Indiana Gas and Electric Company, effective July 1, 2000

     

    (5)           Vectren
Energy Delivery of Ohio, Inc., effective October 1, 2000

     

    (6)           Vectren
Utility Holdings, Inc., effective July 1, 2000

     

    (7)           Vectren
Fuels, Inc., effective January 1, 2002

     

    (8)           Vectren
Retail, LLC d/b/a Vectren Source, LLC, effective January 1,
2002

     

    
      
        
        

         

      

      
        -81-

        
          

        

      

      
         

      

    

    VECTREN
CORPORATION

    RETIREMENT
SAVINGS PLAN

     

    EXHIBIT
B

     

    The
following participants have elected not to receive the three percent (3%)
Company contribution under Section 5.3:

     

    
      	 	
              EMPLOYEE
      NAME

            
	 	
              [Names
      omitted.]

            

       

      
        
          
          

        

        
          -82-

          
            

          

        

        
          
          

        

      

       

    VECTREN
CORPORATION

     

    RETIREMENT
SAVINGS PLAN

     

    

     

    EXHIBIT
C

     

    Employees
for the following Participating Companies shall not be eligible for the three
percent (3%) annual contributions described in Section 5.3(a) of the
Plan:

     

    (1)           Vectren
Fuels, Inc.

     

    (2)           Vectren
Retail, LLC

     

     

    -83-Execution Copy

 

 

THIRD AMENDED AND RESTATED

CREDIT AGREEMENT

Dated as of December 14, 2009

between

HERITAGE-CRYSTAL CLEAN, LLC,

as Borrower,

and

BANK OF AMERICA, N.A.,

as Lender

 

 

1

 

 

TABLE OF CONTENTS

Page

	
            ARTICLE 1. DEFINITIONS AND ACCOUNTING TERMS
 	
            1
 

	
             
 	
            1.01  Defined Terms
 	
            1
 

	
             
 	
            1.02  Other Interpretive Provisions
 	
            21
 

	
             
 	
            1.03  Accounting Terms.
 	
            21
 

	
             
 	
            1.04  Rounding
 	
            22
 

	
             
 	
            1.05  Times of Day
 	
            22
 

	
             
 	
            1.06  Letter of Credit Amounts
 	
            22
 

	
            ARTICLE 2. THE COMMITMENT AND CREDIT EXTENSIONS
 	
            22
 

	
             
 	
            2.01  Loans
 	
            22
 

	
             
 	
            2.02  Loan Borrowings, Conversions and Continuations of Loans.
 	
            22
 

	
             
 	
            2.03  Letters of Credit.
 	
            24
 

	
             
 	
            2.04  Prepayments.
 	
            29
 

	
             
 	
            2.05  Termination or Reduction of Commitment
 	
            30
 

	
             
 	
            2.06  Repayment of Loans
 	
            30
 

	
             
 	
            2.07  Interest.
 	
            30
 

	
             
 	
            2.08  Fees
 	
            31
 

	
             
 	
            2.09  Computation of Interest and Fees
 	
            31
 

	
             
 	
            2.10  Evidence of Debt
 	
            31
 

	
             
 	
            2.11  Payments Generally.
 	
            32
 

	
            ARTICLE 3. TAXES; YIELD PROTECTION AND ILLEGALITY
 	
            32
 

	
             
 	
            3.01  Taxes.
 	
            32
 

	
             
 	
            3.02  Illegality
 	
            33
 

	
             
 	
            3.03  Inability to Determine Rates
 	
            34
 

 

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            3.04  Increased Costs; Reserves for Eurodollar Rate Loans
 	
            34
 

	
             
 	
            . (a)  Increased Costs Generally. If any Change in Law shall:
 	
            34
 

	
             
 	
            3.05  Compensation for Losses
 	
            36
 

	
             
 	
            3.06  Mitigation Obligations
 	
            36
 

	
             
 	
            3.07  Survival
 	
            36
 

	
            ARTICLE 4. CONDITIONS PRECEDENT TO CREDIT EXTENSIONS
 	
            36
 

	
             
 	
            4.01  Conditions of Initial Credit Extension
 	
            37
 

	
             
 	
            4.02  Conditions to all Credit Extensions
 	
            38
 

	
            ARTICLE 5. REPRESENTATIONS AND WARRANTIES
 	
            38
 

	
             
 	
            5.01  Existence, Qualification and Power; Compliance with Laws
 	
            38
 

	
             
 	
            5.02  Authorization; No Contravention
 	
            38
 

	
             
 	
            5.03  Governmental Authorization; Other Consents
 	
            39
 

	
             
 	
            5.04  Binding Effect
 	
            39
 

	
             
 	
            5.05  Financial Statements; No Material Adverse Effect; Solvency.
 	
            39
 

	
             
 	
            5.06  Litigation
 	
            40
 

	
             
 	
            5.07  No Default
 	
            40
 

	
             
 	
            5.08  Ownership of Property; Liens
 	
            40
 

	
             
 	
            5.09  Environmental Compliance
 	
            40
 

	
             
 	
            5.10  Insurance
 	
            40
 

	
             
 	
            5.11  Taxes
 	
            41
 

	
             
 	
            5.12  ERISA Compliance.
 	
            41
 

	
             
 	
            5.13  Subsidiaries; Equity Interests
 	
            41
 

	
             
 	
            5.14  Margin Regulations; Investment Company Act.
 	
            42
 

	
             
 	
            5.15  Disclosure
 	
            42
 

 

-ii-

 

 

	
             
 	
            5.16  Compliance with Laws
 	
            42
 

	
             
 	
            5.17  Taxpayer Identification Number
 	
            43
 

	
             
 	
            5.18  Intellectual Property; Licenses, Etc
 	
            43
 

	
             
 	
            5.19  Rights in Collateral; Priority of Liens
 	
            43
 

	
             
 	
            5.20  Subordinated Notes
 	
            43
 

	
             
 	
            5.21  True Copies of Charter Documents.
 	
            43
 

	
            ARTICLE 6. AFFIRMATIVE COVENANTS
 	
            43
 

	
             
 	
            6.01  Financial Statements
 	
            44
 

	
             
 	
            6.02  Certificates; Other Information
 	
            45
 

	
             
 	
            6.03  Notices.
 	
            45
 

	
             
 	
            Promptly notify Lender:
 	
            45
 

	
             
 	
            6.04  Payment of Obligations
 	
            46
 

	
             
 	
            6.05  Preservation of Existence, Etc
 	
            46
 

	
             
 	
            6.06  Maintenance of Properties
 	
            46
 

	
             
 	
            6.07  Maintenance of Insurance.
 	
            46
 

	
             
 	
            6.08Compliance with Laws
 	
            47
 

	
             
 	
            6.09Books and Records
 	
            47
 

	
             
 	
            6.10  Inspection Rights
 	
            47
 

	
             
 	
            6.11  Use of Proceeds
 	
            48
 

	
             
 	
            6.12  Financial Covenants.
 	
            48
 

	
             
 	
            6.13  Guarantors
 	
            48
 

	
             
 	
            6.14  Collateral Records
 	
            49
 

	
             
 	
            6.15  Security Interests
 	
            49
 

	
             
 	
            6.16  Environmental Compliance and Reports
 	
            49
 

 

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            6.17  Motor Vehicle Collateral
 	
            50
 

	
             
 	
            6.18  Further Assurances.
 	
            50
 

	
            ARTICLE 7. NEGATIVE COVENANTS
 	
            50
 

	
             
 	
            7.01  Liens
 	
            50
 

	
             
 	
            7.02  Investments
 	
            51
 

	
             
 	
            7.03  Indebtedness
 	
            52
 

	
             
 	
            7.04  Fundamental Changes
 	
            53
 

	
             
 	
            7.05  Dispositions
 	
            53
 

	
             
 	
            7.06  Restricted Payments
 	
            53
 

	
             
 	
            7.07  Change in Nature of Business
 	
            54
 

	
             
 	
            7.08  Transactions with Affiliates
 	
            54
 

	
             
 	
            7.09  Burdensome Agreements
 	
            54
 

	
             
 	
            7.10  Use of Proceeds
 	
            54
 

	
             
 	
            7.11  Prepayment of Subordinated Indebtedness.
 	
            54
 

	
            ARTICLE 8. EVENTS OF DEFAULT AND REMEDIES
 	
            55
 

	
             
 	
            8.01  Events of Default
 	
            55
 

	
             
 	
            8.02  Remedies Upon Event of Default
 	
            57
 

	
             
 	
            8.03  Application of Funds
 	
            57
 

	
            ARTICLE 9. MISCELLANEOUS
 	
            58
 

	
             
 	
            9.01  Amendments, Etc
 	
            58
 

	
             
 	
            9.02  Notices; Effectiveness; Electronic Communications.
 	
            58
 

	
             
 	
            9.03No Waiver; Cumulative Remedies
 	
            59
 

	
             
 	
            9.04  Expenses; Indemnity; Damage Waiver.
 	
            59
 

	
             
 	
            9.05  Successors and Assigns.
 	
            61
 

 

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            9.06  Treatment of Certain Information; Confidentiality
 	
            62
 

	
             
 	
            9.07  Right of Setoff
 	
            62
 

	
             
 	
            9.08  Interest Rate Limitation
 	
            63
 

	
             
 	
            9.09  Counterparts; Integration; Effectiveness
 	
            63
 

	
             
 	
            9.10                                          
                                 Survival of Representations and Warranties
 	
            63
 

	
             
 	
            9.11  Severability
 	
            63
 

	
             
 	
            9.12  Governing Law; Jurisdiction; Etc.
 	
            64
 

	
             
 	
            9.13  Waiver of Right to Trial by Jury
 	
            65
 

	
             
 	
            9.14  USA PATRIOT Act Notice
 	
            65
 

	
             
 	
            9.15  Time of the Essence
 	
            65
 

	
             
 	
            9.16  Original Credit Agreement Superseded
 	
            65
 

 

 

SCHEDULES

 

	
            1.01
 	
            Initial Shareholders
 

	
            2.03
 	
            Existing Letters of Credit
 

	
            4.01
 	
            List of Closing Documents
 

	
            5.06
 	
            Litigation
 

	
            5.13(c)
 	
            Equity Interests
 

	
            7.01
 	
            Existing Liens
 

	
            7.03
 	
            Existing Indebtedness
 

	
            9.02
 	
            Addresses for Notices
 

 

EXHIBITS

 

	
            A
 	
            Form of Loan Notice
 

	
            B
 	
            Form of Note
 

	
            C
 	
            Form of Compliance Certificate
 

	
            D
 	
            Form of Aging Report
 

	
            E
 	
            Form of Parent Guaranty
 

 

-v-

 

 

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

This THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”) is entered into as of December 14, 2009, between HERITAGE-CRYSTAL CLEAN, LLC, an Indiana limited liability company (“Borrower”), and BANK OF AMERICA, N.A., a national banking association (“Lender”).

WHEREAS, Borrower and Lender are parties to the Second Amended and Restated Credit Agreement dated as of March 3, 2008 (the “Original Credit Agreement”) pursuant to which, among other things, Lender agreed to provide, subject to the terms and conditions set forth therein, certain loans and other financial accommodations to or for the benefit of Borrower;

WHEREAS, Borrower has requested certain modifications to the Original Credit Agreement (collectively, the “Modifications”) as set forth in this Agreement;

WHEREAS, Lender has agreed to amend and restate the Original Credit Agreement pursuant to the terms and conditions of this Agreement to effect the Modifications; and

WHEREAS, the amendment and restatement of the Original Credit Agreement pursuant to this Agreement shall have the effect of a substitution of terms of the Original Credit Agreement, but will not have the effect of causing a novation, refinancing or other repayment of the “Obligations” under and as defined in the Original Credit Agreement (hereinafter, the “Original Obligations”) or a termination or extinguishment of the Liens securing such Original Obligations, which Original Obligations shall remain outstanding and repayable pursuant to the terms of this Agreement and which Liens shall remain attached, enforceable and perfected securing such Original Obligations and all additional Obligations arising under this Agreement;

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, Borrower and Lender covenant and agree as follows:

ARTICLE 1.

DEFINITIONS AND ACCOUNTING TERMS

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

“Accountants” has the meaning specified in Section 6.01(a).

“Acquisition” means the acquisition, by purchase or otherwise, of all or substantially all of the assets (or any part of the assets constituting all or substantially all of a business or line of business) of any Person, whether such acquisition is direct or indirect, including through the acquisition of the business of, or more than 50% of the outstanding voting stock or other Equity Securities of, such Person, and whether such acquisition is effected in a single transaction or in a series of related transactions.

 

-1-

 

 

“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.

“Agreement” means this Third Amended and Restated Credit Agreement.

“Applicable Base Rate Margin”, “Applicable Eurodollar Rate Margin” and “Applicable Unused Fee Rate” means the following percentages per annum, based upon the Total Leverage Ratio as set forth in the most recent Compliance Certificate received by Lender pursuant to this Agreement:

	
            Total Leverage Ratio
 	
            Applicable Unused Fee Rate
 	
            Applicable Base Rate Margin
 	
            Applicable Eurodollar Rate Margin
 
	
            Greater than or equal to 2.75 to 1.00 (“Level 1”)
 	
            0.500%
 	
            0.500%
 	
            3.000%
 
	
            Greater than or equal to 2.25 to 1.00 but less than 2.75 to 1.00 (“Level II”)
 	
            0.500%
 	
            0.250%
 	
            2.750%
 
	
            Greater than or equal to 1.75 to 1.00 but less than 2.25 to 1.00 (“Level III”)
 	
            0.500%
 	
            0.250%
 	
            2.500%
 
	
            Greater than or equal to 1.25 to 1.00 but less than 1.75 to 1.00 (“Level IV”)
 	
            0.500%
 	
            0.250%
 	
            2.250%
 
	
            Less than 1.25 to 1.00 (“Level V”)
 	
            0.500%
 	
            0.250%
 	
            2.000%
 

 

(a)       Any increase or decrease in the “Applicable Base Rate Margin”, “Applicable Eurodollar Rate Margin” or “Applicable Unused Fee Rate” resulting from a change in the Total Leverage Ratio shall become effective as of the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to this Agreement; provided, however, that if a Compliance Certificate is not delivered when due in accordance with this Agreement, then Level I shall apply as of the first Business Day after the date on which such Compliance Certificate was required to have been delivered until the first Business Day after the date on which such Compliance Certificate is delivered when the Level corresponding to the Total Leverage
Ratio for the applicable period shall apply.

 

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(b)       Notwithstanding the foregoing, if, as a result of any restatement of or other adjustment to the financial statements of Parent or Borrower or for any other reason, Parent, Borrower or Lender determines that (i) the Total Leverage Ratio as calculated by Parent or Borrower as of any applicable date was inaccurate and (ii) a proper calculation of the Total Leverage Ratio would have resulted in higher pricing for such period, Borrower shall immediately and retroactively be obligated to pay to Lender, promptly on demand by Lender (or, after the occurrence of an actual or deemed entry of an order for relief with respect to Parent or Borrower under the Bankruptcy Code, automatically and without further action by Lender), an amount equal to the excess of the amount of interest and fees that should have been paid for such period over the amount of
interest and fees actually paid for such period. This paragraph shall not limit the rights of Lender, as the case may be, under Section 2.07, Article III or under Article VIII hereof. Borrower’s obligations under this paragraph shall survive the termination of the Commitments and the repayment of all other Obligations hereunder.

“Attributable Indebtedness” means, on any date, (a) in respect of any Capitalized Leases of any Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP, (b) in respect of any obligations under Synthetic Leases, the capitalized amount of the remaining lease payments under the relevant lease that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if such lease were accounted for as a Capitalized Lease, and (c) all Synthetic Debt of such Person.

“Audited Financial Statements” means the audited consolidated and consolidating balance sheet of Parent dated as of January 3, 2009 and the related consolidated and consolidating statements of income or operations, shareholders’ equity and cash flows dated as of January 3, 2009, including the notes thereto.

“Availability Period” means the period from and including the Closing Date to the earliest of (a) the Maturity Date, (b) the date of termination of the Commitment pursuant to Section 2.05, and (c) the date of termination of the commitment of Lender to make Loans and L/C Credit Extensions pursuant to Section 8.02.

“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%, (b) the BBA Daily Floating Rate LIBOR, as determined by Lender for such day, plus 1.00%, and (c) the rate of interest in effect for such day as publicly announced from time to time by Lender as its “prime rate.”  The “prime rate” is a rate set by Lender based upon various factors including Lender’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 Lender 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.

“BBA Daily Floating Rate LIBOR” means a fluctuating rate of interest which can change on each banking day. The rate will be adjusted on each banking day to equal the British Bankers Association LIBOR Rate (“BBA Daily LIBOR”) for U.S. Dollar deposits for delivery on the date 

 

-3-

 

 

in question for a one month term beginning on that date. Lender will use the BBA Daily LIBOR Rate as published by Reuters (or other commercially available source providing quotations of BBA Daily LIBOR as selected by Lender from time to time) as determined at approximately 11:00 a.m. London time two (2) London Banking Days prior to the date in question, as adjusted from time to time in Lender’s sole discretion for reserve requirements, deposit insurance assessment rates and other regulatory costs. In the event that the Board of Governors of the Federal Reserve System shall impose a LIBOR Reserve Percentage with respect to LIBOR deposits of Lender, then for any period during which such LIBOR Reserve Percentage shall apply, LIBOR shall be equal to the amount determined above divided by an amount equal to 1 minus the LIBOR Reserve Percentage. If such rate is not available at such time for any reason,
then the rate will be determined by such alternate method as reasonably selected by Lender. For the purposes of this definition, “London Banking Day” means a day on which banks in London, England are open for business and dealing in offshore dollars.

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

“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 Lender’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.

“Capital Assets” means fixed assets, both tangible (such as land, buildings, fixtures, machinery and equipment) and intangible (such as patents, copyrights, trademarks, franchises and good will); provided that Capital Assets shall not include any item customarily charged directly to expense or depreciated over a useful life of twelve (12) months or less in accordance with GAAP.

“Capital Expenditures” means amounts paid or Indebtedness incurred by any Person in connection with (a) the purchase or lease by such Person of Capital Assets that would be required to be capitalized and shown on the balance sheet of such Person in accordance with GAAP and (b) the lease of any assets by such Person as lessee under any synthetic lease to the extent that such assets would have been Capital Assets had the synthetic lease been treated for accounting purposes as a Capitalized Lease.

“Capitalized Lease” means a lease under which Borrower is the lessee or obligor, the discounted future rental payment obligations under which are required to be capitalized on the balance sheet of the lessee or obligor in accordance with GAAP.

“Capitalized Software Costs” means, on any date, in respect of any Person, the capitalized amount of expenditures and costs related to software (including software at cost and software capitalized in development), in each case net of depreciation and amortization, that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP.

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

 

-4-

 

 

“Cash Management Agreement” means any agreement to provide cash management services or other bank products, including treasury, depository, overdraft, credit or debit card, electronic funds transfer and other cash management arrangements.

“Change of Control” means any 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 Exchange Act, but excluding any employee benefit plan of such person or its subsidiaries, any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan and any Initial Shareholder) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, 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 35% or more of the equity securities of Parent entitled to vote
for members of the board of directors or equivalent governing body of Parent 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);

(b)       during any period of 24 consecutive months, a majority of the members of the board of directors or other equivalent governing body of Parent cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day of 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);

(c)       any Person or two or more Persons acting in concert shall have acquired by contract or otherwise, or shall have entered into a contract or arrangement that, upon consummation thereof, will result in its or their acquisition of the power to exercise, directly or indirectly, a controlling influence over the management or policies of Parent, or control over the equity securities of Parent entitled to vote for members of the board of directors or equivalent governing body of Parent 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) representing 35% or more of the combined voting power of such securities; or

(d)       Parent shall cease to directly or indirectly own and control legally and beneficially 100% of the Equity Interests of Borrower.

“Closing Date” means December 14, 2009.

 

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“Code” means the Internal Revenue Code of 1986, as amended.

“Collateral” shall mean any and all assets and rights and interests in or to property of Borrower and each of the other Loan Parties, whether real or personal, tangible or intangible, in which a Lien is granted or purported to be granted pursuant hereto or any of the Collateral Documents.

“Collateral Documents” means all agreements, instruments and documents now or hereafter executed and delivered in connection with this Agreement pursuant to which Liens are granted or purported to be granted to Lender in Collateral securing all or part of the Obligations each in form and substance satisfactory to Lender, including, without limitation, the Security Agreements, the Patent Security Agreements, the Trademark Security Agreement, any Mortgages and any Pledge Agreements.

“Commitment” means Lender’s obligation to make Loans to Borrower pursuant to Section 2.01 and to make L/C Credit Extensions, in an aggregate principal amount at any one time outstanding not to exceed $30,000,000.

“Consideration” has the meaning specified in the definition of Permitted Acquisition.

“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” 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.

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

“Debtor Relief Laws” means the Bankruptcy Code of the United States, as amended, 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 (a) when used with respect to Obligations other than L/C Fees, an interest rate equal to (i) the Base Rate plus (ii) the Applicable Base Rate Margin plus (iii) 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 the Applicable Eurodollar Rate Margin) otherwise applicable to such Loan plus 2% per annum, and (b) when used with respect to L/C Fees, a rate equal to (i) the Applicable Eurodollar Rate Margin plus (ii) 2% per annum. 

 

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“Disposition” or “Dispose” means the sale, transfer, license, lease or other disposition (including any sale and leaseback transaction) of any property by any Person (or the grant of any option or other right to do any of the foregoing), including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith.

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

“EBITDA” means net income, less income or plus loss from discontinued operations and extraordinary items, plus income taxes, plus interest expense, plus depreciation, depletion, amortization and non-cash compensation expenses.

“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 Borrower, any other Loan Party or any of their respective 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 Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials 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.

“Equity Interests” means, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding
on any date of determination.

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

“ERISA Affiliate” means any trade or business (whether or not incorporated) under common control with Borrower within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).

“ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section 

 

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4001(a)(2) of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to terminate, the treatment of a Plan amendment as a termination under Sections 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan or Multiemployer Plan; or (f) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon Borrower or any ERISA Affiliate.

“Eurodollar Base Rate” has the meaning specified in the definition of Eurodollar Rate.

“Eurodollar Rate” means for any Interest Period with respect to a Eurodollar Rate Loan, a rate per annum determined by Lender pursuant to the following formula:

	
             
 	
            Eurodollar Rate
 	
            =
 	
            _____Eurodollar Base Rate_____
 

1.00 - Eurodollar Reserve Percentage

Where,

“Eurodollar Base Rate” means, for such Interest Period the rate per annum equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or other commercially available source providing quotations of BBA LIBOR as designated by Lender from time to time) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period. If such rate is not available at such time for any reason, then the “Eurodollar Base Rate” for such Interest Period shall be the rate per annum determined by Lender to be the rate 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 Lender and with a term equivalent to such Interest Period would be offered by Lender’s London Branch to major banks in the London interbank eurodollar market at their request at approximately 11:00 a.m. (London time) two Business Days prior to the commencement of such Interest Period.

“Eurodollar Reserve Percentage” means, for any day during any Interest Period, the reserve percentage (expressed as a decimal, carried out to five decimal places) in effect on such day, whether or not applicable to any Lender, under regulations issued from time to time by the Board of Governors of the Federal Reserve System of the United States for determining the maximum reserve requirement (including any emergency, supplemental or other marginal reserve requirement) with respect to Eurocurrency funding (currently referred to as “Eurocurrency liabilities”). The Eurodollar Rate for each outstanding Eurodollar Rate Loan shall be adjusted automatically as of the effective date of any change in the Eurodollar Reserve Percentage.

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

 

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

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

“Excluded Taxes” means, with respect to Lender or any other recipient of any payment to be made by or on account of any obligation of Borrower hereunder, (a) taxes imposed on or measured by its overall net income (however denominated), 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 such recipient is organized or in which its principal office is located or, in the case of Lender, where Lender’s Office is located, and (b) any branch profits taxes imposed by the United States or any similar tax imposed by any other jurisdiction in which Borrower is located.

“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 of New York 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 Lender on such day on such
transactions as determined by Lender.

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

“Funded Debt” means, at any time of determination, collectively, without duplication, whether classified as Indebtedness or otherwise on the balance sheet of Parent and its Subsidiaries, (a) the aggregate amount of (i) all Indebtedness for borrowed money or credit obtained or other similar monetary obligations, direct or indirect, (including any unpaid reimbursement obligations with respect to letters of credit, but excluding any contingent obligations with respect to letters of credit outstanding), (ii) all obligations evidenced by notes, bonds, debentures, or other similar debt instruments (other than performance bonds, if any), (iii) the deferred purchase price of assets or services (other than trade payables incurred in the ordinary course of business not more than 60 days past due), and (iv) all obligations, liabilities and
indebtedness under Capitalized Leases and Synthetic Leases which correspond to principal, plus (b) Indebtedness of the type referred to in clause (a) of another Person Guaranteed by Parent, Borrower or any of their Subsidiaries.

“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.

 

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“Governmental Authority” means the government of the United States or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

“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 Indebtedness 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 Indebtedness or other obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness or other obligation of the payment or performance of such Indebtedness or other obligation, (iii) to maintain working 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 Indebtedness or other obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness 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 Indebtedness or other obligation of any other Person, whether or not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien). 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.

“Guarantor” means Parent and any Subsidiary of Borrower that executes a Guaranty pursuant to Section 6.13.

“Guaranty” means, collectively (i) that certain Guaranty, dated as of May 30, 2008, by Parent in favor of Lender, substantially in the form of Exhibit E hereto and (ii) any other Guaranty made by a Guarantor in favor of Lender in form, substance and scope satisfactory to Lender, in each case as amended, restated, supplemented or otherwise modified from time to time.

“Hazardous Materials” 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.

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

 

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(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)       the maximum amount of all direct or contingent obligations of such Person arising under letters of credit (including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds and similar instruments;

	
             
 	
            (c)
 	
            net obligations of such Person under any Swap Contract;
 

 (d)       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 and, in each case, not past due for more than 60 days after the date on which such trade account payable was created);

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

(f)        all Attributable Indebtedness in respect of Capitalized Leases and Synthetic Lease Obligations and all Synthetic Debt of such Person,

(g)       all obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any Equity Interest in such Person or any other Person, valued, in the case of a redeemable preferred interest, at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends; and

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

For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which such Person is a general partner or a joint venturer, unless such Indebtedness is expressly made non-recourse to such Person. The amount of any net obligation under any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such date.

“Indemnified Taxes” means Taxes other than Excluded Taxes. 

“Indemnitee” has the meaning specified in Section 9.04(b). 

“Indianapolis Acquisition” means the purchase by Borrower of certain real property, personal property and fixtures located at 3970 West 10th Street, Indianapolis, Indiana, pursuant to that certain Purchase and Sale Agreement, by and between Borrower and Frick Services, Inc., dated as of March 5, 2009, for total consideration in an amount not greater than $3,700,000.

“Information” has the meaning specified in Section 9.06. 

 

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“Initial Shareholders” means the Persons listed on Schedule 1.01 hereto.

“InstaClean Patent” means U.S. Patent No. 7,484,515 and related U.S. Patent Application Serial No. 12/322,233 for parts cleaning technology and federal trademark Registration No. 3163048, all purchased by Borrower pursuant to that certain Asset Purchase Agreement, dated as of April 15, 2009, among Borrower, Ronald H. Bluestone and Ryan J. Bluestone.

“Interest Coverage Ratio” means, for any period, the ratio of EBITDA of Borrower for such period to Interest Expense for such period.

“Interest Expense” means, for any period, the aggregate amount of interest required to be paid or accrued by Borrower, as determined in accordance with GAAP on a consolidated basis, during such period on all Indebtedness of Borrower outstanding during all or any part of such period, whether such interest was or is required to be reflected as an item of expense or capitalized, including payments consisting of interest in respect of any Capitalized Lease or any Synthetic Lease, and including commitment fees, agency fees, balance deficiency fees and similar fees or expenses for such period in connection with the borrowing of money or any deferred purchase price obligation, but excluding therefrom (a) the non-cash amortization of debt issuance costs (including any initial arrangement, structuring or up-front fees paid in connection
with this Agreement); and (b) the write-off of deferred financing fees and charges, if any, in connection with the Original Credit Agreement that are classified as interest under GAAP.

“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 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.
 

 “Investment” means, as to any Person, any direct or indirect acquisition or investment by such Person, whether by means of (a) the purchase or other acquisition of capital stock or other 

 

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securities of another Person, (b) a loan, advance or capital contribution to, Guarantee or assumption of debt of, or purchase or other acquisition of any other debt or equity participation or interest in, another Person, including any partnership or joint venture interest in such other Person and any arrangement pursuant to which the investor Guarantees Indebtedness of such other Person, or (c) the purchase or other acquisition (in one transaction or a series of transactions) of assets of another Person that constitute a business unit. For purposes of covenant compliance, the amount of any Investment shall be the amount actually invested, without adjustment for subsequent increases or decreases in the value of such Investment.

“IPO” means the initial public offering of the common stock of Parent occurring on or about March 11, 2008, resulting in Parent owning 100% of the Equity Interests of Borrower.

“IRS” means the United States Internal Revenue Service.

“ISP” means, with respect to any Letter of Credit, 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).

“Issuer Documents” means with respect to any Letter of Credit, the L/C Application, and any other document, agreement and instrument entered into by Lender and Borrower (or any Subsidiary) or in favor of Lender and relating to any such Letter of Credit.

“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.

“L/C Advance” means, Lender’s funding of any L/C Borrowing.

“L/C 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 Lender.

“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 Loan 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 increase of the amount thereof.

“L/C Expiration Date” means the day that is thirty (30) days prior to the Maturity Date then in effect (or, if such day is not a Business Day, the next preceding Business Day).

“L/C Fee” has the meaning specified in Section 2.03(h).

 

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“L/C Obligations” means, as at any date of determination, the aggregate amount available to be drawn under all outstanding Letters of Credit plus the aggregate of all Unreimbursed Amounts, including all L/C Borrowings. For purposes of computing the amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.06. For all purposes of this Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding” in the amount so remaining available to be drawn.

“L/C Sublimit” means an amount equal to $1,000,000. The L/C Sublimit is part of, and not in addition to, the Commitment.

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

“Lender’s Office” means Lender’s address and, as appropriate, account set forth on Schedule 9.02, or such other address or account as Lender may from time to time notify Borrower.

“Letter of Credit” means (a) any standby letter of credit issued hereunder and (b) any “Letter of Credit” outstanding on the Closing Date issued and as defined under the Original Credit Agreement.

“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 in the nature of a security interest of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any easement, right of way or other encumbrance on title to real property, 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 Borrower pursuant to Section 2.01.

“Loan Notice” means a notice of a Loan Borrowing pursuant to Section 2.02(a), which shall be (a) substantially in the form of Exhibit A or (b) in such other form that is reasonably acceptable to Lender (including, without limitation, in the form of electronic mail).

“Loan Borrowing” means a borrowing of Loans pursuant to Section 2.01.

“Loan Documents” means this Agreement, each Note, the Original Credit Agreement, each Issuer Document, each Collateral Document, each Guaranty, each Reaffirmation Agreement and each Subordination Agreement.

“Loan Parties” means, collectively, Borrower and each Person (other than Lender), if any, executing a Loan Document, including, without limitation, each Guarantor and each Person executing a Collateral Document; provided that each Person party to the Subordination Agreement other than Borrower or any Guarantor shall not be a “Loan Party.”

“Material Adverse Effect” means (a) a material adverse change in, or a material adverse effect upon, the operations, business, properties, liabilities (actual or contingent), condition 

 

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(financial or otherwise) or prospects of Borrower, Borrower and its Subsidiaries taken as a whole or Parent; (b) a material impairment of the ability of any Loan Party to perform its obligations under any Loan Document to which it is a party; or (c) a material adverse effect upon the legality, validity, binding effect or enforceability against any Loan Party of any Loan Document to which it is a party.

“Maturity Date” means December 14, 2012.

“Measurement Period” means, as of any date of determination, the most recently completed fifty-two (or fifty-three, as applicable) consecutive weeks (comprised of the four quarterly periods for which Borrower prepares its financial reporting) ending on such date.

“Modifications” is defined in the recitals.

“Mortgages” means, collectively, any Mortgages or Deeds of Trust entered into from time to time by any Loan Party in favor of Lender, in each case as amended, restated, supplemented or otherwise modified from time to time.

“Multiemployer Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which Borrower or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated to make contributions.

“Note” means any promissory note made by Borrower in favor of Lender evidencing Loans made by Lender, substantially in the form of Exhibit B, as amended, restated, supplemented or otherwise modified from time to time.

“Obligations” means all Original Obligations and all advances to, and debts, liabilities, obligations, covenants and duties of, any Loan Party arising under any Loan Document, any Swap Contract between Borrower and Lender (or any Affiliate of Lender), any Cash Management Agreement between Borrower and Lender (or any Affiliate of Lender) 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 Loan Party or any Affiliate thereof of any proceeding under 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.

 

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“Original Credit Agreement” is defined in the recitals. 

“Original Obligations” is defined in the recitals.

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

“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 by Borrower of Unreimbursed Amounts.

“Parent” means Heritage-Crystal Clean, Inc., a Delaware corporation. 

“Patent Security Agreements” means (a) that certain Patent Security Agreement, dated as of February 16, 2005, between Borrower and Lender, and (b) that certain Patent Security Agreement, dated as of March 3, 2008, between Borrower and Lender, each as amended, restated, supplemented or otherwise modified from time to time.

“PBGC” means the Pension Benefit Guaranty Corporation.

“Pension Plan” means any “employee pension benefit plan” (as such term is defined in Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and is sponsored or maintained by Borrower or any ERISA Affiliate or to which Borrower or any ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time during the immediately preceding five plan years.

“Permitted Acquisition” means an Acquisition (whether pursuant to a merger, consolidation, acquisition of capital stock or other assets or otherwise) by the Borrower or Subsidiary from any Person in which the following conditions are satisfied:

(a)       immediately before and after giving effect to such Acquisition, no Default shall have occurred and be continuing or would result therefrom (without limiting the foregoing, the business or assets which are the subject matter of such Acquisition shall be free and clear of all Liens other than those permitted under Section 7.01);

(b)       the aggregate amount of consideration paid or payable for such Acquisition by the Borrower or Subsidiary consisting of (collectively, the “Consideration”) (i) cash payments, (ii) Indebtedness assumed in connection therewith and (iii) the reasonable projected amount of any contingent future payments for such Acquisition, is equal to or less than $2,000,000;

 

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(c)       after giving effect to such Acquisition, the aggregate amount of Consideration paid for all Acquisitions in cash since the Closing Date shall be equal to or less than $5,000,000;

(d)       prior to, or concurrently with, the a consummation of any Acquisition, the Borrower shall have delivered, or caused to be delivered, to Lender Collateral Documents with respect to the assets, and any new Subsidiaries, which are the subject of such Acquisition or are created as a result therefrom, in each case in accordance with the terms of the Collateral Documents and Section 6.12, in each case in form and substance acceptable to Lender and together with such opinions, certificates, lien search reports, title insurance policies and endorsements, appraisals and surveys as may be reasonably requested by Lender;

(e)       for any Acquisition in which the Consideration shall be $100,000 or more, the Borrower shall have delivered to Lender a Compliance Certificate giving pro forma effect to the consummation of such Acquisition as if such Acquisition was consummated on the first day of such period and evidencing compliance with the covenants set forth in Section 6.12; and

(f)        the Person being acquired is in the same business or a substantially related business of the Borrower or any of its Subsidiaries and operates primarily in the United States and the acquisition has been approved by the board of directors (and if required by applicable Laws, the shareholders or their equivalent) of the business to be acquired.

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

“Plan” means any “employee benefit plan” (as such term is defined in Section 3(3) of ERISA) established by Borrower or, with respect to any such plan that is subject to Section 412 of the Code or Title IV of ERISA, any ERISA Affiliate.

“Pledge Agreements” means, collectively, (i) that certain Pledge Agreement, dated as of May 30, 2008, among Parent, any Subsidiary pledgors party thereto from time to time and Lender, as amended, restated, supplemented or otherwise modified from time to time, (ii) any other Pledge Agreement made by any Loan Party in favor of Lender from time to time, in each case in form, substance and scope satisfactory to Lender, as amended, restated, supplemented or otherwise modified from time to time, and (iii) each of the certificates, transfer certificates and other documents required to be delivered in connection with any such Pledge Agreement.

“Reaffirmation Agreements” means, collectively, (i) that certain General Reaffirmation and Modification Agreement, dated as of March 3, 2008, between Borrower and Lender, (ii) that certain General Reaffirmation and Modification Agreement, dated as of December 14, 2009, among Borrower, Parent and Lender, and (iii) any other General Reaffirmation and Modification Agreement entered into from time to time by a Loan Party and Lender, in each case as amended, restated, supplemented or otherwise modified from time to time.

“Register” has the meaning specified in Section 9.05(c).

 

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“Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents, trustees and advisors of such Person and of such Person’s Affiliates.

“Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other than events for which the 30 day notice period has been waived.

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

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

“Restricted Payment” means any dividend or other distribution (whether in cash, securities or other property) with respect to any capital stock or other Equity Interest of Borrower or any Subsidiary, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such capital stock or other Equity Interest or on account of any return of capital to Borrower’s stockholders, partners or members (or the equivalent Person thereof). 

“Sarbanes-Oxley” means the Sarbanes-Oxley Act of 2002, as amended.

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

“Securities Laws” means the Securities Act of 1933, the Exchange Act, Sarbanes-Oxley and the applicable accounting and auditing principles, rules, standards and practices promulgated, approved or incorporated by the SEC or the Public Company Accounting Oversight Board, as each of the foregoing may be amended and in effect on any applicable date hereunder.

“Security Agreements” means, collectively, (i) that certain Security Agreement dated as of February 16, 2005 among the Loan Parties from time to time party thereto and Lender, and (ii) that certain Security Agreement dated as of May 30, 2008 between Parent and Lender, in each case as amended, restated, supplemented or otherwise modified from time to time.

“Subordinated Debt Documents” means, collectively, each of the loan agreements, indentures, note purchase agreements, promissory notes, guarantees, and other instruments and agreements evidencing the terms of Subordinated Liabilities and subject to a Subordination Agreement.

 

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“Subordinated Liabilities” means liabilities subordinated to the Obligations in a manner acceptable to Lender in its sole discretion.

“Subordination Agreements” mean, collectively, those certain Subordination Agreements entered into from time to time among Lender, the applicable Loan Party and each holder of Subordinated Liabilities, as the same may be amended, restated, supplemented or otherwise modified from time

“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 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 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.

“Swap Termination Value” means, in respect of any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts (which may include a Lender or any Affiliate of a Lender).

“Synthetic Debt” means, with respect to any Person as of any date of determination thereof, all obligations of such Person in respect of transactions entered into by such Person that are intended to function primarily as a borrowing of funds but are not otherwise included in the definition of “Indebtedness” or as a liability on the consolidated balance sheet of such Person and its Subsidiaries in accordance with GAAP.

 

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“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 (including sale and leaseback transactions), in each case, creating obligations that do not appear on the balance sheet of such Person but which, upon the application of any Debtor Relief Laws to such Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment).

“Tangible Net Worth” means the value of, without duplication, (i) (a) total assets (including leaseholds and leasehold improvements and reserves against assets); less (b) goodwill, patents, trademarks, trade names, organization expense, unamortized debt discount and expense, capitalized or deferred research and development costs, deferred marketing expenses, and other like intangibles (including Capitalized Software Costs), plus (c) the sum of (x) Capitalized Software Costs and (y) in connection with the InstaClean Patent, the lesser of (1) the remaining unamortized carrying value of the InstaClean Patent, and (2) $1,000,000;  less (ii) Total Liabilities, including but not limited to accrued
and deferred income taxes.

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

“Threshold Amount” means $250,000.

“Total Leverage Ratio” means the ratio of (i) total consolidated Funded Debt as of such date to (ii) EBITDA.

“Total Liabilities” means the sum of current liabilities plus long term liabilities.

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

“Trademark Security Agreement” means that certain Trademark Security Agreement, dated as of November 4, 2008, between Borrower and Lender, as amended, restated, supplemented or otherwise modified from time to time.

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

“UCC” has the meaning specified in Section 6.15.

“Unfunded Pension Liability” means the excess of a Pension Plan’s benefit liabilities under Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets, determined in accordance with the assumptions used for funding the Pension Plan pursuant to Section 412 of the Code for the applicable plan year.

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

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

 

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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 definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.” The word “will” shall be construed to have the same meaning and effect as the word “shall.” Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document
(including any Organization Document) shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or in any other Loan Document), (ii) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (iii) the words “herein,” “hereof” and “hereunder,” and words of similar import when used in any Loan Document, shall be construed to refer to such Loan Document in its entirety and not to any particular provision thereof, (iv) all references in a Loan Document to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, the Loan
Document in which such references appear, (v) any reference to any law shall include all statutory and regulatory provisions consolidating, amending, replacing or interpreting such law and any reference to any law or regulation shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (vi) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

(b)       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.”

(c)       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)       Generally. 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)       Changes in GAAP. 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 Borrower or Lender shall so request, Lender and 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; 

 

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

1.06     Letter of Credit Amounts. Unless otherwise specified herein the amount of a Letter of Credit at any time shall be deemed to be the stated amount of such Letter of Credit in effect at such time; provided, however, that with respect to any Letter of Credit that, by its terms or the terms of any Issuer Document related thereto, provides for one or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time. For all purposes of this Agreement, if on any date of determination a Letter of Credit has expired by
its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding” in the amount so remaining available to be drawn.

ARTICLE 2.

THE COMMITMENT AND CREDIT EXTENSIONS

2.01     Loans. Subject to the terms and conditions set forth herein, Lender agrees to make loans (together with all “Loans” owing to Lender on the Closing Date pursuant to and as defined under the Original Credit Agreement, the “Loans”) to 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 the Commitment; provided, however, that after giving effect to any Loan Borrowing, the Total Outstandings shall not exceed the Commitment. Within the limits of the Commitment, and subject to the other terms and conditions hereof, 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. Upon the satisfaction of each of conditions set forth in Section 4.01, all “Loans” owing to Lender on the Closing Date under and as defined in the Original Credit Agreement shall thereupon constitute Loans hereunder subject to the terms of this Agreement.

 

	
             
 	
            2.02
 	
            Loan Borrowings, Conversions and Continuations of Loans.
 

 

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(a)       Each Loan Borrowing, each conversion of Loans from one Type to the other, and each continuation of Eurodollar Rate Loans shall be made upon Borrower’s irrevocable notice to Lender, which may be given by telephone. Each such notice must be received by Lender not later than 12:00 p.m. (i) three Business Days prior to the requested date of any Loan 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 Loan Borrowing of Base Rate Committed Loans. Each telephonic notice by Borrower pursuant to this Section 2.02(a) must be confirmed promptly by delivery to Lender of a written Loan Notice, appropriately completed and signed by a Responsible Officer of Borrower. Each Loan Borrowing
of, conversion to or continuation of Eurodollar Rate Loans shall be in a principal amount of $1,000,000 or a whole multiple of $1,000,000. Except as provided in Sections 2.03(c), each Loan Borrowing of or conversion to Base Rate Loans shall be in a principal amount of $10,000 or a whole multiple of $10,000 in excess thereof. Each Loan Notice (whether telephonic or written) shall specify (i) whether Borrower is requesting a Loan Borrowing, a conversion of Loans from one Type to the other, or a continuation of Eurodollar Rate Loans, (ii) the requested date of the Loan 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 Borrower fails to specify a Type of Loan
in a Loan Notice or if 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 Borrower requests a Loan 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)       Upon satisfaction of the applicable conditions set forth in Section 4.02 (and, if such Loan Borrowing is the initial Credit Extension, Section 4.01), Lender shall make funds available to Borrower by (i) crediting the account of Borrower on the books of Lender 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) Lender by Borrower; provided, however, that if, on the date the Loan Notice with respect to such Loan Borrowing is given by Borrower, there are L/C Borrowings outstanding, then the proceeds of such Loan Borrowing first, shall be applied, to the payment in full of any such L/C Borrowings, and second, shall be made available to Borrower as provided above.

(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 Lender, and Lender may demand that any or all of the then outstanding Eurodollar Rate Loans be converted immediately to Base Rate Loans and Borrower agrees to pay all amounts due under Section 3.05 in accordance with the terms thereof due to any such conversion.

(d)       Lender shall promptly notify Borrower of the interest rate applicable to any Interest Period for Eurodollar Rate Loans upon determination of such interest

 

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(e)       After giving effect to all Loan 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 10 Interest Periods in effect with respect to Loans.

(f)        Notwithstanding the foregoing, all Loans outstanding as of the Closing Date and originally made pursuant to the Original Credit Agreement shall continue to be Base Rate Loans until converted into a different Type pursuant to this Agreement or until such Loans are prepaid by Borrower.

 

	
             
 	
            2.03
 	
            Letters of Credit.
 

	
             
 	
            (a)
 	
            The Letter of Credit Commitment.
 

 (i)        Subject to the terms and conditions set forth herein, Lender agrees (1) from time to time on any Business Day during the period from the Closing Date until the L/C Expiration Date, to issue Letters of Credit for the account of Borrower or its Subsidiaries, and to amend or extend Letters of Credit previously issued by it in accordance with subsection (b) below, and (2) to honor drawings under the Letters of Credit; provided that after giving effect to any L/C Credit Extension with respect to any Letter of Credit, (y) the Total Outstandings shall not exceed the Commitment, and (z) the Outstanding Amount of the L/C Obligations shall not exceed the L/C Sublimit. Each request by Borrower for the issuance or amendment of a Letter of Credit shall be deemed to be a representation by Borrower that the L/C Credit Extension so requested complies
with the conditions set forth in the proviso to the preceding sentence. Within the foregoing limits, and subject to the terms and conditions hereof, Borrower’s ability to obtain Letters of Credit shall be fully revolving, and accordingly 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)
 	
            Lender shall not issue any Letter of Credit, if:
 

 (A)      subject to Section 2.03(b)(iv), the expiry date of such requested Letter of Credit would occur more than twelve months after the date of issuance or last extension;

or

(B)      the expiry date of such requested Letter of Credit would occur after the L/C Expiration Date.

	
             
 	
            (iii)
 	
            Lender 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 Lender from issuing such Letter of Credit, or any Law applicable to Lender or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over Lender shall prohibit, or request that Lender refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon Lender with respect to such Letter of Credit any restriction, reserve or capital requirement (for which Lender is not otherwise compensated hereunder) not in effect on the Closing Date, or shall impose 

 

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upon Lender any unreimbursed loss, cost or expense which was not applicable on the Closing Date and which Lender in good faith deems material to it;

(B)      the issuance of such Letter of Credit would violate one or more policies of Lender;

(C)      such Letter of Credit is to be denominated in a currency other than Dollars; or

(D)      unless specifically provided for in this Agreement, such Letter of Credit contains any provisions for automatic reinstatement of the stated amount after any drawing thereunder.

(iv)      Lender shall not amend any Letter of Credit if Lender would not be permitted at such time to issue such Letter of Credit in its amended form under the terms hereof.

(v)       Lender shall be under no obligation to amend any Letter of Credit if (A) Lender would have no obligation at such time to issue such Letter of Credit in its amended form under the terms hereof, 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-Extension Letters of Credit.

(i)        Each Letter of Credit shall be issued or amended, as the case may be, upon the request of Borrower delivered to Lender in the form of a L/C Application, appropriately completed and signed by a Responsible Officer of Borrower. Such L/C Application must be received by Lender not later than 12:00 p.m. at least two (2) Business Days (or such later date and time as Lender 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 L/C Application shall specify in form and detail satisfactory to Lender: (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; (G) the purpose and the nature of the requested Letter of Credit; and (H) such other matters as Lender may require. In the case of a request for an amendment of any outstanding Letter of Credit, such L/C Application shall specify in form and detail satisfactory to Lender (w) the Letter of Credit to be amended; (x) the proposed date of amendment thereof (which shall be a Business Day); (y) the nature of the proposed amendment; and (z) such other matters as Lender may require. Additionally, Borrower shall furnish to Lender such other documents and information pertaining to such requested Letter of Credit issuance or amendment, including any Issuer Documents, as Lender may require.

(ii)       Unless Lender has received written notice from any Loan Party, at least one Business Day prior to the requested date of issuance or amendment of the applicable Letter of Credit, that one or more applicable conditions in Article IV shall not then be satisfied, then, subject to the terms and conditions hereof, Lender shall, on the requested date, issue a 

 

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Letter of Credit for the account of Borrower (or the applicable Subsidiary) or enter into the applicable amendment, as the case may be, in each case in accordance with Lender’s usual and customary business practices.

(iii)      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, Lender will also deliver to Borrower a true and complete copy of such Letter of Credit or amendment.

(iv)      If Borrower so requests in any applicable L/C Application, Lender may, in its sole and absolute discretion, agree to issue a Letter of Credit that has automatic extension provisions (each, an “Auto-Extension Letter of Credit”); provided that any such Auto-Extension Letter of Credit must permit Lender to prevent any such extension 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 “Non-Extension 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 Lender, Borrower shall not be required to make a specific request to Lender for
any such extension.

(v)       If Borrower so requests in any applicable Letter of Credit Application, Lender may, in its sole and absolute discretion, agree to issue a Letter of Credit that permits the automatic reinstatement of all or a portion of the stated amount thereof after any drawing thereunder (each, an “Auto-Reinstatement Letter of Credit”). Unless otherwise directed by Lender, Borrower shall not be required to make a specific request to Lender to permit such reinstatement. Notwithstanding the foregoing, if such Auto-Reinstatement Letter of Credit permits Lender to decline to reinstate all or any portion of the stated amount thereof after a drawing thereunder by giving notice of such non-reinstatement within a specified number of days after such drawing (the “Non-Reinstatement
Deadline”), Lender shall not permit such reinstatement if it has received a notice (which may be by telephone or in writing) on or before the day that is seven Business Days before the Non-Reinstatement Deadline from Borrower that one or more of the applicable conditions specified in Section 4.02 is not then satisfied (treating such reinstatement as a L/C Credit Extension for purposes of this clause) and, in each case, directing Lender not to permit such reinstatement.

	
             
 	
            (c)
 	
            Drawings and Reimbursements.
 

 (i)        Upon receipt from the beneficiary of any Letter of Credit of any notice of a drawing under such Letter of Credit, Lender shall notify Borrower thereof. Not later than 12:00 p.m. on the date of any payment by Lender under a Letter of Credit (each such date, an “Honor Date”), Borrower shall reimburse Lender in an amount equal to the amount of such drawing. In such event, Borrower shall be deemed to have requested a Loan Borrowing of Base Rate Loans to be disbursed on the Honor Date in an amount equal to the unreimbursed drawing (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 Commitment and the conditions set forth in Section 4.02 (other than the delivery of a Loan Notice). Any notice given by Lender pursuant to this Section 2.03(c)(i) may 

 

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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)       With respect to any Unreimbursed Amount that is not fully refinanced by a Loan Borrowing of Base Rate Loans because the conditions set forth in Section 4.02 cannot be satisfied or for any other reason, Borrower shall be deemed to have incurred from Lender a 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.

(iii)      No making of a L/C Advance shall relieve or otherwise impair the obligation of Borrower to reimburse Lender for the amount of any payment made by Lender under any Letter of Credit, together with interest as provided herein.

(d)       Obligations Absolute. The obligation of Borrower to reimburse Lender 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 Loan Document;

(ii)       the existence of any claim, counterclaim, setoff, defense or other right that Borrower or any Subsidiary 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), Lender 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 Lender 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 Lender 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, Borrower or any Subsidiary.

 

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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 Borrower’s instructions or other irregularity, Borrower will immediately notify Lender. Borrower shall be conclusively deemed to have waived any such claim against Lender and its correspondents unless such notice is given as aforesaid.

(e)       Role of Lender. Borrower agrees that, in paying any drawing under a Letter of Credit, Lender 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. 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 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 Lender, any of its Related Parties or any correspondent or assignee of Lender, shall be liable or responsible for any of the matters described in clauses (i) through (v) of Section 2.03(d); provided, however, that anything in such clauses to the contrary notwithstanding, Borrower may have a claim against Lender, and Lender may be liable to Borrower, to the extent, but only to the extent, of any direct, as opposed to consequential or exemplary, damages suffered by Borrower which Borrower proves were caused by Lender’s willful misconduct or gross negligence or Lender’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, Lender 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 Lender 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.

(f)        Cash Collateral. Upon the request of Lender, (i) if Lender has honored any full or partial drawing request under any Letter of Credit and such drawing has resulted in a L/C Borrowing, or (ii) if, as of the L/C Expiration Date, any L/C Obligation for any reason remains outstanding, Borrower shall, in each case, immediately Cash Collateralize the then Outstanding Amount of all L/C Obligations. Sections 2.04 and 8.02(c) set forth certain additional requirements to deliver Cash Collateral hereunder. For purposes hereof, “Cash Collateralize” means to pledge and deposit with or deliver to Lender, as collateral for the L/C Obligations, cash or
deposit account balances pursuant to documentation in form and substance satisfactory to Lender. Derivatives of such term have corresponding meanings. Borrower hereby grants to Lender 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 Lender or an Affiliate of Lender. If at any time Lender determines that any funds held as Cash Collateral are subject to any right or claim of any Person other than Lender or that the total amount of such funds is less than the aggregate Outstanding Amount of all L/C Obligations, Borrower will, forthwith upon demand by Lender, pay to Lender, as additional funds to be deposited as Cash Collateral, an amount equal to the excess of (x) such aggregate Outstanding Amount over (y) the total amount of funds, if any, then held as Cash Collateral that 

 

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Lender determines to be free and clear of any such right and claim. Upon the drawing of any Letter of Credit for which funds are on deposit as Cash Collateral, such funds shall be applied, to the extent permitted under applicable Laws, to reimburse Lender.

(g)       Applicability of ISP. Unless otherwise expressly agreed by Lender and Borrower when a Letter of Credit is issued, the rules of the ISP shall apply to each standby Letter of Credit.

(h)       L/C Fees. Borrower shall pay to Lender a L/C fee (the “L/C Fee”) for each Letter of Credit equal to the Applicable Eurodollar Rate Margin times the daily amount available to be drawn under such Letter of Credit. For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.06. L/C Fees shall be (i) computed on a monthly basis in arrears and (ii) due and payable on the last Business Day of each calendar month, commencing with the first such date to occur after the issuance of such Letter of Credit, on the L/C Expiration Date and thereafter on demand. Notwithstanding anything to the
contrary contained herein, at the election of Lender, while any Event of Default exists, all L/C Fees shall accrue at the Default Rate.

(i)        Conflict with Issuer Documents. In the event of any conflict between the terms hereof and the terms of any Issuer Documents, the terms hereof shall control.

(j)        Processing Charges Payable to Lender. Borrower shall pay directly to Lender the customary issuance, presentation, amendment and other processing fees, and other standard costs and charges, of Lender relating to letters of credit as from time to time in effect. Such individual customary fees and standard costs and charges are due and payable on demand and are nonrefundable.

(k)       Letters of Credit Issued for Subsidiaries. Notwithstanding that a Letter of Credit issued or outstanding hereunder is in support of any obligations of, or is for the account of, a Subsidiary, Borrower shall be obligated to reimburse Lender hereunder for any and all drawings under such Letter of Credit. Borrower hereby acknowledges that the issuance of Letters of Credit for the account of Subsidiaries inures to the benefit of Borrower, and that Borrower’s business derives substantial benefits from the businesses of such Subsidiaries.

(l)        Outstanding Letters of Credit. The Letters of Credit set forth on Schedule 2.03 were issued prior to the Closing Date pursuant to the Original Credit Agreement and will remain outstanding as of the Closing Date. Borrower and Lender hereby agree that each Letter of Credit listed on Schedule 2.03, for all purposes under this Agreement, shall be deemed to be a Letter of Credit governed by the terms and conditions of this Agreement.

 

	
             
 	
            2.04
 	
            Prepayments.
 

 (a)       Borrower may, upon notice to Lender, at any time or from time to time voluntarily prepay Loans in whole or in part without premium or penalty (except as provided below in this section with respect to amounts that may be owing in connection therewith pursuant to Section 3.05); provided that (i) such notice must be received by Lender not later than 12:00 p.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 Rate 

 

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Loans shall be in a principal amount of $10,000 or a whole multiple of $10,000 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 and, if Eurodollar Rate Loans are to be prepaid, the Interest Period(s) of such Loans. If such notice is given by Borrower, 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 on the amount prepaid, together with any additional amounts required pursuant to Section 3.05. If such notice is given by Borrower, Borrower shall make such prepayment and the payment amount specified in such notice shall be due and
payable on the date specified therein.

(b)       If for any reason the Total Outstandings at any time exceed the Commitment then in effect, Borrower shall immediately prepay Loans and/or Cash Collateralize the L/C Obligations in an aggregate amount equal to such excess; provided, however, that 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 Commitment then in effect.

2.05     Termination or Reduction of Commitment. Borrower may, upon notice to Lender, terminate the Commitment, or from time to time permanently reduce the Commitment; provided that (i) any such notice shall be received by Lender not later than 12:00 p.m. five (5) Business Days prior to the date of termination or reduction, (ii) any such partial reduction shall be in an aggregate amount of $10,000 or any whole multiple of $10,000 in excess thereof, (iii) Borrower shall not terminate or reduce the Commitment if, after giving effect thereto and to any concurrent prepayments hereunder, the Total Outstandings would exceed the Commitment, and (iv) if, after giving effect to any reduction of the Commitment or the L/C Sublimit
exceeds the amount of the Commitment, the L/C Sublimit shall be automatically reduced by the amount of such excess. All fees accrued until the effective date of any termination of the Commitment shall be paid on the effective date of such termination.

2.06     Repayment of Loans. Borrower shall repay to Lender 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 Eurodollar Rate Margin 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 Base Rate Margin.

(b)       (i) If any amount of principal of any Loan 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.

 

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(ii)       If any amount (other than principal of any Loan) payable by 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, then 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.

(iii)      While any Event of Default exists, 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.

(iv)      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 the last Business Day of each calendar month and on the Maturity Date. Without limiting the preceding sentence, all accrued and unpaid interest payable under the Original Credit Agreement shall be due and payable on December 31, 2009. 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. Unused Line Fee. In addition to certain fees described in Section 2.03(h), Borrower shall pay to Lender, on the last Business Day of each calendar month, commencing with the first such date to occur after the Closing Date, and on the Maturity Date (or any earlier termination of the Commitments in accordance with the terms hereof), an unused fee of the Applicable Unused Fee Rate times the difference between (1) the average daily Commitment during such calendar month and (2) the average daily Total Outstandings during such calendar month. The unused line fee shall be calculated monthly in arrears. The unused line fee shall accrue at all times, including at any time during which one or more of the conditions in Article IV is not met.

2.09     Computation of Interest and Fees . All computations of interest for Base Rate Loans 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 2.12(a), bear interest for one day. Each determination by Lender of an interest rate or fee
hereunder shall be conclusive and binding for all purposes, absent manifest error.

2.10     Evidence of Debt. The Credit Extensions made by Lender shall be evidenced by one or more accounts or records maintained by Lender in the ordinary course of business. The accounts or records maintained by Lender shall be conclusive absent manifest error of the amount of the Credit Extensions made by Lender to 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 Borrower hereunder to pay any amount owing with respect to the 

 

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Obligations. Borrower shall execute and deliver to Lender a Note, which shall evidence Lender’s Loans in addition to such accounts or records. Lender may attach schedules to the Note and endorse thereon the date, Type (if applicable), amount and maturity of its Loans and payments with respect thereto. The Note issued as of the Closing Date shall be issued in substitution for, and shall amend and restate, the “Note” issued to Lender pursuant to and defined in the Original Credit Agreement. No such substitutions, amendments and restatements shall constitute or effect a repayment, refinancing or novation of the amounts evidenced by such original “Note,” but rather a modification and substitution of such original “Note.”

 

	
             
 	
            2.11
 	
            Payments Generally.
 

 (a)       General. (i) All payments to be made by Borrower shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly provided herein, all payments by Borrower hereunder shall be made to Lender, at Lender’s Office in Dollars and in immediately available funds not later than 1:00 p.m. on the date specified herein. All payments received by Lender after 1:00 p.m. shall be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue. If any payment to be made by 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.

(ii)       On each date when the payment of any principal, interest or fees are due hereunder or under any Note, Borrower agrees to maintain on deposit in an ordinary checking account maintained by Borrower with Lender (as such account shall be designated by Borrower in a written notice to Lender from time to time, the “Borrower Account”) an amount sufficient to pay such principal, interest or fees in full on such date. Borrower hereby authorizes Lender (A) to deduct automatically all principal, interest or fees when due hereunder or under any Note from the Borrower Account, and (B) if and to the extent any payment of principal, interest or fees under this Agreement or any Note is not made when due to deduct any such amount from any or all of the accounts of Borrower maintained at Lender. Lender
agrees to provide written notice to Borrower of any automatic deduction made pursuant to this Section 2.11(a)(ii) showing in reasonable detail the amounts of such deduction. Lender agrees to reimburse Borrower for any amounts deducted from such accounts in excess of amount due hereunder and under any other Loan Documents.

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

ARTICLE 3.

TAXES; YIELD PROTECTION AND ILLEGALITY

 

	
             
 	
            3.01
 	
            Taxes.
 

 

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(a)       Payments Free of Taxes. Any and all payments by Borrower to or on account of any obligation of Borrower hereunder or under any other Loan Document shall be made free and clear of and without reduction or withholding for any Taxes; provided that if Borrower shall be required by any applicable Laws to deduct any Indemnified Taxes (including any Other Taxes) from such payments, then, (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), Lender receives an amount equal to the sum it would have received had no such deductions been made, (ii) Borrower shall make such deductions, and (iii) Borrower shall timely pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable law.

(b)       Payment of Other Taxes by Borrower. Without limiting the provisions of subsection (a) above, Borrower shall timely pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law.

(c)       Indemnification by Borrower. Borrower shall, and hereby does, indemnify Lender, and shall make payment due in respect thereof within ten (10) days after demand therefor, for the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) withheld or deducted by Borrower or paid by Lender and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to Borrower by Lender shall be conclusive absent manifest error.

(d)       Evidence of Payments. As soon as practicable after any payment of Indemnified Taxes or Other Taxes by Borrower to a Governmental Authority, Borrower shall deliver to Lender the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to Lender.

(e)       Treatment of Certain Refunds. If Lender determines, in its sole discretion, that it has received a refund of any Taxes or Other Taxes as to which it has been indemnified by Borrower or with respect to which Borrower has paid additional amounts pursuant to this Section, it shall pay to Borrower an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, by Borrower under this Section with respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses incurred by Lender and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund), provided that Borrower, upon the request of Lender, agrees to repay the amount
paid over to Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to Lender in the event Lender is required to repay such refund to such Governmental Authority. This subsection shall not be construed to require Lender to make available its tax returns (or any other information relating to its taxes that it deems confidential) to Borrower or any other Person.

3.02     Illegality. If 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 

 

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Office to make, maintain or fund Eurodollar Rate Loans, or to determine or charge interest rates based upon the Eurodollar Rate, or any Governmental Authority has imposed material restrictions on the authority of Lender to purchase or sell, or to take deposits of, Dollars in the London interbank market, then, on notice thereof by Lender to Borrower, any obligation of Lender to make or continue Eurodollar Rate Loans or to convert Base Rate Loans to Eurodollar Rate Loans shall be suspended until Lender notifies Borrower that the circumstances giving rise to such determination no longer exist. Upon receipt of such notice, Borrower shall, upon demand from Lender, prepay or, if applicable, convert all Eurodollar Rate Loans of Lender to Base Rate Loans, either on the last day of the Interest Period therefor, if Lender may lawfully continue to maintain such Eurodollar Rate Loans to such day, or immediately, if
Lender may not lawfully continue to maintain such Eurodollar Rate Loans. Upon any such prepayment or conversion, Borrower shall also pay accrued interest on the amount so prepaid or converted and all amounts due under Section 3.05 in accordance with the terms thereof due to such prepayment or conversion.

3.03     Inability to Determine Rates. If Lender determines in connection with any request for a Eurodollar Rate Loan or a conversion to or continuation thereof that (a) Dollar deposits are not being offered to banks in the London interbank eurodollar market for the applicable amount and Interest Period of such Eurodollar Rate Loan, (b) adequate and reasonable means do not exist for determining the Eurodollar Base Rate for any requested Interest Period with respect to a proposed Eurodollar Rate Loan, or (c) the Eurodollar Base Rate for any requested Interest Period with respect to a proposed Eurodollar Rate Loan does not adequately and fairly reflect the cost to Lender of funding such Loan, Lender will promptly so notify Borrower. Thereafter, the obligation of Lender to make or maintain Eurodollar Rate Loans shall be suspended until Lender
revokes such notice. Upon receipt of such notice, Borrower may revoke any pending request for a Loan 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 Loan Borrowing of Base Rate Loans in the amount specified therein.

3.04     Increased Costs; Reserves for Eurodollar Rate Loans. (a)  Increased Costs Generally. If any Change in Law shall:

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

(ii)       subject Lender to any tax of any kind whatsoever with respect to this Agreement, any Letter of Credit or any Eurodollar Rate Loan made by it, or change the basis of taxation of payments to Lender in respect thereof (except for Indemnified Taxes or Other Taxes covered by Section 3.01 and the imposition of, or any change in the rate of, any Excluded Tax payable by Lender); or

(iii)      impose on Lender or the London interbank market any other condition, cost or expense affecting this Agreement or Eurodollar Rate Loans made by Lender or participation therein;

 

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and the result of any of the foregoing shall be to increase the cost to Lender of making or maintaining any Eurodollar Rate Loan (or of maintaining its obligation to make any such Loan), or to increase the cost to Lender of participating in, issuing or maintaining any Letter of Credit, or to reduce the amount of any sum received or receivable by Lender hereunder (whether of principal, interest or any other amount) then, upon request of Lender, Borrower will pay to Lender such additional amount or amounts as will compensate Lender for such additional costs incurred or reduction suffered. Lender shall endeavor to notify Borrower of any such increased costs resulting from any Change of Law reasonably promptly after becoming aware thereof, provided, that in no event shall the failure of Lender to so notify Borrower excuse Borrower from any obligation under this
clause (a).

(b)       Capital Requirements. If Lender determines that any Change in Laws affecting Lender, Lender’s Office or Lender’s holding company, if any, regarding capital requirements has or would have the effect of reducing the rate of return on Lender’s capital or on the capital of Lender’s holding company, if any, as a consequence of this Agreement, the Commitment, the Loans made by Lender, or the Letters of Credit issued by Lender, to a level below that which Lender or Lender’s holding company could have achieved but for such change in Law (taking into consideration Lender’s policies and the policies of Lender’s holding company with respect to capital adequacy), then from time to time Borrower will pay to Lender such additional amount or amounts as will compensate Lender or
Lender’s holding company for any such reduction suffered. Lender shall endeavor to notify Borrower of any such Change of Law (and any additional amounts owed in connection therewith) reasonably promptly after becoming aware thereof, provided, that in no event shall the failure of Lender to so notify Borrower excuse Borrower from any obligation under this clause (b).

(c)       Certificates for Reimbursement. A certificate of Lender setting forth the amount or amounts necessary to compensate Lender or its holding company, as the case may be, as specified in subsection (a) or (b) of this Section and delivered to Borrower shall be conclusive absent manifest error. Borrower shall pay Lender the amount shown as due on any such certificate within ten (10) days after receipt thereof.

(d)       Delay in Requests. Failure or delay on the part of Lender to demand compensation pursuant to the foregoing provisions of this Section shall not constitute a waiver of Lender’s right to demand such compensation, provided that Borrower shall not be required to compensate Lender pursuant to the foregoing provisions of this Section for any increased costs incurred or reductions suffered more than six (6) months prior to the date that Lender notifies Borrower of the change in Law giving rise to such increased costs or reductions and of Lender’s intention to claim compensation therefor (except that, if the change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period referred to above shall be extended
to include the period of retroactive effect thereof).

(e)       Reserves on Eurodollar Rate Loans. Borrower shall pay to Lender, as long as 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 Lender (as determined by Lender in good faith, which determination shall be conclusive), which shall be due and payable on each date on 

 

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which interest is payable on such Loan, provided Borrower shall have received at least ten (10) days’ prior notice of such additional interest from Lender. If Lender fails to give notice ten (10) days prior to the relevant Interest Payment Date, such additional interest shall be due and payable ten (10) days from receipt of such notice.

3.05     Compensation for Losses. Upon demand of Lender from time to time, Borrower shall promptly compensate Lender for and hold Lender harmless from any loss, cost or expense incurred by it as a result of:

(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); or

(b)       any failure by Borrower (for a reason other than the failure of 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 Borrower;  

including any loss of anticipated profits and any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the deposits from which such funds were obtained. Borrower shall also pay any customary administrative fees charged by such Lender in connection with the foregoing. For purposes of calculating amounts payable by Borrower to Lender under this Section 3.05, Lender shall be deemed to have funded each Eurodollar Rate Loan made by it at the Eurodollar Base Rate used in determining 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     Mitigation Obligations. If Lender requests compensation under Section 3.04, or if Borrower is required to pay any additional amount to Lender or any Governmental Authority for the account of Lender pursuant to Section 3.01, or if Lender gives a notice pursuant to Section 3.02, then Lender shall use reasonable efforts to designate a different Lender’s Office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 3.01 or
3.04, as the case may be, in the future, or eliminate the need for the notice pursuant to Section 3.02, as applicable, and (ii) in each case would not subject Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to Lender. Borrower hereby agrees to pay all reasonable costs and expenses incurred by Lender in connection with any such designation or assignment.

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

ARTICLE 4.

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

 

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4.01     Conditions of Initial Credit Extension. The effectiveness of the amendment and restatement of the Original Credit Agreement pursuant to this Agreement and the obligation of Lender to make its initial Credit Extension hereunder is subject to satisfaction of the following conditions precedent:

(a)       Lender’s receipt of the following, each of which shall be originals or telecopies (followed promptly by originals) unless otherwise specified, each properly executed by a Responsible Officer of the signing Loan Party, 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 Lender:

(i)        executed counterparts of this Agreement, and the Reaffirmation Agreement of even date, sufficient in number for distribution to Lender and Borrower;

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

 (iii)      such certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Loan Party as Lender may reasonably require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement and the other Loan Documents to which such Loan Party is a party;

(iv)      such documents and certifications as Lender may reasonably require to evidence that each Loan Party is duly formed, and that such Loan Party is validly existing, in good standing and qualified to engage in business in each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect;

(v)       a favorable opinion letter of counsel to Loan Parties acceptable to Lender addressed to Lender, as to the matters set forth concerning Loan Parties and the Loan Documents in form and substance satisfactory to Lender; and

(vi)      the assurances, certificates, documents, consents and opinion letters (A) listed on Schedule 4.01 hereto and (B) otherwise reasonably required by Lender.

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

(c)       Unless waived by Lender, Borrower shall have paid all reasonable fees, charges and disbursements of counsel to Lender (directly to such counsel if requested by Lender) to the extent invoiced prior to or on the Closing Date, plus such additional amounts of such fees, charges and disbursements as shall constitute its reasonable estimate of such fees, charges and disbursements incurred or to be incurred by it through the closing proceedings (provided that such estimate shall not thereafter preclude a final settling of accounts between Borrower and Lender).

 

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4.02     Conditions to all Credit Extensions. The obligation of Lender to honor any Request for Credit Extension is subject to the following conditions precedent:

(a)       The representations and warranties of Borrower and each other Loan Party, if any, contained in Article V or 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, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date, and except that for purposes of this Section 4.02, the representations and warranties contained in subsections (a) and (b) of Section 5.05 shall be deemed to refer to the most
recent statements furnished pursuant to Section 6.01.

(b)       No Default shall exist, or would result from such proposed Credit Extension or from the application of the proceeds thereof.

(c)       Lender shall have received a Request for Credit Extension in accordance with the requirements hereof.

(d)       Lender shall have received, in form and substance satisfactory to it, such other assurances, certificates, documents or consents related to the foregoing as Lender reasonably may require.

Each Request for Credit Extension submitted by 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.

ARTICLE 5.

REPRESENTATIONS AND WARRANTIES

Borrower represents and warrants to Lender that:

5.01     Existence, Qualification and Power; Compliance with Laws. Each Loan Party and each Subsidiary thereof (a) is duly organized or formed, validly existing and in good standing under the Laws of the jurisdiction of its incorporation or organization, (b) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to (i) own its assets and carry on its business and (ii) execute, deliver and perform its obligations under the Loan Documents to which it is a party, (c) is duly qualified and is licensed and in good standing under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license, and (d) is in compliance with all Laws; except in each case referred to in clause
(b)(i), (c) or (d), to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect.

5.02     Authorization; No Contravention. The execution, delivery and performance by each Loan Party of each Loan Document to which such Person is party, have been duly authorized by all necessary corporate or other organizational action, and do not and will not (a) contravene the terms of any of such Person’s Organization Documents; (b) conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be 

 

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made under (i) any Contractual Obligation to which such Person is a party or affecting such Person or the properties of such Person or any of its Subsidiaries or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Person or its property is subject; or (c) violate any Law. Each Loan Party and each Subsidiary thereof is in compliance with all Contractual Obligations referred to in clause (b)(i), except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect.

5.03     Governmental Authorization; Other Consents. No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, any Loan Party of this Agreement or any other Loan Document.

5.04     Binding Effect. This Agreement has been, and each other Loan Document, when delivered hereunder, will have been, duly executed and delivered by each Loan Party that is party thereto. This Agreement constitutes, and each other Loan Document when so delivered will constitute, a legal, valid and binding obligation of such Loan Party, enforceable against each Loan Party that is party thereto in accordance with its terms.

 

	
             
 	
            5.05
 	
            Financial Statements; No Material Adverse Effect; Solvency.
 

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

(b)       The unaudited consolidated balance sheet of Parent and its Subsidiaries dated September 12, 2009, and the related consolidated and consolidating statements of income or operations, shareholders’ equity and cash flows for the reporting period ended on that date (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, and (ii) fairly present the financial condition of Borrower as of the date thereof and their results of operations for the period covered thereby, subject, in the case of clauses (i) and (ii), to the absence of footnotes and to normal year-end audit adjustments.

(c)       Since the date of the Audited Financial Statements, there has been no event or circumstance, either individually or in the aggregate, that has had or could reasonably be expected to have a Material Adverse Effect.

(d)       The consolidated forecasted balance sheet and statements of income and cash flows of Parent and its Subsidiaries delivered pursuant to Section 6.01(f) were prepared in good faith on the basis of the assumptions stated therein, which assumptions were fair in light of the conditions existing at the time of delivery of such forecasts, and represented, at the time of delivery, Borrower’s best estimate of its future financial condition and performance.

 

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(e)       Each of the Loan Parties (both before and after giving effect to the transactions contemplated by this Agreement (including the Credit Extensions made on the Closing Date)) are and will be solvent (i.e., it has assets having a fair value in excess of the amount required to pay its probable liabilities on its existing debts as they become absolute and matured and it does not have unreasonably small capital) and has, and expects to have, the ability to pay its debts from time to time incurred as such debts mature.

5.06     Litigation. There are no actions, suits, proceedings, claims or disputes pending or, to the knowledge of Borrower after due and diligent investigation, threatened or contemplated, at law, in equity, in arbitration or before any Governmental Authority, by or against any Loan Party or against any of their properties or revenues that (a) purport to affect or pertain to this Agreement or any other Loan Document, or any of the transactions contemplated hereby, or (b) except as specifically disclosed in Schedule 5.06, either individually or in the aggregate, if determined adversely, could reasonably be expected to have a Material Adverse Effect, and there has been no adverse change in the status, or financial effect on any Loan Party or any Subsidiary thereof, of the matters described on
Schedule 5.06.

5.07     No Default. No Loan Party nor any Subsidiary is in default under or with respect to any Contractual Obligation that could, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. No Default has occurred and is continuing or would result from the consummation of the transactions contemplated by this Agreement or any other Loan Document.

5.08     Ownership of Property; Liens. Each Loan Party and each Subsidiary thereof has good record and marketable title in fee simple to, or valid leasehold interests in, all personal property and real property necessary or used in the ordinary conduct of its business (including the assets reflected on its most recent balance sheet), except for such defects in title as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The property of Loan Parties and their Subsidiaries is subject to no Liens, other than Liens permitted by Section 7.01. 

5.09     Environmental Compliance. Loan Parties and their Subsidiaries conduct in the ordinary course of business a review of the effect of existing Environmental Laws and claims alleging potential liability or responsibility for violation of any Environmental Law on their respective businesses, operations and properties, and as a result thereof Borrower has reasonably concluded that, except as specifically disclosed in Schedule 5.09, such Environmental Laws and claims could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

5.10     Insurance. The properties of Loan Parties and their Subsidiaries are insured with financially sound and reputable insurance companies not Affiliates of any Loan Party, in such amounts (after giving effect to any self-insurance compatible with the following standards), with such deductibles and covering such risks as are customarily carried by companies engaged in similar businesses and owning similar properties in localities where such Loan Party or the applicable Subsidiary operates.

 

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5.11     Taxes. Loan Parties have filed all Federal, state and other material tax returns and reports required to be filed, and have paid all Federal, state and other material taxes, assessments, fees and other governmental charges levied or imposed upon them or their properties, income or assets otherwise due and payable, except those which are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves have been provided in accordance with GAAP. There is no proposed tax assessment against any Loan Party that would, if made, have a Material Adverse Effect.

 

	
             
 	
            5.12
 	
            ERISA Compliance.
 

 (a)       Each Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code and other Federal or state Laws. Each Plan that is intended to qualify under Section 401 (a) of the Code has received a favorable determination letter from the IRS or an application for such a letter is currently being processed by the IRS with respect thereto and, to the best knowledge of Borrower, nothing has occurred which would prevent, or cause the loss of, such qualification. Borrower and each ERISA Affiliate have made all required contributions to each Plan subject to Section 412 of the Code, and no application for a funding waiver or an extension of any amortization period pursuant to Section 412 of the Code has been made with respect to any Plan.

(b)       There are no pending or, to the best knowledge of Borrower, threatened claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan that could be reasonably be expected to have a Material Adverse Effect. There has been no prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan that has resulted or could reasonably be expected to result in a Material Adverse Effect.

(c)        (i) No ERISA Event has occurred or is reasonably expected to occur; (ii) no Pension Plan has any Unfunded Pension Liability; (iii) neither Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability under Title IV of ERISA with respect to any Pension Plan (other than premiums due and not delinquent under Section 4007 of ERISA); (iv) neither Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability (and no event has occurred which, with the giving of notice under Section 4219 of ERISA, would result in such liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (v) neither Borrower nor any ERISA Affiliate has engaged in a transaction that could be subject to Sections 4069 or 4212(c) of ERISA.

 

	
             
 	
            5.13
 	
            Subsidiaries; Equity Interests»
 

 (a)       . As of the Closing Date, Borrower has no Subsidiaries and has no Equity Interests in any other Person. All of the outstanding Equity Interests in Borrower have been validly issued and are fully paid and nonassessable and are directly owned legally and beneficially by Parent free and clear of all Liens other than Liens in favor of Lender.

(b)       As of September 12, 2009, the authorized capital stock of Parent consists of 15,000,000 shares of common stock (par value $.01 per share) authorized of which 10,708,471 shares are outstanding. All such outstanding shares have been duly issued and are fully paid and non-assessable.

 

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(c)       As of September 12, 2009, except as set forth on Schedule 5.13(c), no Person has outstanding any rights or options (except for the options for common stock or other forms of equity-based compensation issued to employees, consultants or directors in accordance with a bona fide compensation plan approved by the board of directors of Parent) to subscribe for or purchase from Parent, or any warrants or other agreements providing for or requiring the issuance by Parent of, any Equity Interests convertible into or exchangeable for its capital stock.

 

	
             
 	
            5.14
 	
            Margin Regulations; Investment Company Act.
 

 (a)       No Loan Party is engaged or will engage, principally or as one of its important activities, in the business of purchasing or carrying margin stock (within the meaning of Regulation U issued by the FRB), or extending credit for the purpose of purchasing or carrying margin stock. Following the application of the proceeds of each Loan Borrowing or drawing under each Letter of Credit, not more than 25% of the value of the assets (either of Borrower only or of Borrower and its Subsidiaries on a consolidated basis) subject to the provisions of Section 7.01 or Section 7.05 or subject to any restriction contained in any agreement or instrument between Borrower and Lender or any Affiliate of Lender relating to Indebtedness and within the scope of
Section 8.01(e) will be margin stock.

(b)       No Loan Party, any Person Controlling any Loan Party, or any Subsidiary of any Loan Party is or is required to be registered as an “investment company” under the Investment Company Act of 1940, as amended; nor is any of them a “holding company” or a “subsidiary company” or an “affiliate” of a “holding company”, as such terms are defined in the Public Utility Holding Company Act of 1935, as amended.

5.15     Disclosure. Borrower has disclosed to Lender all agreements, instruments and corporate or other restrictions to which it or any of its Subsidiaries, or Parent, is subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. No report, financial statement, certificate or other information furnished (whether in writing or orally) by or on behalf of any Loan Party to Lender in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder or under any other Loan Document (in each case, as modified or supplemented by other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided that, with respect to projected financial information, Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time.

5.16     Compliance with Laws. Each Loan Party and each of their Subsidiaries is in compliance in all material respects with the requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its properties, except in such instances in which (a) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted or (b) the failure to comply therewith, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

 

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5.17     Taxpayer Identification Number. Loan Parties’ true and correct U.S. taxpayer identification number are each set forth on Schedule 9.02.

5.18     Intellectual Property; Licenses, Etc. Loan Parties and their Subsidiaries own, or possess the right to use, all of the trademarks, service marks, trade names, copyrights, patents, patent rights, franchises, licenses and other intellectual property rights that are reasonably necessary for the operation of their respective businesses, without conflict with the rights of any other Person. To the best knowledge of Borrower, no slogan or other advertising device, product, process, method, substance, part or other material now employed, or now contemplated to be employed, by Borrower or any Subsidiary infringes upon any rights held by any other Person. No claim or litigation regarding any of the foregoing is pending or, to the best knowledge of Borrower, threatened, which, either individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.

5.19     Rights in Collateral; Priority of Liens. Borrower and each other Loan Party own the property granted by it as Collateral under the Collateral Documents, free and clear of any and all Liens in favor of third parties. Upon the proper filing of UCC financing statements, and the taking of the other actions required by Lender, the Liens granted pursuant to the Collateral Documents will constitute valid and enforceable first, prior and perfected (to the extent that Liens on the Collateral can be perfected by the filing of UCC financing statements) Liens on the Collateral in favor of Lender.

5.20     Subordinated Notes. Borrower hereby represents and warrants that each of (i) the $3,250,000 Promissory Note dated December 15, 2004 issued by Borrower in favor of Donald Brinckman, (ii) that certain $1,750,000 Promissory Note dated December 15, 2004 issued by Borrower in favor of Bruckman, Rosser, Sherrill & Co., L.P, (iii) that certain $8,320,000 Promissory Note dated December 15, 2004 issued by Borrower in favor of Asphalt Refining Company, as amended from time to time and (iv) all replacements and substitutions of any of the notes referenced in clauses (i) and (iii) have been terminated, all Indebtedness and other obligations of Borrower owing under such notes have been satisfied in full and all lines of credit arising thereunder have
been terminated.

 

	
             
 	
            5.21
 	
            True Copies of Charter Documents.»
 

Borrower has furnished to Lender copies, in each case true and complete as of the Closing Date, of (i) all charter and other incorporation or constituent documents, as amended, and (ii) by-laws (or their equivalent), as amended, of each Loan Party.

ARTICLE 6.

AFFIRMATIVE COVENANTS

So long as 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, Borrower shall, and shall (except in the case of the covenants set forth in Sections 6.01, 6.02, and 6.03) cause each Subsidiary, if any, to:

 

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            6.01
 	
            Financial Statements. Deliver to Lender, in form and detail satisfactory to Lender:
 

 (a)       as soon as available, but in any event within ninety (90) days after the end of each fiscal year of Parent, a consolidated and, if applicable, consolidating balance sheet of Parent and its Subsidiaries as at the end of such fiscal year, and the related consolidated and, if applicable, consolidating statements of income or operations, changes in shareholders’ equity and cash flows 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, such consolidated statements to be audited and accompanied by a report and opinion of an independent certified public accountant of nationally recognized standing reasonably acceptable to Lender (the “Accountants”), 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 and, if applicable, such consolidating statements to be certified by a Responsible Officer of Parent to the effect that such statements are fairly stated in all material respects when considered in relation to the consolidated financial statements of Parent and its Subsidiaries;

(b)       as soon as available, but in any event within forty-five (45) days after the end of each of the first three fiscal quarters of Parent in each fiscal year, a consolidated and, if applicable, consolidating balance sheet of Parent and its Subsidiaries as at the end of such fiscal quarter, and the related consolidated and, if applicable, consolidating statements of income or operations for such reporting period, the portion of Parent’s fiscal year then ended and the fiscal quarter then ended, all in reasonable detail, such consolidated statements to be certified by a Responsible Officer of Parent as fairly presenting the financial condition, results of operations of Borrower and its Subsidiaries in accordance with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes and, if applicable, such consolidating
statements to be certified by a Responsible Officer of Parent to the effect that such statements are fairly stated in all material respects when considered in relation to the consolidated financial statements of Parent and its Subsidiaries;

(c)       as soon as available, but in any event within sixty (60) days after the end of each fiscal year of Borrower, forecasts prepared by management of Borrower, in form satisfactory to Lender, of consolidated balance sheets and statements of income or operations and cash flows of Borrower and its Subsidiaries on a four week reporting period basis for the new fiscal year (including the fiscal year in which the Maturity Date occurs);

(d)       promptly after the same are available, copies of each annual report, proxy or financial statement or other report or communication sent to the stockholders of Parent, and copies of all annual, regular, periodic and special reports and registration statements which Parent may file or be required to file with the SEC under Section 13 or 15(d) of the Exchange Act, and not otherwise required to be delivered to Lender pursuant hereto; and

(e)       promptly, and in any event within five Business Days after receipt thereof by any Loan Party or any Subsidiary thereof, copies of each notice or other correspondence received from the SEC (or comparable agency in any applicable non-U.S. jurisdiction) concerning any investigation or possible investigation or other inquiry by such agency regarding financial or other operational results of any Loan Party or any Subsidiary thereof.

 

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Borrower hereby authorizes Lender to disclose any information obtained pursuant to this Agreement to all appropriate Governmental Authorities where required by applicable Laws; provided, however, that Lender shall, to the extent practicable and allowable under applicable Laws, notify Borrower within a reasonable period prior to the time any such disclosure is made.

6.02     Certificates; Other Information. Deliver to Lender, in form and detail satisfactory to Lender:

(a)       concurrently with the delivery of the financial statements referred to in Sections 6.01 (a) and (b) a duly completed Compliance Certificate signed by a Responsible Officer of Borrower;

(b)       promptly after any request by Lender, copies of any detailed audit reports, management letters or recommendations submitted to the board of directors (or the audit committee of the board of directors) of Parent or Borrower by Accountants in connection with the accounts or books of Parent, Borrower or any Subsidiary, or any audit of any of them;

(c)       promptly after the furnishing thereof, copies of any statement or report furnished to any holder of debt securities of any Loan Party or any Subsidiary thereof pursuant to the terms of any Subordinated Debt Document or any indenture, loan or credit or similar agreement relating to Indebtedness in an aggregate amount greater than $100,000 and not otherwise required to be furnished to Lender pursuant to Section 6.01 or any other clause of this Section 6.02; and

(d)       promptly, such additional information regarding the business, financial or corporate affairs of Parent, Borrower or any Subsidiary, or compliance with the terms of the Loan Documents, as Lender may from time to time reasonably request (including, without limitation, any public offering of common stock of Parent).

 

	
             
 	
            6.03
 	
            Notices.»
 

  Promptly notify Lender:

	
             
 	
            (a)
 	
            of the occurrence of any Default;
 

 (b)       of any matter that has resulted or could reasonably be expected to result in a Material Adverse Effect, including (i) breach or non-performance of, or any default under, a Contractual Obligation of any Loan Party or any of their Subsidiaries; (ii) any dispute, litigation, investigation, proceeding or suspension between any Loan Party or any of their Subsidiaries and any Governmental Authority; or (iii) the commencement of, or any material development in, any litigation or proceeding affecting any Loan Party or any of their Subsidiaries, including pursuant to any applicable Environmental Laws;

	
             
 	
            (c)
 	
            of the occurrence of any ERISA Event; and
 

 (d)       of any material change in accounting policies or financial reporting practices by any Loan Party or any of their Subsidiaries including any determination by 

 

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Borrower referred to in clause (b)(ii) of the definition of Applicable Base Rate Margin, Applicable Eurodollar Rate Margin and Applicable Unused Fee Rate.

Each notice pursuant to this Section shall be accompanied by a statement of a Responsible Officer of Borrower setting forth details of the occurrence referred to therein and stating what action Borrower has taken and proposes to take with respect thereto. Each notice pursuant to Section 6.03(a) shall describe with particularity any and all provisions of this Agreement and any other Loan Document that have been breached.

6.04     Payment of Obligations. Pay and discharge as the same shall become due and payable, all its obligations and liabilities, including (a) all tax liabilities, assessments and governmental charges or levies upon it or its properties or assets, unless the same are being contested in good faith by appropriate proceedings diligently conducted and adequate reserves in accordance with GAAP are being maintained by such Loan Party; (b) all lawful claims which, if unpaid, would by law become a Lien upon its property, unless the same are being contested in good faith by appropriate proceedings diligently conducted and adequate reserves in accordance with GAAP are being maintained by such Loan Party or such Subsidiary; and (c) all Indebtedness, as and when due and payable, but subject to any subordination provisions contained in any instrument or
agreement evidencing such Indebtedness, unless the same are being contested in good faith by appropriate proceedings diligently conducted and adequate reserves in accordance with GAAP are being maintained by such Loan Party or such Subsidiary.

6.05     Preservation of Existence, Etc. (a) Preserve, renew and maintain in full force and effect its legal existence and good standing under the Laws of the jurisdiction of its organization except in a transaction permitted by Section 7.04 or 7.05; (b) take all reasonable action to maintain all rights, privileges, permits, licenses and franchises necessary or desirable in the normal conduct of its business, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect; and (c) preserve or renew all of its registered patents, trademarks, trade names and service marks, the non-preservation of which could reasonably be expected to have a Material Adverse Effect. If at any time while any Loan or Letter of
Credit is outstanding or the Commitment is in effect, any authorization, consent, approval, permit or license from any Governmental Authority shall become necessary or required in order that Borrower may fulfill any of its obligations hereunder, Borrower will promptly take or cause to be taken all reasonable steps within its power to obtain such authorization, consent, approval, permit or license and furnish Lender with evidence thereof.

6.06     Maintenance of Properties. (a) Maintain, preserve and protect all of its material properties and equipment necessary in the operation of its business in good working order and condition, ordinary wear and tear excepted; (b) make all necessary repairs thereto and renewals and replacements thereof except where the failure to do so could not reasonably be expected to have a Material Adverse Effect; and (c) use the standard of care typical in the industry in the operation and maintenance of its facilities.

 

	
             
 	
            6.07
 	
            Maintenance of Insurance.
 

 (a)       Maintain with financially sound and reputable insurance companies not Affiliates of Borrower, insurance with respect to its properties and business against loss or 

 

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damage of the kinds customarily insured against by Persons engaged in the same or similar business, of such types and in such amounts (after giving effect to any self- insurance compatible with the following standards) as are customarily carried under similar circumstances by such other Persons and providing for not less than thirty (30) days’ prior notice to Lender of termination, lapse or cancellation of such insurance.

(b)       Upon the request of Lender, to deliver to Lender a copy of each insurance policy, or, if permitted by Lender, a certificate of insurance listing all insurance in force. Without limitation of the foregoing, Borrower shall furnish to Lender endorsements and certificates of insurance (a) with respect to Borrower’s property insurance policies naming Lender as lender loss payee and Borrower shall instruct the carrier to make payment of proceeds directly to Lender and (b) with respect to Borrower’s liability insurance policies, naming Lender as an additional insured , and each in form and substance satisfactory to Lender. Unless Borrower provides Lender with satisfactory evidence of the insurance coverage required hereby, Lender may purchase insurance at Borrower’s expense to protect Lender’s interest in the Collateral. This
insurance may, but need not, protect the interests of Borrower. The coverage that Lender purchases may not pay any claim that Borrower makes or any claim that is made against Borrower in connection with the Collateral. Borrower may later cancel any insurance purchased by Lender, but only after providing Lender with satisfactory evidence that Borrower has obtained insurance as required hereby. If Lender purchases insurance of the collateral, Borrower will be responsible for the costs of that insurance, including interest thereon at the Default Rate and any other charges which Lender may impose in connection with the placement of the insurance until the effective date of the cancellation or expiration of the insurance. The costs of the insurance may be added to the outstanding principal balance of the advances, shall bear interest at the Default Rate as provided above, and shall be payable upon demand. The costs of the insurance may be more than the cost of insurance Borrower may be
able to obtain on its own.

6.08     Compliance with Laws. Comply in all material respects with the requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its business or property, except in such instances in which (a) such requirement of Law or order, write, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted; or (b) the failure to comply therewith could not reasonably be expected to have a Material Adverse Effect.

6.09     Books and Records. (a) Maintain proper books of record and account, in which full, true and correct entries in conformity with GAAP consistently applied shall be made of all financial transactions and matters involving the assets and business of Borrower or such Subsidiary, as the case may be; (b) maintain such books of record and account in material conformity with all applicable requirements of any Governmental Authority having regulatory jurisdiction over Borrower or such Subsidiary, as the case may be; and (c) at all times engage Accountants as the independent certified public accountants of Parent and its Subsidiaries. Borrower shall maintain at all times books and records pertaining to the Collateral in such detail, form and scope as Lender shall reasonably require.

6.10     Inspection Rights. Permit representatives and independent contractors of Lender to visit and inspect any of its properties, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and 

 

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accounts with its directors, officers, and independent public accountants, all at the expense of Borrower and at such reasonable times during normal business hours and as often as may be reasonably desired, upon reasonable advance notice to Borrower; provided, however, that when an Event of Default exists, Lender (or any of its representatives or independent contractors) may do any of the foregoing at the expense of Borrower at any time during normal business hours and without advance notice.

6.11     Use of Proceeds. Use the proceeds of the Credit Extensions for general corporate purposes not in contravention of any Law or of any Loan Document.

 

	
             
 	
            6.12
 	
            Financial Covenants.
 

 (a)       Tangible Net Worth. Maintain on a consolidated basis Tangible Net Worth of:

	
             
 	
            (i)
 	
            $42,000,000;
 

 (ii)       plus the sum of 75% of net income after income taxes (without subtracting losses) earned in each fiscal quarter of Parent commencing after the Closing Date;

(iii)      plus the net proceeds from any Equity Securities of Parent issued after the Closing Date;

	
             
 	
            (iv)
 	
            minus $3,500,000.
 

 (b)       Interest Coverage Ratio. Maintain on a consolidated basis with respect to Borrower and its Subsidiaries, an Interest Coverage Ratio, as of the last day of any reporting period for which this Agreement requires Borrower to deliver financial statements, calculated based upon Interest Expense and EBITDA for the Measurement Period ending on such day, of at least the ratio of 3.5 to 1.0.

(c)       Capital Expenditures. In any fiscal year, not make or become obligated to make any Capital Expenditures (including, without limitation, expenditures made and obligations accrued with respect to Capital Leases but excluding (i) expenditures made and obligations accrued as consideration for Permitted Acquisitions and (ii) expenditures made and obligations accrued in connection with the Indianapolis Acquisition) in an aggregate amount exceeding $10,000,000.

(d)       Total Leverage Ratio. Maintain on a consolidated basis with respect to Borrower and its Subsidiaries, a Total Leverage Ratio, as of the last day of any reporting period for which this Agreement requires Borrower to deliver financial statements, calculated based upon the amount of Funded Debt as of such day and EBITDA for the Measurement Period ending on such day, not exceeding the ratio of 3.25:1.00.

6.13     Guarantors. Notify Lender at the time that any Person becomes a Subsidiary, and promptly thereafter (and in any event within thirty (30) days), cause such Person to (a) become a Guarantor by executing and delivering to Lender a Guaranty and such other documents as Lender shall deem appropriate for such purpose, and (b) deliver (and Borrower or other 

 

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applicable Loan Party shall deliver) to Lender such executed Collateral Documents as Lender may reasonably request (including a joinder agreement with respect to the Security Agreement), an executed Pledge Agreement and the documents of the types referred to in clauses (iii) and (iv) of Section 4.01(a) and favorable opinion letters of counsel to Borrower (or other applicable Loan Party) and such Person (which shall cover, among other things, the legality, validity, binding effect and enforceability of the documentation referred to in clauses (a) and (b) and the creation and perfection of security interests granted by such Person or Borrower or other Loan Party), all in form,
content and scope reasonably satisfactory to Lender.

6.14     Collateral Records. To execute and deliver promptly, and to cause each other Loan Party to execute and deliver promptly, to Lender, from time to time, solely for Lender’s convenience in maintaining a record of the Collateral, such written statements and schedules as Lender may reasonably require designating, identifying or describing the Collateral. The failure by Borrower or any other Loan Party, however, to promptly give Lender such statements or schedules shall not affect, diminish, modify or otherwise limit the Liens on the Collateral granted pursuant to the Collateral Documents.

6.15     Security Interests. To, and to cause each other Loan Party to, (a) defend the Collateral against all claims and demands of all Persons at any time claiming the same or any interest therein, (b) comply with the requirements of all state and federal laws in order to grant to Lender valid and perfected first priority security interests in the Collateral, with perfection, in the case of any investment property, deposit account or letter of credit, being effected by giving Lender control of such investment property or deposit account or letter of credit, rather than by the filing of a Uniform Commercial Code (“UCC”) financing statement with respect to such investment property, and (c) do whatever Lender may reasonably request, from time to time, to effect the purposes of this
Agreement and the other Loan Documents, including filing notices of liens, UCC financing statements, fixture filings and amendments, renewals and continuations thereof; cooperating with Lender’s representatives; keeping stock records; obtaining waivers from landlords and mortgagees and from warehousemen and their landlords and mortgages; and, paying claims which might, if unpaid, become a Lien on the Collateral. Lender is hereby authorized by Borrower to file any UCC financing statements covering the Collateral whether or not Borrower’s signatures appear thereon.

6.16     Environmental Compliance and Reports. Each Loan Party and each of their Subsidiaries shall comply in all respects with any and all Environmental Laws; not cause or permit to exists as a result of an intentional or unintentional action or omission on such Loan Party’s or Subsidiary’s part or on the part of any third party, on property owned and/or occupied by such Loan Party or Subsidiary, any environmental activity where damage may result to the environment, unless such environmental activity is pursuant to and in compliance with the conditions of a permit issued by the appropriate federal, state or local governmental authorities; shall furnish to Lender promptly and in any event within thirty (30) days after receipt thereof a copy of any notice, summons, lien, citation, directive, letter or other communication from any
governmental agency or instrumentality concerning any intentional or unintentional action or omission on such Loan Party’s or Subsidiary’s part in connection with any environmental activity whether or not there is damage to the environment and/or other natural resources; provided that such notices shall be required only for such notices or claims that would require 

 

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expenditures and/or payment of fines by such Loan Party or Subsidiary in excess of $100,000, individually or in the aggregate, in any fiscal year.

6.17     Motor Vehicle Collateral. Upon the request of Lender, Borrower shall, and shall cause each Loan Party to, execute and deliver, and cause each Subsidiary to execute and deliver, certificates of title and other documents necessary or desirable for Lender to obtain a first priority perfected security interest in the motor vehicles owned by such Loan Party or such Subsidiary.

 

	
             
 	
            6.18
 	
            Further Assurances.»
 

Borrower will, and shall cause each Loan Party to, cooperate with Lender and execute such further instruments and documents as Lender shall reasonably request to carry out to their satisfaction the transactions contemplated by this Agreement or any of the other Loan Documents.

ARTICLE 7.

NEGATIVE COVENANTS

So long as 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, no Loan Party shall, nor shall it permit any Subsidiary to, directly or indirectly:

7.01     Liens. Create, incur, assume or suffer to exist any Lien upon any of its property, assets or revenues, whether now owned or hereafter acquired, other than the following:

	
             
 	
            (a)
 	
            Liens pursuant to any Loan Document;
 

 (b)       Liens existing on the date hereof and listed on Schedule 7.01 and any renewals or extensions thereof, provided that (i) the property covered thereby is not changed, (ii) the amount secured or benefited thereby is not increased except as contemplated by Section 7.03(b), (iii) the direct or any contingent obligor with respect thereto is not changed, and (iv) and any renewal or extension of the obligations secured or benefited thereby is permitted by Section 7.03(b);

(c)       Liens for taxes not yet due or which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP;

(d)       carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens arising in the ordinary course of business which are not overdue for a period of more than 30 days or which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person;

 

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(e)       pledges or deposits in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other social security legislation, other than any Lien imposed by ERISA;

(f)        deposits to secure the performance of bids, trade contracts and leases (other than Indebtedness), statutory obligations, surety bonds (other than bonds related to judgments or litigation), performance bonds and other obligations of a like nature incurred in the ordinary course of business;

(g)       easements, rights-of-way, restrictions and other similar encumbrances affecting real property which, in the aggregate, are not substantial in amount, and which do not in any case materially detract from the value of the property subject thereto or materially interfere with the ordinary conduct of the business of the applicable Person;

(h)       Liens securing judgments for the payment of money not constituting an Event of Default under Section 8.01(h) or securing appeal or other surety bonds related to such judgments; and

(i)        Liens securing Indebtedness permitted under Section 7.03(f); provided that (i) such Liens do not at any time encumber any property other than the property financed by such Indebtedness and (ii) the Indebtedness secured thereby does not exceed the cost or fair market value, whichever is lower, of the property being acquired on the date of acquisition.

 

	
             
 	
            7.02
 	
            Investments. Make any Investments, except:
 

 (a)       Investments held by such Loan Party or such Subsidiary in the form of cash equivalents or short-term marketable debt securities;

(b)       advances to officers, directors and employees of Borrower and Subsidiaries in an aggregate amount not to exceed $500,000 at any time outstanding; provided that, if the aggregate amount of advances to any officer, director or employee exceed $125,000, such advances shall be evidenced by a promissory note which shall be delivered to Lender and pledged to Lender to secure the Obligations;

(c)       Investments of any Loan Party in any wholly-owned Subsidiary and Investments of any wholly-owned Subsidiary in any Loan Party or in another wholly-owned Subsidiary;

(d)       Investments consisting of extensions of credit in the nature of accounts receivable or notes receivable arising from the grant of trade credit in the ordinary course of business, and Investments received in satisfaction or partial satisfaction thereof from financially troubled account debtors to the extent reasonably necessary in order to prevent or limit loss;

	
             
 	
            (e)
 	
            Guarantees permitted by Section 7.03;
 

	
             
 	
            (f)
 	
            Investments constituting Permitted Acquisitions; and
 

 

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(g)       other Investments not exceeding $100,000 in the aggregate at any time after the Closing Date.

 

	
             
 	
            7.03
 	
            Indebtedness. Create, incur, assume or suffer to exist any Indebtedness, except:
 

	
             
 	
            (a)
 	
            Indebtedness under the Loan Documents;
 

 (b)       Indebtedness outstanding on the date hereof and listed on Schedule 7.03 and any refinancings, refundings, renewals or extensions thereof (other than Subordinated Liabilities); provided that (i) the amount of such Indebtedness is not increased at the time of such refinancing, refunding, renewal or extension except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such refinancing and by an amount equal to any existing commitments unutilized thereunder and (ii) the terms relating to principal amount, amortization, maturity, collateral (if any) and subordination (if any), and other material terms taken as a whole, of any such refinancing, refunding, renewing or
extending Indebtedness, and of any agreement entered into and of any instrument issued in connection therewith, are no less favorable in any material respect to the Loan Parties or Lender than the terms of any agreement or instrument governing the Indebtedness being refinanced, refunded, renewed or extended and the interest rate applicable to any such refinancing, refunding, renewing or extending Indebtedness does not exceed the then applicable market interest rate;

(c)       Guarantees of any Loan Party or any Subsidiary in respect of Indebtedness otherwise permitted hereunder of such Loan Party or any wholly-owned Subsidiary;

(d)       obligations (contingent or otherwise) of any Loan Party or any Subsidiary existing or arising under any Swap Contract, provided that (i) such obligations are (or were) entered into by such Person in the ordinary course of business for the purpose of directly mitigating risks associated with liabilities, commitments, investments, assets, or property held or reasonably anticipated by such Person, or changes in the value of securities issued by such Person, and not for purposes of speculation or taking a “market view;” and (ii) such Swap Contract does not contain any provision exonerating the non-defaulting party from its obligation to make payments on outstanding transactions to the defaulting party;

(e)       Indebtedness constituting Subordinated Liabilities repayable pursuant to any Subordinated Debt Document;

(f)        Indebtedness in respect of capital leases and purchase money obligations for fixed or capital assets within the limitations set forth in Section 7.01 (i); provided, however, that the aggregate amount of all such Indebtedness at any one time outstanding shall not exceed $1,000,000; and

(g)       obligations (contingent or otherwise) of Borrower or any Subsidiary as a surety or guarantor arising in the ordinary course of business; provided, however, that the aggregate amount of all such Indebtedness at any one time outstanding shall not exceed $100,000.

 

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7.04     Fundamental Changes. Merge, dissolve, liquidate, consolidate with or into another Person, make any Acquisition, or Dispose of (whether in one transaction or in a series of transactions) all or substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any Person, or enter into any agreement to do any of the foregoing, except that, so long as no Default exists or would result therefrom:

(a)       any Subsidiary may merge with (i) Borrower, provided that Borrower shall be the continuing or surviving Person, or (ii) any one or more other Subsidiaries, provided that when any wholly-owned Subsidiary is merging with another Subsidiary, the wholly-owned Subsidiary shall be the continuing or surviving Person;

(b)       any Subsidiary may Dispose of all or substantially all of its assets (upon voluntary liquidation or otherwise) to Borrower or to another Subsidiary; provided that if the transferor in such a transaction is a wholly-owned Subsidiary, then the transferee must either be Borrower or a wholly-owned Subsidiary; and

(c)       the Borrower or its Subsidiaries party hereto may make Permitted Acquisitions and in connection therewith, any Subsidiary of the Borrower may merge into or consolidate with any other Person or permit any other Person to merge into or consolidate with it; provided that (i) the Person surviving such merger or consolidation shall be a wholly-owned Subsidiary of the Borrower and (ii) in the case of any such merger to which any Subsidiary of the Borrower is a party, such Subsidiary is the surviving Person.

7.05     Dispositions. Make any Disposition or enter into any agreement to make any Disposition, except:

(a)       Dispositions of obsolete or worn out property, whether now owned or hereafter acquired, in the ordinary course of business;

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

 (c)       Dispositions of equipment or real property to the extent that (i) such property is exchanged for credit against the purchase price of similar replacement equipment or real property or (ii) the proceeds of such Disposition are applied to the purchase price of replacement equipment or real property within 90 days of such Disposition;

(d)       Dispositions of property by any Subsidiary to Borrower or to a wholly-owned Subsidiary; and

	
             
 	
            (e)
 	
            Dispositions permitted by Section 7.04;
 

provided, however, that any Disposition pursuant to clauses (a) through (e) shall be for fair market value.

 

7.06     Restricted Payments. Declare or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, or issue or sell any Equity Interests, except that, so long as no Default shall have occurred and be continuing at the time of any action described below or would result therefrom:

 

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(a)       each Subsidiary may make Restricted Payments to Borrower, Guarantors and any other Person that owns an Equity Interest in such Subsidiary, ratably according to their respective holdings of the type of Equity Interest in respect of which such Restricted Payment is being made;

(b)       Borrower and each Subsidiary may declare and make dividend payments or other distributions payable solely in the common stock or other common Equity Interests of such Person;

(c)       Borrower and each Subsidiary may purchase, redeem or otherwise acquire Equity Interests issued by it with the proceeds received from the substantially concurrent issue of new shares of its common stock or other common Equity Interests; and

(d)       any other Restricted Payments from time to time agreed to in writing by Lender prior to the making thereof.

7.07     Change in Nature of Business. Engage in any material line of business substantially different from those lines of business conducted by Loan Parties and their Subsidiaries on the date hereof or any business substantially related or incidental thereto.

7.08     Transactions with Affiliates. Other than with respect to Subordinated Liabilities subject to a Subordination Agreement, enter into any transaction of any kind with any Affiliate of any Loan Party, whether or not in the ordinary course of business, other than on fair and reasonable terms substantially as favorable to such Loan Party or such Subsidiary as would be obtainable by such Loan Party or such Subsidiary at the time in a comparable arm’s length transaction with a Person other than an Affiliate, provided that the foregoing restriction shall not apply to transactions between or among between and among Loan Parties.

7.09     Burdensome Agreements. Enter into any Contractual Obligation (other than this Agreement or any other Loan Document) that (a) limits the ability (i) of any Subsidiary to make Restricted Payments to any Loan Party or to otherwise transfer property to such Loan Party, (ii) of any Subsidiary to Guarantee the Indebtedness of any Loan Party or (iii) of any Loan Party or any Subsidiary to create, incur, assume or suffer to exist Liens on property of such Person; provided, however, that this clause (iii) shall not prohibit any negative pledge incurred or provided in favor of any holder of Indebtedness permitted under Section 7.03(e) solely to the extent any such negative pledge relates to the property financed by or the subject of such Indebtedness;
or (b) requires the grant of a Lien to secure an obligation of such Person if a Lien is granted to secure another obligation of such Person.

7.10     Use of Proceeds. Use the proceeds of any Credit Extension, whether directly or indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock (within the meaning of Regulation U of the FRB) or to extend credit to others for the purpose of purchasing or carrying margin stock or to refund indebtedness originally incurred for such purpose.

 

	
             
 	
            7.11
 	
            Prepayment of Subordinated Indebtedness.
 

 

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(a)       Make any payment or prepayment of principal of, or premium or interest on, any Subordinated Liabilities, other than as permitted under any Subordination Agreement;

(b)       amend any Subordinated Debt document without the prior written consent of Lender;

(c)       redeem, retire, purchase, defease or otherwise acquire any Subordinated Liabilities except as permitted under a Subordination Agreement; or

(d)       make any deposit (including the payment of amounts into a sinking fund or other similar fund) for any of the foregoing purposes.

ARTICLE 8.

EVENTS OF DEFAULT AND REMEDIES

 

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

 (a)       Non-Payment. Borrower or any other Loan Party 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 three days after the same becomes due, any interest on any Loan or on any L/C Obligation, or any fee due hereunder, or (iii) within five (5) days after the same becomes due, any other amount payable hereunder or under any other Loan Document; or

(b)       Specific Covenants. Borrower fails to perform or observe any term, covenant or agreement contained in any of Section 6.01, 6.02, 6.03, 6.05, 6.10, 6.11 or 6.12 or Article VII; or

(c)       Other Defaults. Any Loan Party 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 thirty (30) days or any default or Event of Default occurs under any other Loan Document; or

(d)       Representations and Warranties. Any representation, warranty, certification or statement of fact made or deemed made by or on behalf of Borrower or any other Loan Party herein, 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; or

(e)       Cross-Default. (i) Any Loan Party (A) fails to make any payment when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness or Guarantee (other than Indebtedness hereunder and Indebtedness under Swap Contracts) having an aggregate principal amount (including undrawn committed or available amounts and including amounts owing to all creditors under any combined or syndicated credit arrangement) of more than $500,000, or (B) fails to observe or perform any other agreement or condition relating to any such Indebtedness or Guarantee 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, or to permit the holder or holders
of such Indebtedness or the beneficiary or beneficiaries of such Guarantee (or a trustee or 

 

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agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice if required, such Indebtedness to be demanded or to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity, or such Guarantee to become payable or cash collateral in respect thereof to be demanded; (ii) there occurs under any Swap Contract an Early Termination Date (as defined in such Swap Contract) resulting from (A) any event of default under such Swap Contract as to which any Loan Party or any Subsidiary is the Defaulting Party (as defined in such Swap Contract) or (B) any Termination Event (as so defined) under such Swap Contract as to which any Loan Party or any Subsidiary is an Affected Party (as so defined) and, in either event, the Swap
Termination Value owed by such Loan Party or such Subsidiary as a result thereof is greater than the Threshold Amount, and (iii) any Loan Party or any holder of Subordinated Liabilities fails to perform or observe any term, covenant or agreement contained in any Subordination Agreement to which it is a party; or

(f)        Insolvency Proceedings, Etc. Any Loan Party or any of its Subsidiaries 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 sixty (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 sixty (60) calendar days, or an order for relief is entered in any such proceeding; or

(g)       Inability to Pay Debts; Attachment. (i) Any Loan Party becomes unable or 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 thirty (30) days after its issue or levy; or

(h)       Judgments. There is entered against any Loan Party (i) one or more final judgments or orders for the payment of money in an aggregate amount (as to all such judgments and orders) exceeding $500,000 (to the extent not covered by independent third-party insurance as to which the insurer does not dispute coverage), or (ii) any one or more non-monetary final judgments that have, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and, in either case, (A) enforcement proceedings are commenced by any creditor upon such judgment or order, or (B) there is a period of thirty (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. (i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan which has resulted or could reasonably be expected to result in liability of any Loan Party under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of the Threshold Amount, or (ii) any Loan Party or any ERISA Affiliate fails to pay when due, after the expiration of any applicable grace period, any 

 

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installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount in excess of the Threshold Amount; or

(j)        Invalidity of Loan Documents. Any Loan Document or any provision thereof (including, without limitation, the subordination provisions of any Subordination Agreement), at any time after its execution and delivery and for any reason other than as expressly permitted hereunder or thereunder or satisfaction in full of all the Obligations, ceases to be in full force and effect; or any Loan Party or any other Person contests in any manner the validity or enforceability of any Loan Document or any provision thereof; or any Loan Party 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 any provision thereof or any Collateral Document shall for any reason cease to create a valid and perfected first
priority Lien on the Collateral purported to be covered thereby (subject to Section 7.05); or

	
             
 	
            (k)
 	
            Change of Control. There occurs any Change of Control; or
 

 (l)        Material Adverse Effect. There occurs any event or circumstance that has a Material Adverse Effect.

8.02     Remedies Upon Event of Default. If any Event of Default occurs and is continuing, Lender may take any or all of the following actions:

(a)       declare the commitment of Lender to make Loans and any obligation of Lender 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 Borrower;

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

(d)       exercise all rights and remedies available to it under the Loan Documents; provided, however, that upon the occurrence of an actual or deemed entry of an order for relief with respect to any Loan Party under the Bankruptcy Code of the United States, the obligation of Lender to make Loans and 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 Borrower to Cash Collateralize the L/C Obligations as aforesaid shall automatically become effective, in each case without further act of 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 Lender in the following order:

 

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First, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal and interest) payable to Lender (including fees, charges and disbursements of counsel to Lender (including fees and time charges for attorneys who may be employees of Lender) arising under the Loan Documents and amounts payable under Article III);

Second, to payment of that portion of the Obligations constituting accrued and unpaid interest on the Loans, L/C Borrowings and other Obligations arising under the Loan Documents;

Third, to payment of that portion of the Obligations constituting unpaid principal of the Loans and L/C Borrowings;

Fourth, to payment of that portion of the Obligations constituting Obligations owing to Lender or any Affiliate of Lender under a Swap Contract or a Cash Management Agreement or indemnities under any Loan Agreement;

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

Sixth, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to 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 9.

MISCELLANEOUS

9.01     Amendments, Etc. No amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent to any departure by Borrower or any other Loan Party therefrom, shall be effective unless in writing signed by Lender and Borrower or the applicable Loan Party, as the case may be.

 

	
             
 	
            9.02
 	
            Notices; Effectiveness; Electronic Communications.
 

 (a)       Notices Generally. Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in subsection (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopier as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows, if to Borrower or Lender, to the address, telecopier number, electronic mail address or telephone number specified for such Person on Schedule 9.02.

 

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Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by telecopier shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient). Notices delivered through electronic communications to the extent provided in subsection (b) below, shall be effective as provided in such subsection (b).

(b)       Electronic Communications. Notices and other communications to Lender hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by Lender. Lender or Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it, provided that approval of such procedures may be limited to particular notices or communications. Unless Lender otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or
other written acknowledgement), provided that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient, and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address therefor.

(c)       Change of Address, Etc. Each of Borrower and Lender may change its address, telecopier or telephone number for notices and other communications hereunder by notice to the other parties hereto.

(d)       Reliance by Lender. Lender shall be entitled to rely and act upon any notices (including telephonic Loan Notices) purportedly given by or on behalf of 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. Borrower shall indemnify Lender and the Related Parties of each of them from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of Borrower. All telephonic notices to and other telephonic communications with Lender may be recorded by Lender, and Borrower hereby consents to such recording.

9.03     No Waiver; Cumulative Remedies. No failure by Lender 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.

 

	
             
 	
            9.04
 	
            Expenses; Indemnity; Damage Waiver.
 

 

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(a)       Costs and Expenses. Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by Lender and its Affiliates (including the reasonable fees, charges and disbursements of counsel for Lender), in connection with the preparation, negotiation, execution, delivery and administration of this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket expenses incurred by Lender in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all out-of-pocket expenses incurred by Lender (including the fees, charges and disbursements of any
counsel for Lender), and shall pay all fees and time charges for attorneys who may be employees of Lender, in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the other Loan Documents, including its rights under this Section, or (B) in connection with the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.

(b)       Indemnification by Borrower. Borrower shall indemnify Lender (and any sub-agent thereof) and each Related Party of Lender (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including the fees, charges and disbursements of any counsel for any Indemnitee), and shall indemnify and hold harmless each Indemnitee from all fees and time charges and disbursements for attorneys who may be employees of any Indemnitee, incurred by any Indemnitee or asserted against any Indemnitee by any third party or by Borrower or any other Loan Party arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or
instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by Lender 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), (iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by Borrower or any of its Subsidiaries, or any Environmental Liability related in any way to Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by Borrower or any other Loan Party, and
regardless of whether any Indemnitee is a party thereto, in all cases, whether or not caused by or arising, in whole or in part, out of the comparative, contributory or sole negligence of the Indemnitee; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by Borrower or any other Loan Party against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other Loan Document, if Borrower or such Loan Party has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction.

 

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

(d)       Payments. All amounts due under this Section shall be payable not later than ten Business Days after demand therefor.

(e)       Survival. The agreements in this Section shall survive the assignment by Lender of its rights and obligations hereunder, the termination of the Commitment and the repayment, satisfaction or discharge of all the other Obligations.

 

	
             
 	
            9.05
 	
            Successors and Assigns.
 

	
             
 	
            (a)
 	
            Successors and Assigns Generally.
 

 (i)        The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns hereby, except that neither Borrower nor any other Loan Party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of Lender.

(ii)       Lender may at any time assign to one or more financial institutions all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans (including 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, the aggregate amount of the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment, determined as of the date the assignment consummated, shall not be less than $2,500,000 unless, so
long as no Event of Default has occurred and is continuing, 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 Lender’s rights and obligations under this Agreement with respect to the Loans or the Commitment assigned; and (iii) the parties to each assignment shall execute and deliver to Lender an assignment and assumption agreement in form and substance acceptable to Lender to evidence such assignment, together with a processing and recordation fee of $3,500. Upon request of Lender, Borrower agrees to enter into such documentation necessary or desirable to Lender to permit Lender’s assignees hereunder to become direct co-lenders under this Agreement pursuant to provisions and terms customary in multi-lender syndicated credit agreements.

 

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

(c)       Electronic Execution of Assignments. The words “execution,” “signed,” “signature,” and words of like import in any Assignment and Assumption shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

9.06     Treatment of Certain Information; Confidentiality. Lender agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective partners, directors, officers, employees, agents, advisors and representatives (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, purporting to have jurisdiction over it (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by applicable Laws or regulations or by any subpoena or similar legal process, (d) to any other party
hereto, (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to Borrower and its obligations, (g) with the consent of Borrower or (h) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section or (y) becomes available to Lender or any of its Affiliates on a nonconfidential basis from a source other than Borrower. For purposes of this Section, “Information” means all information received from Borrower or any Subsidiary relating to Borrower or any Subsidiary or any of their respective businesses,
other than any such information that is available to Lender on a nonconfidential basis prior to disclosure by Borrower or any Subsidiary. 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.

9.07     Right of Setoff. If an Event of Default shall have occurred and be continuing, Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by Lender or any such Affiliate to or for the credit or the account of Borrower or any other Loan Party against any and all of the 

 

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obligations of Borrower or such Loan Party now or hereafter existing under this Agreement or any other Loan Document to Lender or any such Affiliate, irrespective of whether or not Lender shall have made any demand under this Agreement or any other Loan Document and although such obligations of Borrower or such Loan Party may be contingent or unmatured or are owed to a branch or office of Lender different from the branch or office holding such deposit or obligated on such indebtedness. The rights of Lender and its respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that Lender or its Affiliates may have. Lender agrees to notify Borrower promptly after any such setoff and application, provided that the failure to give such notice shall not affect the validity of such setoff and application.

9.08     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 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 Borrower. In determining whether the interest contracted for, charged, or received by Lender exceeds the Maximum Rate, Lender 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.

9.09     Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in Section 4.01, this Agreement shall become effective when it shall have been executed by Lender and when Lender shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an
executed counterpart of a signature page of this Agreement by telecopy shall be effective as delivery of a manually executed counterpart of this Agreement.

9.10     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 Lender, regardless of any investigation made by Lender or on their behalf and notwithstanding that 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 or any Letter of Credit shall remain outstanding.

9.11     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 

 

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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.

 

	
             
 	
            9.12
 	
            Governing Law; Jurisdiction; Etc.
 

 (a)       GOVERNING LAW. THIS AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

(b)       SUBMISSION TO JURISDICTION. BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY
SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST BORROWER OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

(c)       WAIVER OF VENUE. BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

 

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(d)       SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 9.02. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

9.13     Waiver of Right to Trial by Jury. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

9.14     USA PATRIOT Act Notice. Lender hereby notifies Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that identifies Borrower, which information includes the name and address of Borrower and other information that will allow Lender to identify Borrower in accordance with the Act. Borrower shall, promptly following a request by Lender, provide all documentation and other information that Lender requests in order to comply with its ongoing obligations under applicable “know your customer” an anti-money laundering rules and regulations, including the Act.

 

	
             
 	
            9.15
 	
            Time of the Essence. Time is of the essence of the Loan Documents.
 

 

	
             
 	
            9.16
 	
            Original Credit Agreement Superseded»
 

 (a)       . Original Credit Agreement Superseded. On the Closing Date, this Agreement shall supersede the Original Credit Agreement in its entirety, except as provided in this Section. On the Closing Date, the rights and obligations of the parties hereto evidenced by the Original Credit Agreement shall be evidenced by this Agreement and the other Loan Documents, the “Loans” as defined in the Original Credit Agreement shall be converted to Loans as defined herein and the Existing Letters of Credit issued by Lender (as defined in the Original Credit Agreement) for the account of Borrower prior to the Closing Date shall be deemed to be Letters of Credit under this Agreement, and shall bear interest and be subject to such other fees as set forth in this Agreement.

(b)       Interest and Fees under Superseded Agreement. All interest and fees and expenses, if any, owing or accruing under or in respect of the Original Credit Agreement through the Closing Date (including any breakage fees in respect of Eurodollar Rate Loans as defined 

 

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therein) shall be calculated as of the Closing Date (pro-rated in the case of any fractional periods), and shall be paid on the Closing Date.

[signature page follows]

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

HERITAGE-CRYSTAL CLEAN, LLC, an

Indiana limited liability company

 

By:  /s/ Greg Ray

Name: Greg Ray

Title: Secretary

 

 

By its signature below, the Parent hereby acknowledges and agrees to the terms of this Agreement, including, without limitation, the representations, warranties, affirmative covenants and negative covenants applicable to the Parent contained herein.

 

HERITAGE-CRYSTAL CLEAN, INC.,

a Delaware corporation 

 

By:  /s/ Greg Ray

Name: Greg Ray

Title: Secretary

 

BANK OF AMERICA, N.A., as Lender

 

 

By:  /s/ Maria F. Maia

Name:  Maria F. Maia

Title:  Managing Director

 

 

 

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