Document:

Exhibit
4.01

 

EXECUTION COPY

 

 

$375,000,000

 

CREDIT AGREEMENT

 

among

 

NORTHERN STATES POWER COMPANY,

 

as Borrower,

 

The Several Lenders from Time to Time Parties Hereto,

 

THE BANK OF TOKYO-MITSUBISHI,
LTD., CHICAGO BRANCH

 

and

 

CITIBANK, N.A.,

 

as Documentation Agents,

 

THE BANK OF NEW YORK

 

and

 

WELLS FARGO BANK, NATIONAL
ASSOCIATION,

 

as Syndication Agents,

 

and

 

JPMORGAN CHASE BANK, N.A.,

 

as Administrative Agent

 

Dated as of April 21, 2005

 

 

 

WELLS FARGO BANK, NATIONAL ASSOCIATION

as Sole Lead Arranger and Bookrunner

 

 

TABLE OF CONTENTS

 

	
  SECTION 1.

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  1.1

  	
  Defined
  Terms

  	
   

  
	
  1.2

  	
  Other
  Definitional Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  AMOUNT
  AND TERMS OF REVOLVING COMMITMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  Revolving
  Commitments

  	
   

  
	
  2.2

  	
  Procedure
  for Revolving Loan Borrowing

  	
   

  
	
  2.3

  	
  Fees.

  	
   

  
	
  2.4

  	
  Termination
  or Reduction of Revolving Commitments

  	
   

  
	
  2.5

  	
  Optional
  Prepayments

  	
   

  
	
  2.6

  	
  Conversion
  and Continuation Options

  	
   

  
	
  2.7

  	
  Limitations
  on Eurodollar Tranches

  	
   

  
	
  2.8

  	
  Interest
  Rates and Payment Dates

  	
   

  
	
  2.9

  	
  Computation
  of Interest and Fees

  	
   

  
	
  2.10

  	
  Inability
  to Determine Interest Rate

  	
   

  
	
  2.11

  	
  Pro
  Rata Treatment and Payments

  	
   

  
	
  2.12

  	
  Requirements
  of Law

  	
   

  
	
  2.13

  	
  Taxes

  	
   

  
	
  2.14

  	
  Indemnity

  	
   

  
	
  2.15

  	
  Change
  of Lending Office

  	
   

  
	
  2.16

  	
  Replacement
  of Lenders

  	
   

  
	
  2.17

  	
  Extension
  of Revolving Termination Date

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  LETTERS OF
  CREDIT

  	
   

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  L/C Commitment

  	
   

  
	
  3.2

  	
  Procedure for Issuance of Letter of Credit

  	
   

  
	
  3.3

  	
  Fees and Other Charges

  	
   

  
	
  3.4

  	
  L/C Participations

  	
   

  
	
  3.5

  	
  Reimbursement Obligation of the Borrower

  	
   

  
	
  3.6

  	
  Obligations Absolute

  	
   

  
	
  3.7

  	
  Letter of Credit Payments

  	
   

  
	
  3.8

  	
  Applications

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  Financial Condition

  	
   

  
	
  4.2

  	
  No Change

  	
   

  
	
  4.3

  	
  Existence; Compliance with Law

  	
   

  
	
  4.4

  	
  Power; Authorization; Enforceable Obligations

  	
   

  
	
  4.5

  	
  No Legal Bar

  	
   

  
	
  4.6

  	
  Litigation

  	
   

  

 

 

	
  4.7

  	
  Ownership of Property; Liens

  	
   

  
	
  4.8

  	
  Taxes

  	
   

  
	
  4.9

  	
  Federal Regulations

  	
   

  
	
  4.10

  	
  ERISA

  	
   

  
	
  4.11

  	
  Investment Company Act; Other Regulations

  	
   

  
	
  4.12

  	
  Use of Proceeds

  	
   

  
	
  4.13

  	
  Accuracy of Information, etc

  	
   

  
	
  4.14

  	
  Solvency

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  CONDITIONS
  PRECEDENT

  	
   

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  Conditions to Initial Extension of Credit

  	
   

  
	
  5.2

  	
  Conditions to Each Extension of Credit

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  AFFIRMATIVE
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  Financial Statements

  	
   

  
	
  6.2

  	
  Certificates; Other Information

  	
   

  
	
  6.3

  	
  Payment of Obligations and Taxes

  	
   

  
	
  6.4

  	
  Maintenance of Existence; Compliance

  	
   

  
	
  6.5

  	
  Maintenance of Property; Insurance

  	
   

  
	
  6.6

  	
  Inspection of Property; Books and Records;
  Discussions

  	
   

  
	
  6.7

  	
  Notices

  	
   

  
	
  6.8

  	
  Environmental Laws

  	
   

  
	
  6.9

  	
  Ownership of Significant Subsidiaries

  	
   

  
	
  6.10

  	
  Scope of Business

  	
   

  
	
  6.11

  	
  Significant Subsidiaries

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
  NEGATIVE
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  Ratio of Funded Debt to Total Capital

  	
   

  
	
  7.2

  	
  Liens

  	
   

  
	
  7.3

  	
  Fundamental Changes

  	
   

  
	
  7.4

  	
  Disposition of Property

  	
   

  
	
  7.5

  	
  Transactions with Affiliates

  	
   

  
	
  7.6

  	
  Swap Agreements

  	
   

  
	
  7.7

  	
  Clauses Restricting Subsidiary Distributions

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
  EVENTS OF
  DEFAULT

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
  THE AGENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  9.1

  	
  Appointment

  	
   

  
	
  9.2

  	
  Delegation of Duties

  	
   

  
	
  9.3

  	
  Exculpatory Provisions

  	
   

  
	
  9.4

  	
  Reliance by Administrative Agent

  	
   

  
	
  9.5

  	
  Notice of Default

  	
   

  
	
  9.6

  	
  Non-Reliance on Agents and Other Lenders

  	
   

  

 

 

	
  9.7

  	
  Indemnification

  	
   

  
	
  9.8

  	
  Agent in Its Individual Capacity

  	
   

  
	
  9.9

  	
  Successor Administrative Agent

  	
   

  
	
  9.10

  	
  Documentation Agents and Syndication Agents

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  10.1

  	
  Amendments and Waivers

  	
   

  
	
  10.2

  	
  Notices

  	
   

  
	
  10.3

  	
  No Waiver; Cumulative Remedies

  	
   

  
	
  10.4

  	
  Survival of Representations and Warranties

  	
   

  
	
  10.5

  	
  Payment of Expenses and Taxes

  	
   

  
	
  10.6

  	
  Successors and Assigns; Participations and
  Assignments

  	
   

  
	
  10.7

  	
  Adjustments; Set-off

  	
   

  
	
  10.8

  	
  Counterparts

  	
   

  
	
  10.9

  	
  Severability

  	
   

  
	
  10.10

  	
  Integration

  	
   

  
	
  10.11

  	
  GOVERNING LAW

  	
   

  
	
  10.12

  	
  Submission To Jurisdiction; Waivers

  	
   

  
	
  10.13

  	
  Acknowledgements

  	
   

  
	
  10.14

  	
  Confidentiality

  	
   

  
	
  10.15

  	
  WAIVERS OF JURY TRIAL

  	
   

  
	
  10.16

  	
  Delivery of Addenda

  	
   

  
	
  10.17

  	
  USA Patriot Act Notice

  	
   

  
	
  10.18

  	
  Existing Credit Agreement

  	
   

  

 

 

	
  SCHEDULES:

  	
   

  
	
   

  	
   

  	
   

  
	
  1.1A

  	
  Revolving Commitments

  	
   

  
	
  1.1B

  	
  Existing Letters of Credit

  	
   

  
	
  4.1

  	
  Financial Condition

  	
   

  
	
  4.2

  	
  No Change

  	
   

  
	
  4.6

  	
  Litigation

  	
   

  
	
  4.7

  	
  Ownership of Property; Liens

  	
   

  
	
  7.2

  	
  Existing Liens

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBITS:

  	
   

  
	
   

  	
   

  	
   

  
	
  A

  	
  Form of Closing Certificate

  	
   

  
	
  B

  	
  Form of Assignment and Assumption

  	
   

  
	
  C

  	
  Form of Exemption Certificate

  	
   

  
	
  D

  	
  Form of Addendum

  	
   

  
	
  E-1

  	
  Form of New Lender Supplement

  	
   

  
	
  E-2

  	
  Form of Increased Revolving Commitment Activation Notice

  	
   

  
	
  F-1

  	
  Form of Extension Request

  	
   

  
	
  F-2

  	
  Form
  of Continuation Notice

  	
   

  

 

 

CREDIT AGREEMENT (this “Agreement”),
dated as of April 21, 2005, among NORTHERN STATES POWER COMPANY, a
Minnesota corporation (the “Borrower”), the several banks and other
financial institutions or entities from time to time parties to this Agreement
(the “Lenders”), THE BANK OF TOKYO-MITSUBISHI, LTD., CHICAGO BRANCH and
CITIBANK, N.A., as documentation agents (in such capacity, the “Documentation
Agents”), THE BANK OF NEW YORK and WELLS FARGO BANK, NATIONAL ASSOCIATION,
as syndication agents (in such capacity, the “Syndication Agents”), and
JPMORGAN CHASE BANK, N.A., as administrative agent.

 

The parties hereto hereby agree as follows:

 

SECTION 1.  DEFINITIONS

 

1.1                                 Defined
Terms.  As used in this Agreement,
the terms listed in this Section 1.1 shall have the respective meanings
set forth in this Section 1.1.

 

“ABR”:  for any day, a rate per annum (rounded upwards,
if necessary, to the next 1/16 of 1%) equal to the greater of (a) the Prime
Rate in effect on such day and (b) the Federal Funds Effective Rate in effect
on such day plus 1⁄2 of 1%.  For purposes
hereof, “Prime Rate” shall mean the rate of interest per annum publicly
announced from time to time by JPMorgan Chase Bank, N.A. as its prime rate in
effect at its principal office in New York City (the Prime Rate not being
intended to be the lowest rate of interest charged by JPMorgan Chase Bank, N.A.
in connection with extensions of credit to debtors).  Any change in the ABR due to a change in the
Prime Rate or the Federal Funds Effective Rate shall be effective as of the
opening of business on the effective day of such change in the Prime Rate or
the Federal Funds Effective Rate, respectively.

 

“ABR Loans”:  Revolving Loans the rate of interest
applicable to which is based upon the ABR.

 

“Addendum”:  an instrument, substantially in the form of
Exhibit D, by which a Lender becomes a party to this Agreement as of the
Closing Date.

 

“Administrative Agent”:  JPMorgan Chase Bank, N.A., as the
administrative agent for the Lenders under this Agreement and the other Loan
Documents, together with any of its successors.

 

“Affiliate”:  as to any Person, any other Person that,
directly or indirectly, is in Control of, is Controlled by, or is under common
Control with, such Person.

 

“Agents”:  the collective reference to the Syndication
Agents, the Documentation Agents and the Administrative Agent.

 

“Aggregate Exposure”:
 with respect to any Lender at any time,
an amount equal to the amount of such Lender’s Revolving Commitment then in
effect or, if the Revolving Commitments have been terminated, the amount of
such Lender’s Revolving Extensions of Credit then outstanding.

 

“Aggregate Exposure
Percentage”:  with respect to any
Lender at any time, the ratio (expressed as a percentage) of such Lender’s
Aggregate Exposure at such time to the Aggregate Exposure of all Lenders at
such time.

 

“Agreement”:  as defined in the preamble hereto.

 

 

“Applicable Margin”:  The rate per annum set forth under the
relevant column heading below based on the applicable Debt Rating:

 

	
  Level

  	
   

  	
  Debt Rating

  	
   

  	
  Commitment

  Fee

  	
   

  	
  ABR

  Loans

  	
   

  	
  Eurodollar

  Loans/

  Letters of Credit

  	
   

  
	
  I

  	
   

  	
  >A/A2

  	
   

  	
  0.08

  	
  %

  	
  0

  	
  %

  	
  0.30

  	
  %

  
	
  II

  	
   

  	
  A-/A3

  	
   

  	
  0.10

  	
  %

  	
  0

  	
  %

  	
  0.375

  	
  %

  
	
  III

  	
   

  	
  BBB+/Baa1

  	
   

  	
  0.125

  	
  %

  	
  0

  	
  %

  	
  0.475

  	
  %

  
	
  IV

  	
   

  	
  BBB/Baa2

  	
   

  	
  0.15

  	
  %

  	
  0

  	
  %

  	
  0.575

  	
  %

  
	
  V

  	
   

  	
  BBB-/Baa3

  	
   

  	
  0.175

  	
  %

  	
  0

  	
  %

  	
  0.75

  	
  %

  
	
  VI

  	
   

  	
  <BB+/Ba1

  	
   

  	
  0.20

  	
  %

  	
  0

  	
  %

  	
  1.00

  	
  %

  

 

provided that for each
Excess Utilization Day, the Applicable Margin set forth above on such day shall
be increased by 0.125% for (a) Eurodollar Loans and Letters of Credit and (b)
ABR Loans if the Debt Rating on such day is in Level VI.

 

For purposes of this
definition, “Debt Rating” means, as of any date of determination, the
rating as determined by either S&P or Moody’s (collectively, the “Debt
Ratings”) of the Borrower’s senior unsecured non-credit enhanced long-term
indebtedness for borrowed money; provided that if there is a split in
Debt Ratings, then the higher* of such Debt Ratings shall apply, unless
there is a split in Debt Ratings of more than one level, in which case the
level that is one level higher than the lower Debt Rating shall apply. The Debt
Ratings shall be determined from the most recent public announcement of any
changes in the Debt Ratings.  If the
rating system of S&P or Moody’s shall change, the Borrower and the
Administrative Agent shall negotiate in good faith to amend this definition to
reflect such changed rating system and, pending the effectiveness of such
amendment (which shall require the approval of Required Lenders), the Debt
Rating shall be determined by reference to the rating most recently in effect
prior to such change.

 

“Application”:  an application, in such form as the
applicable Issuing Lender may specify from time to time, requesting such
Issuing Lender to open a Letter of Credit.

 

“Assignee”:  as defined in Section 10.6(b).

 

“Assignment and
Assumption”:  an Assignment and
Assumption, substantially in the form of Exhibit B.

 

“Available Revolving
Commitment”:  as to any Lender at any
time, an amount equal to the excess, if any, of (a) such Lender’s Revolving
Commitment then in effect over (b) such Lender’s Revolving Extensions of
Credit then outstanding.

 

“Benefitted Lender”:  as defined in Section 10.7(a).

 

* It being understood and agreed, by way of example, that a Debt Rating
of A- is one level higher than a Debt Rating of BBB+.

 

 

“Board”:  the Board of Governors of the Federal Reserve
System of the United States (or any successor).

 

“Borrower”:  as defined in the preamble hereto.

 

“Borrowing Date”:  any Business Day specified by the Borrower as
a date on which the Borrower requests the Lenders to make Revolving Loans
hereunder.

 

“Business Day”:  a day other than a Saturday, Sunday or other
day on which commercial banks in New York City are authorized or required by
law to close, provided, that with respect to notices and determinations
in connection with, and payments of principal and interest on, Eurodollar
Loans, such day is also a day for trading by and between banks in Dollar
deposits in the interbank eurodollar market.

 

“Capital Lease
Obligations”:  as to any Person, the
obligations of such Person to pay rent or other amounts under any lease of (or
other arrangement conveying the right to use) real or personal property, or a
combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP
and, for the purposes of this Agreement, the amount of such obligations at any
time shall be the capitalized amount thereof at such time determined in
accordance with GAAP.

 

“Capital Stock”:  any and all shares, interests, participations
or other equivalents (however designated) of capital stock of a corporation,
any and all equivalent ownership interests in a Person (other than a
corporation) and any and all warrants, rights or options to purchase any of the
foregoing.

 

“Change in Control”:  Xcel Energy Inc. ceasing to directly own,
beneficially and of record, 100% of each class of issued and outstanding common
stock of the Borrower free and clear of all Liens.

 

“Closing Date”:  the date on which the conditions precedent
set forth in Section 5.1 shall have been satisfied, which date is April 21,
2005.

 

“Code”:  the Internal Revenue Code of 1986, as amended
from time to time.

 

“Commodity Swap Agreement”:  any
agreement with respect to any swap, forward, future or derivative transaction
or option or similar agreement involving, or settled by reference to,
commodities.

 

“Commonly Controlled
Entity”:  an entity, whether or not
incorporated, that is under common control with the Borrower within the meaning
of Section 4001 of ERISA or is part of a group that includes the Borrower
and that is treated as a single employer under Section 414 of the Code.

 

“Confidential Information
Memorandum”:  the Confidential
Information Memorandum dated March 2005 and furnished to certain Lenders.

 

“Continuation Notice”:  as defined in Section 2.17(a).

 

“Continuing Lender”:  as defined in Section 2.17(a).

 

 

“Contractual Obligation”:  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”:  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.

 

“Debt Rating”:  as defined in the definition of “Applicable
Margin.”

 

“Default”:  any of the events specified in Section 8,
whether or not any requirement for the giving of notice, the lapse of time, or
both, has been satisfied.

 

“Designated Significant
Subsidiary”:  any Significant
Subsidiary designated as such by the Borrower in accordance with Section 6.11,
so long as such designation shall not have been revoked pursuant to Section 6.11.

 

“Disposition”:  with respect to any property, any sale,
lease, sale and leaseback, conveyance, transfer or other disposition
thereof.  The terms “Dispose” and “Disposed
of” shall have correlative meanings.

 

“Documentation Agents”:  as defined in the preamble hereto.

 

“Dollars” and “$”:  dollars in lawful currency of the United
States.

 

“Environmental Laws”:  any and all foreign, Federal, state, local or
municipal laws, rules, orders, regulations, statutes, ordinances, codes,
decrees, requirements of any Governmental Authority or other Requirements of Law
(including common law) regulating, relating to or imposing liability or
standards of conduct concerning protection of human health or the environment,
as now or may at any time hereafter be in effect.

 

“ERISA”:  the Employee Retirement Income Security Act
of 1974, as amended from time to time.

 

“Eurocurrency Reserve
Requirements”:  for any day as
applied to a Eurodollar Loan, the aggregate (without duplication) of the
maximum rates (expressed as a decimal fraction) of reserve requirements in
effect on such day (including basic, supplemental, marginal and emergency
reserves) under any regulations of the Board or other Governmental Authority
having jurisdiction with respect thereto dealing with reserve requirements
prescribed for eurocurrency funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of the Board) maintained by a member bank of the
Federal Reserve System.

 

“Eurodollar Base Rate”:  with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, the rate per annum determined on the
basis of the rate for deposits in Dollars for a period equal to such Interest
Period commencing on the first day of such Interest Period appearing on Page
3750 of the Telerate screen as of 11:00 A.M., London time, two Business Days
prior to the beginning of such Interest Period. 
In the event that such rate does not appear on Page 3750 of the Telerate
screen (or otherwise on such screen), the “Eurodollar Base Rate” shall
be determined by reference to such other comparable publicly available service
for displaying eurodollar rates as may be selected by the Administrative Agent
or, in the absence of such availability, by reference to the rate at which the
Administrative Agent is offered Dollar deposits at or about 11:00 A.M., New York
City time,

 

 

two Business Days prior to
the beginning of such Interest Period in the interbank eurodollar market where
its eurodollar and foreign currency and exchange operations are then being
conducted for delivery on the first day of such Interest Period for the number
of days comprised therein.

 

“Eurodollar Loans”:  Revolving Loans the rate of interest
applicable to which is based upon the Eurodollar Rate.

 

“Eurodollar Rate”:  with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, a rate per annum determined for such
day in accordance with the following formula (rounded upward to the nearest
1/100th of 1%):

 

	
  Eurodollar Base Rate

  
	
  1.00 - Eurocurrency Reserve Requirements

  

 

“Eurodollar Tranche”:  the collective reference to Eurodollar Loans
the then current Interest Periods with respect to all of which begin on the
same date and end on the same later date (whether or not such Revolving Loans
shall originally have been made on the same day).

 

“Event of Default”:  any of the events specified in Section 8,
provided that any requirement for the giving of notice, the lapse of
time, or both, has been satisfied.

 

“Excess Utilization Day”:  each day on which the Total Revolving
Extensions of Credit on such day exceed 50% of the Total Revolving Commitments
on such day.

 

“Existing Credit
Agreement”:  the Credit Agreement,
dated as of May 14, 2004, among the Borrower, Wells Fargo Bank, National
Association, as administrative agent, and the lenders party thereto.

 

“Existing Letters of
Credit” means the letters of credit set forth on Schedule 1.1B that
have been issued prior to the Closing Date by Wells Fargo Bank, National
Association.

 

“Extension Request”:  as defined in Section 2.17(a).

 

“Federal Funds Effective
Rate”:  for any day, the weighted
average of the rates on overnight federal funds transactions with members of
the Federal Reserve System arranged by federal funds brokers, as published on
the next succeeding Business Day by the Federal Reserve Bank of New York,
or, if such rate is not so published for any day that is a Business Day, the
average of the quotations for the day of such transactions received by JPMorgan
Chase Bank, N.A. from three federal funds brokers of recognized standing
selected by it.

 

“Fee Payment Date”:  (a) the third Business Day following the last
day of each March, June, September and December and (b) the
last day of the Revolving Commitment Period.

 

“FERC”:  the Federal Energy Regulatory Commission and
any successor thereto.

 

“First Mortgage Indenture”
or “Indenture”:  the First
Mortgage Bond Indenture dated as of February 1, 1937 between the Borrower
(by assignment from Xcel Energy Inc) and the trustee thereunder, as previously
amended and supplemented and as it may be amended and/or supplemented from time
to time.

 

 

“Funded Debt”:  of any Person at any date, without
duplication, (i) all indebtedness of such Person for borrowed money;
(ii) the deferred and unpaid balance of the purchase price owing by such
Person on account of any assets or services purchased (other than trade
payables and other accrued liabilities incurred in the ordinary course of
business that are not overdue by more than 180 days unless being contested in
good faith) if such purchase price is (A) due more than nine months from the date
of incurrence of the obligation in respect thereof or (B) evidenced by a note
or a similar written instrument; (iii) all Capital Lease Obligations of
such Person; (iv) all indebtedness secured by a Lien on any property owned
by such Person, whether or not such indebtedness has been assumed by such
Person or is nonrecourse to such Person; (v) notes payable and drafts
accepted representing extensions of credit to such Person whether or not
representing obligations for borrowed money (other than such notes or drafts
for the purchase price of assets or services to the extent such purchase price
is excluded from clause (ii) above); (vi) indebtedness of such Person
evidenced by bonds, notes or similar written instruments; (vii) any
non-contingent obligation of such Person in respect of letters of credit and
bankers’ acceptances issued for the account of such Person (other than such
letters of credit, bankers’ acceptances and drafts for the purchase price of
assets or services to the extent such purchase price is excluded from clause
(ii) above); (viii) net obligations of such Person under Swap Agreements
which constitute interest rate agreements or currency agreements;
(ix) guaranty obligations of such Person with respect to indebtedness for
borrowed money of another Person (including Affiliates); (x) all Off-Balance
Sheet Liabilities of such Person; and (xi) in the case of the Borrower,
any amounts due under Trust Preferred Securities; provided, however,
that in no event shall any calculation of Funded Debt of the Borrower include
deferred taxes.

 

“Funding Office”:  the office of the Administrative Agent
specified in Section 10.2 or such other office as may be specified from
time to time by the Administrative Agent as its funding office by written
notice to the Borrower and the Lenders.

 

“GAAP”:  generally accepted accounting principles in
the United States as in effect from time to time; provided that in the
event that any “Accounting Change” (as defined below) shall occur and such
change results in a change in the method of calculation of financial covenants,
standards or terms in this Agreement, then (i) the Borrower and the
Administrative Agent agree to enter into negotiations in order to amend such
provisions of this Agreement so as to reflect equitably such Accounting Changes
with the desired result that the criteria for evaluating the Borrower’s
financial condition shall be the same after such Accounting Changes as if such
Accounting Changes had not been made and (ii) until such time as such an
amendment shall have been executed and delivered by the Borrower, the
Administrative Agent and the Required Lenders, all financial covenants
(including those contained in Section 7.1), standards and terms in this
Agreement shall continue to be calculated or construed as if such Accounting
Changes had not occurred.  “Accounting
Changes” refers to changes in accounting principles required or permitted by
the promulgation of any rule, regulation, pronouncement or opinion by the
Financial Accounting Standards Board of the American Institute of Certified
Public Accountants or, if applicable, the SEC.

 

“Governmental Authority”:  any nation or government, any state or other
political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative functions of or
pertaining to government, any securities exchange and any self-regulatory
organization (including the National Association of Insurance Commissioners).

 

“Guarantee Obligation”:  as to any Person (the “guaranteeing person”),
any obligation, including a reimbursement, counterindemnity or similar
obligation, of the guaranteeing Person that guarantees or in effect guarantees,
or which is given to induce the creation of a separate obligation by another
Person (including any bank under any letter of credit) that guarantees or in
effect guarantees, any Indebtedness, leases, dividends or other obligations
(the “primary obligations”) of any other third Person (the “primary
obligor”) in any manner, whether directly or indirectly, including any
obligation of the

 

 

guaranteeing person, whether
or not contingent, (i) to purchase any such primary obligation or any property
constituting direct or indirect security therefor, (ii) to advance or supply
funds (1) for the purchase or payment of any such primary obligation or (2) to
maintain working capital or equity capital of the primary obligor or otherwise
to maintain the net worth or solvency of the primary obligor, (iii) to purchase
property, securities or services primarily for the purpose of assuring the
owner of any such primary obligation of the ability of the primary obligor to
make payment of such primary obligation or (iv) otherwise to assure or hold harmless
the owner of any such primary obligation against loss in respect thereof; provided,
however, that the term Guarantee Obligation shall not include
endorsements of instruments for deposit or collection in the ordinary course of
business.  The amount of any Guarantee
Obligation of any guaranteeing person shall be deemed to be the lower of (a) an
amount equal to the stated or determinable amount of the primary obligation in
respect of which such Guarantee Obligation is made and (b) the maximum amount for
which such guaranteeing person may be liable pursuant to the terms of the
instrument embodying such Guarantee Obligation, unless such primary obligation
and the maximum amount for which such guaranteeing person may be liable are not
stated or determinable, in which case the amount of such Guarantee Obligation
shall be such guaranteeing person’s maximum reasonably anticipated liability in
respect thereof as determined by the Borrower in good faith.

 

“Increased Revolving
Commitment Activation Notice”:  a notice
substantially in the form of Exhibit E-2.

 

“Increased Revolving
Commitment Closing Date”:  any
Business Day designated as such in an Increased Revolving Commitment Activation
Notice.

 

“Indebtedness”:  of any Person at any date, without
duplication, (a) all indebtedness of such Person for borrowed money, (b) all
obligations of such Person for the deferred purchase price of property or
services (other than current trade payables or liabilities incurred in the
ordinary course of such Person’s business), (c) all obligations of such Person
evidenced by notes, bonds, debentures or other similar instruments, (d) all
indebtedness created or arising under any conditional sale or other title
retention agreement with respect to property acquired by such Person (even
though the rights and remedies of the seller or lender under such agreement in
the event of default are limited to repossession or sale of such property), (e)
all Capital Lease Obligations of such Person, (f) all non-contingent
obligations of such Person in respect of acceptances, letters of credit, surety
bonds or similar arrangements, (g) the liquidation value of all mandatorily
redeemable preferred Capital Stock of such Person, (h) all Guarantee
Obligations of such Person in respect of obligations of the kind referred to in
clauses (a) through (g) above, (i) all obligations of the kind referred to in
clauses (a) through (h) above secured by (or for which the holder of such
obligation has an existing right, contingent or otherwise, to be secured by) any
Lien on property (including accounts and contract rights) owned by such Person,
whether or not such Person has assumed or become liable for the payment of such
obligation, and (j) all net obligations of such Person in respect of Swap
Agreements.  The Indebtedness of any
Person shall include the Indebtedness of any other entity (including any
partnership in which such Person is a general partner) to the extent such
Person is liable therefor as a result of such Person’s ownership interest in or
other relationship with such entity, except to the extent the terms of such
Indebtedness expressly provide that such Person is not liable therefor.

 

“Insolvency”:  with respect to any Multiemployer Plan, the
condition that such Plan is insolvent within the meaning of Section 4245
of ERISA.

 

“Insolvent”:  pertaining to a condition of Insolvency.

 

“Interest Payment Date”:  (a) as to any ABR Loan, the last day of each
March, June, September and December to occur while such Revolving
Loan is outstanding and the Revolving

 

 

Termination Date of such
Revolving Loan, (b) as to any Eurodollar Loan having an Interest Period of
three months or less, the last day of such Interest Period, (c) as to any
Eurodollar Loan having an Interest Period longer than three months, each day
that is three months, or a whole multiple thereof, after the first day of such
Interest Period and the last day of such Interest Period and (d) as to any
Revolving Loan, the date of any repayment or prepayment made in respect
thereof.

 

“Interest Period”:  as to any Eurodollar Loan, (a) initially, the
period commencing on the borrowing or conversion date, as the case may be, with
respect to such Eurodollar Loan and ending one, two, three or six months
thereafter, as selected by the Borrower in its notice of borrowing or notice of
conversion, as the case may be, given with respect thereto; and (b) thereafter,
each period commencing on the last day of the next preceding Interest Period
applicable to such Eurodollar Loan and ending one, two, three or six months thereafter,
as selected by the Borrower by irrevocable notice to the Administrative Agent
not later than 11:00 A.M., New York City time, on the date that is three
Business Days prior to the last day of the then current Interest Period with
respect thereto; provided that, all of the foregoing provisions relating
to Interest Periods are subject to the following:

 

(i)                                     if any Interest Period would otherwise
end on a day that is not a Business Day, such Interest Period shall be extended
to the next succeeding Business Day unless the result of such extension would
be to carry such Interest Period into another calendar month in which event
such Interest Period shall end on the immediately preceding Business Day;

 

(ii)                                  the Borrower may not select an Interest
Period that would extend beyond the Revolving Termination Date; and

 

(iii)                               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 a calendar month.

 

“Issuing Lender”:  each of JPMorgan Chase Bank, N.A., The Bank
of New York and Wells Fargo Bank, National Association, or any affiliate of any
of the foregoing, each in its capacity as issuer of any Letter of Credit.  Any other Lender selected by the Borrower to
be an Issuing Lender shall become an Issuing Lender with the consent of the
Administrative Agent and such Lender, in such capacity.

 

“L/C Commitment”:  $100,000,000.

 

“L/C Obligations”:  at any time, an amount equal to the sum of
(a) the aggregate then undrawn and unexpired amount of the then outstanding
Letters of Credit and (b) the aggregate amount of drawings under Letters of
Credit that have not then been reimbursed pursuant to Section 3.5.

 

“L/C Participants”:  with respect to each Issuing Lender, the
collective reference to all the Lenders other than such Issuing Lender.

 

“Lenders”:  as defined in the preamble hereto.

 

“Letters of Credit”:  letters of credit issued pursuant to Section 3.1
(and including in any case the Existing Letters of Credit).

 

“Lien”:  any mortgage, pledge, hypothecation,
assignment, deposit arrangement, encumbrance, lien (statutory or other), charge
or other security interest or any preference, priority or other security
agreement or preferential arrangement of any kind or nature whatsoever
(including any

 

 

conditional sale or other
title retention agreement and any capital lease having substantially the same
economic effect as any of the foregoing).

 

“Loan Documents”:  this Agreement, the Notes and any amendment,
waiver, supplement or other modification to any of the foregoing.

 

“Material Adverse Effect”:  any event, development or circumstance that
has had or could reasonably be expected to have a material adverse effect on
(a) the business, operations, property or condition (financial or otherwise) of
the Borrower and its Subsidiaries taken as a whole or (b) the validity or
enforceability of any of this Agreement or any other Loan Document or the
rights and remedies of the Administrative Agent or the Lenders hereunder and
thereunder.

 

“Material Indebtedness”:  Indebtedness (other than the Revolving Loans
and Letters of Credit), or obligations in respect of one or more Swap
Agreements or Commodity Swap Agreements, of any one or more of the Borrower and
its Significant Subsidiaries in an aggregate principal amount exceeding
$50,000,000.  For purposes of determining
Material Indebtedness, the “principal amount” of the obligations of the
Borrower or any Significant Subsidiary in respect of any Swap Agreement or any
Commodity Swap Agreement at any time shall be the maximum aggregate amount
(giving effect to any netting agreements) that the Borrower or such Significant
Subsidiary would be required to pay if such Swap Agreement or Commodity Swap
Agreement, as applicable, were terminated at such time.

 

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

 

“Multiemployer Plan”:  a Plan that is a multiemployer plan as
defined in Section 4001(a)(3) of ERISA.

 

“New Lender”:  as defined in Section 2.1(c).

 

“New Lender Supplement”:  as defined in Section 2.1(c).

 

“Non-Excluded Taxes”:  as defined in Section 2.13(a).

 

“Non-Extending Lender”:  as defined in Section 2.17(a).

 

“Non-U.S. Lender”:  as defined in Section 2.13(d).

 

“Notes”:  the collective reference to any promissory
note evidencing Revolving Loans.

 

“Obligations”:  the unpaid principal of and interest on
(including interest accruing after the maturity of the Revolving Loans and
Reimbursement Obligations and interest accruing after the filing of any
petition in bankruptcy, or the commencement of any insolvency, reorganization
or like proceeding, relating to the Borrower, whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding) the
Revolving Loans and all other obligations and liabilities of the Borrower to
the Administrative Agent or to any Lender, whether direct or indirect, absolute
or contingent, due or to become due, or now existing or hereafter incurred, which
may arise under, out of, or in connection with, this Agreement, any other Loan
Document, the Letters of Credit or any other document made, delivered or given
in connection herewith or therewith, whether on account of principal, interest,
reimbursement obligations, fees, indemnities, costs, expenses (including all
fees, charges and disbursements of counsel to the Administrative Agent or to
any Lender that are required to be paid by the Borrower pursuant hereto) or
otherwise.

 

 

“Off-Balance Sheet
Liability”:  of a Person, (i) any
repurchase obligation or liability of such Person with respect to accounts or
notes receivable sold by such Person, (ii) any liability under any Sale and
Leaseback Transaction of such Person which is not a Capital Lease Obligation and
(iii) all Synthetic Lease Obligations of such Person.  The amount of liability under a Sale and
Leaseback Transaction of any Person shall be the amount that would be shown as
a liability on a balance sheet of such Person prepared in accordance with GAAP
if such lease or agreement were accounted for as a Capital Lease Obligation.

 

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

 

“Participant”:  as defined in Section 10.6(c).

 

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

 

“Permitted Lien”:  (i) any Lien securing a tax, assessment or
other governmental charge or levy or the claim of a materialman, mechanic,
carrier, warehouseman or landlord for labor, materials, supplies or rentals
incurred in the ordinary course of business, but only if payment thereof shall
not at the time be required to be made in accordance with Section 6.3;
(ii) any Lien on the properties and assets of a Significant Subsidiary of the
Borrower securing an obligation owing to the Borrower or another Significant
Subsidiary; (iii) any Lien consisting of a deposit or pledge made in the
ordinary course of business in connection with, or to secure payment of,
obligations under workers’ compensation, unemployment insurance, social
security or retirement benefits or similar legislation; (iv) any Lien arising
pursuant to an order of attachment, distraint or similar legal process arising
in connection with legal proceedings, but only if no Event of Default exists in
respect of such order; (v) any Lien existing on (A) any property or asset of
any Person at the time such Person becomes a Subsidiary or (B) any property or
asset at the time such property or asset is acquired by the Borrower or a
Subsidiary, but only, in the case of either (A) or (B), if and so long as (1)
such Lien was not created in contemplation of such Person becoming a Subsidiary
or such property or asset being acquired, (2) such Lien is and will remain
confined to the property or asset subject to it at the time such Person becomes
a Subsidiary or such property or asset is acquired and to improvements
thereafter erected on or attached to such property or asset or any property or
asset acquired in substitution or replacement thereof, (3) such Lien secures only
the obligation secured thereby at the time such Person becomes a Subsidiary or
such property or asset is acquired and (4) the obligation secured by such Lien
is not in default; (vi) any Lien in existence on the Closing Date to the extent
set forth on Schedule 7.2, but only, in the case of each such Lien, to the
extent it secures an obligation outstanding on the Closing Date to the extent
set forth on such Schedule; (vii) any Lien securing Purchase Money Indebtedness
but only if, in the case of each such Lien, (A) such Lien shall at all times be
confined solely to the property or asset the purchase price of which was
financed through the incurrence of the Purchase Money Indebtedness secured by
such Lien and to improvements thereafter erected on or attached to such
property or asset or any property or asset acquired in substitution or
replacement thereof and (B) such Lien attached to such property or asset within
90 days of the acquisition of such property or asset; (viii) deposits made in
the ordinary course of business to secure the performance of bids, trade
contracts (other than Indebtedness), operating leases, surety and appeal bonds,
performance bonds and other obligations of a like nature incurred in the
ordinary course of business; (ix) deposits securing liability to insurance
carriers under insurance or self-insurance arrangements; (x) easements,
reservations, rights-of-way, restrictions, survey exceptions and other similar
encumbrances as to real property which customarily exist on properties of corporations
engaged in similar activities and similarly situated and which do not
materially interfere with the conduct of the business of the Borrower

 

 

or any Significant
Subsidiary conducted at the property subject thereto; (xi) leases and subleases
of property owned or leased by the Borrower or any Significant Subsidiary not
interfering with the ordinary conduct of the business of the Borrower and the
Significant Subsidiaries; (xii) Liens securing obligations, neither assumed by
the Borrower or any Significant Subsidiary nor on account of which the Borrower
or any Significant Subsidiary customarily pays interest, upon real estate or
under which any Significant Subsidiary has a right-of-way, easement, franchise
or other servitude or of which any Significant Subsidiary is the lessee of the
whole thereof or any interest therein for the purpose of locating transmission
and distribution lines and related support structures, pipe lines, substations,
measuring stations, tanks, pumping or delivery equipment or similar equipment;
(xiii) Liens arising by virtue of any statutory or common law provision
relating to banker’s liens, rights of setoff or similar rights as to deposit
accounts or other funds maintained with a depository institution; (xiv) any
Lien constituting a renewal, extension or replacement of a Lien constituting a
Permitted Lien by virtue of clause (v), (vi) or (vii) of this definition, but
only if (A) at the time such Lien is granted and immediately after giving
effect thereto, no Default or Event of Default would exist, (B) such Lien is
limited to all or a part of the property or asset that was subject to the Lien
so renewed, extended or replaced and to improvements thereafter erected on or
attached to such property or asset or any property or asset acquired in
substitution or replacement thereof, (C) the principal amount of the
obligations secured by such Lien does not exceed the principal amount of the
obligations secured by the Lien so renewed, extended or replaced and (D) the
obligations secured by such Lien bear interest at a rate per annum not
exceeding the rate borne by the obligations secured by the Lien so renewed,
extended or replaced except for any increase that is commercially reasonable at
the time of such increase; (xv) Liens on any property of any Significant
Subsidiary securing Indebtedness of such Significant Subsidiary; (xvi) Liens
created and/or permitted under the First Mortgage Indenture, as such First
Mortgage Indenture exists on the date hereof, without regard to any waiver,
amendment, modification or restatement thereof; and (xvii) Liens not described
in clauses (i) through (xvi), inclusive, securing Indebtedness or other
liabilities or obligations of the Borrower and/or its Significant Subsidiaries
in an aggregate principal amount outstanding not to exceed 10% of the
consolidated net worth of the Borrower and its Subsidiaries at the
time of such incurrence.

 

“Person”:  an individual, partnership, corporation,
limited liability company, business trust, joint stock company, trust, unincorporated
association, joint venture, Governmental Authority or other entity of whatever
nature.

 

“Plan”:  at a particular time, any employee benefit
plan that is covered by ERISA and in respect of which the Borrower or a
Commonly Controlled Entity is (or, if such plan were terminated at such time,
would under Section 4069 of ERISA be deemed to be) an “employer” as
defined in Section 3(5) of ERISA.

 

“PUHCA” means the
Public Utility Holding Company Act of 1935, as amended from time to time

 

“Purchase Money Indebtedness”:  Indebtedness of the Borrower that is incurred
to finance part or all of (but not more than) the purchase price of a tangible
asset; provided that (i) neither the Borrower nor any Subsidiary had at
any time prior to such purchase any interest in such asset other than a
security interest or an interest as lessee under an operating lease and (ii)
such Indebtedness is incurred within 90 days after such purchase.

 

“Refinancing”:  as defined in Section 5.1(b).

 

“Register”:  as defined in Section 10.6(b).

 

“Regulation U”:  Regulation U of the Board as in effect from
time to time.

 

 

“Reimbursement Obligation”:  the obligation of the Borrower to reimburse
the applicable Issuing Lender pursuant to Section 3.5 for amounts drawn
under Letters of Credit.

 

“Reorganization”:  with respect to any Multiemployer Plan, the
condition that such plan is in reorganization within the meaning of Section 4241
of ERISA.

 

“Reportable Event”:  any of the events set forth in Section 4043(c)
of ERISA, other than those events as to which the thirty day notice period is
waived under PBGC Reg. § 4043.

 

“Required Lenders”:  at any time, the holders of more than 50% of
the Total Revolving Commitments then in effect or, if the Revolving Commitments
have been terminated, the Total Revolving Extensions of Credit then
outstanding.

 

“Requirement of Law”:  as to any Person, the Certificate of
Incorporation and By-Laws or other organizational or governing documents of
such Person, and any law, treaty, rule or regulation or determination of an
arbitrator or a court or other Governmental Authority, in each case applicable
to or binding upon such Person or any of its property or to which such Person
or any of its property is subject.

 

“Responsible Officer”:  the chief executive officer, president, chief
financial officer or treasurer of the Borrower.

 

“Revolving Commitment”:  as to any Lender, the obligation of such
Lender to make Revolving Loans and participate in Letters of Credit in an
aggregate principal and/or face amount not to exceed the amount set forth under
the heading “Revolving Commitment” opposite such Lender’s name on Schedule 1.1A
or in the Assignment and Assumption or New Lender Supplement pursuant to which
such Lender became a party hereto, as the same may be changed from time to time
pursuant to the terms hereof.  The
original amount of the Total Revolving Commitments is $375,000,000.

 

“Revolving Commitment
Period”:  as to any Lender, the
period from and including the Closing Date to the Revolving Termination Date
applicable thereto.

 

“Revolving Extensions of
Credit”:  as to any Lender at any
time, an amount equal to the sum of (a) the aggregate principal amount of all
Revolving Loans held by such Lender then outstanding and (b) such Lender’s
Revolving Percentage of the L/C Obligations then outstanding.

 

“Revolving Loans”:  as defined in Section 2.1(a).

 

“Revolving Percentage”:  as to any Lender at any time, the percentage
which such Lender’s Revolving Commitment then constitutes of the Total
Revolving Commitments or, at any time after the Revolving Commitments shall
have expired or terminated, the percentage which the aggregate principal amount
of such Lender’s Revolving Loans then outstanding constitutes of the aggregate
principal amount of the Revolving Loans then outstanding, provided,
that, in the event that the Revolving Loans are paid in full prior to the
reduction to zero of the Total Revolving Extensions of Credit, the Revolving
Percentages shall be determined in a manner designed to ensure that the other
outstanding Revolving Extensions of Credit shall be held by the Lenders on a
comparable basis.

 

“Revolving Termination
Date”:  April 21, 2010; provided
that with respect to Continuing Lenders only, the Revolving Termination Date
may be extended to April 21, 2011 pursuant to Section 2.17.

 

 

“Sale and Leaseback
Transaction”:  any arrangement,
directly or indirectly, with any Person whereby a seller or transferor shall
sell or otherwise transfer any real or personal property and concurrently
therewith lease, or repurchase under an extended purchase contract, conditional
sales or other title retention agreement, the same or substantially similar
property.

 

“S&P”:  Standard & Poor’s Ratings Services, a
division of the McGraw Hill Companies, Inc. or any successor thereto.

 

“SEC”:  the Securities and Exchange Commission and
any successor thereto.

 

“Significant Subsidiary”:  (a) any current or subsequently acquired
Subsidiary the total assets of which equal or exceed 15% of the consolidated
total assets of the Borrower and its Subsidiaries and (b) any Designated
Significant Subsidiary.

 

“Single Employer Plan”:  any Plan that is covered by Title IV of
ERISA, but that is not a Multiemployer Plan.

 

“Solvent”:  when used with respect to any Person, means
that, as of any date of determination, (a) the amount of the “present fair
saleable value” of the assets of such Person will, as of such date, exceed the
amount of all “liabilities of such Person, contingent or otherwise”, as of such
date, as such quoted terms are determined in accordance with applicable federal
and state laws governing determinations of the insolvency of debtors, (b) the
present fair saleable value of the assets of such Person will, as of such date,
be greater than the amount that will be required to pay the liability of such
Person on its debts as such debts become absolute and matured, (c) such Person
will not have, as of such date, an unreasonably small amount of capital with
which to conduct its business, and (d) such Person will be able to pay its
debts as they mature.  For purposes of
this definition, (i) “debt” means liability on a “claim”, and (ii) “claim”
means any (x) right to payment, whether or not such a right is reduced to
judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured,
disputed, undisputed, legal, equitable, secured or unsecured or (y) right to an
equitable remedy for breach of performance if such breach gives rise to a right
to payment, whether or not such right to an equitable remedy is reduced to
judgment, fixed, contingent, matured or unmatured, disputed, undisputed,
secured or unsecured.

 

“Subsidiary”:  as to any Person, a corporation, partnership,
limited liability company or other entity of which shares of stock or other
ownership interests having ordinary voting power (other than stock or such
other ownership interests having such power only by reason of the happening of
a contingency) to elect a majority of the board of directors or other managers
of such corporation, partnership or other entity are at the time owned, or the
management of which is otherwise controlled, directly or indirectly through one
or more intermediaries, or both, by such Person.  Unless otherwise qualified, all references to
a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a Subsidiary
or Subsidiaries of the Borrower.

 

“Swap Agreement”:  any
agreement with respect to any swap, forward, future or derivative transaction
or option or similar agreement involving, or settled by reference to, one or
more interest rates, currencies, equity or debt instruments or securities,
including indices relating thereto, or any similar transaction or any
combination of these transactions; provided that no phantom stock
or similar plan providing for payments only on account of services provided by
current or former directors, officers, employees or consultants of the Borrower
or any of its Subsidiaries shall be a “Swap Agreement”.

 

“Synthetic Lease
Obligation”:  the monetary obligation
of a Person under (i) a so-called synthetic or off-balance sheet or tax
retention lease or (ii) an agreement for the use or possession of property
creating obligations that do not appear on the balance sheet of such Person but
which, upon the

 

 

insolvency or bankruptcy of
such Person, would be characterized as indebtedness of such Person (without
regard to accounting treatment).  The
amount of Synthetic Lease Obligations of any Person under any such lease or
agreement shall be the amount which would be shown as a liability on a balance
sheet of such Person prepared in accordance with GAAP if such lease or
agreement were accounted for as a Capital Lease Obligation.

 

“Syndication Agents”:  as defined in the preamble hereto.

 

“Total Capital”:  the sum of (A) stockholder’s equity, which is
the sum of common stock, premium on common stock, retained earnings and
preferred stock, but which excludes Trust Preferred Securities to the extent
included in Funded Debt and (B) Funded Debt, all determined with respect to the
Borrower and its Subsidiaries on a consolidated basis in accordance with GAAP.

 

“Total Revolving
Commitments”:  at any time, the
aggregate amount of the Revolving Commitments then in effect.

 

“Total Revolving
Extensions of Credit”:  at any time,
the aggregate amount of the Revolving Extensions of Credit of the Lenders outstanding
at such time.

 

“Transferee”:  any Assignee or Participant.

 

“Trust Indenture Act”: 
the Trust Indenture Act of 1939, as amended.

 

“Trust Preferred Securities”: 
any preferred securities issued by a Trust Preferred Securities
Subsidiary, where such preferred securities have the following characteristics:

 

(i)                                     such
Trust Preferred Securities Subsidiary lends substantially all of the proceeds
from the issuance of such preferred securities to the Borrower or a
wholly-owned direct or indirect Subsidiary of the Borrower in exchange for
subordinated debt issued by the Borrower or such wholly-owned direct or
indirect Subsidiary, respectively;

 

(ii)                                  such
preferred securities contain terms providing for the deferral of interest
payments corresponding to provisions providing for the deferral of interest
payments on the subordinated debt; and

 

(iii)                               the Borrower or a
wholly-owned direct or indirect Subsidiary of the Borrower (as the case may be)
makes periodic interest payments on the subordinated debt, which interest
payments are in turn used by the Trust Preferred Securities Subsidiary to make
corresponding payments to the holders of such preferred securities.

 

“Trust Preferred Securities Subsidiary”:  any Delaware business trust (or similar
entity) (i) all of the common equity interest of which is owned (either
directly or indirectly through one or more Wholly Owned Subsidiaries of the
Borrower) at all times by the Borrower, (ii) that has been formed for the
purpose of issuing Trust Preferred Securities and (iii) substantially all of
the assets of which consist at all times solely of subordinated debt issued by
the Borrower or a wholly-owned direct or indirect Subsidiary of the Borrower
(as the case may be) and payments made from time to time on such subordinated
debt.

 

“Type”:  as to any Revolving Loan, its nature as an
ABR Loan or a Eurodollar Loan.

 

“United States”:  the United States of America.

 

 

“Voting Stock”:  Capital Stock issued by a corporation, or
equivalent interests in any other Person, the holders of which are ordinarily,
in the absence of contingencies, entitled to vote for the election of directors
(or persons performing similar functions) of such Person, even if the right so
to vote has been suspended by the happening of such contingency.

 

“Wholly Owned Subsidiary”:  as to any Person, any other Person all of the
Capital Stock of which (other than directors’ qualifying shares required by
law) is owned by such Person directly and/or through other Wholly Owned
Subsidiaries.

 

1.2                                 Other
Definitional Provisions.  (a) Unless
otherwise specified therein, all terms defined in this Agreement shall have the
defined meanings when used in the other Loan Documents or any certificate or
other document made or delivered pursuant hereto or thereto.

 

(b)  As used herein and in the other Loan
Documents, and any certificate or other document made or delivered pursuant
hereto or thereto, (i) accounting terms relating to the Borrower not defined in
Section 1.1 and accounting terms partly defined in Section 1.1, to the
extent not defined, shall have the respective meanings given to them under
GAAP, (ii) the words “include”, “includes” and “including” shall be deemed to
be followed by the phrase “without limitation”, (iii) the word “incur” shall be
construed to mean incur, create, issue, assume, become liable in respect of or
suffer to exist (and the words “incurred” and “incurrence” shall have
correlative meanings), (iv) 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, Capital Stock, securities,
revenues, accounts, leasehold interests and contract rights, and (v) references
to agreements or other Contractual Obligations shall, unless otherwise
specified, be deemed to refer to such agreements or Contractual Obligations as
amended, supplemented, restated or otherwise modified from time to time.

 

(c)  The words “hereof”, “herein” and “hereunder”
and words of similar import, when used in this Agreement, shall refer to this
Agreement as a whole and not to any particular provision of this Agreement, and
Section, Schedule and Exhibit references are to this Agreement unless
otherwise specified.

 

(d)  The meanings given to terms defined herein
shall be equally applicable to both the singular and plural forms of such
terms.

 

SECTION 2.  AMOUNT AND
TERMS OF REVOLVING COMMITMENTS

 

2.1                                 Revolving
Commitments.  (a) Subject to the
terms and conditions hereof, each Lender severally agrees to make revolving
credit loans (“Revolving Loans”) to the Borrower from time to time
during the Revolving Commitment Period in an aggregate principal amount at any
one time outstanding which, when added to such Lender’s Revolving Percentage of
the L/C Obligations then outstanding, does not exceed the amount of such Lender’s
Revolving Commitment.  During the
Revolving Commitment Period the Borrower may use the Revolving Commitments by
borrowing, prepaying the Revolving Loans in whole or in part, and reborrowing,
all in accordance with the terms and conditions hereof.  The Revolving Loans may from time to time be
Eurodollar Loans or ABR Loans, as determined by the Borrower and notified to
the Administrative Agent in accordance with Sections 2.2 and 2.6.

 

(b) At any time
prior to the fourth anniversary of the Closing Date, the Borrower and any one
or more Lenders (including New Lenders) may agree that such Lender(s) shall
make, obtain or increase the amount of their Revolving Commitments by executing
and delivering to the Administrative Agent an Increased Revolving Commitment
Activation Notice specifying the amount of such increase

 

 

and
the applicable Increased Revolving Commitment Closing Date (which may be no
later than the fourth anniversary of the Closing Date).  Notwithstanding the foregoing, (i) the
aggregate amount of incremental Revolving Commitments obtained pursuant to this
Section 2.1(b) shall not exceed $75,000,000, (ii) incremental Revolving
Commitments may not be made, obtained or increased after the occurrence and
during the continuation of a Default or Event of Default, including after
giving effect to the incremental Revolving Commitments in question, (iii) the
increase effected pursuant to this paragraph shall be in a minimum amount of at
least $25,000,000 and (iv) no more than one Increased Revolving Commitment
Closing Date may be selected by the Borrower during the term of this
Agreement.  No Lender shall have any
obligation to participate in any increase described in this paragraph unless it
agrees to do so in its sole discretion.

 

(c) Any additional
bank, financial institution or other entity which, with the consent of the
Borrower and the Administrative Agent (which consent shall not be unreasonably
withheld), elects to become a “Lender” under this Agreement in connection with
an increase described in Section 2.1(b) shall execute a New Lender
Supplement (each, a “New Lender Supplement”), substantially in the form
of Exhibit E-1, whereupon such bank, financial institution or other entity (a “New
Lender”) shall become a Lender for all purposes and to the same extent as
if originally a party hereto and shall be bound by and entitled to the benefits
of this Agreement.

 

(d) On each
Increased Revolving Commitment Closing Date on which there are Revolving Loans
outstanding, the New Lender(s) and/or Lender(s) that have increased their
Revolving Commitments shall make Revolving Loans, the proceeds of which will be
used to prepay the Revolving Loans of other Lenders, so that, after giving
effect thereto, the resulting Revolving Loans outstanding are allocated among
the Lenders in accordance with Section 2.11(a) based on the respective
Revolving Percentages of the Lenders after giving effect to such Increased
Revolving Commitment Closing Date.

 

(e) The
Borrower shall repay the outstanding Revolving Loans of each Lender on the
Revolving Termination Date applicable to such Lender.

 

2.2                                 Procedure
for Revolving Loan Borrowing.   The
Borrower may borrow under the Revolving Commitments during the Revolving
Commitment Period on any Business Day, provided that the Borrower shall
give the Administrative Agent irrevocable notice (which notice must be received
by the Administrative Agent prior to 11:00 A.M., New York City time, (a) three
Business Days prior to the requested Borrowing Date, in the case of Eurodollar
Loans (or, with respect to any Eurodollar Loans to be made on the Closing Date,
such shorter time period as may be agreed by the Administrative Agent) or (b)
on the requested Borrowing Date, in the case of ABR Loans), specifying (i) the
amount and Type of Revolving Loans to be borrowed, (ii) the requested Borrowing
Date and (iii) in the case of Eurodollar Loans, the respective lengths of the
initial Interest Period therefor.  Each
borrowing under the Revolving Commitments shall be in an amount equal to (x) in
the case of ABR Loans, $1,000,000 or a whole multiple thereof (or, if the then
aggregate Available Revolving Commitments are less than $1,000,000, such lesser
amount) and (y) in the case of Eurodollar Loans, $5,000,000 or a whole multiple
of $1,000,000 in excess thereof.  Upon
receipt of any such notice from the Borrower, the Administrative Agent shall
promptly notify each Lender thereof. 
Each Lender will make the amount of its pro  rata share of
each borrowing available to the Administrative Agent for the account of the
Borrower at the Funding Office prior to 12:00 Noon, New York City time, on the
Borrowing Date requested by the Borrower in funds immediately available to the
Administrative Agent.  Such borrowing
will then be made available to the Borrower by the Administrative Agent
crediting the account of the Borrower on the books of such office with the
aggregate of the amounts made available to the Administrative Agent by the
Lenders and in like funds as received by the Administrative Agent.

 

 

2.3                                 Fees.  (a) 
The Borrower agrees to pay to the Administrative Agent for the account
of each Lender a commitment fee for the period from and including the date
hereof to the last day of the Revolving Commitment Period applicable thereto,
computed at the Applicable Margin on the average daily amount of the Available
Revolving Commitment of such Lender during the period for which payment is
made, payable quarterly in arrears on each Fee Payment Date.

 

(b)  The Borrower agrees to pay to the
Administrative Agent the fees in the amounts and on the dates as set forth in
any fee agreements with the Administrative Agent and to perform any other
obligations contained therein.

 

2.4                                 Termination
or Reduction of Revolving Commitments. 
The Borrower shall have the right, upon not less than three Business
Days’ notice to the Administrative Agent, to terminate the Revolving
Commitments or, from time to time, to reduce the amount of the Revolving
Commitments; provided that no such termination or reduction of Revolving
Commitments shall be permitted if, after giving effect thereto and to any
prepayments of the Revolving Loans made on the effective date thereof, the
Total Revolving Extensions of Credit would exceed the Total Revolving
Commitments.  Any such reduction shall be
in an amount equal to $1,000,000, or a whole multiple thereof, and shall reduce
permanently the Revolving Commitments then in effect.  Following an Extension Request pursuant to Section 2.17,
the Borrower may terminate the Revolving Commitments of the Non-Extending
Lenders; provided that the Borrower shall prepay the Revolving Loans of
such Non-Extending Lenders on the effective date of such termination, together
with accrued but unpaid interest and fees thereon and all other amounts then
payable hereunder to such Non-Extending Lenders.

 

2.5                                 Optional
Prepayments.  The Borrower may at any
time and from time to time prepay the Revolving Loans, in whole or in part,
without premium or penalty, upon irrevocable notice delivered to the Administrative
Agent no later than 11:00 A.M., New York City time, three Business Days prior
thereto, in the case of Eurodollar Loans, and no later than 11:00 A.M., New
York City time, on the prepayment date, in the case of ABR Loans, which notice
shall specify the date and amount of prepayment and whether the prepayment is
of Eurodollar Loans or ABR Loans; provided, that if a Eurodollar Loan is
prepaid on any day other than the last day of the Interest Period applicable
thereto, the Borrower shall also pay any amounts owing pursuant to Section 2.14.  Upon receipt of any such notice the
Administrative Agent shall promptly notify each Lender thereof.  If any such notice is given, the amount
specified in such notice shall be due and payable on the date specified therein,
together with accrued interest to such date on the amount prepaid.  Partial prepayments of Revolving Loans shall
be in an aggregate principal amount of $1,000,000 or a whole multiple thereof.

 

2.6                                 Conversion
and Continuation Options.  (a)   The Borrower may elect from time to time to
convert Eurodollar Loans to ABR Loans by giving the Administrative Agent prior
irrevocable notice of such election no later than 11:00 A.M., New York City
time, on the Business Day preceding the proposed conversion date, provided
that any such conversion of Eurodollar Loans may only be made on the last day
of an Interest Period with respect thereto. 
The Borrower may elect from time to time to convert ABR Loans to
Eurodollar Loans by giving the Administrative Agent prior irrevocable notice of
such election no later than 11:00 A.M., New York City time, on the third
Business Day preceding the proposed conversion date (which notice shall specify
the length of the initial Interest Period therefor), provided that no
ABR Loan may be converted into a Eurodollar Loan when any Event of Default has
occurred and is continuing and the Administrative Agent or the Required Lenders
have determined in its or their sole discretion not to permit such conversions.  Upon receipt of any such notice the
Administrative Agent shall promptly notify each Lender thereof.

 

(b)  Any Eurodollar Loan may be continued as such
upon the expiration of the then current Interest Period with respect thereto by
the Borrower giving irrevocable notice to the

 

 

Administrative Agent, in
accordance with the applicable provisions of the term “Interest Period” set
forth in Section 1.1, of the length of the next Interest Period to be
applicable to such Revolving Loans, provided that no Eurodollar Loan may
be continued as such when any Event of Default has occurred and is continuing
and the Administrative Agent has or the Required Lenders have determined in its
or their sole discretion not to permit such continuations, and provided,
further, that if the Borrower shall fail to give any required notice as
described above in this paragraph or if such continuation is not permitted
pursuant to the preceding proviso such Revolving Loans shall be automatically
converted to ABR Loans on the last day of such then expiring Interest Period.  Upon receipt of any such notice the
Administrative Agent shall promptly notify each Lender thereof.

 

2.7                                 Limitations
on Eurodollar Tranches. 
Notwithstanding anything to the contrary in this Agreement, all
borrowings, conversions and continuations of Eurodollar Loans and all
selections of Interest Periods shall be in such amounts and be made pursuant to
such elections so that, (a) after giving effect thereto, the aggregate
principal amount of the Eurodollar Loans comprising each Eurodollar Tranche shall
be equal to $5,000,000 or a whole multiple of $1,000,000 in excess thereof and
(b) no more than ten Eurodollar Tranches shall be outstanding at any one time.

 

2.8                                 Interest
Rates and Payment Dates.  (a)   Each Eurodollar Loan shall bear interest for
each day during each Interest Period with respect thereto at a rate per annum
equal to the Eurodollar Rate determined for such day plus the Applicable
Margin.

 

(b)  Each ABR Loan shall bear interest at a rate
per annum equal to the ABR plus the Applicable Margin.

 

(c)  (i) If all or a portion of the principal
amount of any Revolving Loan or Reimbursement Obligation shall not be paid when
due (whether at the stated maturity, by acceleration or otherwise), all
outstanding Revolving Loans and Reimbursement Obligations (whether or not
overdue) shall bear interest at a rate per annum equal to (x) in the case of
the Revolving Loans, the rate that would otherwise be applicable thereto
pursuant to the foregoing provisions of this Section plus 2% or (y)
in the case of Reimbursement Obligations, the rate applicable to ABR Loans plus
2%, and (ii) if all or a portion of any interest payable on any Revolving Loan
or Reimbursement Obligation or any commitment fee or other amount payable
hereunder shall not be paid when due (whether at the stated maturity, by
acceleration or otherwise), such overdue amount shall bear interest at a rate
per annum equal to the rate then applicable to ABR Loans plus 2%, in
each case, with respect to clauses (i) and (ii) above, from the date of such non-payment
until such amount is paid in full (as well after as before judgment).

 

(d)  Interest shall be payable in arrears on each
Interest Payment Date, provided that interest accruing pursuant to
paragraph (c) of this Section shall be payable from time to time on
demand.

 

2.9                                 Computation
of Interest and Fees.  (a)   Interest and fees payable pursuant hereto
shall be calculated on the basis of a 360-day year for the actual days elapsed,
except that, with respect to ABR Loans the rate of interest on which is
calculated on the basis of the Prime Rate, the interest thereon shall be
calculated on the basis of a 365- (or 366-, as the case may be) day year for
the actual days elapsed.  The
Administrative Agent shall as soon as practicable notify the Borrower and the
Lenders of each determination of a Eurodollar Rate.  Any change in the interest rate on a
Revolving Loan resulting from a change in the ABR or the Eurocurrency Reserve
Requirements shall become effective as of the opening of business on the day on
which such change becomes effective.  The
Administrative Agent shall as soon as practicable notify the Borrower and the
Lenders of the effective date and the amount of each such change in interest
rate.

 

 

(b)  Each determination of an interest rate by the
Administrative Agent pursuant to any provision of this Agreement shall be
conclusive and binding on the Borrower and the Lenders in the absence of
manifest error.  The Administrative Agent
shall, at the request of the Borrower, deliver to the Borrower a statement
showing the quotations used by the Administrative Agent in determining any
interest rate pursuant to Section 2.8(a).

 

2.10                           Inability
to Determine Interest Rate.  If prior
to the first day of any Interest Period, the Administrative Agent shall give telecopy
or telephonic notice thereof to the Borrower and the Lenders that:

 

(a)                                  the Administrative Agent shall have
determined (which determination shall be conclusive and binding upon the
Borrower) that, by reason of circumstances affecting the relevant market,
adequate and reasonable means do not exist for ascertaining the Eurodollar Rate
for such Interest Period, or

 

(b)                                 the Administrative Agent shall have
received notice from the Required Lenders that the Eurodollar Rate determined
or to be determined for such Interest Period will not adequately and fairly
reflect the cost to such Lenders (as conclusively certified by such Lenders) of
making or maintaining their affected Revolving Loans during such Interest
Period,

 

then (x) any
Eurodollar Loans requested to be made on the first day of such Interest Period
shall be made as ABR Loans, (y) any Revolving Loans that were to have been
converted on the first day of such Interest Period to Eurodollar Loans shall be
continued as ABR Loans and (z) any outstanding Eurodollar Loans shall be
converted, on the last day of the then-current Interest Period, to ABR
Loans.  Until such notice has been
withdrawn by the Administrative Agent, no further Eurodollar Loans shall be
made or continued as such, nor shall the Borrower have the right to convert
Revolving Loans to Eurodollar Loans.

 

2.11                           Pro
Rata Treatment and Payments. 
(a)   Except as otherwise
expressly provided herein, each borrowing by the Borrower from the Lenders
hereunder, each payment by the Borrower on account of any commitment fee and
any reduction of the Revolving Commitments of the Lenders shall be made pro
rata according to the respective Revolving Percentages of the Lenders.

 

(b)  Except as otherwise expressly provided
herein, each payment (including each prepayment) by the Borrower on account of
principal of and interest on the Revolving Loans shall be made pro  rata
according to the respective outstanding principal amounts of the Revolving
Loans then held by the Lenders.

 

(c)  All payments (including prepayments) to be
made by the Borrower hereunder, whether on account of principal, interest, fees
or otherwise, shall be made without setoff or counterclaim and shall be made
prior to 12:00 Noon, New York City time, on the due date thereof to the
Administrative Agent, for the account of the Lenders, at the Funding Office, in
Dollars and in immediately available funds. 
The Administrative Agent shall distribute such payments to the Lenders
promptly upon receipt in like funds as received.  If any payment hereunder (other than payments
on the Eurodollar Loans) becomes due and payable on a day other than a Business
Day, such payment shall be extended to the next succeeding Business Day.  If any payment on a Eurodollar Loan becomes
due and payable on a day other than a Business Day, the maturity thereof shall
be extended to the next succeeding Business Day unless the result of such
extension would be to extend such payment into another calendar month, in which
event such payment shall be made on the immediately preceding Business
Day.  In the case of any extension of any
payment of principal pursuant to the preceding two sentences, interest thereon
shall be payable at the then applicable rate during such extension.

 

 

(d)  Unless the Administrative Agent shall have been
notified in writing by any Lender prior to a borrowing that such Lender will
not make the amount that would constitute its share of such borrowing available
to the Administrative Agent, the Administrative Agent may assume that such
Lender is making such amount available to the Administrative Agent, and the
Administrative Agent may, in reliance upon such assumption, make available to
the Borrower a corresponding amount.  If
such amount is not made available to the Administrative Agent by the required
time on the Borrowing Date therefor, such Lender shall pay to the
Administrative Agent, on demand, such amount with interest thereon, at a rate
equal to the greater of (i) the Federal Funds Effective Rate and (ii) a rate
determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation, for the period until such Lender makes such
amount immediately available to the Administrative Agent.  A certificate of the Administrative Agent submitted
to any Lender with respect to any amounts owing under this paragraph shall be
conclusive in the absence of manifest error. 
If such Lender’s share of such borrowing is not made available to the
Administrative Agent by such Lender within three Business Days after such
Borrowing Date, the Administrative Agent shall also be entitled to recover such
amount with interest thereon at the rate per annum applicable to ABR Loans, on
demand, from the Borrower.  Nothing
herein shall be deemed to limit the rights of the Borrower against such Lender.

 

(e)  Unless the Administrative Agent shall have
been notified in writing by the Borrower prior to the date of any payment due
to be made by the Borrower hereunder that the Borrower will not make such
payment to the Administrative Agent, the Administrative Agent may assume that
the Borrower is making such payment, and the Administrative Agent may, but
shall not be required to, in reliance upon such assumption, make available to
the Lenders their respective shares of a corresponding amount.  If such payment is not made to the
Administrative Agent by the Borrower within three Business Days after such due
date, the Administrative Agent shall be entitled to recover, on demand, from
each Lender to which any amount which was made available pursuant to the preceding
sentence, such amount with interest thereon at the rate per annum equal to the
daily average Federal Funds Effective Rate. 
Nothing herein shall be deemed to limit the rights of the Administrative
Agent or any Lender against the Borrower.

 

2.12                           Requirements
of Law.  (a)   If the adoption of or any change in any
Requirement of Law or in the interpretation or application thereof or
compliance by any Lender with any request or directive (whether or not having
the force of law) from any central bank or other Governmental Authority made
subsequent to the date hereof:

 

(i) 
shall subject any Lender to any tax of any kind whatsoever with respect
to this Agreement, any Letter of Credit, any Application or any Eurodollar Loan
made by it, or change the basis of taxation of payments to such Lender in
respect thereof (except, in each case, for Non-Excluded Taxes covered by Section 2.13
and changes in the rate of tax on the overall net income of such Lender);

 

(ii) 
shall impose, modify or hold applicable any reserve, special deposit,
compulsory loan or similar requirement against assets held by, deposits or
other liabilities in or for the account of, advances, loans or other extensions
of credit by, or any other acquisition of funds by, any office of such Lender
that is not otherwise included in the determination of the Eurodollar Rate; or

 

(iii)   
shall impose on such Lender any other condition;

 

and the result of any of the
foregoing is to increase the cost to such Lender, by an amount that such Lender
deems to be material, of making, converting into, continuing or maintaining
Eurodollar Loans or issuing or participating in Letters of Credit, or to reduce
any amount receivable hereunder in respect

 

 

thereof, then, in any such
case, the Borrower shall pay such Lender, reasonably promptly after its demand,
any additional amounts necessary to compensate such Lender for such increased
cost or reduced amount receivable.  If
any Lender becomes entitled to claim any additional amounts pursuant to this
paragraph, it shall promptly notify the Borrower (with a copy to the
Administrative Agent) of the event by reason of which it has become so
entitled, setting forth in reasonable detail the calculations upon which such
Lender determined such amounts.

 

(b)  If any Lender shall have determined that the
adoption of or any change in any Requirement of Law regarding capital adequacy
or in the interpretation or application thereof or compliance by such Lender or
any corporation controlling such Lender with any request or directive regarding
capital adequacy (whether or not having the force of law) from any Governmental
Authority made subsequent to the date hereof shall have the effect of reducing
the rate of return on such Lender’s or such corporation’s capital as a
consequence of its obligations hereunder or under or in respect of any Letter
of Credit to a level below that which such Lender or such corporation could
have achieved but for such adoption, change or compliance (taking into
consideration such Lender’s or such corporation’s policies with respect to
capital adequacy) by an amount deemed by such Lender to be material, then from
time to time, after submission by such Lender to the Borrower (with a copy to
the Administrative Agent) of a written request therefor setting forth in reasonable
detail the calculations upon which such Lender determined such amounts, the
Borrower shall pay to such Lender reasonably promptly after such submission
such additional amount or amounts as will compensate such Lender or such
corporation for such reduction.

 

(c)  A certificate as to any additional amounts
payable pursuant to this Section submitted by any Lender to the Borrower
(with a copy to the Administrative Agent) shall be conclusive in the absence of
manifest error.  Notwithstanding anything
to the contrary in this Section, the Borrower shall not be required to
compensate a Lender pursuant to this Section for any amounts incurred more
than six months prior to the date that such Lender notifies the Borrower of
such Lender’s intention to claim compensation therefor; provided that,
if within such six-month period circumstances occur that give rise to such
claim having a retroactive effect, then such six-month period shall be extended
to include the period of such retroactive effect.  The obligations of the Borrower pursuant to
this Section shall survive the termination of this Agreement and the
payment of the Revolving Loans and all other amounts payable hereunder.

 

2.13                           Taxes.  (a) All payments made by the Borrower under
this Agreement shall be made free and clear of, and without deduction or
withholding for or on account of, any present or future income, stamp or other
taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now
or hereafter imposed, levied, collected, withheld or assessed by any
Governmental Authority, excluding net income taxes and franchise taxes (imposed
in lieu of net income taxes) imposed on the Administrative Agent or any Lender
as a result of a present or former connection between the Administrative Agent
or such Lender and the jurisdiction of the Governmental Authority imposing such
tax or any political subdivision or taxing authority thereof or therein (other
than any such connection arising solely from the Administrative Agent or such
Lender having executed, delivered or performed its obligations or received a
payment under, or enforced, this Agreement or any other Loan Document).  If any such non-excluded taxes, levies,
imposts, duties, charges, fees, deductions or withholdings (“Non-Excluded
Taxes”) or Other Taxes are required to be withheld from any amounts payable
to the Administrative Agent or any Lender hereunder, the amounts so payable to
the Administrative Agent or such Lender shall be increased to the extent
necessary to yield to the Administrative Agent or such Lender (after payment of
all Non-Excluded Taxes and Other Taxes) interest or any such other amounts
payable hereunder at the rates or in the amounts specified in this Agreement, provided,
however, that the Borrower shall not be required to increase any such
amounts payable to any Lender with respect to any Non-Excluded Taxes (i) that
are attributable to such Lender’s failure to comply with the requirements of
paragraph (d) or (e) of this

 

 

Section or (ii) that are United States withholding taxes imposed
on amounts payable to such Lender at the time such Lender becomes a party to
this Agreement, except to the extent that such Lender’s assignor (if any) was
entitled, at the time of assignment, to receive such additional amounts from
the Borrower with respect to such Non-Excluded Taxes pursuant to this
paragraph, so long as such additional amounts payable by the Borrower are not
increased thereby.

 

(b)  In addition, the Borrower shall pay any Other
Taxes to the relevant Governmental Authority in accordance with applicable law.

 

(c)  Whenever any Non-Excluded Taxes or Other
Taxes are payable by the Borrower, as promptly as possible thereafter the
Borrower shall send to the Administrative Agent for its own account or for the
account of the relevant Lender, as the case may be, a certified copy of an
original official receipt received by the Borrower showing payment thereof or
such other evidence of payment as is reasonably satisfactory to the
Administrative Agent.  If the Borrower
fails to pay any Non-Excluded Taxes or Other Taxes when due to the appropriate
taxing authority or fails to remit to the Administrative Agent the required
receipts or other documentary evidence, the Borrower shall indemnify the
Administrative Agent and the Lenders for any incremental Non-Excluded Taxes,
interest or penalties that may become payable by the Administrative Agent or
any Lender as a result of any such failure.

 

(d)   Each Lender (or Transferee) that is not a “U.S.
Person” as defined in Section 7701(a)(30) of the Code (a “Non-U.S.
Lender”) shall deliver to the Borrower and the Administrative Agent (or, in
the case of a Participant, to the Lender from which the related participation
shall have been purchased) two copies of either U.S. Internal Revenue Service
Form W-8BEN or Form W-8ECI, or, in the case of a Non-U.S. Lender claiming
exemption from U.S. federal withholding tax under Section 871(h) or 881(c)
of the Code with respect to payments of “portfolio interest”, a statement
substantially in the form of Exhibit C and a Form W-8BEN, or any subsequent
versions thereof or successors thereto, properly completed and duly executed by
such Non-U.S. Lender claiming complete exemption from, or a reduced rate of,
U.S. federal withholding tax on all payments by the Borrower under this
Agreement and the other Loan Documents. 
Such forms shall be delivered by each Non-U.S. Lender on or before the
date it becomes a party to this Agreement (or, in the case of any Participant,
on or before the date such Participant purchases the related
participation).  In addition, each Non-U.S.
Lender shall deliver such forms promptly upon the obsolescence or invalidity of
any form previously delivered by such Non-U.S. Lender.  Each Non-U.S. Lender shall promptly notify
the Borrower at any time it determines that it is no longer in a position to
provide any previously delivered certificate to the Borrower (or any other form
of certification adopted by the U.S. taxing authorities for such purpose).  Notwithstanding any other provision of this
paragraph, a Non-U.S. Lender shall not be required to deliver any form pursuant
to this paragraph that such Non-U.S. Lender is not legally able to deliver.

 

(e)  A Lender that is entitled to an exemption
from or reduction of non-U.S. withholding tax under the law of the jurisdiction
in which the Borrower is located, or any treaty to which such jurisdiction is a
party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Administrative Agent), at the time or times
prescribed by applicable law or reasonably requested by the Borrower, such
properly completed and executed documentation prescribed by applicable law as
will permit such payments to be made without withholding or at a reduced rate, provided
that such Lender is legally entitled to complete, execute and deliver such
documentation and in such Lender’s judgment such completion, execution or
submission would not materially prejudice the legal position of such Lender.

 

(f)  If the
Administrative Agent or any Lender determines, in its sole discretion, that it
has received a refund of any Non-Excluded Taxes or Other Taxes as to which it
has been indemnified by the Borrower or with respect to which the Borrower has
paid additional amounts pursuant to this Section 2.13,

 

 

it shall
pay over such refund to the Borrower (but only to the extent of indemnity
payments made, or additional amounts paid, by the Borrower under this Section 2.13
with respect to the Non-Excluded Taxes or Other Taxes giving rise to such
refund), net of all associated out-of-pocket expenses of the Administrative
Agent or such Lender and without interest (other than any interest paid by the
relevant Governmental Authority with respect to such refund); provided,
that the Borrower, upon the request of the Administrative Agent or such Lender,
shall repay the amount paid over to the Borrower (plus any penalties, interest
or other charges imposed by the relevant Governmental Authority) to the
Administrative Agent or such Lender in the event the Administrative Agent or
such Lender is required to repay such refund to such Governmental Authority.
This paragraph shall not be construed to require the Administrative Agent or
any Lender to make available its tax returns (or any other information relating
to its taxes which it deems confidential) to the Borrower or any other Person.

 

(g)  The agreements in this Section shall
survive the termination of this Agreement and the payment of the Revolving
Loans and all other amounts payable hereunder.

 

2.14                           Indemnity.  The Borrower agrees to indemnify each Lender
for, and to hold each Lender harmless from, any loss or expense that such
Lender may sustain or incur as a consequence of (a) default by the
Borrower in making a borrowing of, conversion into or continuation of Eurodollar
Loans after the Borrower has given a notice requesting the same in accordance
with the provisions of this Agreement, (b) default by the Borrower in making
any prepayment of or conversion from Eurodollar Loans after the Borrower has
given a notice thereof in accordance with the provisions of this Agreement or
(c) the making of a prepayment of Eurodollar Loans on a day that is not the
last day of an Interest Period with respect thereto.  Such indemnification may include an amount
equal to the excess, if any, of (i) the amount of interest that would have
accrued on the amount so prepaid, or not so borrowed, converted or continued,
for the period from the date of such prepayment or of such failure to borrow,
convert or continue to the last day of such Interest Period (or, in the case of
a failure to borrow, convert or continue, the Interest Period that would have
commenced on the date of such failure) in each case at the applicable rate of
interest for such Revolving Loans provided for herein (excluding, however, the
Applicable Margin included therein, if any) over (ii) the amount of
interest (as reasonably determined by such Lender) that would have accrued to
such Lender on such amount by placing such amount on deposit for a comparable
period with leading banks in the interbank eurodollar market.  A certificate as to any amounts payable
pursuant to this Section submitted to the Borrower by any Lender shall be
conclusive in the absence of manifest error. 
This covenant shall survive the termination of this Agreement and the
payment of the Revolving Loans and all other amounts payable hereunder.

 

2.15                           Change
of Lending Office.  Each Lender
agrees that, upon the occurrence of any event giving rise to the operation of Section 2.12
or 2.13(a) with respect to such Lender, it will use reasonable efforts (subject
to overall policy considerations of such Lender) to designate another lending
office for any Revolving Loans affected by such event with the object of
avoiding the consequences of such event; provided, that such designation
is made on terms that, in the sole judgment of such Lender, cause such Lender
and its lending office(s) to suffer no economic, legal or regulatory
disadvantage, and provided, further, that nothing in this Section shall
affect or postpone any of the obligations of the Borrower or the rights of any
Lender pursuant to Section 2.12 or 2.13(a).

 

2.16                           Replacement
of Lenders.  The Borrower shall be
permitted to replace any Lender that (a) requests reimbursement for amounts
owing pursuant to Section 2.12 or 2.13(a), (b) defaults in its obligation
to make Revolving Loans hereunder or (c) is a Non-Extending Lender, with a
replacement financial institution or other entity; provided that (i)
such replacement does not conflict with any Requirement of Law, (ii) no Event
of Default shall have occurred and be continuing at the time of such
replacement, (iii) in the case of clause (a) above, prior to any such
replacement, such Lender shall have taken no action under Section 2.15 so
as to eliminate the continued need for payment of amounts owing

 

 

pursuant to Section 2.12 or 2.13(a), (iv) the replacement
financial institution shall purchase, at par, all Revolving Loans and other
amounts owing to such replaced Lender on or prior to the date of replacement,
(v) the Borrower shall be liable to such replaced Lender under Section 2.14
if any Eurodollar Loan owing to such replaced Lender shall be purchased other
than on the last day of the Interest Period relating thereto, (vi) the
replacement financial institution, if not already a Lender, shall be reasonably
satisfactory to the Administrative Agent, (vii) the replaced Lender shall be
obligated to make such replacement in accordance with the provisions of Section 10.6
(provided that the Borrower shall be obligated to pay the registration and
processing fee referred to therein), (viii) until such time as such replacement
shall be consummated, the Borrower shall pay all additional amounts (if any)
required pursuant to Section 2.12 or 2.13(a), as the case may be, and
(ix) any such replacement shall not be deemed to be a waiver of any rights
that the Borrower, the Administrative Agent or any other Lender shall have
against the replaced Lender.

 

2.17                           Extension
of Revolving Termination Date.  (a)
The Borrower may, by written notice to the Administrative Agent in the form of
Exhibit F-1 (the “Extension Request”)
given no earlier than the first anniversary of the Closing Date but no later
than 45 days prior to the then applicable Revolving Termination Date, request
that the then applicable Revolving Termination Date be extended to the date
that is one calendar year after the then applicable Revolving Termination
Date.  Such extension shall be effective
with respect to each Lender that, by a written notice in the form of Exhibit
F-2 (a “Continuation Notice”)
to the Administrative Agent given no later than 20 days prior to the then
applicable Revolving Termination Date, consents, in its sole discretion, to
such extension (each Lender giving a Continuation Notice being referred to
herein as a “Continuing Lender”
and each Lender other than a Continuing Lender being referred to herein as a “Non-Extending Lender”), provided that (i) such extension shall be
effective only if the aggregate Revolving Commitments of the Continuing Lenders
constitute at least 66-2/3% of the Total Revolving Commitments on the date of
the Extension Request, (ii) any Lender that fails to submit a Continuation
Notice at least 20 days prior to the then applicable Revolving Termination Date
shall be deemed not to have consented to such extension and shall constitute a
Non-Extending Lender and (iii) the Borrower may give only one Extension Request
during the term of this Agreement.  No
Lender shall have any obligation to consent to any extension of the Revolving
Termination Date.  The Administrative
Agent shall notify each Lender of the receipt of an Extension Request promptly
after receipt thereof.  The
Administrative Agent shall notify the Borrower and the Lenders no later than 15
days prior to the then applicable Revolving Termination Date whether the
Administrative Agent has received Continuation Notices from Lenders holding
Revolving Commitments aggregating at least 66-2/3% of the Total Revolving
Commitments on the date of the Extension Request.

 

(b) The Revolving
Commitment of each Non-Extending Lender shall terminate at the close of
business on the Revolving Termination Date in effect prior to the delivery of
such Extension Request without giving any effect to such proposed
extension.  In accordance with Section 2.1(e),
on such Revolving Termination Date, the Borrower shall pay to the
Administrative Agent, for the account of each Non-Extending Lender, an amount
equal to such Non-Extending Lender’s Revolving Loans, together with accrued but
unpaid interest and fees thereon and all other amounts then payable hereunder
to such Non-Extending Lender.  If,
however, on or before the date which is 10 days prior to the Revolving
Termination Date in effect prior to the delivery of an Extension Request
pursuant to this Section 2.17, the Borrower obtains a replacement Lender
pursuant to Section 2.16 for any such Non-Extending Lender and such
replacement Lender agrees to the extension of the Revolving Termination Date
pursuant to this Section 2.17, then such replacement Lender shall for all
purposes of this Section 2.17 and this Agreement be deemed to be a
Continuing Lender, and the Revolving Loans of such Lender shall not be due and
payable pursuant to this Section 2.17(b).

 

 

SECTION 3.                                LETTERS OF CREDIT

 

3.1                                 L/C
Commitment.  (a) Subject to the
terms and conditions hereof, each Issuing Lender, in reliance on the agreements
of the other Lenders set forth in Section 3.4(a), agrees to issue Letters
of Credit for the account of the Borrower on any Business Day during the
Revolving Commitment Period in such form as may be approved from time to time
by such Issuing Lender; provided that no Issuing Lender shall issue any
Letter of Credit if, (i) after giving effect to such issuance, (A) the
L/C Obligations would exceed the L/C Commitment or (B) the aggregate
amount of the Available Revolving Commitments would be less than zero or (ii) such
Issuing Lender shall have received written notice from the Administrative Agent
or the Borrower, 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 contained in Section 5.2 shall not have been
satisfied.  On the Closing Date, each
Existing Letter of Credit shall be deemed to be a Letter of Credit issued
hereunder for the account of the Borrower. 
Each Letter of Credit shall (i) be denominated in Dollars and (ii) expire
no later than the earlier of (x) the first anniversary of its date of issuance
and (y) the date that is five Business Days prior to the Revolving Termination
Date (as it may be extended), provided that any Letter of Credit with a
one-year term may provide for the renewal thereof for additional one-year
periods (which shall in no event extend beyond the date referred to in clause
(y) above).

 

(b)  No
Issuing Lender shall at any time be obligated to issue any Letter of Credit if
such issuance would conflict with, or cause such Issuing Lender or any L/C
Participant to exceed any limits imposed by, any applicable Requirement of Law.

 

3.2                                 Procedure
for Issuance of Letter of Credit. 
The Borrower may from time to time request that an Issuing Lender issue
a Letter of Credit by delivering to such Issuing Lender at its address set
forth in its Issuing Lender Agreement an Application therefor, completed to the
satisfaction of such Issuing Lender, and such other certificates, documents and
other papers and information as such Issuing Lender may request.  Upon receipt of any Application, such Issuing
Lender will process such Application and the certificates, documents and other
papers and information delivered to it in connection therewith in accordance
with its customary procedures and shall promptly issue the Letter of Credit
requested thereby (but in no event shall an Issuing Lender be required to issue
any Letter of Credit earlier than three Business Days after its receipt of the
Application therefor and all such other certificates, documents and other
papers and information relating thereto) by issuing the original of such Letter
of Credit to the beneficiary thereof or as otherwise may be agreed to by such
Issuing Lender and the Borrower.  Such
Issuing Lender shall furnish a copy of such Letter of Credit to the Borrower
promptly following the issuance thereof. 
The applicable Issuing Lender shall promptly furnish to the
Administrative Agent, which shall in turn promptly furnish to the Lenders,
notice of the issuance of each Letter of Credit (including the amount thereof).

 

3.3                                 Fees
and Other Charges.  (a) The
Borrower will pay a fee on all outstanding Letters of Credit at a per annum
rate equal to the Applicable Margin then in effect with respect to Eurodollar
Loans, shared ratably among the Lenders and payable quarterly in arrears on
each Fee Payment Date after the issuance date. 
In addition, the Borrower shall pay to the applicable Issuing Lender for
its own account a fronting fee for each Letter of Credit requested by the
Borrower in such amount and at such times as may be set forth in a separate letter
agreement between the Borrower and such Issuing Lender (each, an “Issuing
Lender Agreement”), which shall contain such Issuing Lender’s address for
notices..

 

(b)   In addition to the foregoing fees, the
Borrower shall pay or reimburse each Issuing Lender for such normal and
customary costs and expenses as are incurred or charged by such Issuing

 

 

Lender in issuing, negotiating,
effecting payment under, amending or otherwise administering any Letter of
Credit.

 

3.4                                 L/C
Participations.  (a)  Each Issuing
Lender irrevocably agrees to grant and hereby grants to each L/C Participant,
and, to induce such Issuing Lender to issue Letters of Credit, each L/C
Participant irrevocably agrees to accept and purchase and hereby accepts and
purchases from such Issuing Lender, on the terms and conditions set forth
below, for such L/C Participant’s own account and risk an undivided interest
equal to such L/C Participant’s Revolving Percentage in such Issuing Lender’s
obligations and rights under and in respect of each Letter of Credit and the
amount of each draft paid by such Issuing Lender thereunder.  Each L/C Participant agrees with each Issuing
Lender that, if a draft is paid under any Letter of Credit for which such
Issuing Lender is not reimbursed in full by the Borrower in accordance with the
terms of this Agreement, such L/C Participant shall pay to such Issuing Lender
upon demand at such Issuing Lender’s address for notices specified herein an
amount equal to such L/C Participant’s Revolving Percentage of the amount of
such draft, or any part thereof, that is not so reimbursed.  Each L/C Participant’s obligation to pay such
amount shall be absolute and unconditional and shall not be affected by any
circumstance, including (i) any setoff, counterclaim, recoupment, defense
or other right that such L/C Participant may have against such Issuing Lender,
the Borrower or any other Person for any reason whatsoever, (ii) the
occurrence or continuance of a Default or an Event of Default or the failure to
satisfy any of the other conditions specified in Section 5, (iii) any
adverse change in the condition (financial or otherwise) of the Borrower, (iv) any
breach of this Agreement or any other Loan Document by the Borrower or any
other L/C Participant or (v) any other circumstance, happening or event
whatsoever, whether or not similar to any of the foregoing

 

(b)  If
any amount required to be paid by any L/C Participant to an Issuing Lender
pursuant to Section 3.4(a) in respect of any unreimbursed portion of
any payment made by such Issuing Lender under any Letter of Credit is paid to
such Issuing Lender within three Business Days after the date such payment is
due, such L/C Participant shall pay to such Issuing Lender on demand an amount
equal to the product of (i) such amount, times (ii) the daily average
Federal Funds Effective Rate during the period from and including the date such
payment is required to the date on which such payment is immediately available
to such Issuing Lender, times (iii) a fraction the numerator of which is
the number of days that elapse during such period and the denominator of which
is 360.  If any such amount required to
be paid by any L/C Participant pursuant to Section 3.4(a) is not made
available to an Issuing Lender by such L/C Participant within three Business
Days after the date such payment is due, such Issuing Lender shall be entitled
to recover from such L/C Participant, on demand, such amount with interest
thereon calculated from such due date at the rate per annum applicable to ABR
Loans.  A certificate of an Issuing
Lender submitted to any L/C Participant with respect to any amounts owing under
this Section shall be conclusive in the absence of manifest error.

 

(c) 
Whenever, at any time after an Issuing Lender has made payment under any Letter
of Credit and has received from any L/C Participant its pro  rata
share of such payment in accordance with Section 3.4(a), such Issuing
Lender receives any payment related to such Letter of Credit (whether directly
from the Borrower or otherwise, including proceeds of collateral applied
thereto by such Issuing Lender), or any payment of interest on account thereof,
such Issuing Lender will distribute to such L/C Participant its pro  rata
share thereof; provided, however, that in the event that any such
payment received by an Issuing Lender shall be required to be returned by such
Issuing Lender, such L/C Participant shall return to such Issuing Lender the
portion thereof previously distributed by such Issuing Lender to it.

 

3.5                                 Reimbursement
Obligation of the Borrower.  If any
draft is paid under any Letter of Credit, the Borrower shall reimburse the
applicable Issuing Lender for the amount of (a) the draft so paid and (b) any
taxes, fees, charges or other costs or expenses incurred by such Issuing Lender
in connection with such payment, not later than 12:00 Noon, New York City time,
on (i) the Business Day

 

 

that the Borrower receives notice of such draft, if such notice is
received on such day prior to 10:00 A.M., New York City time, or (ii) if
clause (i) above does not apply, the Business Day immediately following
the day that the Borrower receives such notice. 
Each such payment shall be made to the applicable Issuing Lender at its
address set forth in its Issuing Lender Agreement in Dollars and in immediately
available funds.  Interest shall be
payable on any such amounts from the date on which the relevant draft is paid
until payment in full at the rate set forth in (x) until the Business Day next
succeeding the date of the relevant notice, Section 2.8(b) and (y)
thereafter, Section 2.8(c).

 

3.6                                 Obligations
Absolute.  The Borrower’s obligations
under this Section 3 shall be absolute and unconditional under any and all
circumstances and irrespective of any setoff, counterclaim or defense to
payment that the Borrower may have or have had against any Issuing Lender, any
beneficiary of a Letter of Credit or any other Person.  The Borrower also agrees with each Issuing
Lender that, absent gross negligence or willful misconduct of such Issuing
Lender, such Issuing Lender shall not be responsible for, and the Borrower’s
Reimbursement Obligations under Section 3.5 shall not be affected by,
among other things, the validity or genuineness of documents or of any
endorsements thereon, even though such documents shall in fact prove to be
invalid, fraudulent or forged, or any dispute between or among the Borrower and
any beneficiary of any Letter of Credit or any other party to which such Letter
of Credit may be transferred or any claims whatsoever of the Borrower against
any beneficiary of such Letter of Credit or any such transferee.  No Issuing Lender shall be liable for any
error, omission, interruption or delay in transmission, dispatch or delivery of
any message or advice, however transmitted, in connection with any Letter of
Credit, except for errors or omissions resulting from the gross negligence or
willful misconduct of such Issuing Lender. 
The Borrower agrees that any action taken or omitted by an Issuing
Lender under or in connection with any Letter of Credit or the related drafts
or documents, if done in the absence of gross negligence or willful misconduct,
shall be binding on the Borrower and shall not result in any liability of such
Issuing Lender to the Borrower; provided that the Borrower shall not be
precluded from asserting any claim for direct (but not consequential) damages
suffered by the Borrower to the extent caused by (i) the gross negligence
or willful misconduct of such Issuing Lender in determining whether a request
presented under any Letter of Credit issued by it complied with the terms of
such Letter of Credit or (ii) such Issuing Lender’s willful failure or
gross negligence in failing to pay under any Letter of Credit issued by it
after the presentation to it of a request strictly complying with the terms and
conditions of such Letter of Credit.

 

3.7                                 Letter
of Credit Payments.  If any draft
shall be presented for payment under any Letter of Credit, the applicable
Issuing Lender shall promptly notify the Borrower of the date and amount thereof.  The responsibility of the applicable Issuing
Lender to the Borrower in connection with any draft presented for payment under
any Letter of Credit shall, in addition to any payment obligation expressly
provided for in such Letter of Credit, be limited to determining that the
documents (including each draft) delivered under such Letter of Credit in
connection with such presentment are substantially in conformity with such
Letter of Credit.

 

3.8                                 Applications.  To the extent that any provision of any
Application related to any Letter of Credit is inconsistent with the provisions
of this Section 3, the provisions of this Section 3 shall apply.

 

SECTION 4.                                REPRESENTATIONS AND WARRANTIES

 

To induce the Administrative
Agent and the Lenders to enter into this Agreement and to make the Revolving
Loans and issue or participate in the Letters of Credit, the Borrower hereby
represents and warrants to the Administrative Agent and each Lender that:

 

 

4.1                                 Financial
Condition.  The audited consolidated
balance sheet of the Borrower as at December 31, 2004, and the related
consolidated statement of income and cash flows for the fiscal year then ended,
reported on by and accompanied by an unqualified report from Deloitte &
Touche LLP, present fairly the consolidated financial condition of the Borrower
as of such date, and the consolidated results of its operations and its
consolidated cash flows for the fiscal year then ended.  All such financial statements, including the
related schedules and notes thereto, have been prepared in accordance with GAAP
applied consistently throughout the periods involved (except as approved by the
aforementioned firm of accountants and disclosed therein).  Except as set forth on Schedule 4.1,
neither the Borrower nor any Significant Subsidiary has any material Guarantee
Obligations, contingent liabilities and liabilities for taxes, or any long-term
leases or unusual forward or long-term commitments, including any interest rate
or foreign currency swap or exchange transaction or other obligation in respect
of derivatives, that are not reflected in the most recent financial statements
referred to in this paragraph.

 

4.2                                 No
Change.  Except as set forth on Schedule 4.2,
since December 31, 2004, there has been no development or event that has
had or could reasonably be expected to have a Material Adverse Effect.

 

4.3                                 Existence;
Compliance with Law.  The Borrower
and each Significant Subsidiary (a) is duly organized, validly existing
and in good standing under the laws of the jurisdiction of its organization, (b) has
the power and authority, and the legal right, to own and operate its material
properties, to lease the material properties it operates as lessee and to
conduct the business in which it is currently engaged, (c) is duly
qualified as a foreign corporation or other organization and in good standing
under the laws of each jurisdiction where its ownership, lease or operation of
property or the conduct of its business requires such qualification, except to
the extent that the failure to be so qualified or in good standing could not,
in the aggregate, reasonably be expected to have a Material Adverse Effect and (d) is
in compliance with all Requirements of Law except to the extent that the
failure to comply therewith could not, in the aggregate, reasonably be expected
to have a Material Adverse Effect.

 

4.4                                 Power;
Authorization; Enforceable Obligations. 
The Borrower has the corporate power and authority to make, deliver and
perform the Loan Documents to which it is a party and to obtain extensions of
credit hereunder.  The Borrower has taken
all necessary organizational action to authorize the execution, delivery and
performance of the Loan Documents to which it is a party and to authorize the
extensions of credit on the terms and conditions of this Agreement.  No consent or authorization of, filing with,
notice to or other act by or in respect of, any Governmental Authority or any
other Person is required in connection with (a) any extension of credit
hereunder when made (except for consents, authorizations, filings, notices or
other acts required with respect to such extension of credit that have been
obtained or made and are in full force and effect at the time of such extension
of credit) or (b) the execution, delivery, performance, validity or enforceability
of this Agreement or any of the Loan Documents. 
Each Loan Document has been duly executed and delivered on behalf of the
Borrower.  This Agreement constitutes,
and each other Loan Document upon execution will constitute, a legal, valid and
binding obligation of the Borrower, enforceable against the Borrower in
accordance with its terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors’ rights generally and by general
equitable principles (whether enforcement is sought by proceedings in equity or
at law).

 

4.5                                 No
Legal Bar.  The execution, delivery
and performance of this Agreement and the other Loan Documents, the issuance of
Letters of Credit, the borrowings hereunder and the use of the proceeds thereof
will not (a) violate any (i) Requirement of Law or (ii) Contractual
Obligation of the Borrower or any Significant Subsidiary (except in the case of
this clause (a) to the extent any such violations could not, in the
aggregate, reasonably be expected to have a Material Adverse Effect) and (b)

 

 

result in, or require, the creation or imposition of any Lien on any of
their respective properties or revenues pursuant to any Requirement of Law or
any such Contractual Obligation.

 

4.6                                 Litigation.  Except as set forth on Schedule 4.6, no
litigation, investigation or proceeding of or before any arbitrator or
Governmental Authority is pending or, to the knowledge of the Borrower,
threatened by or against the Borrower or any Significant Subsidiary or against
any of their respective properties or revenues (a) with respect to any of
the Loan Documents or any of the transactions contemplated hereby or thereby,
or (b) that could reasonably be expected to have a Material Adverse
Effect.

 

4.7                                 Ownership
of Property; Liens.  Except (i) for
assets disposed of in the ordinary course of business since December 31,
2004 and (ii) as set forth on Schedule 4.7, on the Closing Date the
Borrower and its Significant Subsidiaries have good title, free of all Liens
other than Permitted Liens, to all of the material assets reflected in the
Borrower’s consolidated balance sheet as of December 31, 2004 as owned by
the Borrower and/or its Significant Subsidiaries.

 

4.8                                 Taxes.  Each of the Borrower and each Significant
Subsidiary has filed or caused to be filed all Federal, state and other
material tax returns that are required to be filed and has paid all taxes shown
to be due and payable on said returns or on any assessments made against it or
any of its property and all other taxes, fees or other charges imposed on it or
any of its property by any Governmental Authority (other than (i) those
that are not in the aggregate material and (ii) any taxes, fees or other
charges the amount or validity of which are currently being contested in good
faith by appropriate proceedings and with respect to which reserves in
conformity with GAAP have been provided on the books of the Borrower or such
Significant Subsidiary).

 

4.9                                 Federal
Regulations.  No part of the proceeds
of any Revolving Loans, and no other extensions of credit hereunder, will be
used (a) for “buying” or “carrying” any “margin stock” within the
respective meanings of each of the quoted terms under Regulation U as now and from
time to time hereafter in effect for any purpose that violates the provisions
of the Regulations of the Board or (b) for any purpose that violates the
provisions of the Regulations of the Board. 
If requested by any Lender or the Administrative Agent, the Borrower
will furnish to the Administrative Agent and each Lender a statement to the
foregoing effect in conformity with the requirements of FR Form G-3
or FR Form U-1, as applicable, referred to in Regulation U.

 

4.10                           ERISA.  Except as could not reasonably be expected to
have a Material Adverse Effect, (a) neither a Reportable Event nor an “accumulated
funding deficiency” (within the meaning of Section 412 of the Code or Section 302
of ERISA), as applicable, has occurred during the five-year period prior to the
date on which this representation is made or deemed made with respect to any
Plan subject to Title IV of ERISA, Section 412 of the Code or Section 302
of ERISA, and each Plan has complied in all material respects with the
applicable provisions of ERISA and the Code; (b) no termination of a
Single Employer Plan has occurred, and no Lien on the assets of the Borrower or
any Significant Subsidiary in favor of the PBGC or a Plan has arisen, during
such five-year period; (c) the present value of all accrued benefits under
each Single Employer Plan (based on those assumptions used to fund such Plans)
did not, as of the last annual valuation date for which a valuation report is
available prior to the date on which this representation is made or deemed made,
exceed the value of the assets of such Plan allocable to such accrued benefits
by a material amount; and (d) neither the Borrower nor any Commonly
Controlled Entity has had a complete or partial withdrawal from any
Multiemployer

 

 

Plan that has resulted or could reasonably be expected to result in a
material liability under ERISA, and, to the knowledge of the Borrower or any
Commonly Controlled Entity, neither the Borrower nor any Commonly Controlled
Entity would become subject to any material liability under ERISA if the
Borrower or any Commonly Controlled Entity were to withdraw completely from all
Multiemployer Plans as of the valuation date most closely preceding the date on
which this representation is made or deemed made.  Neither the Borrower nor any Commonly
Controlled Entity has knowledge that any such Multiemployer Plan is in
Reorganization or Insolvent.

 

4.11                           Investment
Company Act; Other Regulations.  The
Borrower is not an “investment company”, or a company “controlled” by an “investment
company”, within the meaning of the Investment Company Act of 1940, as
amended.  The Borrower is not subject to
regulation under any Requirement of Law (other than Regulation X of the Board,
the Minnesota Public Utilities Commission and PUHCA) that limits its ability to
incur Indebtedness.

 

4.12                           Use
of Proceeds.  The proceeds of the
Revolving Loans and the Letters of Credit shall be used to effect the
Refinancing, to pay fees and expenses incurred in connection therewith and for
general corporate purposes (including commercial paper support).

 

4.13                           Accuracy
of Information, etc.  The
information, taken as a whole, contained in this Agreement, the other Loan
Documents, the Confidential Information Memorandum or the other documents,
certificates or statements furnished by or on behalf of the Borrower to the
Administrative Agent or the Lenders, or any of them, for use in connection with
the transactions contemplated by this Agreement or the other Loan Documents,
did not contain as of the date such information was so furnished (or, in the
case of the Confidential Information Memorandum, together with all other
information so furnished to the Lenders prior to the Closing Date, as of the
date of this Agreement), any untrue statement of a material fact or omit to
state a material fact necessary to make the information contained herein or
therein not misleading in light of the circumstances under which such
information was furnished.  The
projections and pro  forma financial information contained in the
materials referenced above are based upon good faith estimates and assumptions
believed by management of the Borrower to be reasonable at the time made, it
being recognized by the Lenders that such financial information as it relates
to future events is not to be viewed as fact and that actual results during the
period or periods covered by such financial information may differ from the
projected results set forth therein by a material amount.

 

4.14                           Solvency.  The Borrower is, and after giving effect to
the incurrence of all Indebtedness and obligations being incurred in connection
herewith will be, Solvent.

 

SECTION 5.                                CONDITIONS PRECEDENT

 

5.1                                 Conditions
to Initial Extension of Credit.  The
agreement of each Lender to make the initial extension of credit requested to
be made by it is subject to the satisfaction, prior to or concurrently with the
making of such extension of credit on the Closing Date, of the following
conditions precedent:

 

(a)                                  Credit
Agreement.  The
Administrative Agent shall have received this Agreement or, in the case of the
Lenders, an Addendum, executed and delivered by the Administrative Agent, the
Borrower and each Person listed on Schedule 1.1A.

 

(b)                                 Termination of Existing Credit Facility. 
The Administrative Agent shall have received satisfactory evidence that
the Existing Credit Agreement shall have been terminated, all commitments
thereunder shall have been terminated and all amounts owing thereunder shall
have been paid in full (the “Refinancing”).

 

 

(c)                                  Financial Statements. 
The Lenders shall have received audited consolidated financial
statements of the Borrower for the 2002, 2003 and 2004 fiscal years, and such
financial statements shall not, in the reasonable judgment of the Lenders,
reflect any material adverse change in the consolidated financial condition of
the Borrower, as reflected in the financial statements or projections contained
in the Confidential Information Memorandum.

 

(d)                                 Projections. 
The Lenders shall have received satisfactory projections, on an annual
basis, of the Borrower and its Subsidiaries through 2009.

 

(e)                                  Approvals.  All
governmental and third party approvals, if any, required as of the Closing Date
in connection with the Refinancing and the transactions contemplated hereby
shall have been obtained on satisfactory terms and shall be in full force and
effect.

 

(f)                                    Fees.  The Lenders
and the Administrative Agent shall have received all fees required to be paid,
and all expenses for which invoices have been presented (including the
reasonable fees and expenses of legal counsel), on or before the Closing Date.

 

(g)                                 Closing Certificate; Certified Articles
of Incorporation; Good Standing Certificates.  The
Administrative Agent shall have received (i) a certificate of the
Borrower, dated the Closing Date, substantially in the form of Exhibit A,
with appropriate insertions and attachments, including the articles of
incorporation of the Borrower certified by the relevant authority of the
jurisdiction of organization of the Borrower, and (ii) a long form good
standing certificate for the Borrower from its jurisdiction of organization.

 

(h)                                 Legal Opinions. 
The Administrative Agent shall have received the following executed
legal opinions:

 

(i)             the legal
opinion of Jones Day, special New York counsel to the Borrower; and

 

(ii)          the legal
opinion of Gary R. Johnson, general counsel of Xcel Energy Inc.

 

Each such legal opinion shall
cover such matters incident to the transactions contemplated by this Agreement
as the Administrative Agent may reasonably require.

 

5.2                                 Conditions
to Each Extension of Credit.  The
agreement of each Lender to make any extension of credit requested to be made
by it on any date (including its initial extension of credit) is subject to the
satisfaction of the following conditions precedent:

 

(a)                                  Representations and Warranties. 
Each of the representations and warranties made by the Borrower in or
pursuant to the Loan Documents (other than the representations and warranties
contained in Sections 4.2 and 4.6, which representations and warranties need
only be true and correct on and as of the Closing Date) shall be true and
correct in all material respects on and as of such date as if made on and as of
such date, except to the extent any such representation or warranty is stated
to relate solely to an earlier date, in which case such representation or
warranty shall have been true and correct in all material respects as of such
earlier date.

 

(b)                                 No Default.  No Default or
Event of Default shall have occurred and be continuing on such date or after
giving effect to the extensions of credit requested to be made on such date.

 

 

(c)                                  Other Documents. 
In the case of any extension of credit made on an Increased Revolving
Commitment Closing Date, the Administrative Agent shall have received such
customary documents and information as it may reasonably request.

 

Each borrowing by and
issuance of a Letter of Credit on behalf of the Borrower hereunder shall
constitute a representation and warranty by the Borrower as of the date of such
extension of credit that the conditions contained in this Section 5.2 have
been satisfied.

 

SECTION 6.                                AFFIRMATIVE COVENANTS

 

The Borrower hereby agrees
that, so long as the Revolving Commitments remain in effect, any Letter of
Credit remains outstanding or any Revolving Loan or other amount is owing to
any Lender or the Administrative Agent hereunder:

 

6.1                                 Financial
Statements.  The Borrower shall
furnish to the Administrative Agent (which shall in turn furnish to the
Lenders):

 

(a)                                  as soon as available, but in any event
within 90 days after the end of each fiscal year of the Borrower, a copy
of the audited consolidated balance sheet of the Borrower and its consolidated
Subsidiaries as of the end of such year and the related audited consolidated
statements of income and of cash flows for such year, setting forth in each
case in comparative form the figures for the previous year, reported on without
a “going concern” or like qualification or exception, or qualification arising
out of the scope of the audit, by Deloitte & Touche LLP or other
independent certified public accountants of nationally recognized standing; and

 

(b)                                 as soon as available, but in any event
not later than 45 days after the end of each of the first three quarterly
periods of each fiscal year of the Borrower, the unaudited consolidated balance
sheet of the Borrower and its consolidated Subsidiaries as at the end of such
quarter and the related unaudited consolidated statements of income and of cash
flows for such quarter and the portion of the fiscal year through the end of
such quarter, setting forth in each case in comparative form the figures for
the previous year, certified by a Responsible Officer as being fairly stated in
all material respects (subject to normal year-end audit adjustments).

 

All such financial
statements shall present fairly, in all material respects, the financial
position of the Borrower and its Subsidiaries and shall be prepared in
reasonable detail and in accordance with GAAP applied (except as approved by
such accountants or officer, as the case may be, and disclosed in reasonable
detail therein) consistently throughout the periods reflected therein and with
prior periods.

 

6.2                                 Certificates;
Other Information.  The Borrower
shall furnish to the Administrative Agent (which shall in turn furnish to the
Lenders, or, in the case of clause (c), to the relevant Lender):

 

(a)                                  concurrently with the delivery of any
financial statements pursuant to Section 6.1, (i) a certificate of a
Responsible Officer stating that, to the best of such Responsible Officer’s
knowledge, during such period the Borrower has observed or performed all of its
covenants and other agreements, and satisfied every condition contained in this
Agreement and the other Loan Documents to which it is a party to be observed,
performed or satisfied by it, and that such Responsible Officer has obtained no
knowledge of any Default or Event of Default except as specified in such
certificate and (ii) a compliance certificate containing all information
and calculations necessary for determining compliance by the Borrower with the
provisions of

 

 

Section 7.1 of this Agreement as of the last day of the fiscal
quarter or fiscal year of the Borrower, as the case may be;

 

(b)                                 within five days after the same are sent,
copies of all financial statements and reports that the Borrower sends to the
holders of any class of its debt securities or public equity securities and,
within five days after the same are filed, copies of all reports on Forms 10-K,
10-Q and 8-K that the Borrower files with the SEC; and

 

(c)                                  promptly, such additional financial and
other information as any Lender may from time to time reasonably request
through the Administrative Agent.

 

6.3                                 Payment
of Obligations and Taxes.  The
Borrower shall and shall cause each of its Significant Subsidiaries to pay,
discharge or otherwise satisfy at or before maturity or before they become
delinquent, as the case may be, all its obligations (including, without
limitation, obligations with respect to taxes) of whatever nature which, if
unpaid, undischarged or otherwise unsatisfied are or might become a Lien or
other charge upon any properties of the Borrower or any Significant Subsidiary,
except that neither the Borrower nor any Subsidiary shall be required to pay,
discharge or otherwise satisfy any such obligation (a) whose amount,
applicability or validity is being contested in good faith by appropriate
proceedings and for which the Borrower or such Subsidiary has provided adequate
reserves in accordance with GAAP or (ii) where failure to pay, discharge
or otherwise satisfy such obligation could not, in the aggregate, reasonably be
expected to result in a Material Adverse Effect.

 

6.4                                 Maintenance
of Existence; Compliance.  The
Borrower shall and shall cause each of its Significant Subsidiaries:

 

(a) to preserve, renew and keep in full force and
effect its organizational existence, except as otherwise permitted by Section 7.3;

 

(b) to take all reasonable action to maintain all
rights, privileges and franchises necessary or desirable in the normal conduct
of its business, except (i) as otherwise permitted by Section 7.3 and
(ii) to the extent that failure to do so could not, in the aggregate,
reasonably be expected to have a Material Adverse Effect; and

 

(c) to comply with all Contractual Obligations
and Requirements of Law, except to the extent that failure to comply therewith
could not, in the aggregate, reasonably be expected to have a Material Adverse
Effect.

 

6.5                                 Maintenance
of Property; Insurance.  The Borrower
shall and shall cause each of its Significant Subsidiaries to (a) keep all
property useful and necessary in its business in good working order and
condition, ordinary wear and tear excepted and except where the failure to do
so could not, in the aggregate, reasonably be expected to result in a Material
Adverse Effect, and (b) maintain with financially sound and reputable
insurance companies insurance on its property in at least such amounts (subject
to deductibles and self-retention limits) and against at least such risks as
are usually insured against in the same general area by companies engaged in
the same or a similar business.

 

6.6                                 Inspection
of Property; Books and Records; Discussions.  The Borrower shall and shall cause each of
its Significant Subsidiaries to (a) keep proper books of records and
account in which full, true and correct entries in conformity with GAAP and all
Requirements of Law shall be made of all dealings and transactions in relation
to its business and activities and (b) from time to time during normal
business hours and on reasonable prior notice, permit representatives of any
Lender to visit and inspect any of its properties (subject to such physical security requirements as the Borrower or the

 

 

applicable Significant Subsidiary may
require) and examine and make abstracts from any of its books and
records (except to the extent that such
access is restricted by law or by a bona fide non-disclosure agreement not
entered into for the purpose of evading the requirements of this Section 6.6),
at any reasonable time and as often as may reasonably be desired and to
discuss the business, operations, properties and financial and other condition
of the Borrower and the Significant Subsidiaries with officers and employees of
the Borrower and the Significant Subsidiaries and with their independent
certified public accountants.

 

6.7                                 Notices.  Promptly after any officer of the Borrower
with responsibility for the matter in question becomes aware thereof, the
Borrower shall give notice to the Administrative Agent (which shall in turn
furnish such notice to the Lenders) of:

 

(a)                                  the occurrence of any Default or Event of
Default;

 

(b)                                 any (i) default or event of default
under any Contractual Obligation of the Borrower or any Significant Subsidiary
or (ii) litigation, investigation or proceeding that may exist at any time
between the Borrower or any Significant Subsidiary, on the one hand, and any
Governmental Authority, on the other hand, that in either case, if not cured
could reasonably be expected to have a Material Adverse Effect;

 

(c)                                  (i) the occurrence of any Reportable
Event with respect to any Plan, a failure to make any required contribution to
a Plan, the creation of any Lien in favor of the PBGC or a Plan or any
withdrawal from, or the termination, Reorganization or Insolvency of, any
Multiemployer Plan or (ii) the institution of proceedings or the taking of
any other action by the PBGC or the Borrower or any Commonly Controlled Entity
or any Multiemployer Plan with respect to the withdrawal from, or the
termination, Reorganization or Insolvency of, any Plan, which in any case could
reasonably be expected to have a Material Adverse Effect; and

 

(d)                                 any development or event that has had or
could reasonably be expected to have a Material Adverse Effect.

 

Each notice pursuant to this
Section 6.7 shall be accompanied by a statement of a Responsible Officer
setting forth details of the occurrence referred to therein and stating what
action the Borrower or such Significant Subsidiary proposes to take with
respect thereto.

 

6.8                                 Environmental
Laws. The Borrower shall and shall cause each of its Significant
Subsidiaries to:

 

(a) except to
the extent that failure to do so could not, in the aggregate, reasonably be
expected to have a Material Adverse Effect, comply with, and ensure compliance
by all tenants and subtenants, if any, with, all applicable Environmental Laws,
and obtain and comply with and maintain, and ensure that all tenants and
subtenants, if any, obtain and comply with and maintain, any and all licenses,
approvals, notifications, registrations or permits required by applicable
Environmental Laws; and

 

(b) except
to the extent that failure to do so could not, in the aggregate, reasonably be
expected to have a Material Adverse Effect, conduct and complete all
investigations, studies, sampling and testing, and all remedial, removal and
other actions required under Environmental Laws and promptly comply in all
material respects with all lawful orders and directives of all Governmental
Authorities regarding Environmental Laws.

 

 

 

6.9                                 Ownership
of Significant Subsidiaries. Except as permitted by Section 6.11 or
7.3, the Borrower shall at all times, directly or indirectly own, beneficially
and of record, 100% of each class of issued and outstanding common stock of
each Significant Subsidiary.

 

6.10                           Scope
of Business.  The Borrower shall, and
shall cause each Significant Subsidiary to, engage only in energy-related
businesses, functionally related businesses (as interpreted under PUHCA) or
such other businesses as may be permitted pursuant to an order issued by the
SEC pursuant to PUHCA.

 

6.11                           Significant
Subsidiaries.  So long as no Default
or Event of Default then exists or arises as a result thereof, the Borrower may
from time to time by written notice delivered to the Administrative Agent:

 

(a) designate any Subsidiary as a
Significant Subsidiary; and

 

(b) with respect to any Designated
Significant Subsidiary, revoke its designation as a Significant Subsidiary; provided
that the assets of such Designated Significant Subsidiary could have been disposed of pursuant to the
provisions of Section 7.4 if such transaction were treated as a
Disposition of the assets of such Designated Significant Subsidiary.

 

SECTION 7.                                NEGATIVE COVENANTS

 

The Borrower hereby agrees
that, so long as the Revolving Commitments remain in effect, any Letter of
Credit remains outstanding or any Revolving Loan or other amount is owing to
any Lender or the Administrative Agent hereunder:

 

7.1                                 Ratio
of Funded Debt to Total Capital.  The
Borrower shall not permit the ratio of Funded Debt of the Borrower and its
Subsidiaries on a consolidated basis to Total Capital as at the last day of any
fiscal quarter of the Borrower to exceed 0.65 to 1.00.

 

7.2                                 Liens.  The Borrower shall not, and shall not permit
any of its Significant Subsidiaries to, directly or indirectly, create, incur,
assume or suffer to exist any Lien upon any of its property, whether now owned
or hereafter acquired, except for Permitted Liens.

 

7.3                                 Fundamental
Changes.  The Borrower shall not, and
shall not permit any of its Significant Subsidiaries to, directly or
indirectly, merge or consolidate with any Person, except that, if after giving
effect thereto no Default or Event of Default would exist, this Section 7.3
shall not apply to (a) any merger or consolidation of the Borrower with
any one or more Persons so long as (i) the successor entity (if other than
the Borrower) assumes, in form reasonably satisfactory to the Administrative
Agent, all of the obligations of the Borrower under this Agreement, (ii) the
successor (whether or not the Borrower) has a debt rating issued (and confirmed
after giving effect to such merger or consolidation) by S&P and Moody’s of
at least BBB- and Baa3, in each case with a stable outlook and (iii) the
successor (whether or not the Borrower) is a “public utility company” (as
defined in PUHCA), (b) any merger or consolidation of a Significant
Subsidiary with another Subsidiary, provided that the continuing Person
shall be a Significant Subsidiary, and (c) any
merger or consolidation of a Significant Subsidiary with another Person if
after giving effect thereto the survivor is no longer a Significant Subsidiary
and the assets of such Significant Subsidiary could have been Disposed of
pursuant to the provisions of Section 7.4 if such transaction were treated
as a Disposition of the assets of such Significant Subsidiary.  In
the event of any merger or consolidation of or by the Borrower in which the Borrower is not the surviving
entity, the surviving entity of
such merger or consolidation shall deliver to the Administrative Agent for the benefit of the Lenders all
information reasonably necessary to comply with the identification requirements
of the Act (as defined in Section 10.17).

 

 

7.4                                 Disposition
of Property.  The Borrower shall not,
and shall not permit any of its Significant Subsidiaries to, directly or
indirectly, Dispose of any of its property, whether now owned or hereafter
acquired, except:

 

(a)                                  any Disposition of any asset or any
interest therein in the ordinary course of business;

 

(b)                                 any Disposition of any obsolete or
retired property not used or useful in its business;

 

(c)                                  any Disposition of any asset or any
interest therein to the Borrower or a Significant Subsidiary;

 

(d)                                 Dispositions of
assets to the extent that the net proceeds thereof are invested or re-invested,
or held as cash or cash equivalents for reinvestment, in each case in other
energy-related assets of the Borrower or any Significant Subsidiary;

 

(e)                                  the transfer of operational control of
transmission assets by the Borrower or any Significant Subsidiary to a regional
transmission organization, independent system operator or independent
transmission company approved by or required by the FERC pursuant to a FERC
order; and

 

(f)                                    any Disposition of any asset or any
interest therein the book value of which, together with the book value of any
other assets and interests therein Disposed of by the Borrower and the
Significant Subsidiaries during the twelve-month period ending with the month
during which such Disposition occurs, other than Dispositions to which this Section 7.4
does not otherwise apply by virtue of clauses (a), (b), (c), (d) or (e) hereof,
represents less than 10% of the consolidated total assets of the Borrower and
its Subsidiaries, as reflected on the financial statements most recently
delivered pursuant to Section 6.1(a) or (b) prior to such
Disposition, provided that the book value of all assets and interests
Disposed of before the Revolving Termination Date pursuant to this clause (f) shall
not exceed 30% of the consolidated total assets of the Borrower and its
Subsidiaries, as reflected on the financial statements most recently delivered
pursuant to Section 6.1(a) or (b) prior to such Disposition.

 

7.5                                 Transactions
with Affiliates.  The Borrower shall
not, and shall not permit any of its Significant Subsidiaries to, directly or
indirectly, enter into any transaction with any Affiliate (other than the
Borrower or any Significant Subsidiary) unless such transaction is upon fair
and reasonable terms no less favorable to the Borrower or such Significant
Subsidiary than it would obtain in a comparable arm’s length transaction with a
Person that is not an Affiliate; provided, however, that this Section 7.5
shall not prohibit (a) any transaction subject to the jurisdiction of the
FERC, the SEC or any applicable state regulatory commission or (b) any
allocation of taxes, tax benefits and tax credits required by PUHCA.

 

7.6                                 Swap
Agreements.  The Borrower shall not, and shall not permit any of its
Significant Subsidiaries to, directly or indirectly, enter into any Swap
Agreement, except (a) Swap Agreements entered into to hedge or mitigate
risks to which the Borrower or any Significant Subsidiary has actual exposure
or in respect of an anticipated transaction and (b) Swap Agreements
entered into in order to effectively cap, collar or exchange interest rates
(from fixed to floating rates, from one floating rate to another floating rate
or otherwise) with respect to any interest-bearing liability or investment of
the Borrower or any Significant Subsidiary.

 

 

7.7                                 Clauses
Restricting Subsidiary Distributions. 
The Borrower shall not, and shall not permit any of its Significant
Subsidiaries to, directly or indirectly, enter into or suffer to exist or
become effective (including by way of amendment, supplement or other
modification of an agreement existing on the Closing Date) any consensual
encumbrance or restriction on the ability of any Significant Subsidiary of the
Borrower to make payments, directly or indirectly, to its shareholders by way
of dividends, repayment of loans or intercompany charges, or other returns on
investments that is more restrictive than any such encumbrance or restriction
applicable to such Significant Subsidiary on the Closing Date; provided
that this Section 7.7 shall not apply to (a) limitations or
restrictions imposed by law or in regulatory proceedings or (b) financial
covenants contained in any agreement or indenture requiring compliance with
financial tests or ratios, so long as such financial covenants could not
reasonably be expected to impair the Borrower’s ability to repay the
Obligations as and when due.

 

SECTION 8.                                EVENTS OF DEFAULT

 

If any of the following
events shall occur and be continuing:

 

(a)                                  the Borrower shall fail to pay any
principal of any Revolving Loan or Reimbursement Obligation when due in
accordance with the terms hereof; or the Borrower shall fail to pay any
interest on any Revolving Loan or Reimbursement Obligation, or any other amount
payable hereunder or under any other Loan Document, within five days after any
such interest or other amount becomes due in accordance with the terms hereof;
or

 

(b)                                 any representation or warranty made or
deemed made by the Borrower herein or in any other Loan Document or that is
contained in any certificate, document or financial or other statement
furnished by it at any time under or in connection with this Agreement or any
such other Loan Document shall prove to have been inaccurate in any material
respect on or as of the date made or deemed made; or

 

(c)                                  the Borrower shall default in the
observance or performance of any agreement contained in Section 6.4(a) (with
respect to the Borrower only), Section 6.7(a) or Section 7 of
this Agreement; or

 

(d)                                 the Borrower shall default in the
observance or performance of any other agreement contained in this Agreement or
any other Loan Document (other than as provided in paragraphs (a) through (c) of
this Section), and such default shall continue unremedied for a period of 30
days after notice to the Borrower from the Administrative Agent or the Required
Lenders; or

 

(e)                                  any event or condition occurs that
results in any Material Indebtedness becoming due prior to its scheduled
maturity or that enables or permits the holder or holders of any Material
Indebtedness or any trustee or agent on its or their behalf to cause any
Material Indebtedness to become due, or to require the prepayment, repurchase,
redemption or defeasance thereof, prior to its scheduled maturity; provided
that this clause (e) shall not apply to secured Indebtedness that
becomes due as a result of the voluntary sale or transfer of the property or
assets securing such Indebtedness; or

 

(f)                                    (i) the Borrower or any Significant
Subsidiary shall commence any case, proceeding or other action (A) under
any existing or future law of any jurisdiction, domestic or foreign, relating
to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have
an order for relief entered with respect to it, or seeking to adjudicate it a
bankrupt or insolvent, or seeking reorganization, arrangement, adjustment,
winding-up, liquidation, dissolution, composition or other relief with respect
to it or its debts, or (B) seeking appointment of a receiver, trustee,

 

 

custodian, conservator or other similar official for it or for all or
any substantial part of its assets, or the Borrower or any Significant
Subsidiary shall make a general assignment for the benefit of its creditors; or
(ii) there shall be commenced against the Borrower or any Significant
Subsidiary any case, proceeding or other action of a nature referred to in
clause (i) above that (A) results in the entry of an order for relief
or any such adjudication or appointment or (B) remains undismissed or
undischarged for a period of 60 days; or (iii) there shall be commenced
against the Borrower or any Significant Subsidiary any case, proceeding or
other action seeking issuance of a warrant of attachment, execution, distraint
or similar process against all or any substantial part of its assets that
results in the entry of an order for any such relief that shall not have been
vacated, discharged, or stayed or bonded pending appeal within 60 days from the
entry thereof; or (iv) the Borrower or any Significant Subsidiary shall
take any corporate action in furtherance of, or indicating its consent to,
approval of, or acquiescence in, any of the acts set forth in clause (i), (ii),
or (iii) above; or (v) the Borrower or any Significant Subsidiary
shall generally not, or shall be unable to, or shall admit in writing its
inability to, pay its debts as they become due; or

 

(g)                                 (i) any Person shall engage in any
non-exempt “prohibited transaction” (as defined in Section 406 of ERISA or
Section 4975 of the Code) involving any Plan, (ii) any “accumulated
funding deficiency” (as defined in Section 302 of ERISA), whether or not
waived, shall exist with respect to any Plan subject to Section 412 of the
Code or Section 302 of ERISA or any Lien in favor of the PBGC or a Plan
shall arise on the assets of any Commonly Controlled Entity, (iii) a
Reportable Event shall occur with respect to, or proceedings shall commence to
have a trustee appointed, or a trustee shall be appointed, to administer or to
terminate, any Single Employer Plan, which Reportable Event or commencement of
proceedings or appointment of a trustee is, in the reasonable opinion of the
Required Lenders, likely to result in the termination of such Plan for purposes
of Title IV of ERISA, (iv) any Single Employer Plan shall terminate for
purposes of Title IV of ERISA, (v) in connection with a withdrawal from,
or the Insolvency or Reorganization of, a Multiemployer Plan, any Commonly
Controlled Entity shall, or is reasonably likely to, incur any unpaid liability
or (vi) any other similar event or condition shall occur or exist with
respect to a Plan; and in each case in clauses (i) through (vi) above,
such event or condition, together with all other such events or conditions, if
any, could reasonably be expected to have a Material Adverse Effect; or

 

(h)                                 one or more judgments or decrees shall be
entered against the Borrower or any Significant Subsidiary involving in the
aggregate a liability (not paid or fully covered by insurance as to which the
relevant insurance company has acknowledged coverage) of $50,000,000 or more, and
such judgments or decrees shall not have been vacated, discharged, stayed or
bonded pending appeal within 30 days from the entry thereof; or

 

(i)                                     a Change in Control shall occur;

 

then, and in any such event,
(A) if such event is an Event of Default specified in paragraph (f) above,
automatically the Revolving Commitments shall immediately terminate and the
Revolving Loans (with accrued interest thereon) and all other amounts owing
under this Agreement and the other Loan Documents shall immediately become due
and payable, and (B) if such event is any other Event of Default, either
or both of the following actions may be taken: 
(i) with the consent of the Required Lenders, the Administrative
Agent may, or upon the request of the Required Lenders, the Administrative
Agent shall, by notice to the Borrower declare the Revolving Commitments to be
terminated forthwith, whereupon the Revolving Commitments shall immediately
terminate; and (ii) with the consent of the Required Lenders, the
Administrative Agent may, or upon the request of the Required Lenders, the
Administrative Agent shall, by notice to the Borrower, declare the Revolving
Loans (with accrued interest thereon) and all other amounts owing under this
Agreement and the other Loan Documents to be due and

 

 

payable forthwith, whereupon
the same shall immediately become due and payable.  With respect to all Letters of Credit with
respect to which presentment for honor shall not have occurred at the time of
an acceleration pursuant to this paragraph, the Borrower shall at such time
deposit in a cash collateral account opened by the Administrative Agent an
amount equal to the aggregate then undrawn and unexpired amount of such Letters
of Credit.  Amounts held in such cash
collateral account shall be applied by the Administrative Agent to the payment
of drafts drawn under such Letters of Credit. 
During the continuance of an Event of Default, the Administrative Agent
may, or upon the request of the Required Lenders shall, apply any Excess
Balance (as defined below) to repay the Obligations.  If all Obligations (other than L/C
Obligations in respect of undrawn Letters of Credit) have been paid in full,
the Excess Balance shall be returned to the Borrower (or such other Person as
may be lawfully entitled thereto).  If no
Event of Default is then continuing, the Administrative Agent shall return to
the Borrower the balance in the cash collateral account.  For purposes hereof, “Excess Balance” means
the amount by which the balance in the cash collateral account exceeds the
undrawn and unexpired amount of the Letters of Credit.  Except as expressly provided above in this
Section, presentment, demand, protest and all other notices of any kind are
hereby expressly waived by the Borrower.

 

SECTION 9.                                THE AGENTS

 

9.1                                 Appointment.  Each Lender hereby irrevocably designates and
appoints the Administrative Agent as the agent of such Lender under this
Agreement and the other Loan Documents, and each such Lender irrevocably
authorizes the Administrative Agent, in such capacity, to take such action on
its behalf under the provisions of this Agreement and the other Loan Documents
and to exercise such powers and perform such duties as are expressly delegated
to the Administrative Agent by the terms of this Agreement and the other Loan
Documents, together with such other powers as are reasonably incidental
thereto.   Notwithstanding any provision
to the contrary elsewhere in this Agreement, the Administrative Agent shall not
have any duties or responsibilities, except those expressly set forth herein,
or any fiduciary relationship with any Lender, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read
into this Agreement or any other Loan Document or otherwise exist against the
Administrative Agent.

 

9.2                                 Delegation
of Duties.  The Administrative Agent
may execute any of its duties under this Agreement and the other Loan Documents
by or through agents or attorneys-in-fact and shall be entitled to advice of
counsel concerning all matters pertaining to such duties.  The Administrative Agent shall not be
responsible for the negligence or misconduct of any agents or attorneys in-fact
selected by it with reasonable care.

 

9.3                                 Exculpatory
Provisions.  Neither any Agent nor
any of their respective officers, directors, employees, agents, attorneys-in-fact
or affiliates shall be (i) liable for any action lawfully taken or omitted
to be taken by it or such Person under or in connection with this Agreement or
any other Loan Document (except to the extent that any of the foregoing are
found by a final and nonappealable decision of a court of competent
jurisdiction to have resulted from its or such Person’s own gross negligence or
willful misconduct) or (ii) responsible in any manner to any of the Lenders
for any recitals, statements, representations or warranties made by the
Borrower or any officer thereof contained in this Agreement or any other Loan
Document or in any certificate, report, statement or other document referred to
or provided for in, or received by the Agents under or in connection with, this
Agreement or any other Loan Document or for the value, validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement or any other Loan
Document or for any failure of the Borrower to perform its obligations
hereunder or thereunder.  The Agents
shall not be under any obligation to any Lender to ascertain or to inquire as
to the observance or performance of any of the agreements contained in, or
conditions of, this Agreement or any other Loan Document, or to inspect the
properties, books or records of the Borrower. 
Neither any Agent nor any of their respective officers, directors,
employees, agents, attorneys-in-fact or affiliates shall, except as expressly
set forth herein and in the other Loan Documents, have any duty to

 

 

disclose, and shall not be liable for the failure to disclose, any
information relating to the Borrower or any of its Affiliates that is
communicated to or obtained by the Person serving as an Agent or any of its
Affiliates in any capacity.

 

9.4                                 Reliance
by Administrative Agent.  The
Administrative Agent shall be entitled to rely, and shall be fully protected in
relying, upon any instrument, writing, resolution, notice, consent,
certificate, affidavit, letter, telecopy, telex or teletype message, statement,
order or other document or conversation believed by it to be genuine and
correct and to have been signed, sent or made by the proper Person or Persons
and upon advice and statements of legal counsel (including counsel to the
Borrower), independent accountants and other experts selected by the
Administrative Agent.  The Administrative
Agent may deem and treat the payee of any Note as the owner thereof for all
purposes unless such Note has been assigned in accordance with the provisions
of Section 10.6 hereof.  The
Administrative Agent shall be fully justified in failing or refusing to take
any action under this Agreement or any other Loan Document unless it shall
first receive such advice or concurrence of the Required Lenders (or, if so
specified by this Agreement, all Lenders) as it deems appropriate or it shall
first be indemnified to its satisfaction by the Lenders against any and all
liability and expense that may be incurred by it by reason of taking or continuing
to take any such action.  The
Administrative Agent shall in all cases be fully protected in acting, or in
refraining from acting, under this Agreement and the other Loan Documents in
accordance with a request of the Required Lenders (or, if so specified by this
Agreement, all Lenders), and such request and any action taken or failure to
act pursuant thereto shall be binding upon all the Lenders and all future
holders of the Revolving Loans.

 

9.5                                 Notice
of Default.  The Administrative Agent
shall not be deemed to have knowledge or notice of the occurrence of any
Default or Event of Default unless the Administrative Agent has received notice
from a Lender or the Borrower referring to this Agreement, describing such
Default or Event of Default and stating that such notice is a “notice of
default”.  In the event that the
Administrative Agent receives such a notice, the Administrative Agent shall
give notice thereof to the Lenders.  The
Administrative Agent shall take such action with respect to such Default or
Event of Default as shall be reasonably directed by the Required Lenders (or,
if so specified by this Agreement, all Lenders); provided that unless
and until the Administrative Agent shall have received such directions, the
Administrative Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Default or Event of
Default as it shall deem advisable in the best interests of the Lenders.

 

9.6                                 Non-Reliance
on Agents and Other Lenders.  Each
Lender expressly acknowledges that neither the Agents nor any of their
respective officers, directors, employees, agents, attorneys-in-fact or
affiliates have made any representations or warranties to it and that no act by
any Agent hereafter taken, including any review of the affairs of the Borrower
or any affiliate of the Borrower, shall be deemed to constitute any
representation or warranty by any Agent to any Lender.  Each Lender represents to the Agents that it
has, independently and without reliance upon any Agent or any other Lender, and
based on such documents and information as it has deemed appropriate, made its
own appraisal of and investigation into the business, operations, property,
financial and other condition and creditworthiness of the Borrower and its
affiliates and made its own decision to make its Revolving Loans hereunder and
enter into this Agreement.  Each Lender
also represents that it will, independently and without reliance upon any Agent
or any other Lender, and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit analysis,
appraisals and decisions in taking or not taking action under this Agreement
and the other Loan Documents, and to make such investigation as it deems necessary
to inform itself as to the business, operations, property, financial and other
condition and creditworthiness of the Borrower and its affiliates.  Except for notices, reports and other
documents expressly required to be furnished to the Lenders by the
Administrative Agent hereunder, the Administrative Agent shall not have any
duty or responsibility to provide any Lender with any credit or other
information concerning the business, operations, property, condition (financial
or

 

 

otherwise), prospects or creditworthiness of the Borrower or any
affiliate of the Borrower that may come into the possession of the
Administrative Agent or any of its officers, directors, employees, agents,
attorneys-in-fact or affiliates.

 

9.7                                 Indemnification.  The Lenders agree to indemnify each Agent in
its capacity as such (to the extent not reimbursed by the Borrower and without
limiting the obligation of the Borrower to do so), ratably according to their
respective Aggregate Exposure Percentages in effect on the date on which
indemnification is sought under this Section (or, if indemnification is
sought after the date upon which the Revolving Commitments shall have
terminated and the Revolving Loans shall have been paid in full, ratably in
accordance with such Aggregate Exposure Percentages immediately prior to such
date), from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind whatsoever that may at any time (whether before or after the payment of
the Revolving Loans) be imposed on, incurred by or asserted against such Agent
in any way relating to or arising out of, the Revolving Commitments, this
Agreement, any of the other Loan Documents or any documents contemplated by or referred
to herein or therein or the transactions contemplated hereby or thereby or any
action taken or omitted by such Agent under or in connection with any of the
foregoing; provided that no Lender shall be liable for the payment of
any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements that are found by a
final and nonappealable decision of a court of competent jurisdiction to have
resulted from such Agent’s gross negligence or willful misconduct.  The agreements in this Section shall
survive the payment of the Revolving Loans and all other amounts payable
hereunder.

 

9.8                                 Agent
in Its Individual Capacity.  Each
Agent and its affiliates may make loans to, accept deposits from and generally
engage in any kind of business with the Borrower as though such Agent were not
an Agent.  With respect to its Revolving
Loans made or renewed by it and with respect to any Letter of Credit issued or
participated in by it, each Agent shall have the same rights and powers under
this Agreement and the other Loan Documents as any Lender and may exercise the
same as though it were not an Agent, and the terms “Lender” and “Lenders” shall
include each Agent in its individual capacity.

 

9.9                                 Successor
Administrative Agent.  The
Administrative Agent may resign as Administrative Agent upon 10 days’ notice to
the Lenders and the Borrower.  If the
Administrative Agent shall resign as Administrative Agent under this Agreement
and the other Loan Documents, then the Required Lenders shall appoint from
among the Lenders a successor agent for the Lenders, which successor agent
shall (unless an Event of Default under Section 8(a) or Section 8(f) with
respect to the Borrower shall have occurred and be continuing) be subject to
approval by the Borrower (which approval shall not be unreasonably withheld or
delayed), whereupon such successor agent shall succeed to the rights, powers
and duties of the Administrative Agent, and the term “Administrative Agent”
shall mean such successor agent effective upon such appointment and approval,
and the former Administrative Agent’s rights, powers and duties as
Administrative Agent shall be terminated, without any other or further act or
deed on the part of such former Administrative Agent or any of the parties to
this Agreement or any holders of the Revolving Loans.  If no successor agent has accepted
appointment as Administrative Agent by the date that is 10 days following a
retiring Administrative Agent’s notice of resignation, the retiring
Administrative Agent’s resignation shall nevertheless thereupon become
effective, and the Lenders shall assume and perform all of the duties of the
Administrative Agent hereunder until such time, if any, as the Required Lenders
appoint a successor agent as provided for above.  After any retiring Administrative Agent’s
resignation as Administrative Agent, the provisions of this Section 9
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Administrative Agent under this Agreement and the other Loan
Documents.

 

 

9.10                           Documentation
Agents and Syndication Agents. 
Neither any Documentation Agent nor any Syndication Agent shall have any
duties or responsibilities hereunder in its capacity as such.

 

SECTION 10.                          MISCELLANEOUS

 

10.1                           Amendments
and Waivers.  Neither this Agreement,
any other Loan Document, nor any terms hereof or thereof may be amended,
supplemented or modified except in accordance with the provisions of this Section 10.1.  The Required Lenders and the Borrower may,
or, with the written consent of the Required Lenders, the Administrative Agent
and the Borrower may, from time to time, (a) enter into written
amendments, supplements or modifications hereto and to the other Loan Documents
for the purpose of adding any provisions to this Agreement or the other Loan
Documents or changing in any manner the rights of the Lenders or of the
Borrower hereunder or thereunder or (b) waive, on such terms and
conditions as the Required Lenders or the Administrative Agent, as the case may
be, may specify in such instrument, any of the requirements of this Agreement
or the other Loan Documents or any Default or Event of Default and its
consequences; provided, however, that no such waiver and no such
amendment, supplement or modification shall (i) except as set forth in Section 2.17,
forgive the principal amount or extend the final scheduled date of maturity of
any Revolving Loan or Reimbursement Obligation, reduce the stated rate of any
interest or fee payable hereunder (except in connection with the waiver of
applicability of any post-default increase in interest rates (which waiver
shall be effective with the consent of the Required Lenders)) or extend the
scheduled date of any payment thereof, or increase the amount or extend the
expiration date of any Lender’s Revolving Commitment, in each case without the
written consent of each Lender directly affected thereby; (ii) eliminate
or reduce the voting rights of any Lender under this Section 10.1 without
the written consent of such Lender; (iii) reduce any percentage specified
in the definition of Required Lenders or consent to the assignment or transfer
by the Borrower of any of its rights and obligations under this Agreement and
the other Loan Documents, in each case without the written consent of all
Lenders; (iv) amend, modify or waive any provision of Section 2.11(a) or
Section 2.11(b) without the written consent of each Lender directly
affected thereby, (v) amend, modify or waive any provision of Section 9
without the written consent of the Administrative Agent; or (vi) amend,
modify or waive any provision of Section 3 without the written consent of
each Issuing Lender.  Notwithstanding
anything contained in this Section 10.1, the affirmative vote of Lenders
holding at least 66-2/3% of the Total Revolving Commitments then in
effect (or, if the Revolving Commitments have been terminated, the Total
Revolving Extensions of Credit then outstanding) shall be required to amend,
modify or waive any provision of Section 2.17; provided that the
Revolving Termination Date with respect to any Lender may not be extended with
respect to such Lender without its written consent.  Any such waiver and any such amendment,
supplement or modification shall apply equally to each of the Lenders and shall
be binding upon the Borrower, the Lenders, the Administrative Agent and all
future holders of the Revolving Loans. 
In the case of any waiver, the Borrower, the Lenders and the
Administrative Agent shall be restored to their former position and rights
hereunder and under the other Loan Documents, and any Default or Event of
Default waived shall be deemed to be cured and not continuing; but no such
waiver, except to the extent expressly provided therein, shall extend to any
subsequent or other Default or Event of Default, or impair any right consequent
thereon.

 

10.2                           Notices.  All notices, requests and demands to or upon
the respective parties hereto to be effective shall be in writing (including by
electronic transmission or telecopy), and, unless otherwise expressly provided
herein, shall be deemed to have been duly given or made when delivered, or
three Business Days after being deposited in the mail, postage prepaid, or, in
the case of telecopy notice, when received, addressed as follows in the case of
the Borrower and the Administrative Agent, and as set forth in an
administrative questionnaire delivered to the Administrative Agent in the case
of the Lenders, or to such other address as may be hereafter notified by the
respective parties hereto:

 

 

	
  Borrower:

  	
   

  	
  800 Nicollet Mall

  
	
   

  	
   

  	
  Minneapolis, MN 55402

  
	
   

  	
   

  	
  Attention: Treasurer

  
	
   

  	
   

  	
  Telecopy: 612-215-5311

  
	
   

  	
   

  	
  Telephone: 612-215-4627

  
	
   

  	
   

  	
   

  
	
  Administrative Agent:

  	
   

  	
  c/o Loan and Agency Services Group

  
	
   

  	
   

  	
  1111 Fannin, 10th Floor

  
	
   

  	
   

  	
  Houston, TX 77002

  
	
   

  	
   

  	
  Attention: Jamie Garcia

  
	
   

  	
   

  	
  Telecopy: 713-427-6307

  
	
   

  	
   

  	
  Telephone: 713-750-2377

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  JPMorgan Chase Bank, N.A.

  
	
   

  	
   

  	
  270 Park Avenue, 4th Floor

  
	
   

  	
   

  	
  New York, NY 10017

  
	
   

  	
   

  	
  Attention: Peter Ling

  
	
   

  	
   

  	
  Telecopy: 212-270-0213

  
	
   

  	
   

  	
  Telephone: 212-270-4676

  
	
   

  	
   

  	
   

  
	
  and, if regarding Letters

  of Credit, with a copy to:

  	
   

  	
  JPMorgan Chase LOC Tampa

  
	
   

  	
   

  	
  10420 Highland Mn Dr

  
	
   

  	
   

  	
  Block 2, Floor 4

  
	
   

  	
   

  	
  Tampa, FL 33610

  
	
   

  	
   

  	
  Attention: James Alonzo

  
	
   

  	
   

  	
  Telecopy: 813-432-5161

  
	
   

  	
   

  	
  Telephone: 813-432-6339

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  And if to any other Issuing Lender, at its address for notice in its
  Issuing Lender Agreement.

  	
   

  

 

; provided that any
notice, request or demand to or upon the Administrative Agent or the Lenders
shall not be effective until received.

 

Unless
and until the Administrative Agent is notified in writing by the Borrower to
the contrary, the Borrower hereby authorizes the Administrative Agent to rely
on any notices in respect of the making, extension, conversion or continuation
of Revolving Loans and the Types of Revolving Loans and the Interest Periods
applicable to Eurodollar Loans given by any Responsible Officer or any designee
of a Responsible Officer of which the Administrative Agent is notified in
writing.  Notices by the Borrower in
respect of the making, extension, conversion or continuation of Revolving Loans
and the Types of Revolving Loans and the Interest Periods applicable to
Eurodollar Loans may be given telephonically, and the Borrower agrees that the
Administrative Agent may rely on any such notices made by any person or persons
which the Administrative Agent in good faith believes to be acting on behalf of
the Borrower.  The Borrower agrees to
deliver promptly to the Administrative Agent a written confirmation of any
telephonic notice, if such confirmation is requested by the Administrative
Agent.  Notices and other communications
to the Lenders hereunder may be delivered or furnished by electronic
communications pursuant to procedures approved by the Administrative Agent; provided
that the foregoing shall not apply to notices pursuant to Section 2 unless
otherwise agreed by the Administrative Agent and the applicable Lender.  The Administrative Agent or the 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.

 

 

Information required to be delivered pursuant to
Sections 6.1 and 6.2(b) shall be deemed to have been delivered on the date
on which the Borrower provides notice to the Administrative Agent (which notice
the Administrative Agent shall promptly provide to the Lenders) that such
information has been posted on the SEC website on the Internet at
sec.gov/edaux/searches.htm, on the Borrower’s IntraLinks site at intralinks.com
or at another website identified in such notice and accessible by the Lenders
without charge.

 

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

 

10.4                           Survival
of Representations and Warranties. 
All representations and warranties made hereunder, in the other Loan
Documents and in any document, certificate or statement delivered pursuant
hereto or in connection herewith shall survive the execution and delivery of
this Agreement and the making of the Revolving Loans and other extensions of
credit hereunder.

 

10.5                           Payment
of Expenses and Taxes.  The Borrower
agrees (a) to pay or reimburse the Administrative Agent for all its out-of-pocket
costs and expenses incurred in connection with the development, preparation and
execution of, and any amendment, supplement or modification to, this Agreement
and the other Loan Documents and any other documents prepared in connection
herewith or therewith, and the consummation and administration of the
transactions contemplated hereby and thereby, including the reasonable fees and
disbursements of counsel to the Administrative Agent and filing and recording
fees and expenses, with statements with respect to the foregoing to be
submitted to the Borrower prior to the Closing Date (in the case of amounts to
be paid on the Closing Date) and from time to time thereafter on a quarterly
basis or such other periodic basis as the Administrative Agent shall deem
appropriate, (b) to pay or reimburse each Lender and the Administrative
Agent for all its costs and expenses incurred in connection with the
enforcement or preservation of any rights under this Agreement, the other Loan
Documents and any such other documents, including the reasonable fees and
disbursements of counsel (including the allocated fees and expenses of in-house
counsel) to each Lender and of counsel to the Administrative Agent, (c) to
pay, indemnify, and hold each Lender and the Administrative Agent harmless
from, any and all recording and filing fees and any and all liabilities with
respect to, or resulting from any delay in paying, stamp, excise and other
taxes, if any, that may be payable or determined to be payable in connection
with the execution and delivery of, or consummation or administration of any of
the transactions contemplated by, or any amendment, supplement or modification
of, or any waiver or consent under or in respect of, this Agreement, the other
Loan Documents and any such other documents, and (d) to pay, indemnify,
and hold each Lender and the Administrative Agent and their respective
officers, directors, employees, affiliates, agents and controlling persons
(each, an “Indemnitee”) harmless from and against any and all other
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever with
respect to the execution, delivery, enforcement, performance and administration
of this Agreement, the other Loan Documents and any such other documents,
including any of the foregoing relating to the use of proceeds of the Revolving
Loans or the violation of, noncompliance with or liability under, any
Environmental Law applicable to the operations of the Borrower or any of its
Subsidiaries or any of their properties and the reasonable fees and expenses of
legal counsel in connection with claims, actions or proceedings by any
Indemnitee against the Borrower under any Loan Document (all the foregoing in
this clause (d), collectively, the “Indemnified Liabilities”), provided,
that the Borrower shall have no obligation hereunder to any Indemnitee with
respect to Indemnified Liabilities to

 

 

the extent such Indemnified Liabilities resulted from the gross
negligence or willful misconduct of such Indemnitee.  Without limiting the foregoing, and to the
extent permitted by applicable law, the Borrower agrees not to assert and to
cause its Subsidiaries not to assert, and hereby waives and agrees to cause its
Subsidiaries to waive, all rights for contribution or any other rights of
recovery with respect to all claims, demands, penalties, fines, liabilities,
settlements, damages, costs and expenses of whatever kind or nature, under or
related to Environmental Laws, that any of them might have by statute or
otherwise against any Indemnitee, except to the extent that such claims,
demands, penalties, fines, liabilities, settlements, damages, costs and
expenses have resulted from the gross negligence or willful misconduct of such
Indemnitee.  All amounts due under this Section 10.5
shall be payable not later than 10 days after written demand therefor.  Statements payable by the Borrower pursuant
to this Section 10.5 shall be submitted to the Borrower at the address of
the Borrower set forth in Section 10.2, or to such other Person or address
as may be hereafter designated by the Borrower in a written notice to the
Administrative Agent.  The agreements in
this Section 10.5 shall survive repayment of the Revolving Loans and all
other amounts payable hereunder.

 

10.6                           Successors
and Assigns; Participations and Assignments.  (a)  The provisions of this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby (including any affiliate of
an Issuing Lender that issues any Letter of Credit), except that (i) the
Borrower may not assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Lender (and any attempted
assignment or transfer by the Borrower without such consent shall be null and
void) and (ii) no Lender may assign or otherwise transfer its rights or
obligations hereunder except in accordance with this Section.

 

(b)(i) 
Subject to the conditions set forth in paragraph (b)(ii) below, any Lender
may assign to one or more financial institutions or other entities (each, an “Assignee”)
all or a portion of its rights and obligations under this Agreement (including
all or a portion of its Revolving Commitments and the Revolving Loans at the
time owing to it) with the prior written consent of:

 

(A) the
Borrower (such consent not to be unreasonably withheld or delayed), provided
that no consent of the Borrower shall be required for an assignment to a Lender
or, if an Event of Default has occurred and is continuing, any other Person;
and

 

(B) the
Administrative Agent and each Issuing Lender.

 

(ii) Assignments
shall be subject to the following additional conditions:

 

(A) except
in the case of an assignment to a Lender or an affiliate of a Lender or an
assignment of the entire remaining amount of the assigning Lender’s Revolving
Commitments or Revolving Loans, the amount of the Revolving Commitments or
Revolving Loans of the assigning Lender subject to each such assignment (determined
as of the date the Assignment and Assumption with respect to such assignment is
delivered to the Administrative Agent) shall not be less than $5,000,000 unless
each of the Borrower, the Administrative Agent and each Issuing Lender
otherwise consent, provided that (1) no such consent of the
Borrower shall be required if an Event of Default has occurred and is
continuing and (2) such amounts shall be aggregated in respect of each
Lender and its affiliates, if any;

 

(B) the
parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation
fee of $3,500; and

 

(C) the
Assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an administrative questionnaire.

 

 

(iii) Subject to acceptance and
recording thereof pursuant to paragraph (b)(iv) below, from and after
the effective date specified in each Assignment and Assumption the Assignee
thereunder shall be a party hereto and, to the extent of the interest assigned
by such Assignment and Assumption, have the rights and obligations of a Lender
under this Agreement, and the assigning Lender thereunder shall, to the extent
of the interest assigned by such Assignment and Assumption, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under
this Agreement, such Lender shall cease to be a party hereto but shall continue
to be entitled to the benefits of Sections 2.12, 2.13, 2.14 and 10.5 in
respect of the period that it was a Lender). 
Any assignment or transfer by a Lender of rights or obligations under
this Agreement that does not comply with this Section 10.6 shall be
treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with paragraph (c) of
this Section.

 

(iv)  The Administrative Agent, acting
for this purpose as an agent of the Borrower, shall maintain at one of its
offices a copy of each Assignment and Assumption delivered to it and a register
for the recordation of the names and addresses of the Lenders, and the
Revolving Commitments of, and principal amount of the Revolving Loans and L/C
Obligations owing to, each Lender pursuant to the terms hereof from time to
time (the “Register”).  The
entries in the Register shall be conclusive, and the Borrower, the
Administrative Agent, the Issuing Lenders and the Lenders may treat each Person
whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the
contrary.

 

(v)  Upon its receipt of a duly
completed Assignment and Assumption executed by an assigning Lender and an
Assignee, the Assignee’s completed administrative questionnaire (unless the
Assignee shall already be a Lender hereunder), the processing and recordation
fee referred to in paragraph (b) of this Section and any written
consent to such assignment required by paragraph (b) of this Section, the
Administrative Agent shall accept such Assignment and Assumption and record the
information contained therein in the Register. 
No assignment shall be effective for purposes of this Agreement unless
it has been recorded in the Register as provided in this paragraph.

 

(c)(i)  Any Lender may, without the
consent of the Borrower or the Administrative Agent, sell participations to one
or more banks or other entities (a “Participant”) in all or a portion of
such Lender’s rights and obligations under this Agreement (including all or a
portion of its Revolving Commitments and the Revolving Loans owing to it); provided
that (A) such Lender’s obligations under this Agreement shall remain
unchanged, (B) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations and (C) the
Borrower, the Administrative Agent, each Issuing Lender and the other Lenders
shall continue to deal solely and directly with such Lender in connection with
such Lender’s rights and obligations under this Agreement.  Any agreement pursuant to which a Lender
sells such a participation shall provide that such Lender shall retain the sole
right to enforce this Agreement and to approve any amendment, modification or
waiver of any provision of this Agreement; provided that such agreement
may provide that such Lender will not, without the consent of the Participant,
agree to any amendment, modification or waiver that (1) requires the
consent of such Lender pursuant to the proviso to the second sentence of Section 10.1
and (2) directly affects such Participant. 
Subject to paragraph (c)(ii) of this Section, the Borrower agrees
that each Participant shall be entitled to the benefits of Sections 2.12, 2.13
and 2.14 to the same extent as if it were a Lender and had acquired its
interest by assignment pursuant to paragraph (b) of this Section.  To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 10.7(b) as
though it were a Lender, provided such Participant shall be subject to Section 10.7(a) as
though it were a Lender.

 

 

(ii)  A Participant shall not be
entitled to receive any greater payment under Section 2.12 or 2.13 than
the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Borrower’s prior written consent.  In addition, any Participant that is a
Non-U.S. Lender shall not be entitled to the benefits of Section 2.13
unless such Participant complies with Section 2.13(d).

 

(d)  Any Lender may at any time
pledge or assign a security interest in all or any portion of its rights under
this Agreement to secure obligations to a Federal Reserve Bank.

 

(e)  The
Borrower, upon receipt of written notice from the relevant Lender, agrees to
issue Notes to any Lender requiring Notes to facilitate transactions of the
type described in paragraph (d) above.

 

10.7                           Adjustments;
Set-off.  (a)  Except to the
extent that this Agreement expressly provides for payments to be allocated to a
particular Lender, if any Lender (a “Benefitted Lender”) shall, at any
time after the Revolving Loans and other amounts payable hereunder shall
immediately become due and payable pursuant to Section 8, receive any
payment of all or part of the Obligations owing to it, or receive any
collateral in respect thereof (whether voluntarily or involuntarily, by set-off,
pursuant to events or proceedings of the nature referred to in Section 8(f),
or otherwise), in a greater proportion than any such payment to or collateral
received by any other Lender, if any, in respect of the Obligations owing to
such other Lender, such Benefitted Lender shall purchase for cash from the
other Lenders a participating interest in such portion of the Obligations owing
to each such other Lender, or shall provide such other Lenders with the
benefits of any such collateral, as shall be necessary to cause such Benefitted
Lender to share the excess payment or benefits of such collateral ratably with
each of the Lenders; provided, however, that if all or any
portion of such excess payment or benefits is thereafter recovered from such
Benefitted Lender, such purchase shall be rescinded, and the purchase price and
benefits returned, to the extent of such recovery, but without interest.

 

(b)  In
addition to any rights and remedies of the Lenders provided by law, each Lender
shall have the right, without prior notice to the Borrower, any such notice
being expressly waived by the Borrower to the extent permitted by applicable
law, upon any amount becoming due and payable by the Borrower hereunder
(whether at the stated maturity, by acceleration or otherwise), to set off and
appropriate and apply against such amount any and all deposits (general or
special, time or demand, provisional or final), in any currency, and any other
credits, indebtedness or claims, in any currency, in each case whether direct
or indirect, absolute or contingent, matured or unmatured, at any time held or
owing by such Lender or any branch or agency or Affiliate thereof to or for the
credit or the account of the Borrower, as the case may be.  Each Lender agrees promptly to notify the
Borrower and the Administrative Agent after any such setoff and application
made by such Lender, provided that the failure to give such notice shall
not affect the validity of such setoff and application.

 

10.8                           Counterparts.  This Agreement may be executed by one or more
of the parties to this Agreement on any number of separate counterparts, and
all of said counterparts taken together shall be deemed to constitute one and
the same instrument.  Delivery of an
executed signature page of this Agreement by facsimile transmission shall
be effective as delivery of a manually executed counterpart hereof.  A set of the copies of this Agreement signed
by all the parties shall be lodged with the Borrower and the Administrative
Agent.

 

10.9                           Severability.  Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such

 

 

prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction.

 

10.10                     Integration.  This Agreement and the other Loan Documents
represent the entire agreement of the Borrower, the Administrative Agent and
the Lenders with respect to the subject matter hereof and thereof, and there
are no promises, undertakings, representations or warranties by the
Administrative Agent or any Lender relative to the subject matter hereof not
expressly set forth or referred to herein or in the other Loan Documents.

 

10.11                     GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

10.12                     Submission
To Jurisdiction; Waivers.  The
Borrower hereby irrevocably and unconditionally:

 

(a)                                  submits for
itself and its property in any legal action or proceeding relating to this
Agreement and the other Loan Documents to which it is a party, or for
recognition and enforcement of any judgment in respect thereof, to the non-exclusive
general jurisdiction of the courts of the State of New York, the courts of the
United States for the Southern District of New York, and appellate courts
from any thereof;

 

(b)                                 consents that any such action or
proceeding may be brought in such courts and waives any objection that it may
now or hereafter have to the venue of any such action or proceeding in any such
court or that such action or proceeding was brought in an inconvenient court
and agrees not to plead or claim the same;

 

(c)                                  agrees that service of process in any
such action or proceeding may be effected by mailing a copy thereof by
registered or certified mail (or any substantially similar form of mail),
postage prepaid, to the Borrower, as the case may be at its address set forth in
Section 10.2 or at such other address of which the Administrative Agent
shall have been notified pursuant thereto;

 

(d)                                 agrees that nothing herein shall affect
the right to effect service of process in any other manner permitted by law or
shall limit the right to sue in any other jurisdiction; and

 

(e)                                  waives, to the maximum extent not
prohibited by law, any right it may have to claim or recover in any legal
action or proceeding referred to in this Section any special, exemplary,
punitive or consequential damages.

 

10.13                     Acknowledgements.  The Borrower hereby acknowledges that:

 

(a)                                  it has been advised by counsel in the
negotiation, execution and delivery of this Agreement and the other Loan
Documents;

 

(b)                                 neither the Administrative Agent nor any
Lender has any fiduciary relationship with or duty to the Borrower arising out
of or in connection with this Agreement or any of the other Loan Documents, and
the relationship between Administrative Agent and Lenders, on one hand, and the
Borrower, on the other hand, in connection herewith or therewith is solely that
of debtor and creditor; and

 

 

(c)                                  no joint venture is created hereby or by
the other Loan Documents or otherwise exists by virtue of the transactions
contemplated hereby among the Lenders or among the Borrower and the Lenders.

 

10.14                     Confidentiality.  Each of the Administrative Agent and each
Lender agrees to keep confidential all information provided to it by or on
behalf of the Borrower, the Administrative Agent or any Lender pursuant to or
in connection with this Agreement and to use such information solely in
connection with evaluating, administering, structuring and/or approving the
credit facility contemplated hereby; provided that nothing herein shall
prevent the Administrative Agent or any Lender from disclosing any such
information (a) to the Administrative Agent, any other Lender or any
affiliate thereof, solely for the purpose of evaluating, administering,
structuring and/or approving the credit facility contemplated hereby, (b) subject
to an agreement to comply with the provisions of this Section, to any actual or
prospective Transferee or any direct or indirect counterparty to any Swap
Agreement (or any professional advisor to such counterparty), (c) to its
employees, directors, agents, attorneys, accountants and other professional
advisors or those of any of its affiliates, solely for the purpose of
evaluating, administering, structuring and/or approving the credit facility
contemplated hereby, (d) upon the request or demand of any Governmental
Authority, (e) in response to any order of any court or other Governmental
Authority or as may otherwise be required pursuant to any Requirement of Law, (f) if
requested or required to do so in connection with any litigation or similar
proceeding, (g) that has been publicly disclosed, (h) to the National
Association of Insurance Commissioners or any similar organization or any
nationally recognized rating agency that requires access to information about a
Lender’s investment portfolio in connection with ratings issued with respect to
such Lender, or (i) in connection with the exercise of any remedy
hereunder or under any other Loan Document.

 

10.15                     WAIVERS OF JURY TRIAL.  THE BORROWER, THE ADMINISTRATIVE AGENT AND
THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY
LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

10.16                     Delivery
of Addenda.  Each initial Lender
shall become a party to this Agreement by delivering to the Administrative
Agent an Addendum duly executed by such Lender.

 

10.17                     USA
Patriot Act Notice.  Each Lender hereby notifies the 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 the Borrower, which
information includes the name and address of the Borrower and other information
that will allow such Lender to identify the Borrower in accordance with the
Act.

 

10.18                     Existing
Credit Agreement.  The Borrower,
Wells Fargo Bank, National Association, as administrative agent, and the Banks
(as defined in the Existing Credit Agreement) party to the Existing Credit
Agreement comprising the “Required Banks” as defined therein, hereby agree that
(i) the commitments and all other obligations of the Banks under the
Existing Credit Agreement shall terminate in their entirety immediately and
automatically upon the effectiveness of this Agreement, without further action
by any party to the Existing Credit Agreement, (ii) all accrued fees under
the Existing Credit Agreement shall be due and payable at such time and (iii) subject
to the funding loss indemnities in the Existing Credit Agreement, the Borrower
may prepay any and all loans outstanding thereunder on the date of
effectiveness of this Agreement.

 

 

IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by their proper and duly authorized officers as of the day and year
first above written.

 

	
   

  	
  NORTHERN
  STATES POWER COMPANY, a

  Minnesota corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George E. Tyson II

  
	
   

  	
   

  	
  Name:

  	
  George E.
  Tyson II

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President and Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK, N.A. as Administrative Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Casey

  
	
   

  	
   

  	
  Name:

  	
  Thomas Casey

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF
  NEW YORK, as Syndication Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Cynthia D. Howells

  
	
   

  	
   

  	
  Name:

  	
  Cynthia D.
  Howells

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO
  BANK, NATIONAL ASSOCIATION, as Syndication Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott Bjelde

  
	
   

  	
   

  	
  Name:

  	
  Scott Bjelde

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jennifer Barrett

  
	
   

  	
   

  	
  Name:

  	
  Jennifer
  Barrett

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President and Loan Team Manager

  

 

 

	
   

  	
  THE BANK OF
  TOKYO-MITSUBISHI, LTD.,

  CHICAGO BRANCH, as Documentation Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Patrick McCue

  
	
   

  	
   

  	
  Name:

  	
  Patrick
  McCue

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President & Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CITIBANK,
  N.A., as Documentation Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard Evans

  
	
   

  	
   

  	
  Name:

  	
  Richard
  Evans

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CITICORP
  USA, INC., as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard Evans

  
	
   

  	
   

  	
  Name:

  	
  Richard
  Evans

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
					

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Northern States Power Company, a
Minnesota corporation (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as Administrative Agent, and (ii) becomes a party thereto, as
a Lender, with obligations applicable to such Lender thereunder, including,
without limitation, the obligation to make extensions of credit to the Borrower
in an aggregate principal amount not to exceed the amount of its Revolving
Commitment as set forth opposite the undersigned Lender’s name in Schedule 1.1A
to the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  SUMITOMO
  MITSUI BANKING

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ David A. Buck

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David A. Buck

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
					

 

Dated
as of April 19, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Northern States Power Company, a
Minnesota corporation (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as Administrative Agent, and (ii) becomes a party thereto, as
a Lender, with obligations applicable to such Lender thereunder, including,
without limitation, the obligation to make extensions of credit to the Borrower
in an aggregate principal amount not to exceed the amount of its Revolving
Commitment as set forth opposite the undersigned Lender’s name in Schedule 1.1A
to the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  The Bank of
  Nova Scotia

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Thane Rattew

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Thane Rattew

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
					

 

Dated
as of April 19, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21, 2005
(the “Credit Agreement”), among Northern States Power Company, a
Minnesota corporation (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as Administrative Agent, and (ii) becomes a party thereto, as
a Lender, with obligations applicable to such Lender thereunder, including,
without limitation, the obligation to make extensions of credit to the Borrower
in an aggregate principal amount not to exceed the amount of its Revolving
Commitment as set forth opposite the undersigned Lender’s name in Schedule 1.1A
to the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  BARCLAYS
  BANK PLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Sydney G. Dennis

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Sydney G. Dennis

  
	
   

  	
   

  	
  Title:

  	
  Director

  
					

 

Dated
as of April 21, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Northern States Power Company, a
Minnesota corporation (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as Administrative Agent, and (ii) becomes a party thereto, as
a Lender, with obligations applicable to such Lender thereunder, including,
without limitation, the obligation to make extensions of credit to the Borrower
in an aggregate principal amount not to exceed the amount of its Revolving
Commitment as set forth opposite the undersigned Lender’s name in Schedule 1.1A
to the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  BANK OF
  AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Michelle A. Schoenfeld

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michelle A. Schoenfeld

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
					

 

Dated
as of April 21, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Northern States Power Company, a
Minnesota corporation (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as Administrative Agent, and (ii) becomes a party thereto, as
a Lender, with obligations applicable to such Lender thereunder, including,
without limitation, the obligation to make extensions of credit to the Borrower
in an aggregate principal amount not to exceed the amount of its Revolving
Commitment as set forth opposite the undersigned Lender’s name in Schedule 1.1A
to the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  MERRILL
  LYNCH BANK USA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Louis Alder

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Louis Alder

  
	
   

  	
   

  	
  Title:

  	
  Director

  
					

 

Dated
as of April 21, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Northern States Power Company, a
Minnesota corporation (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as Administrative Agent, and (ii) becomes a party thereto, as
a Lender, with obligations applicable to such Lender thereunder, including,
without limitation, the obligation to make extensions of credit to the Borrower
in an aggregate principal amount not to exceed the amount of its Revolving
Commitment as set forth opposite the undersigned Lender’s name in Schedule 1.1A
to the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Amarillo
  National Bank.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Craig L. Sanders

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Craig L. Sanders

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President

  
					

 

Dated
as of April 21, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Northern States Power Company, a
Minnesota corporation (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as Administrative Agent, and (ii) becomes a party thereto, as
a Lender, with obligations applicable to such Lender thereunder, including,
without limitation, the obligation to make extensions of credit to the Borrower
in an aggregate principal amount not to exceed the amount of its Revolving
Commitment as set forth opposite the undersigned Lender’s name in Schedule 1.1A
to the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement and
used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  WILLIAM
  STREET COMMITMENT CORPORATION (Recourse only to assets of William Street
  Commitment Corporation)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Manda D’Agata

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Manda D’Agata

  
	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

  
					

 

Dated
as of April 19, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Northern States Power Company, a
Minnesota corporation (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as Administrative Agent, and (ii) becomes a party thereto, as
a Lender, with obligations applicable to such Lender thereunder, including,
without limitation, the obligation to make extensions of credit to the Borrower
in an aggregate principal amount not to exceed the amount of its Revolving
Commitment as set forth opposite the undersigned Lender’s name in Schedule 1.1A
to the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  KEYBANK
  NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Keven D. Smith

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Keven D. Smith

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

Dated
as of April 21, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Northern States Power Company, a
Minnesota corporation (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as Administrative Agent, and (ii) becomes a party thereto, as
a Lender, with obligations applicable to such Lender thereunder, including,
without limitation, the obligation to make extensions of credit to the Borrower
in an aggregate principal amount not to exceed the amount of its Revolving
Commitment as set forth opposite the undersigned Lender’s name in Schedule 1.1A
to the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  The Royal
  Bank of Scotland plc

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Emily Freedman

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Emily Freedman

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

Dated
as of April 20, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Northern States Power Company, a
Minnesota corporation (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as Administrative Agent, and (ii) becomes a party thereto, as
a Lender, with obligations applicable to such Lender thereunder, including,
without limitation, the obligation to make extensions of credit to the Borrower
in an aggregate principal amount not to exceed the amount of its Revolving
Commitment as set forth opposite the undersigned Lender’s name in Schedule 1.1A
to the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  KBC BANK N.V.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Eric Raskin

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Eric Raskin

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Robert Snauffer

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert Snauffer

  
	
   

  	
   

  	
  Title:

  	
  First Vice President

  
					

 

Dated
as of April 19, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Northern States Power Company, a
Minnesota corporation (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as Administrative Agent, and (ii) becomes a party thereto, as
a Lender, with obligations applicable to such Lender thereunder, including,
without limitation, the obligation to make extensions of credit to the Borrower
in an aggregate principal amount not to exceed the amount of its Revolving
Commitment as set forth opposite the undersigned Lender’s name in Schedule 1.1A
to the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Harris
  Nesbitt Financing, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Cahal Carmody

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Cahal B. Carmody

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

Dated
as of April 21, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Northern States Power Company, a
Minnesota corporation (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as Administrative Agent, and (ii) becomes a party thereto, as
a Lender, with obligations applicable to such Lender thereunder, including,
without limitation, the obligation to make extensions of credit to the Borrower
in an aggregate principal amount not to exceed the amount of its Revolving
Commitment as set forth opposite the undersigned Lender’s name in Schedule 1.1A
to the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  U.S. Bank
  National Association

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Christine Geer

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Christine Geer

  
	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

  
					

 

Dated
as of April 20, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Northern States Power Company, a
Minnesota corporation (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as Administrative Agent, and (ii) becomes a party thereto, as
a Lender, with obligations applicable to such Lender thereunder, including,
without limitation, the obligation to make extensions of credit to the Borrower
in an aggregate principal amount not to exceed the amount of its Revolving
Commitment as set forth opposite the undersigned Lender’s name in Schedule 1.1A
to the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Morgan
  Stanley Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Daniel Twenge

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Daniel Twenge

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  Morgan Stanley Bank

  
						

 

Dated
as of April 20, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Northern States Power Company, a
Minnesota corporation (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as Administrative Agent, and (ii) becomes a party thereto, as
a Lender, with obligations applicable to such Lender thereunder, including,
without limitation, the obligation to make extensions of credit to the Borrower
in an aggregate principal amount not to exceed the amount of its Revolving
Commitment as set forth opposite the undersigned Lender’s name in Schedule 1.1A
to the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  CREDIT
  SUISSE FIRST BOSTON, ACTING THROUGH ITS CAYMAN ISLANDS BRANCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Sarah Wu

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Sarah Wu

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Denise Alvarez

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Denise Alvarez

  
	
   

  	
   

  	
  Title:

  	
  Associate

  
					

 

Dated
as of April 20, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Northern States Power Company, a
Minnesota corporation (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as Administrative Agent, and (ii) becomes a party thereto, as
a Lender, with obligations applicable to such Lender thereunder, including,
without limitation, the obligation to make extensions of credit to the Borrower
in an aggregate principal amount not to exceed the amount of its Revolving
Commitment as set forth opposite the undersigned Lender’s name in Schedule 1.1A
to the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Commerzbank
  AG, New York and Grand Cayman Branches

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Andrew Campbell

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Andrew Campbell

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Andrew Kjoller

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Andrew Kjoller

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

Dated
as of April 20, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Northern States Power Company, a
Minnesota corporation (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as Administrative Agent, and (ii) becomes a party thereto, as
a Lender, with obligations applicable to such Lender thereunder, including,
without limitation, the obligation to make extensions of credit to the Borrower
in an aggregate principal amount not to exceed the amount of its Revolving
Commitment as set forth opposite the undersigned Lender’s name in Schedule 1.1A
to the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  LEHMAN
  BROTHERS BANK, FSB

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Gary T. Taylor

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Gary T. Taylor

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
					

 

Dated
as of April 21, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Northern States Power Company, a
Minnesota corporation (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as Administrative Agent, and (ii) becomes a party thereto, as
a Lender, with obligations applicable to such Lender thereunder, including,
without limitation, the obligation to make extensions of credit to the Borrower
in an aggregate principal amount not to exceed the amount of its Revolving
Commitment as set forth opposite the undersigned Lender’s name in Schedule 1.1A
to the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  BNP Paribas

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Francis J. DeLaney

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Francis J. DeLaney

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Ralph Scholtz

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Ralph Scholtz

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
					

 

Dated as of April 21, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Northern States Power Company, a
Minnesota corporation (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as Administrative Agent, and (ii) becomes a party thereto, as
a Lender, with obligations applicable to such Lender thereunder, including,
without limitation, the obligation to make extensions of credit to the Borrower
in an aggregate principal amount not to exceed the amount of its Revolving
Commitment as set forth opposite the undersigned Lender’s name in Schedule 1.1A
to the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  HSBC Bank
  USA, National Association

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Jose Aldeanueva

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jose Aldeanueva

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

Dated
as of April 19, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Northern States Power Company, a
Minnesota corporation (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as Administrative Agent, and (ii) becomes a party thereto, as
a Lender, with obligations applicable to such Lender thereunder, including,
without limitation, the obligation to make extensions of credit to the Borrower
in an aggregate principal amount not to exceed the amount of its Revolving
Commitment as set forth opposite the undersigned Lender’s name in Schedule 1.1A
to the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Mizuho
  Corporate Bank Ltd.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Mark Gronich

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Mark Gronich

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
					

 

Dated
as of April 20, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Northern States Power Company, a
Minnesota corporation (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as Administrative Agent, and (ii) becomes a party thereto, as
a Lender, with obligations applicable to such Lender thereunder, including,
without limitation, the obligation to make extensions of credit to the Borrower
in an aggregate principal amount not to exceed the amount of its Revolving
Commitment as set forth opposite the undersigned Lender’s name in Schedule 1.1A
to the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  UBS LOAN
  FINANCE LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Edward Cripps

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Edward Cripps

  
	
   

  	
   

  	
  Title:

  	
  Director, Banking Products
  Services, US

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Marie Haddad

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Marie Haddad

  
	
   

  	
   

  	
  Title:

  	
  Associate Director Banking Products

  Services, US

  
					

 

Dated as of April 21, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Northern States Power Company, a
Minnesota corporation (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as Administrative Agent, and (ii) becomes a party thereto, as
a Lender, with obligations applicable to such Lender thereunder, including,
without limitation, the obligation to make extensions of credit to the Borrower
in an aggregate principal amount not to exceed the amount of its Revolving
Commitment as set forth opposite the undersigned Lender’s name in Schedule 1.1A
to the Credit Agreement, as such amount may be changed from time to time as provided
in the Credit Agreement.    Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  J.P. Morgan
  Securities Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Thomas Casey

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Thomas Casey

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

Dated
as of April 19, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Northern States Power Company, a
Minnesota corporation (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as Administrative Agent, and (ii) becomes a party thereto, as
a Lender, with obligations applicable to such Lender thereunder, including,
without limitation, the obligation to make extensions of credit to the Borrower
in an aggregate principal amount not to exceed the amount of its Revolving
Commitment as set forth opposite the undersigned Lender’s name in Schedule 1.1A
to the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Citicorp USA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard Evans

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Richard Evans

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

Dated
as of April 19, 2005

 

 

SCHEDULE 1.1A

NORTHERN STATES POWER COMPANY

REVOLVING COMMITMENTS

 

	
  Lender

  	
   

  	
  Revolving Commitment

  	
   

  
	
  JPMorgan
  Chase Bank, N.A.

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  
	
  The Bank of
  New York

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  
	
  Wells Fargo
  Bank, National Association

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  
	
  KeyBank
  National Association

  	
   

  	
  $

  	
  16,666,666.67

  	
   

  
	
  UBS Loan
  Finance LLC

  	
   

  	
  $

  	
  16,666,666.67

  	
   

  
	
  The Bank of
  Tokyo-Mitsubishi, Ltd., Chicago Branch

  	
   

  	
  $

  	
  16,666,666.67

  	
   

  
	
  Citicorp USA, Inc.

  	
   

  	
  $

  	
  16,666,666.67

  	
   

  
	
  Harris
  Nesbitt Financing, Inc.

  	
   

  	
  $

  	
  16,666,666.67

  	
   

  
	
  Barclays
  Bank PLC

  	
   

  	
  $

  	
  16,666,666.67

  	
   

  
	
  Credit
  Suisse First Boston

  	
   

  	
  $

  	
  16,666,666.67

  	
   

  
	
  Bank of
  America

  	
   

  	
  $

  	
  16,666,666.67

  	
   

  
	
  Royal Bank
  of Scotland

  	
   

  	
  $

  	
  16,666,666.67

  	
   

  
	
  BNP Paribas

  	
   

  	
  $

  	
  15,000,000.00

  	
   

  
	
  Commerzbank
  AB, New York Branch

  	
   

  	
  $

  	
  15,000,000.00

  	
   

  
	
  William
  Street Commitment Corporation

  	
   

  	
  $

  	
  15,000,000.00

  	
   

  
	
  HSBC

  	
   

  	
  $

  	
  15,000,000.00

  	
   

  
	
  Lehman
  Brothers

  	
   

  	
  $

  	
  15,000,000.00

  	
   

  
	
  Merrill
  Lynch

  	
   

  	
  $

  	
  15,000,000.00

  	
   

  
	
  Morgan
  Stanley Bank

  	
   

  	
  $

  	
  15,000,000.00

  	
   

  
	
  Mizuho
  Corporate Bank, Ltd.

  	
   

  	
  $

  	
  15,000,000.00

  	
   

  
	
  KBC Bank

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  
	
  Bank of Nova
  Scotia

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  
	
  Sumitomo
  Mitsui Banking Corporation

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  
	
  U.S. Bank
  National Association

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  
	
  Amarillo
  National Bank

  	
   

  	
  $

  	
  5,000,000.00

  	
   

  
	
  TOTAL

  	
   

  	
  $

  	
  375,000,000.00

  	
   

  

 

 

EXHIBIT A

 

FORM OF

CLOSING CERTIFICATE

 

Pursuant to Section 5.1(g) of
the Credit Agreement, dated as of April   , 2005 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”;
terms defined therein being used herein as therein defined), among Northern
States Power Company, a Minnesota corporation (the “Borrower”), the
Lenders party thereto, the Documentation Agents and Syndication Agents named
therein and JPMorgan Chase Bank, N.A., as administrative agent (in such
capacity, the “Administrative Agent”), the undersigned [INSERT TITLE OF
OFFICER] of the Borrower hereby certifies as follows:

 

1.                                       The
representations and warranties of the Borrower set forth in each of the Loan
Documents to which it is a party or which are contained in any certificate
furnished by or on behalf of the Borrower pursuant to any of the Loan Documents
to which it is a party are true and correct in all material respects on and as
of the date hereof with the same effect as if made on the date hereof, except
for representations and warranties expressly stated to relate to a specific
earlier date, in which case such representations and warranties were true and
correct in all material respects as of such earlier date.

 

2.                                                             is
the duly elected and qualified [Corporate Secretary] of the Borrower and the
signature set forth for such officer below is such officer’s true and genuine
signature.

 

3.                                       No Default or
Event of Default has occurred and is continuing as of the date hereof or after
giving effect to the Revolving Loans to be made on the date hereof and the use
of proceeds thereof.

 

4.                                       The conditions
precedent set forth in Section 5.1 of the Credit Agreement were satisfied
as of the Closing Date.

 

5.                                       There are no
liquidation or dissolution proceedings pending or to my knowledge threatened
against the Borrower, nor has any other event occurred adversely affecting or
threatening the continued corporate existence of the Borrower.

 

The undersigned [Corporate
Secretary] of the Borrower certifies as follows:

 

6.                                       The Borrower is
a corporation duly incorporated, validly existing and in good standing under
the laws of the jurisdiction of its organization.

 

7.                                       Attached hereto
as Annex 1 is a true and complete copy of resolutions duly adopted by
the Board of Directors of the Borrower on                 ,
2005; such resolutions have not in any way been amended, modified, revoked or
rescinded, have been in full force and effect since their adoption to and
including the date hereof and are now in full force and effect and are the only
corporate proceedings of the Borrower now in force relating to or affecting the
matters referred to therein.

 

8.                                       Attached hereto
as Annex 2 is a true and complete copy of the By-Laws of the Borrower as
in effect on the date hereof.

 

9.                                       Attached hereto
as Annex 3 is a true and complete copy of the Articles of Incorporation
of the Borrower as in effect on the date hereof.

 

 

10.                                 The following
persons are now duly elected and qualified officers of the Borrower holding the
offices indicated next to their respective names below, and the signatures
appearing opposite their respective names below are the true and genuine
signatures of such officers, and each of such officers is duly authorized to
execute and deliver on behalf of the Borrower each of the Loan Documents to
which it is a party and any certificate or other document to be delivered by
the Borrower pursuant to the Loan Documents to which it is a party:

 

	
  Name

  	
   

  	
  Office

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

IN
WITNESS WHEREOF, the undersigned have hereunto set our names as of the date set
forth below.

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Name:

  
	
  Title:

  	
   

  	
  Title: [Corporate Secretary]

  

 

Date:  April   ,
2005

 

 

EXHIBIT B

 

FORM OF

ASSIGNMENT AND ASSUMPTION

 

Reference is made to the
Credit Agreement, dated as of April   , 2005 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
among Northern States Power Company, a Minnesota corporation (the “Borrower”),
the Lenders party thereto, the Documentation Agents and Syndication Agents
named therein and JPMorgan Chase Bank, N.A., as administrative agent for the
Lenders (in such capacity, the “Administrative Agent”).  Unless otherwise defined herein, terms
defined in the Credit Agreement and used herein shall have the meanings given
to them in the Credit Agreement.

 

The Assignor identified on Schedule l
hereto (the “Assignor”) and the Assignee identified on Schedule l
hereto (the “Assignee”) agree as follows:

 

1.                                       The Assignor
hereby irrevocably sells and assigns to the Assignee without recourse to the
Assignor, and the Assignee hereby irrevocably purchases and assumes from the
Assignor without recourse to the Assignor, as of the Effective Date (as defined
below), the interest described in Schedule 1 hereto (the “Assigned
Interest”) in and to the Assignor’s rights and obligations under the Credit
Agreement with respect to the credit facility contained in the Credit Agreement
in a principal amount as set forth on Schedule 1 hereto.

 

2.                                       The Assignor (a) makes
no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with the
Credit Agreement or with respect to the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Credit Agreement, any
other Loan Document or any other instrument or document furnished pursuant
thereto, other than that the Assignor has not created any adverse claim upon
the interest being assigned by it hereunder and that such interest is free and
clear of any such adverse claim and (b) makes no representation or
warranty and assumes no responsibility with respect to the financial condition
of the Borrower, any of its Affiliates or any other obligor or the performance
or observance by the Borrower, any of its Affiliates or any other obligor of
any of their respective obligations under the Credit Agreement or any other Loan
Document or any other instrument or document furnished pursuant hereto or
thereto.

 

3.                                       The Assignee (a) represents
and warrants that it is legally authorized to enter into this Assignment and
Assumption; (b) confirms that it has received a copy of the Credit
Agreement, together with copies of the financial statements delivered pursuant
to Section 4.1 thereof and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
this Assignment and Assumption; (c) agrees that it will, independently and
without reliance upon the Assignor, any Agent or any Lender and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under the Credit
Agreement, the other Loan Documents or any other instrument or document
furnished pursuant hereto or thereto; (d) appoints and authorizes the
Administrative Agent to take such action as agent on its behalf and to exercise
such powers and discretion under the Credit Agreement, the other Loan Documents
or any other instrument or document furnished pursuant hereto or thereto as are
delegated to the Administrative Agent by the terms thereof, together with such
powers as are incidental thereto; and (e) agrees that it will be bound by
the provisions of the Credit Agreement and will perform in accordance with its
terms all the obligations which by the terms of the Credit Agreement are
required to be performed

 

 

by it as a Lender including, if it is organized under the laws of a
jurisdiction outside the United States, its obligation pursuant to Section 2.13(d) of
the Credit Agreement.

 

4.                                       Subject to
obtaining all necessary consents on or prior to such date, the effective date
of this Assignment and Assumption shall be the Effective Date of Assignment
described in Schedule 1 hereto (the “Effective Date”).  Following the execution of this Assignment
and Assumption and receipt of all necessary consents, it will be delivered to
the Administrative Agent for acceptance by it and recording by the
Administrative Agent pursuant to the Credit Agreement, effective as of the
Effective Date (which shall not, unless otherwise agreed to by the
Administrative Agent, be earlier than five Business Days after the date of such
acceptance and recording by the Administrative Agent).

 

5.                                       Upon such
acceptance and recording, from and after the Effective Date, the Administrative
Agent shall make all payments in respect of the Assigned Interest (including
payments of principal, interest, fees and other amounts) to the Assignor for
amounts that have accrued to the Effective Date and to the Assignee for
amounts, which have accrued subsequent to the Effective Date.

 

6.                                       From and after
the Effective Date, (a) the Assignee shall be a party to the Credit
Agreement and, to the extent provided in this Assignment and Assumption, have
the rights and obligations of a Lender thereunder and under the other Loan
Documents and shall be bound by the provisions thereof and (b) the Assignor
shall, to the extent provided in this Assignment and Assumption, relinquish its
rights and be released from its obligations under the Credit Agreement.

 

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

 

IN WITNESS WHEREOF, the
parties hereto have caused this Assignment and Assumption to be executed as of
the date first above written by their respective duly authorized officers on Schedule 1
hereto.

 

2

 

Schedule 1 to
Assignment and Assumption

with respect to the Credit Agreement, dated as of April   ,
2005,

among Northern States Power Company, a Minnesota corporation (the “Borrower”),
the Lenders party thereto the Documentation Agents and Syndication Agents named
therein

and JPMorgan Chase Bank, N.A., as Administrative Agent

 

Name of Assignor:                        

 

Name of Assignee:                        

 

Effective Date of
Assignment:                  

 

Principal Amount Assigned: $                 

 

	
  [Name of Assignee]

  	
  [Name of Assignor]

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
     Title:

  	
   

  	
     Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  JPMorgan Chase Bank, N.A.,
  as Administrative

  Agent(1)

  	
  Northern States Power
  Company(2)

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Title:

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
                   ,
  as an Issuing Lender(3)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  

 

(1)                                  Consent
of Administrative Agent required for each assignment.

 

(2)                                  Consent
of Borrower required for each assignment unless (x) assignment is to a Lender
or (y) an Event of Default has occurred and is continuing.

 

(3)                                  Consent
of each Issuing Lender required for each assignment.

 

 

EXHIBIT C

 

FORM OF EXEMPTION CERTIFICATE

 

Reference is made to the
Credit Agreement, dated as of April   , 2005 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
among Northern States Power Company, a Minnesota corporation (the “Borrower”),
the Lenders party thereto, the Documentation Agents and Syndication Agents
named therein and JPMorgan Chase Bank, N.A., as administrative agent (in such
capacity, the “Administrative Agent”). 
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

                      
(the “Non-U.S. Lender”) is providing this certificate pursuant to Section 2.13(d) of
the Credit Agreement.  The Non-U.S.
Lender hereby represents and warrants that:

 

1.  The Non-U.S. Lender is the sole record and
beneficial owner of the Revolving Loans in respect of which it is providing
this certificate.

 

2.  The Non-U.S. Lender is not a “bank” for
purposes of Section 881(c)(3)(A) of the Internal Revenue Code of
1986, as amended (the “Code”).  In
this regard, the Non-U.S. Lender further represents and warrants that:

 

(a) the Non-U.S. Lender
is not subject to regulatory or other legal requirements as a bank in any
jurisdiction; and

 

(b) the Non-U.S. Lender
has not been treated as a bank for purposes of any tax, securities law or other
filing or submission made to any Governmental Authority, any application made
to a rating agency or qualification for any exemption from tax, securities law
or other legal requirements.

 

3.  The Non-U.S. Lender is not a 10-percent
shareholder of the Borrower within the meaning of Section 881(c)(3)(B) of
the Code.

 

4.  The Non-U.S. Lender is not a controlled
foreign corporation receiving interest from a related person within the meaning
of Section 881(c)(3)(C) of the Code.

 

IN WITNESS WHEREOF, the
undersigned has duly executed this certificate.

 

	
   

  	
  [NAME OF NON-U.S. LENDER]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
						

 

 

EXHIBIT D

 

FORM OF ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April   ,
2005 (the “Credit Agreement”), among Northern States Power Company, a
Minnesota corporation (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as Administrative Agent, and (ii) becomes a party thereto, as
a Lender, with obligations applicable to such Lender thereunder, including,
without limitation, the obligation to make extensions of credit to the Borrower
in an aggregate principal amount not to exceed the amount of its Revolving
Commitment as set forth opposite the undersigned Lender’s name in Schedule 1.1A
to the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  (Name of
  Lender)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

Dated as of April   ,
2005

 

 

EXHIBIT E-1

 

FORM OF NEW LENDER SUPPLEMENT

 

NEW LENDER SUPPLEMENT, dated
                 ,
to the Credit Agreement, dated as of April   , 2005 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
among Northern States Power Company, a Minnesota corporation (the “Borrower”),
the Lenders party thereto, the Documentation Agents and Syndication Agents
named therein and JPMorgan Chase Bank, N.A., as administrative agent for the
Lenders (in such capacity, the “Administrative Agent”).  Unless otherwise defined herein, terms
defined in the Credit Agreement and used herein shall have the meanings given
to them in the Credit Agreement.

 

W I T N E S S E T H :

 

WHEREAS, the Credit
Agreement provides in Section 2.1(c) thereof that any bank, financial
institution or other entity may become a party to the Credit Agreement with the
consent of the Borrower and the Administrative Agent (which consent shall not
be unreasonably withheld) by executing and delivering to the Borrower and the
Administrative Agent a supplement to the Credit Agreement in substantially the
form of this New Lender Supplement; and

 

WHEREAS, the undersigned now
desires to become a party to the Credit Agreement;

 

NOW, THEREFORE, the
undersigned hereby agrees as follows:

 

1.  The
undersigned agrees to be bound by the provisions of the Credit Agreement, and
agrees that it shall, on the date this New Lender Supplement is accepted by the
Borrower and the Administrative Agent, become a Lender for all purposes of the
Credit Agreement to the same extent as if originally a party thereto, with a
Revolving Commitment of $                  .

 

2.  The
undersigned (a) represents and warrants that it is legally authorized to
enter into this New Lender Supplement; (b) confirms that it has received a
copy of the Credit Agreement, together with copies of the financial statements
referred to in Section 4.1 thereof and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into this New Lender Supplement; (c) agrees that it has
made and will, independently and without reliance upon any Agent or any other
Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under the Credit Agreement or any instrument or document furnished
pursuant hereto or thereto; (d) appoints and authorizes the Administrative
Agent to take such action as agent on its behalf and to exercise such powers
and discretion under the Credit Agreement or any instrument or document
furnished pursuant hereto or thereto as are delegated to the Administrative
Agent by the terms thereof, together with such powers as

 

 

are incidental thereto; and (e) agrees
that it will be bound by the provisions of the Credit Agreement and will
perform in accordance with its terms all the obligations which by the terms of
the Credit Agreement are required to be performed by it as a Lender including,
without limitation, if it is organized under the laws of a jurisdiction outside
the United States, its obligation pursuant to Section 2.13(d) of the
Credit Agreement.

 

3.  The
undersigned’s address for notices for the purposes of the Credit Agreement is
as follows:

 

[insert notice address]

 

IN WITNESS WHEREOF, the
undersigned has caused this New Lender Supplement to be executed and delivered
by a duly authorized officer on the date first above written.

 

	
   

  	
   

  	
   

  
	
   

  	
  [INSERT NAME
  OF LENDER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

Accepted this      
day of

                              ,
    .

 

NORTHERN STATES POWER
COMPANY

 

	
  By

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

Accepted this     
day of

                              ,
    .

 

JPMORGAN CHASE BANK, N.A.,
as Administrative Agent

 

	
  By

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

EXHIBIT E-2

 

FORM OF INCREASED
REVOLVING COMMITMENT ACTIVATION NOTICE

 

To:                              JPMORGAN CHASE
BANK, N.A., as Administrative Agent

 

Reference is hereby made to
the Credit Agreement, dated as of April   , 2005 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
among Northern States Power Company, a Minnesota corporation (the “Borrower”),
the Lenders party thereto, the Documentation Agents and Syndication Agents
named therein and JPMorgan Chase Bank, N.A., as administrative agent for the
Lenders (in such capacity, the “Administrative Agent”).  Unless otherwise defined herein, terms
defined in the Credit Agreement and used herein shall have the meanings given
to them in the Credit Agreement.

 

This notice is the Increased
Revolving Commitment Activation Notice referred to in the Credit Agreement, and
the Borrower and each of the Lenders party hereto hereby notify you that:

 

1.                                       Each Lender
party hereto agrees to make or increase the amount of its Revolving Commitment
to the amount set forth opposite such Lender’s name below under the caption “Increased
Revolving Commitment Amount”.

 

2.                                       The Increased
Revolving Commitment Closing Date is       .(4)

 

3.                                       The Borrower
hereby represents and warrants that no Default or Event of Default has occurred
and is continuing as of the date hereof and no Default or Event of Default will
exist after giving effect to the increase specified herein.

 

 

	
   

  	
  NORTHERN STATES POWER COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Increased
  Revolving Commitment Amount

  	
  [NAME OF LENDER]

  
	
   

  	
   

  
	
  $

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

(4)                                  No
later than the fourth anniversary of the Closing Date.

 

 

EXHIBIT F-1

 

FORM OF EXTENSION
REQUEST(5)

 

          ,
200   

 

JPMorgan Chase Bank, N.A.,
as Administrative Agent

 

Reference is made to the
Credit Agreement, dated as of April   , 2005 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
among Northern States Power Company, a Minnesota corporation (the “Borrower”),
the Lenders party thereto, the Documentation Agents and Syndication Agents
named therein and JPMorgan Chase Bank, N.A., as administrative agent for the
Lenders (in such capacity, the “Administrative Agent”).  Unless otherwise defined herein, terms
defined in the Credit Agreement and used herein shall have the meanings given
to them in the Credit Agreement.

 

Pursuant to Section 2.17(a) of
the Credit Agreement, the Borrower hereby requests that the Lenders extend the
Revolving Termination Date now in effect by a period of one year, to April   ,
2011.

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  NORTHERN STATES POWER COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

(5)                                  Extension
Request may be given no earlier than the first anniversary of the Closing Date
and no later than 45 days prior to the Revolving Termination Date then in
effect.

 

 

EXHIBIT F-2

 

FORM OF CONTINUATION
NOTICE(6)

 

          ,
200  

 

JPMorgan Chase Bank, N.A.,
as Administrative Agent

 

Reference is made to the
Credit Agreement, dated as of  April   ,
2005 (as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among Northern States Power Company, a Minnesota corporation
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
administrative agent for the Lenders (in such capacity, the “Administrative
Agent”).  Unless otherwise defined
herein, terms defined in the Credit Agreement and used herein shall have the
meanings given to them in the Credit Agreement.

 

The undersigned Lender is
delivering this Continuation Notice in response to the Extension Request dated             ,
200 .  Pursuant to Section 2.17(a) of
the Credit Agreement, the undersigned Lender hereby consents, in its sole
discretion, to the extension of the Revolving Termination Date to April   ,
2011, as requested by the Borrower in the Extension Request.

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [NAME OF LENDER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

(6)                                  Continuation
Notice must be received by the Administrative Agent no later than 20 days prior
to the then applicable Revolving Termination Date.  Any Lender that fails to submit a
Continuation Notice by such date shall be deemed not to have consented to the
requested extension and shall constitute a Non-Extending Lender.Exhibit 4.02

 

EXECUTION COPY

 

 

$500,000,000

 

CREDIT AGREEMENT

 

among

 

PUBLIC SERVICE COMPANY OF
COLORADO,

 

as Borrower,

 

 

The Several Lenders from Time to Time Parties Hereto,

 

KEYBANK NATIONAL ASSOCIATION 

 

and

 

UBS LOAN FINANCE LLC,

 

as Documentation Agents,

 

THE BANK OF NEW YORK

 

and

 

WELLS FARGO BANK, NATIONAL
ASSOCIATION,

 

as Syndication Agents,

 

 

and

 

 

JPMORGAN CHASE BANK, N.A.,

 

as Administrative Agent

 

 

Dated as of April 21, 2005

 

 

J.P. MORGAN SECURITIES INC. and BNY CAPITAL MARKETS, INC.,

as Joint Lead Arrangers and Bookrunners

 

 

TABLE OF CONTENTS

 

	
  SECTION 1.

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  1.1

  	
  Defined
  Terms

  	
   

  
	
  1.2

  	
  Other
  Definitional Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  AMOUNT AND TERMS OF REVOLVING
  COMMITMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  Revolving
  Commitments

  	
   

  
	
  2.2

  	
  Procedure
  for Revolving Loan Borrowing

  	
   

  
	
  2.3

  	
  Fees

  	
   

  
	
  2.4

  	
  Termination
  or Reduction of Revolving Commitments

  	
   

  
	
  2.5

  	
  Optional
  Prepayments

  	
   

  
	
  2.6

  	
  Conversion
  and Continuation Options

  	
   

  
	
  2.7

  	
  Limitations
  on Eurodollar Tranches

  	
   

  
	
  2.8

  	
  Interest
  Rates and Payment Dates

  	
   

  
	
  2.9

  	
  Computation
  of Interest and Fees

  	
   

  
	
  2.10

  	
  Inability
  to Determine Interest Rate

  	
   

  
	
  2.11

  	
  Pro
  Rata Treatment and Payments

  	
   

  
	
  2.12

  	
  Requirements
  of Law

  	
   

  
	
  2.13

  	
  Taxes

  	
   

  
	
  2.14

  	
  Indemnity

  	
   

  
	
  2.15

  	
  Change
  of Lending Office

  	
   

  
	
  2.16

  	
  Replacement
  of Lenders

  	
   

  
	
  2.17

  	
  Extension
  of Revolving Termination Date

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  LETTERS OF CREDIT

  	
   

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  L/C Commitment

  	
   

  
	
  3.2

  	
  Procedure for Issuance of Letter of
  Credit

  	
   

  
	
  3.3

  	
  Fees and Other Charges

  	
   

  
	
  3.4

  	
  L/C Participations

  	
   

  
	
  3.5

  	
  Reimbursement Obligation of the
  Borrower

  	
   

  
	
  3.6

  	
  Obligations Absolute

  	
   

  
	
  3.7

  	
  Letter of Credit Payments

  	
   

  
	
  3.8

  	
  Applications

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  Financial Condition

  	
   

  
	
  4.2

  	
  No Change

  	
   

  
	
  4.3

  	
  Existence; Compliance with Law

  	
   

  
	
  4.4

  	
  Power; Authorization; Enforceable
  Obligations

  	
   

  
	
  4.5

  	
  No Legal Bar

  	
   

  
	
  4.6

  	
  Litigation

  	
   

  

 

 

	
  4.7

  	
  Ownership of Property; Liens

  	
   

  
	
  4.8

  	
  Taxes

  	
   

  
	
  4.9

  	
  Federal Regulations

  	
   

  
	
  4.10

  	
  ERISA

  	
   

  
	
  4.11

  	
  Investment Company Act; Other
  Regulations

  	
   

  
	
  4.12

  	
  Use of Proceeds

  	
   

  
	
  4.13

  	
  Accuracy of Information, etc

  	
   

  
	
  4.14

  	
  Solvency

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  CONDITIONS PRECEDENT

  	
   

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  Conditions to Initial Extension of
  Credit

  	
   

  
	
  5.2

  	
  Conditions to Each Extension of
  Credit

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  AFFIRMATIVE COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  Financial Statements

  	
   

  
	
  6.2

  	
  Certificates; Other Information

  	
   

  
	
  6.3

  	
  Payment of Obligations and Taxes

  	
   

  
	
  6.4

  	
  Maintenance of Existence; Compliance

  	
   

  
	
  6.5

  	
  Maintenance of Property; Insurance

  	
   

  
	
  6.6

  	
  Inspection of Property; Books and
  Records; Discussions

  	
   

  
	
  6.7

  	
  Notices

  	
   

  
	
  6.8

  	
  Environmental Laws

  	
   

  
	
  6.9

  	
  Ownership of Significant Subsidiaries

  	
   

  
	
  6.10

  	
  Scope of Business

  	
   

  
	
  6.11

  	
  Significant Subsidiaries

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
  NEGATIVE COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  Ratio of Funded Debt to Total
  Capital

  	
   

  
	
  7.2

  	
  Liens

  	
   

  
	
  7.3

  	
  Fundamental Changes

  	
   

  
	
  7.4

  	
  Disposition of Property

  	
   

  
	
  7.5

  	
  Transactions with Affiliates

  	
   

  
	
  7.6

  	
  Swap Agreements

  	
   

  
	
  7.7

  	
  Clauses Restricting Subsidiary
  Distributions

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
  EVENTS OF DEFAULT

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
  THE
  AGENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  9.1

  	
  Appointment

  	
   

  
	
  9.2

  	
  Delegation of Duties

  	
   

  
	
  9.3

  	
  Exculpatory Provisions

  	
   

  
	
  9.4

  	
  Reliance by Administrative Agent

  	
   

  
	
  9.5

  	
  Notice of Default

  	
   

  

 

 

	
  9.6

  	
  Non-Reliance on Agents and Other
  Lenders

  	
   

  
	
  9.7

  	
  Indemnification

  	
   

  
	
  9.8

  	
  Agent in Its Individual Capacity

  	
   

  
	
  9.9

  	
  Successor Administrative Agent

  	
   

  
	
  9.10

  	
  Documentation Agents and Syndication
  Agents

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  10.1

  	
  Amendments and Waivers

  	
   

  
	
  10.2

  	
  Notices

  	
   

  
	
  10.3

  	
  No Waiver; Cumulative Remedies

  	
   

  
	
  10.4

  	
  Survival of Representations and
  Warranties

  	
   

  
	
  10.5

  	
  Payment of Expenses and Taxes

  	
   

  
	
  10.6

  	
  Successors and Assigns; Participations
  and Assignments

  	
   

  
	
  10.7

  	
  Adjustments; Set-off

  	
   

  
	
  10.8

  	
  Counterparts

  	
   

  
	
  10.9

  	
  Severability

  	
   

  
	
  10.10

  	
  Integration

  	
   

  
	
  10.11

  	
  GOVERNING
  LAW

  	
   

  
	
  10.12

  	
  Submission To Jurisdiction; Waivers

  	
   

  
	
  10.13

  	
  Acknowledgements

  	
   

  
	
  10.14

  	
  Confidentiality

  	
   

  
	
  10.15

  	
  WAIVERS
  OF JURY TRIAL

  	
   

  
	
  10.16

  	
  Delivery of Addenda

  	
   

  
	
  10.17

  	
  USA Patriot Act Notice

  	
   

  
	
  10.18

  	
  Existing Credit Agreement

  	
   

  

 

 

	
  SCHEDULES:

  
	
   

  	
   

  
	
  1.1A

  	
  Revolving
  Commitments

  
	
  1.1B

  	
  Existing Letters of Credit

  
	
  4.1

  	
  Financial Condition

  
	
  4.2

  	
  No Change

  
	
  4.6

  	
  Litigation

  
	
  4.7

  	
  Ownership of Property; Liens

  
	
  7.2

  	
  Existing Liens

  
	
  7.4

  	
  Permitted Dispositions

  
	
   

  	
   

  
	
  EXHIBITS:

  
	
   

  	
   

  
	
  A

  	
  Form of Closing Certificate

  
	
  B

  	
  Form of Assignment and
  Assumption

  
	
  C

  	
  Form of Exemption Certificate

  
	
  D

  	
  Form of Addendum

  
	
  E-1

  	
  Form of New Lender Supplement

  
	
  E-2

  	
  Form of Increased Revolving
  Commitment Activation Notice

  
	
  F-1

  	
  Form of Extension Request

  
	
  F-2

  	
  Form of Continuation Notice

  

 

 

CREDIT AGREEMENT (this “Agreement”),
dated as of April 21, 2005, among PUBLIC SERVICE COMPANY OF COLORADO, a
Colorado corporation (the “Borrower”), the several banks and other
financial institutions or entities from time to time parties to this Agreement
(the “Lenders”), KEYBANK NATIONAL ASSOCIATION and UBS LOAN FINANCE LLC,
as documentation agents (in such capacity, the “Documentation Agents”),
THE BANK OF NEW YORK and WELLS FARGO BANK, NATIONAL ASSOCIATION, as syndication
agents (in such capacity, the “Syndication Agents”), and JPMORGAN CHASE
BANK, N.A., as administrative agent.

 

The parties hereto hereby agree as follows:

 

SECTION 1.                                DEFINITIONS

 

1.1                                 Defined
Terms.  As used in this Agreement,
the terms listed in this Section 1.1 shall have the respective meanings
set forth in this Section 1.1.

 

“ABR”:  for any day, a rate per annum (rounded
upwards, if necessary, to the next 1/16 of 1%) equal to the greater of (a) the
Prime Rate in effect on such day and (b) the Federal Funds Effective Rate
in effect on such day plus 1⁄2 of 1%.  For
purposes hereof, “Prime Rate” shall mean the rate of interest per annum
publicly announced from time to time by JPMorgan Chase Bank, N.A. as its prime
rate in effect at its principal office in New York City (the Prime Rate not
being intended to be the lowest rate of interest charged by JPMorgan Chase
Bank, N.A. in connection with extensions of credit to debtors).  Any change in the ABR due to a change in the
Prime Rate or the Federal Funds Effective Rate shall be effective as of the
opening of business on the effective day of such change in the Prime Rate or
the Federal Funds Effective Rate, respectively.

 

“ABR Loans”:  Revolving Loans the rate of interest
applicable to which is based upon the ABR.

 

“Addendum”:  an instrument, substantially in the form of Exhibit D,
by which a Lender becomes a party to this Agreement as of the Closing Date.

 

“Administrative Agent”:  JPMorgan Chase Bank, N.A., together with its
affiliates, as an arranger of the Revolving Commitments and as the
administrative agent for the Lenders under this Agreement and the other Loan
Documents, together with any of its successors.

 

“Affiliate”:  as to any Person, any other Person that,
directly or indirectly, is in Control of, is Controlled by, or is under common
Control with, such Person.  

 

“Agents”:  the collective reference to the Syndication
Agents, the Documentation Agents and the Administrative Agent.

 

“Aggregate Exposure”:  with respect to any Lender at any time, an
amount equal to the amount of such Lender’s Revolving Commitment then in effect
or, if the Revolving Commitments have been terminated, the amount of such
Lender’s Revolving Extensions of Credit then outstanding.  

 

“Aggregate Exposure
Percentage”:  with respect to any
Lender at any time, the ratio (expressed as a percentage) of such Lender’s
Aggregate Exposure at such time to the Aggregate Exposure of all Lenders at
such time.

 

“Agreement”:  as defined in the preamble hereto. 

 

 

“Applicable Margin”:  The rate per annum set forth under the
relevant column heading below based on the applicable Debt Rating:

 

	
  Level

  	
   

  	
  Debt Rating

  	
   

  	
  Commitment

  Fee

  	
   

  	
  ABR

  Loans

  	
   

  	
  Eurodollar

  Loans/

  Letters of Credit

  	
   

  
	
  I

  	
   

  	
  >A/A2

  	
   

  	
  0.08

  	
  %

  	
  0

  	
  %

  	
  0.30

  	
  %

  
	
  II

  	
   

  	
  A-/A3

  	
   

  	
  0.10

  	
  %

  	
  0

  	
  %

  	
  0.375

  	
  %

  
	
  III

  	
   

  	
  BBB+/Baa1

  	
   

  	
  0.125

  	
  %

  	
  0

  	
  %

  	
  0.475

  	
  %

  
	
  IV

  	
   

  	
  BBB/Baa2

  	
   

  	
  0.15

  	
  %

  	
  0

  	
  %

  	
  0.575

  	
  %

  
	
  V

  	
   

  	
  BBB-/Baa3

  	
   

  	
  0.175

  	
  %

  	
  0

  	
  %

  	
  0.75

  	
  %

  
	
  VI

  	
   

  	
  <BB+/Ba1

  	
   

  	
  0.20

  	
  %

  	
  0

  	
  %

  	
  1.00

  	
  %

  

 

provided that for each
Excess Utilization Day, the Applicable Margin set forth above on such day shall
be increased by 0.125% for (a) Eurodollar Loans and Letters of Credit and (b) ABR
Loans if the Debt Rating on such day is in Level VI.  

 

For purposes of this definition,
“Debt Rating” means, as of any date of determination, the rating as
determined by either S&P or Moody’s (collectively, the “Debt Ratings”)
of the Borrower’s senior unsecured non-credit enhanced long-term indebtedness
for borrowed money; provided that if there is a split in Debt Ratings,
then the higher* of such Debt Ratings shall apply, unless there is a
split in Debt Ratings of more than one level, in which case the level that is
one level higher than the lower Debt Rating shall apply. The Debt Ratings shall
be determined from the most recent public announcement of any changes in the
Debt Ratings.  If the rating system of
S&P or Moody’s shall change, the Borrower and the Administrative Agent
shall negotiate in good faith to amend this definition to reflect such changed
rating system and, pending the effectiveness of such amendment (which shall
require the approval of Required Lenders), the Debt Rating shall be determined
by reference to the rating most recently in effect prior to such change.

 

“Application”:  an application, in such form as the
applicable Issuing Lender may specify from time to time, requesting such
Issuing Lender to open a Letter of Credit.

 

“Assignee”:  as defined in Section 10.6(b).

 

“Assignment and
Assumption”:  an Assignment and Assumption,
substantially in the form of Exhibit B.

 

“Available Revolving
Commitment”:  as to any Lender at any
time, an amount equal to the excess, if any, of (a) such Lender’s
Revolving Commitment then in effect over (b) such Lender’s
Revolving Extensions of Credit then outstanding.

 

“Benefitted Lender”:  as defined in Section 10.7(a).

 

*                                         It
being understood and agreed, by way of example, that a Debt Rating of A- is one
level higher than a Debt Rating of BBB+.

 

 

“Board”:  the Board of Governors of the Federal Reserve
System of the United States (or any successor).

 

“Borrower”:  as defined in the preamble hereto.

 

“Borrowing Date”:  any Business Day specified by the Borrower as
a date on which the Borrower requests the Lenders to make Revolving Loans hereunder.

 

“Business Day”:  a day other than a Saturday, Sunday or other
day on which commercial banks in New York City are authorized or required by
law to close, provided, that with respect to notices and determinations
in connection with, and payments of principal and interest on, Eurodollar
Loans, such day is also a day for trading by and between banks in Dollar
deposits in the interbank eurodollar market.

 

“Capital Lease
Obligations”:  as to any Person, the
obligations of such Person to pay rent or other amounts under any lease of (or
other arrangement conveying the right to use) real or personal property, or a
combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP
and, for the purposes of this Agreement, the amount of such obligations at any
time shall be the capitalized amount thereof at such time determined in
accordance with GAAP.

 

“Capital Stock”:  any and all shares, interests, participations
or other equivalents (however designated) of capital stock of a corporation,
any and all equivalent ownership interests in a Person (other than a
corporation) and any and all warrants, rights or options to purchase any of the
foregoing.   

 

“Change in Control”:  Xcel Energy Inc. ceasing to directly own,
beneficially and of record, 100% of each class of issued and outstanding common
stock of the Borrower free and clear of all Liens.    

 

“Closing Date”:  the date on which the conditions precedent
set forth in Section 5.1 shall have been satisfied, which date is April 21,
2005.

 

“Code”:  the Internal Revenue Code of 1986, as amended
from time to time.

 

“Commodity Swap Agreement”:  any
agreement with respect to any swap, forward, future or derivative transaction
or option or similar agreement involving, or settled by reference to,
commodities.

 

“Commonly Controlled
Entity”:  an entity, whether or not
incorporated, that is under common control with the Borrower within the meaning
of Section 4001 of ERISA or is part of a group that includes the Borrower
and that is treated as a single employer under Section 414 of the Code.

 

“Confidential Information
Memorandum”:  the Confidential
Information Memorandum dated March 2005 and furnished to certain
Lenders.  

 

“Continuation Notice”:  as defined in Section 2.17(a). 

 

“Continuing Lender”:  as defined in Section 2.17(a).

 

 

“Contractual Obligation”:  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”:  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.  

 

“Debt Rating”:  as defined in the definition of “Applicable
Margin.”

 

“Default”:  any of the events specified in Section 8,
whether or not any requirement for the giving of notice, the lapse of time, or
both, has been satisfied.

 

“Designated Significant
Subsidiary”:  any Significant
Subsidiary designated as such by the Borrower in accordance with Section 6.11,
so long as such designation shall not have been revoked pursuant to Section 6.11.  

 

“Disposition”:  with respect to any property, any sale,
lease, sale and leaseback, conveyance, transfer or other disposition
thereof.  The terms “Dispose” and “Disposed
of” shall have correlative meanings.

 

“Documentation Agents”:  as defined in the preamble hereto.

 

“Dollars” and “$”:  dollars in lawful currency of the United
States.

 

“Environmental Laws”:  any and all foreign, Federal, state, local or
municipal laws, rules, orders, regulations, statutes, ordinances, codes,
decrees, requirements of any Governmental Authority or other Requirements of
Law (including common law) regulating, relating to or imposing liability or
standards of conduct concerning protection of human health or the environment,
as now or may at any time hereafter be in effect.

 

“ERISA”:  the Employee Retirement Income Security Act
of 1974, as amended from time to time.

 

“Eurocurrency Reserve
Requirements”:  for any day as
applied to a Eurodollar Loan, the aggregate (without duplication) of the maximum
rates (expressed as a decimal fraction) of reserve requirements in effect on
such day (including basic, supplemental, marginal and emergency reserves) under
any regulations of the Board or other Governmental Authority having
jurisdiction with respect thereto dealing with reserve requirements prescribed
for eurocurrency funding (currently referred to as “Eurocurrency Liabilities”
in Regulation D of the Board) maintained by a member bank of the Federal
Reserve System.

 

“Eurodollar Base Rate”:  with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, the rate per annum determined on the
basis of the rate for deposits in Dollars for a period equal to such Interest
Period commencing on the first day of such Interest Period appearing on Page 3750
of the Telerate screen as of 11:00 A.M., London time, two Business Days
prior to the beginning of such Interest Period. 
In the event that such rate does not appear on Page 3750 of the
Telerate screen (or otherwise on such screen), the “Eurodollar Base Rate”
shall be determined by reference to such other comparable publicly available
service for displaying eurodollar rates as may be selected by the
Administrative Agent or, in the absence of such availability, by reference to
the rate at which the Administrative Agent is offered Dollar deposits at or
about 11:00 A.M., New York City time,

 

 

two Business Days prior to
the beginning of such Interest Period in the interbank eurodollar market where
its eurodollar and foreign currency and exchange operations are then being
conducted for delivery on the first day of such Interest Period for the number
of days comprised therein.

 

“Eurodollar Loans”:  Revolving Loans the rate of interest
applicable to which is based upon the Eurodollar Rate.

 

“Eurodollar Rate”:  with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, a rate per annum determined for such
day in accordance with the following formula (rounded upward to the nearest
1/100th of 1%):

 

	
  Eurodollar Base Rate

  
	
  1.00 - Eurocurrency Reserve Requirements

  

 

“Eurodollar Tranche”:  the collective reference to Eurodollar Loans
the then current Interest Periods with respect to all of which begin on the
same date and end on the same later date (whether or not such Revolving Loans
shall originally have been made on the same day). 

 

“Event of Default”:  any of the events specified in Section 8,
provided that any requirement for the giving of notice, the lapse of
time, or both, has been satisfied.

 

“Excess Utilization Day”:  each day on which the Total Revolving
Extensions of Credit on such day exceed 50% of the Total Revolving Commitments
on such day.

 

“Existing Credit
Agreement”:  the Credit Agreement,
dated as of May 14, 2004, among the Borrower, Bank One, NA, as
administrative agent, and the lenders party thereto.

 

“Existing Letters of
Credit” means the letters of credit set forth on Schedule 1.1B that
have been issued prior to the Closing Date by JPMorgan Chase Bank, N.A.

 

“Extension Request”:  as defined in Section 2.17(a).

 

“Federal Funds Effective
Rate”:  for any day, the weighted
average of the rates on overnight federal funds transactions with members of
the Federal Reserve System arranged by federal funds brokers, as published on
the next succeeding Business Day by the Federal Reserve Bank of New York,
or, if such rate is not so published for any day that is a Business Day, the
average of the quotations for the day of such transactions received by JPMorgan
Chase Bank, N.A. from three federal funds brokers of recognized standing
selected by it.

 

“Fee Payment Date”:  (a) the third Business Day following the
last day of each March, June, September and December and (b) the
last day of the Revolving Commitment Period.

 

“FERC”:  the Federal Energy Regulatory Commission and
any successor thereto.

 

“First
Collateral Trust Securities Indenture”: 
the Indenture dated as of October 1, 1993 as amended from time to
time, from the Borrower to U.S. Bank Trust National Association (formerly,
First Trust of New York, National Association), as successor trustee to Morgan
Guaranty Trust Company of New York. 

 

 

“First
Mortgage Bond Indenture”: the Indenture dated as of December 1, 1939
from the Borrower to U.S. Bank Trust National Association, as successor trustee
thereunder, as amended from time to time. 

 

“Funded Debt”:  of any Person at any date, without
duplication, (i) all indebtedness of such Person for borrowed money; (ii) the
deferred and unpaid balance of the purchase price owing by such Person on
account of any assets or services purchased (other than trade payables and
other accrued liabilities incurred in the ordinary course of business that are
not overdue by more than 180 days unless being contested in good faith) if such
purchase price is (A) due more than nine months from the date of
incurrence of the obligation in respect thereof or (B) evidenced by a note
or a similar written instrument; (iii) all Capital Lease Obligations of
such Person; (iv) all indebtedness secured by a Lien on any property owned
by such Person, whether or not such indebtedness has been assumed by such
Person or is nonrecourse to such Person; (v) notes payable and drafts
accepted representing extensions of credit to such Person whether or not
representing obligations for borrowed money (other than such notes or drafts
for the purchase price of assets or services to the extent such purchase price
is excluded from clause (ii) above); (vi) indebtedness of such Person
evidenced by bonds, notes or similar written instruments; (vii) any
non-contingent obligation of such Person in respect of letters of credit and
bankers’ acceptances issued for the account of such Person (other than such
letters of credit, bankers’ acceptances and drafts for the purchase price of
assets or services to the extent such purchase price is excluded from clause (ii) above);
(viii) net obligations of such Person under Swap Agreements which
constitute interest rate agreements or currency agreements; (ix) guaranty
obligations of such Person with respect to indebtedness for borrowed money of
another Person (including Affiliates); (x) all Off-Balance Sheet Liabilities of
such Person; and (xi) in the case of the Borrower, any amounts due under
Trust Preferred Securities; provided, however, that in no event
shall any calculation of Funded Debt of the Borrower include deferred
taxes.   

 

“Funding Office”:  the office of the Administrative Agent
specified in Section 10.2 or such other office as may be specified from
time to time by the Administrative Agent as its funding office by written
notice to the Borrower and the Lenders.

 

“GAAP”:  generally accepted accounting principles in
the United States as in effect from time to time; provided that in the
event that any “Accounting Change” (as defined below) shall occur and such
change results in a change in the method of calculation of financial covenants,
standards or terms in this Agreement, then (i) the Borrower and the
Administrative Agent agree to enter into negotiations in order to amend such
provisions of this Agreement so as to reflect equitably such Accounting Changes
with the desired result that the criteria for evaluating the Borrower’s
financial condition shall be the same after such Accounting Changes as if such
Accounting Changes had not been made and (ii) until such time as such an
amendment shall have been executed and delivered by the Borrower, the
Administrative Agent and the Required Lenders, all financial covenants
(including those contained in Section 7.1), standards and terms in this
Agreement shall continue to be calculated or construed as if such Accounting
Changes had not occurred.  “Accounting
Changes” refers to changes in accounting principles required or permitted by
the promulgation of any rule, regulation, pronouncement or opinion by the
Financial Accounting Standards Board of the American Institute of Certified
Public Accountants or, if applicable, the SEC.

 

“Governmental Authority”:  any nation or government, any state or other
political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative functions of or
pertaining to government, any securities exchange and any self-regulatory
organization (including the National Association of Insurance Commissioners).

 

“Guarantee Obligation”:  as to any Person (the “guaranteeing person”),
any obligation, including a reimbursement, counterindemnity or similar
obligation, of the guaranteeing Person that

 

 

guarantees or in effect
guarantees, or which is given to induce the creation of a separate obligation
by another Person (including any bank under any letter of credit) that
guarantees or in effect guarantees, any Indebtedness, leases, dividends or
other obligations (the “primary obligations”) of any other third Person
(the “primary obligor”) in any manner, whether directly or indirectly,
including any obligation of the guaranteeing person, whether or not contingent,
(i) to purchase any such primary obligation or any property constituting
direct or indirect security therefor, (ii) to advance or supply funds (1) for
the purchase or payment of any such primary obligation or (2) to maintain
working capital or equity capital of the primary obligor or otherwise to
maintain the net worth or solvency of the primary obligor, (iii) to
purchase property, securities or services primarily for the purpose of assuring
the owner of any such primary obligation of the ability of the primary obligor
to make payment of such primary obligation or (iv) otherwise to assure or
hold harmless the owner of any such primary obligation against loss in respect
thereof; provided, however, that the term Guarantee Obligation
shall not include endorsements of instruments for deposit or collection in the
ordinary course of business.  The amount
of any Guarantee Obligation of any guaranteeing person shall be deemed to be
the lower of (a) an amount equal to the stated or determinable amount of
the primary obligation in respect of which such Guarantee Obligation is made
and (b) the maximum amount for which such guaranteeing person may be
liable pursuant to the terms of the instrument embodying such Guarantee
Obligation, unless such primary obligation and the maximum amount for which
such guaranteeing person may be liable are not stated or determinable, in which
case the amount of such Guarantee Obligation shall be such guaranteeing person’s
maximum reasonably anticipated liability in respect thereof as determined by
the Borrower in good faith.  

 

“Increased Revolving
Commitment Activation Notice”:  a notice
substantially in the form of Exhibit E-2.  

 

“Increased Revolving
Commitment Closing Date”:  any
Business Day designated as such in an Increased Revolving Commitment Activation
Notice.  

 

“Indebtedness”:  of any Person at any date, without
duplication, (a) all indebtedness of such Person for borrowed money, (b) all
obligations of such Person for the deferred purchase price of property or
services (other than current trade payables or liabilities incurred in the
ordinary course of such Person’s business), (c) all obligations of such
Person evidenced by notes, bonds, debentures or other similar instruments, (d) all
indebtedness created or arising under any conditional sale or other title
retention agreement with respect to property acquired by such Person (even
though the rights and remedies of the seller or lender under such agreement in
the event of default are limited to repossession or sale of such property), (e) all
Capital Lease Obligations of such Person, (f) all non-contingent
obligations of such Person in respect of acceptances, letters of credit, surety
bonds or similar arrangements, (g) the liquidation value of all
mandatorily redeemable preferred Capital Stock of such Person, (h) all
Guarantee Obligations of such Person in respect of obligations of the kind
referred to in clauses (a) through (g) above, (i) all
obligations of the kind referred to in clauses (a) through (h) above
secured by (or for which the holder of such obligation has an existing right,
contingent or otherwise, to be secured by) any Lien on property (including
accounts and contract rights) owned by such Person, whether or not such Person
has assumed or become liable for the payment of such obligation, and (j) all
net obligations of such Person in respect of Swap Agreements.  The Indebtedness of any Person shall include
the Indebtedness of any other entity (including any partnership in which such
Person is a general partner) to the extent such Person is liable therefor as a
result of such Person’s ownership interest in or other relationship with such
entity, except to the extent the terms of such Indebtedness expressly provide
that such Person is not liable therefor.

 

“Indentures”:  the First Collateral Trust Securities
Indenture and the First Mortgage Bond Indenture; provided that after the
defeasance of the First Mortgage Bond Indenture, “Indentures” shall be deemed
to be a reference only to the First Collateral Trust Securities Indenture.

 

 

“Insolvency”:  with respect to any Multiemployer Plan, the
condition that such Plan is insolvent within the meaning of Section 4245
of ERISA.

 

“Insolvent”:  pertaining to a condition of Insolvency.

 

“Interest Payment Date”:  (a) as to any ABR Loan, the last day of
each March, June, September and December to occur while such
Revolving Loan is outstanding and the Revolving Termination Date of such
Revolving Loan, (b) as to any Eurodollar Loan having an Interest Period of
three months or less, the last day of such Interest Period, (c) as to any
Eurodollar Loan having an Interest Period longer than three months, each day
that is three months, or a whole multiple thereof, after the first day of such
Interest Period and the last day of such Interest Period and (d) as to any
Revolving Loan, the date of any repayment or prepayment made in respect thereof.

 

“Interest Period”:  as to any Eurodollar Loan, (a) initially,
the period commencing on the borrowing or conversion date, as the case may be,
with respect to such Eurodollar Loan and ending one, two, three or six months
thereafter, as selected by the Borrower in its notice of borrowing or notice of
conversion, as the case may be, given with respect thereto; and (b) thereafter,
each period commencing on the last day of the next preceding Interest Period
applicable to such Eurodollar Loan and ending one, two, three or six months
thereafter, as selected by the Borrower by irrevocable notice to the
Administrative Agent not later than 11:00 A.M., New York City time, on the
date that is three Business Days prior to the last day of the then current
Interest Period with respect thereto; provided that, all of the
foregoing provisions relating to Interest Periods are subject to the following:

 

(i)                                     if any Interest Period would otherwise
end on a day that is not a Business Day, such Interest Period shall be extended
to the next succeeding Business Day unless the result of such extension would
be to carry such Interest Period into another calendar month in which event
such Interest Period shall end on the immediately preceding Business Day;

 

(ii)                                  the Borrower may not select an Interest
Period that would extend beyond the Revolving Termination Date; and

 

(iii)                               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 a calendar month.

 

“Issuing Lender”:  each of JPMorgan Chase Bank, N.A., The Bank
of New York and Wells Fargo Bank, National Association, or any affiliate of any
of the foregoing, each in its capacity as issuer of any Letter of Credit.  Any other Lender selected by the Borrower to
be an Issuing Lender shall become an Issuing Lender with the consent of the
Administrative Agent and such Lender, in such capacity.  

 

“L/C Commitment”:  $75,000,000.

 

“L/C Obligations”:  at any time, an amount equal to the sum of (a) the
aggregate then undrawn and unexpired amount of the then outstanding Letters of
Credit and (b) the aggregate amount of drawings under Letters of Credit
that have not then been reimbursed pursuant to Section 3.5.

 

“L/C Participants”:  with respect to each Issuing Lender, the
collective reference to all the Lenders other than such Issuing Lender.

 

“Lenders”:  as defined in the preamble hereto.  

 

 

“Letters of Credit”:  letters of credit issued pursuant to Section 3.1
(and including in any case the Existing Letters of Credit).

 

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

 

“Loan Documents”:  this Agreement, the Notes and any amendment,
waiver, supplement or other modification to any of the foregoing.

 

“Material Adverse Effect”:  any event, development or circumstance that
has had or could reasonably be expected to have a material adverse effect on (a) the
business, operations, property or condition (financial or otherwise) of the
Borrower and its Subsidiaries taken as a whole or (b) the validity or
enforceability of any of this Agreement or any other Loan Document or the
rights and remedies of the Administrative Agent or the Lenders hereunder and
thereunder.

 

“Material Indebtedness”:  Indebtedness (other than the Revolving Loans
and Letters of Credit), or obligations in respect of one or more Swap Agreements
or Commodity Swap Agreements, of any one or more of the Borrower and its
Significant Subsidiaries in an aggregate principal amount exceeding
$50,000,000.  For purposes of determining
Material Indebtedness, the “principal amount” of the obligations of the
Borrower or any Significant Subsidiary in respect of any Swap Agreement or any
Commodity Swap Agreement at any time shall be the maximum aggregate amount
(giving effect to any netting agreements) that the Borrower or such Significant
Subsidiary would be required to pay if such Swap Agreement or Commodity Swap
Agreement, as applicable, were terminated at such time.

 

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

 

“Multiemployer Plan”:  a Plan that is a multiemployer plan as defined
in Section 4001(a)(3) of ERISA.

 

“New Lender”:  as defined in Section 2.1(c).

 

“New Lender Supplement”:  as defined in Section 2.1(c).  

 

“Non-Excluded Taxes”:  as defined in Section 2.13(a). 

 

“Non-Extending Lender”:  as defined in Section 2.17(a).

 

“Non-U.S. Lender”:  as defined in Section 2.13(d).

 

“Notes”:  the collective reference to any promissory
note evidencing Revolving Loans.

 

“Obligations”:  the unpaid principal of and interest on
(including interest accruing after the maturity of the Revolving Loans and
Reimbursement Obligations and interest accruing after the filing of any
petition in bankruptcy, or the commencement of any insolvency, reorganization
or like proceeding, relating to the Borrower, whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding) the
Revolving Loans and all other obligations and liabilities of the Borrower to
the Administrative Agent or to any Lender, whether direct or indirect, absolute
or contingent, due or to become due, or now existing or hereafter incurred,
which may arise under, out of, or in connection with,

 

 

this Agreement, any other
Loan Document, the Letters of Credit or any other document made, delivered or
given in connection herewith or therewith, whether on account of principal,
interest, reimbursement obligations, fees, indemnities, costs, expenses
(including all fees, charges and disbursements of counsel to the Administrative
Agent or to any Lender that are required to be paid by the Borrower pursuant
hereto) or otherwise.

 

“Off-Balance Sheet
Liability”:  of a Person, (i) any
repurchase obligation or liability of such Person with respect to accounts or
notes receivable sold by such Person, (ii) any liability under any Sale
and Leaseback Transaction of such Person which is not a Capital Lease
Obligation and (iii) all Synthetic Lease Obligations of such Person.  The amount of liability under a Sale and
Leaseback Transaction of any Person shall be the amount that would be shown as
a liability on a balance sheet of such Person prepared in accordance with GAAP
if such lease or agreement were accounted for as a Capital Lease Obligation.

 

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

 

“Participant”:  as defined in Section 10.6(c).

 

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

 

“Permitted Lien”:  (i) any Lien securing a tax, assessment
or other governmental charge or levy or the claim of a materialman, mechanic,
carrier, warehouseman or landlord for labor, materials, supplies or rentals
incurred in the ordinary course of business, but only if payment thereof shall
not at the time be required to be made in accordance with Section 6.3; (ii) any
Lien on the properties and assets of a Significant Subsidiary of the Borrower
securing an obligation owing to the Borrower or another Significant Subsidiary;
(iii) any Lien consisting of a deposit or pledge made in the ordinary
course of business in connection with, or to secure payment of, obligations
under workers’ compensation, unemployment insurance, social security or
retirement benefits or similar legislation; (iv) any Lien arising pursuant
to an order of attachment, distraint or similar legal process arising in
connection with legal proceedings, but only if no Event of Default exists in
respect of such order; (v) any Lien existing on (A) any property or
asset of any Person at the time such Person becomes a Subsidiary or (B) any
property or asset at the time such property or asset is acquired by the
Borrower or a Subsidiary, but only, in the case of either (A) or (B), if
and so long as (1) such Lien was not created in contemplation of such
Person becoming a Subsidiary or such property or asset being acquired, (2) such
Lien is and will remain confined to the property or asset subject to it at the
time such Person becomes a Subsidiary or such property or asset is acquired and
to improvements thereafter erected on or attached to such property or asset or
any property or asset acquired in substitution or replacement thereof, (3) such
Lien secures only the obligation secured thereby at the time such Person
becomes a Subsidiary or such property or asset is acquired and (4) the
obligation secured by such Lien is not in default; (vi) any Lien in
existence on the Closing Date to the extent set forth on Schedule 7.2, but
only, in the case of each such Lien, to the extent it secures an obligation
outstanding on the Closing Date to the extent set forth on such Schedule; (vii) any
Lien securing Purchase Money Indebtedness but only if, in the case of each such
Lien, (A) such Lien shall at all times be confined solely to the property
or asset the purchase price of which was financed through the incurrence of the
Purchase Money Indebtedness secured by such Lien and to improvements thereafter
erected on or attached to such property or asset or any property or asset
acquired in substitution or replacement thereof and (B) such Lien attached
to such property or asset within 90 days of the acquisition of such property or
asset; (viii) deposits made in the ordinary course of business to secure
the

 

 

performance of bids, trade
contracts (other than Indebtedness), operating leases, surety and appeal bonds,
performance bonds and other obligations of a like nature incurred in the
ordinary course of business; (ix) deposits securing liability to insurance
carriers under insurance or self-insurance arrangements; (x) easements,
reservations, rights-of-way, restrictions, survey exceptions and other similar
encumbrances as to real property which customarily exist on properties of
corporations engaged in similar activities and similarly situated and which do
not materially interfere with the conduct of the business of the Borrower or
any Significant Subsidiary conducted at the property subject thereto; (xi)
leases and subleases of property owned or leased by the Borrower or any
Significant Subsidiary not interfering with the ordinary conduct of the
business of the Borrower and the Significant Subsidiaries; (xii) Liens securing
obligations, neither assumed by the Borrower or any Significant Subsidiary nor
on account of which the Borrower or any Significant Subsidiary customarily pays
interest, upon real estate or under which any Significant Subsidiary has a
right-of-way, easement, franchise or other servitude or of which any
Significant Subsidiary is the lessee of the whole thereof or any interest
therein for the purpose of locating transmission and distribution lines and
related support structures, pipe lines, substations, measuring stations, tanks,
pumping or delivery equipment or similar equipment; (xiii) Liens arising by
virtue of any statutory or common law provision relating to banker’s liens,
rights of setoff or similar rights as to deposit accounts or other funds
maintained with a depository institution; (xiv) any Lien constituting a
renewal, extension or replacement of a Lien constituting a Permitted Lien by
virtue of clause (v), (vi) or (vii) of this definition, but only if (A) at
the time such Lien is granted and immediately after giving effect thereto, no
Default or Event of Default would exist, (B) such Lien is limited to all
or a part of the property or asset that was subject to the Lien so renewed,
extended or replaced and to improvements thereafter erected on or attached to
such property or asset or any property or asset acquired in substitution or
replacement thereof, (C) the principal amount of the obligations secured
by such Lien does not exceed the principal amount of the obligations secured by
the Lien so renewed, extended or replaced and (D) the obligations secured
by such Lien bear interest at a rate per annum not exceeding the rate borne by
the obligations secured by the Lien so renewed, extended or replaced except for
any increase that is commercially reasonable at the time of such increase; (xv)
Liens on any property of any Significant Subsidiary securing Indebtedness of
such Significant Subsidiary; (xvi) Liens created and/or permitted under
the Indentures, as such Indentures exist on the date hereof,
without regard to any waiver, amendment, modification or restatement thereof;
and (xvii) Liens not described in clauses (i) through (xvi),
inclusive, securing Indebtedness or other liabilities or obligations of the
Borrower and/or its Significant Subsidiaries in an aggregate principal amount
outstanding not to exceed 10% of the consolidated net worth of the
Borrower and its Subsidiaries at the time of such incurrence.

 

“Person”:  an individual, partnership, corporation,
limited liability company, business trust, joint stock company, trust,
unincorporated association, joint venture, Governmental Authority or other
entity of whatever nature.

 

“Plan”:  at a particular time, any employee benefit
plan that is covered by ERISA and in respect of which the Borrower or a
Commonly Controlled Entity is (or, if such plan were terminated at such time,
would under Section 4069 of ERISA be deemed to be) an “employer” as
defined in Section 3(5) of ERISA.

 

“PUHCA” means the
Public Utility Holding Company Act of 1935, as amended from time to time

 

“Purchase Money
Indebtedness”:  Indebtedness of the
Borrower that is incurred to finance part or all of (but not more than) the
purchase price of a tangible asset; provided that (i) neither the
Borrower nor any Subsidiary had at any time prior to such purchase any interest
in such asset other than a security interest or an interest as lessee under an
operating lease and (ii) such Indebtedness is incurred within 90 days
after such purchase. 

 

 

“Refinancing”:  as defined in Section 5.1(b). 

 

“Register”:  as defined in Section 10.6(b).

 

“Regulation U”:  Regulation U of the Board as in effect from
time to time.

 

“Reimbursement Obligation”:  the obligation of the Borrower to reimburse
the applicable Issuing Lender pursuant to Section 3.5 for amounts drawn
under Letters of Credit.

 

“Reorganization”:  with respect to any Multiemployer Plan, the
condition that such plan is in reorganization within the meaning of Section 4241
of ERISA.

 

“Reportable Event”:  any of the events set forth in Section 4043(c) of
ERISA, other than those events as to which the thirty day notice period is
waived under PBGC Reg. § 4043.

 

“Required Lenders”:  at any time, the holders of more than 50% of
the Total Revolving Commitments then in effect or, if the Revolving Commitments
have been terminated, the Total Revolving Extensions of Credit then
outstanding.  

 

“Requirement of Law”:  as to any Person, the Certificate of
Incorporation and By-Laws or other organizational or governing documents of
such Person, and any law, treaty, rule or regulation or determination of
an arbitrator or a court or other Governmental Authority, in each case
applicable to or binding upon such Person or any of its property or to which
such Person or any of its property is subject.

 

“Responsible Officer”:  the chief executive officer, president, chief
financial officer or treasurer of the Borrower.

 

“Revolving Commitment”:  as to any Lender, the obligation of such
Lender to make Revolving Loans and participate in Letters of Credit in an
aggregate principal and/or face amount not to exceed the amount set forth under
the heading “Revolving Commitment” opposite such Lender’s name on Schedule 1.1A
or in the Assignment and Assumption or New Lender Supplement pursuant to which
such Lender became a party hereto, as the same may be changed from time to time
pursuant to the terms hereof.  The
original amount of the Total Revolving Commitments is $500,000,000.

 

“Revolving Commitment
Period”:  as to any Lender, the
period from and including the Closing Date to the Revolving Termination Date applicable
thereto.

 

“Revolving Extensions of
Credit”:  as to any Lender at any
time, an amount equal to the sum of (a) the aggregate principal amount of
all Revolving Loans held by such Lender then outstanding and (b) such
Lender’s Revolving Percentage of the L/C Obligations then outstanding.

 

“Revolving Loans”:  as defined in Section 2.1(a).

 

“Revolving Percentage”:  as to any Lender at any time, the percentage
which such Lender’s Revolving Commitment then constitutes of the Total
Revolving Commitments or, at any time after the Revolving Commitments shall
have expired or terminated, the percentage which the aggregate principal amount
of such Lender’s Revolving Loans then outstanding constitutes of the aggregate
principal amount of the Revolving Loans then outstanding, provided,
that, in the event that the Revolving Loans are paid in full prior to the
reduction to zero of the Total Revolving Extensions of Credit, the Revolving
Percentages shall be determined in a manner designed to ensure that the other
outstanding Revolving Extensions of Credit shall be held by the Lenders on a
comparable basis.

 

 

“Revolving Termination
Date”:  April 21, 2010; provided
that with respect to Continuing Lenders only, the Revolving Termination Date
may be extended to April 21, 2011 pursuant to Section 2.17.  

 

“Sale and Leaseback
Transaction”:  any arrangement,
directly or indirectly, with any Person whereby a seller or transferor shall
sell or otherwise transfer any real or personal property and concurrently
therewith lease, or repurchase under an extended purchase contract, conditional
sales or other title retention agreement, the same or substantially similar
property.

 

“S&P”:  Standard & Poor’s Ratings Services,
a division of the McGraw Hill Companies, Inc. or any successor thereto.  

 

“SEC”:  the Securities and Exchange Commission and
any successor thereto.

 

“Significant Subsidiary”:  (a) any current or subsequently acquired
Subsidiary the total assets of which equal or exceed 15% of the consolidated
total assets of the Borrower and its Subsidiaries and (b) any Designated
Significant Subsidiary.  

 

“Single Employer Plan”:  any Plan that is covered by Title IV of
ERISA, but that is not a Multiemployer Plan.

 

“Solvent”:  when used with respect to any Person, means
that, as of any date of determination, (a) the amount of the “present fair
saleable value” of the assets of such Person will, as of such date, exceed the
amount of all “liabilities of such Person, contingent or otherwise”, as of such
date, as such quoted terms are determined in accordance with applicable federal
and state laws governing determinations of the insolvency of debtors, (b) the
present fair saleable value of the assets of such Person will, as of such date,
be greater than the amount that will be required to pay the liability of such
Person on its debts as such debts become absolute and matured, (c) such
Person will not have, as of such date, an unreasonably small amount of capital
with which to conduct its business, and (d) such Person will be able to
pay its debts as they mature.  For
purposes of this definition, (i) ”debt” means liability on a “claim”, and (ii) ”claim”
means any (x) right to payment, whether or not such a right is reduced to
judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured,
disputed, undisputed, legal, equitable, secured or unsecured or (y) right to an
equitable remedy for breach of performance if such breach gives rise to a right
to payment, whether or not such right to an equitable remedy is reduced to
judgment, fixed, contingent, matured or unmatured, disputed, undisputed,
secured or unsecured. 

 

“Subsidiary”:  as to any Person, a corporation, partnership,
limited liability company or other entity of which shares of stock or other
ownership interests having ordinary voting power (other than stock or such
other ownership interests having such power only by reason of the happening of
a contingency) to elect a majority of the board of directors or other managers
of such corporation, partnership or other entity are at the time owned, or the
management of which is otherwise controlled, directly or indirectly through one
or more intermediaries, or both, by such Person.  Unless otherwise qualified, all references to
a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a
Subsidiary or Subsidiaries of the Borrower.

 

“Swap Agreement”:  any
agreement with respect to any swap, forward, future or derivative transaction
or option or similar agreement involving, or settled by reference to, one or
more interest rates, currencies, equity or debt instruments or securities,
including indices relating thereto, or any similar transaction or any
combination of these transactions; provided that no phantom stock
or similar plan providing for payments only on account of services provided by
current or former directors, officers, employees or consultants of the Borrower
or any of its Subsidiaries shall be a “Swap Agreement”.

 

 

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

 

“Syndication Agents”:  as defined in the preamble hereto. 

 

“Total Capital”:  the sum of (A) stockholder’s equity,
which is the sum of common stock, premium on common stock, retained earnings
and preferred stock, but which excludes Trust Preferred Securities to the
extent included in Funded Debt and (B) Funded Debt, all determined with
respect to the Borrower and its Subsidiaries on a consolidated basis in
accordance with GAAP.

 

“Total Revolving
Commitments”:  at any time, the
aggregate amount of the Revolving Commitments then in effect.

 

“Total Revolving
Extensions of Credit”:  at any time,
the aggregate amount of the Revolving Extensions of Credit of the Lenders
outstanding at such time.

 

“Transferee”:  any Assignee or Participant.

 

“Trust Indenture Act”: 
the Trust Indenture Act of 1939, as amended.

 

“Trust Preferred Securities”: 
any preferred securities issued by a Trust Preferred Securities Subsidiary,
where such preferred securities have the following characteristics:

 

(i)                                     such
Trust Preferred Securities Subsidiary lends substantially all of the proceeds
from the issuance of such preferred securities to the Borrower or a
wholly-owned direct or indirect Subsidiary of the Borrower in exchange for
subordinated debt issued by the Borrower or such wholly-owned direct or
indirect Subsidiary, respectively;

 

(ii)                                  such
preferred securities contain terms providing for the deferral of interest
payments corresponding to provisions providing for the deferral of interest
payments on the subordinated debt; and

 

(iii)                               the Borrower or a
wholly-owned direct or indirect Subsidiary of the Borrower (as the case may be)
makes periodic interest payments on the subordinated debt, which interest
payments are in turn used by the Trust Preferred Securities Subsidiary to make
corresponding payments to the holders of such preferred securities.

 

“Trust Preferred Securities Subsidiary”:  any Delaware business trust (or similar entity)
(i) all of the common equity interest of which is owned (either directly
or indirectly through one or more Wholly Owned Subsidiaries of the Borrower) at
all times by the Borrower, (ii) that has been formed for the purpose of
issuing Trust Preferred Securities and (iii) substantially all of the
assets of which consist at all times solely of subordinated debt issued by the
Borrower or a wholly-owned direct or indirect Subsidiary of the Borrower (as
the case may be) and payments made from time to time on such subordinated
debt..

 

 

“Type”:  as to any Revolving Loan, its nature as an
ABR Loan or a Eurodollar Loan.

 

“United States”:  the United States of America.

 

“Voting Stock”:  Capital Stock issued by a corporation, or
equivalent interests in any other Person, the holders of which are ordinarily,
in the absence of contingencies, entitled to vote for the election of directors
(or persons performing similar functions) of such Person, even if the right so
to vote has been suspended by the happening of such contingency.  

 

“Wholly Owned Subsidiary”:  as to any Person, any other Person all of the
Capital Stock of which (other than directors’ qualifying shares required by
law) is owned by such Person directly and/or through other Wholly Owned
Subsidiaries.  

 

1.2                                 Other
Definitional Provisions.  (a) Unless
otherwise specified therein, all terms defined in this Agreement shall have the
defined meanings when used in the other Loan Documents or any certificate or
other document made or delivered pursuant hereto or thereto.

 

(b)  As
used herein and in the other Loan Documents, and any certificate or other
document made or delivered pursuant hereto or thereto, (i) accounting
terms relating to the Borrower not defined in Section 1.1 and accounting
terms partly defined in Section 1.1, to the extent not defined, shall have
the respective meanings given to them under GAAP, (ii) the words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without
limitation”, (iii) the word “incur” shall be construed to mean incur,
create, issue, assume, become liable in respect of or suffer to exist (and the
words “incurred” and “incurrence” shall have correlative meanings), (iv) 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, Capital Stock, securities, revenues, accounts,
leasehold interests and contract rights, and (v) references to agreements
or other Contractual Obligations shall, unless otherwise specified, be deemed
to refer to such agreements or Contractual Obligations as amended,
supplemented, restated or otherwise modified from time to time.

 

(c)  The
words “hereof”, “herein” and “hereunder” and words of similar import, when used
in this Agreement, shall refer to this Agreement as a whole and not to any
particular provision of this Agreement, and Section, Schedule and Exhibit references
are to this Agreement unless otherwise specified.

 

(d)  The
meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

 

SECTION 2.                                AMOUNT AND TERMS OF REVOLVING COMMITMENTS

 

2.1                                 Revolving
Commitments.  (a) Subject to the
terms and conditions hereof, each Lender severally agrees to make revolving
credit loans (“Revolving Loans”) to the Borrower from time to time
during the Revolving Commitment Period in an aggregate principal amount at any
one time outstanding which, when added to such Lender’s Revolving Percentage of
the L/C Obligations then outstanding, does not exceed the amount of such Lender’s
Revolving Commitment.  During the
Revolving Commitment Period the Borrower may use the Revolving Commitments by
borrowing, prepaying the Revolving Loans in whole or in part, and reborrowing,
all in accordance with the terms and conditions hereof.  The Revolving Loans may from time to time be
Eurodollar Loans or ABR Loans, as determined by the Borrower and notified to
the Administrative Agent in accordance with Sections 2.2 and 2.6.

 

 

(b) At any
time prior to the fourth anniversary of the Closing Date, the Borrower and any
one or more Lenders (including New Lenders) may agree that such Lender(s) shall
make, obtain or increase the amount of their Revolving Commitments by executing
and delivering to the Administrative Agent an Increased Revolving Commitment
Activation Notice specifying the amount of such increase and the applicable
Increased Revolving Commitment Closing Date (which may be no later than the
fourth anniversary of the Closing Date). 
Notwithstanding the foregoing, (i) the aggregate amount of
incremental Revolving Commitments obtained pursuant to this Section 2.1(b) shall
not exceed $100,000,000, (ii) incremental Revolving Commitments may not be
made, obtained or increased after the occurrence and during the continuation of
a Default or Event of Default, including after giving effect to the incremental
Revolving Commitments in question, (iii) the increase effected pursuant to
this paragraph shall be in a minimum amount of at least $25,000,000 and (iv) no
more than one Increased Revolving Commitment Closing Date may be selected by
the Borrower during the term of this Agreement. 
No Lender shall have any obligation to participate in any increase
described in this paragraph unless it agrees to do so in its sole discretion.

 

(c) Any
additional bank, financial institution or other entity which, with the consent
of the Borrower and the Administrative Agent (which consent shall not be
unreasonably withheld), elects to become a “Lender” under this Agreement in
connection with an increase described in Section 2.1(b) shall execute
a New Lender Supplement (each, a “New Lender Supplement”), substantially
in the form of Exhibit E-1, whereupon such bank, financial
institution or other entity (a “New Lender”) shall become a Lender for
all purposes and to the same extent as if originally a party hereto and shall
be bound by and entitled to the benefits of this Agreement.

 

(d) On each
Increased Revolving Commitment Closing Date on which there are Revolving Loans
outstanding, the New Lender(s) and/or Lender(s) that have increased their
Revolving Commitments shall make Revolving Loans, the proceeds of which will be
used to prepay the Revolving Loans of other Lenders, so that, after giving
effect thereto, the resulting Revolving Loans outstanding are allocated among
the Lenders in accordance with Section 2.11(a) based on the
respective Revolving Percentages of the Lenders after giving effect to such
Increased Revolving Commitment Closing Date.

 

(e) The
Borrower shall repay the outstanding Revolving Loans of each Lender on the
Revolving Termination Date applicable to such Lender.

 

2.2                                 Procedure
for Revolving Loan Borrowing.   The
Borrower may borrow under the Revolving Commitments during the Revolving
Commitment Period on any Business Day, provided that the Borrower shall
give the Administrative Agent irrevocable notice (which notice must be received
by the Administrative Agent prior to 11:00 A.M., New York City time, (a) three
Business Days prior to the requested Borrowing Date, in the case of Eurodollar
Loans (or, with respect to any Eurodollar Loans to be made on the Closing Date,
such shorter time period as may be agreed by the Administrative Agent) or (b) on
the requested Borrowing Date, in the case of ABR Loans), specifying (i) the
amount and Type of Revolving Loans to be borrowed, (ii) the requested
Borrowing Date and (iii) in the case of Eurodollar Loans, the respective
lengths of the initial Interest Period therefor.  Each borrowing under the Revolving Commitments
shall be in an amount equal to (x) in the case of ABR Loans, $1,000,000 or a
whole multiple thereof (or, if the then aggregate Available Revolving
Commitments are less than $1,000,000, such lesser amount) and (y) in the case
of Eurodollar Loans, $5,000,000 or a whole multiple of $1,000,000 in excess
thereof.  Upon receipt of any such notice
from the Borrower, the Administrative Agent shall promptly notify each Lender
thereof.  Each Lender will make the
amount of its pro  rata share of each borrowing available to the
Administrative Agent for the account of the Borrower at the Funding Office
prior to 12:00 Noon, New York City time, on the Borrowing Date requested by the
Borrower in funds immediately available to the Administrative Agent.  Such borrowing will then be made available to
the Borrower by the Administrative Agent crediting the account of the Borrower
on the books of such

 

 

office with the aggregate of the amounts made available to the
Administrative Agent by the Lenders and in like funds as received by the
Administrative Agent.

 

2.3                                 Fees.  (a)  The Borrower agrees to pay to the
Administrative Agent for the account of each Lender a commitment fee for the
period from and including the date hereof to the last day of the Revolving
Commitment Period applicable thereto, computed at the Applicable Margin on the
average daily amount of the Available Revolving Commitment of such Lender
during the period for which payment is made, payable quarterly in arrears on
each Fee Payment Date.

 

(b)  The
Borrower agrees to pay to the Administrative Agent the fees in the amounts and
on the dates as set forth in any fee agreements with the Administrative Agent
and to perform any other obligations contained therein.

 

2.4                                 Termination
or Reduction of Revolving Commitments. 
The Borrower shall have the right, upon not less than three Business
Days’ notice to the Administrative Agent, to terminate the Revolving
Commitments or, from time to time, to reduce the amount of the Revolving
Commitments; provided that no such termination or reduction of Revolving
Commitments shall be permitted if, after giving effect thereto and to any
prepayments of the Revolving Loans made on the effective date thereof, the
Total Revolving Extensions of Credit would exceed the Total Revolving Commitments.  Any such reduction shall be in an amount
equal to $1,000,000, or a whole multiple thereof, and shall reduce permanently
the Revolving Commitments then in effect. 
Following an Extension Request pursuant to Section 2.17, the
Borrower may terminate the Revolving Commitments of the Non-Extending Lenders; provided
that the Borrower shall prepay the Revolving Loans of such Non-Extending
Lenders on the effective date of such termination, together with accrued but
unpaid interest and fees thereon and all other amounts then payable hereunder
to such Non-Extending Lenders.

 

2.5                                 Optional
Prepayments.  The Borrower may at any
time and from time to time prepay the Revolving Loans, in whole or in part,
without premium or penalty, upon irrevocable notice delivered to the
Administrative Agent no later than 11:00 A.M., New York City time, three
Business Days prior thereto, in the case of Eurodollar Loans, and no later than
11:00 A.M., New York City time, on the prepayment date, in the case of ABR
Loans, which notice shall specify the date and amount of prepayment and whether
the prepayment is of Eurodollar Loans or ABR Loans; provided, that if a
Eurodollar Loan is prepaid on any day other than the last day of the Interest
Period applicable thereto, the Borrower shall also pay any amounts owing
pursuant to Section 2.14.  Upon
receipt of any such notice the Administrative Agent shall promptly notify each
Lender thereof.  If any such notice is
given, the amount specified in such notice shall be due and payable on the date
specified therein, together with accrued interest to such date on the amount
prepaid.  Partial prepayments of
Revolving Loans shall be in an aggregate principal amount of $1,000,000 or a
whole multiple thereof.

 

2.6                                 Conversion
and Continuation Options.  (a)   The Borrower may elect from time to time to
convert Eurodollar Loans to ABR Loans by giving the Administrative Agent prior
irrevocable notice of such election no later than 11:00 A.M., New York
City time, on the Business Day preceding the proposed conversion date, provided
that any such conversion of Eurodollar Loans may only be made on the last day
of an Interest Period with respect thereto. 
The Borrower may elect from time to time to convert ABR Loans to
Eurodollar Loans by giving the Administrative Agent prior irrevocable notice of
such election no later than 11:00 A.M., New York City time, on the third
Business Day preceding the proposed conversion date (which notice shall specify
the length of the initial Interest Period therefor), provided that no
ABR Loan may be converted into a Eurodollar Loan when any Event of Default has
occurred and is continuing and the Administrative Agent or the Required Lenders
have determined in its or their sole discretion not to permit such conversions.  Upon receipt of any such notice the
Administrative Agent shall promptly notify each Lender thereof.

 

 

(b)  Any
Eurodollar Loan may be continued as such upon the expiration of the then
current Interest Period with respect thereto by the Borrower giving irrevocable
notice to the Administrative Agent, in accordance with the applicable
provisions of the term “Interest Period” set forth in Section 1.1, of the
length of the next Interest Period to be applicable to such Revolving Loans, provided
that no Eurodollar Loan may be continued as such when any Event of Default has
occurred and is continuing and the Administrative Agent has or the Required
Lenders have determined in its or their sole discretion not to permit such
continuations, and provided, further, that if the Borrower shall
fail to give any required notice as described above in this paragraph or if
such continuation is not permitted pursuant to the preceding proviso such
Revolving Loans shall be automatically converted to ABR Loans on the last day
of such then expiring Interest Period. 
Upon receipt of any such notice the Administrative Agent shall promptly
notify each Lender thereof.

 

2.7                                 Limitations
on Eurodollar Tranches. 
Notwithstanding anything to the contrary in this Agreement, all
borrowings, conversions and continuations of Eurodollar Loans and all
selections of Interest Periods shall be in such amounts and be made pursuant to
such elections so that, (a) after giving effect thereto, the aggregate
principal amount of the Eurodollar Loans comprising each Eurodollar Tranche
shall be equal to $5,000,000 or a whole multiple of $1,000,000 in excess
thereof and (b) no more than ten Eurodollar Tranches shall be outstanding
at any one time.

 

2.8                                 Interest
Rates and Payment Dates.  (a)   Each Eurodollar Loan shall bear interest for
each day during each Interest Period with respect thereto at a rate per annum
equal to the Eurodollar Rate determined for such day plus the Applicable
Margin.

 

(b)  Each
ABR Loan shall bear interest at a rate per annum equal to the ABR plus the
Applicable Margin.

 

(c)  (i) If
all or a portion of the principal amount of any Revolving Loan or Reimbursement
Obligation shall not be paid when due (whether at the stated maturity, by
acceleration or otherwise), all outstanding Revolving Loans and Reimbursement
Obligations (whether or not overdue) shall bear interest at a rate per annum
equal to (x) in the case of the Revolving Loans, the rate that would otherwise
be applicable thereto pursuant to the foregoing provisions of this Section plus
2% or (y) in the case of Reimbursement Obligations, the rate applicable to ABR
Loans plus 2%, and (ii) if all or a portion of any interest payable
on any Revolving Loan or Reimbursement Obligation or any commitment fee or
other amount payable hereunder shall not be paid when due (whether at the
stated maturity, by acceleration or otherwise), such overdue amount shall bear
interest at a rate per annum equal to the rate then applicable to ABR Loans plus
2%, in each case, with respect to clauses (i) and (ii) above, from
the date of such non-payment until such amount is paid in full (as well after
as before judgment).

 

(d) 
Interest shall be payable in arrears on each Interest Payment Date, provided
that interest accruing pursuant to paragraph (c) of this Section shall
be payable from time to time on demand.

 

2.9                                 Computation
of Interest and Fees.  (a)   Interest and fees payable pursuant hereto
shall be calculated on the basis of a 360-day year for the actual days
elapsed, except that, with respect to ABR Loans the rate of interest on which
is calculated on the basis of the Prime Rate, the interest thereon shall be
calculated on the basis of a 365- (or 366-, as the case may be) day
year for the actual days elapsed.  The
Administrative Agent shall as soon as practicable notify the Borrower and the
Lenders of each determination of a Eurodollar Rate.  Any change in the interest rate on a
Revolving Loan resulting from a change in the ABR or the Eurocurrency Reserve
Requirements shall become effective as of the opening of business on the day on
which such change becomes effective.  The
Administrative Agent shall as soon as practicable notify the Borrower and the
Lenders of the effective date and the amount of each such change in interest rate.

 

 

(b)  Each
determination of an interest rate by the Administrative Agent pursuant to any
provision of this Agreement shall be conclusive and binding on the Borrower and
the Lenders in the absence of manifest error. 
The Administrative Agent shall, at the request of the Borrower, deliver
to the Borrower a statement showing the quotations used by the Administrative
Agent in determining any interest rate pursuant to Section 2.8(a).

 

2.10                           Inability
to Determine Interest Rate.  If prior
to the first day of any Interest Period, the Administrative Agent shall give
telecopy or telephonic notice thereof to the Borrower and the Lenders that:

 

(a)                                  the Administrative Agent shall have
determined (which determination shall be conclusive and binding upon the
Borrower) that, by reason of circumstances affecting the relevant market,
adequate and reasonable means do not exist for ascertaining the Eurodollar Rate
for such Interest Period, or

 

(b)                                 the Administrative Agent shall have
received notice from the Required Lenders that the Eurodollar Rate determined
or to be determined for such Interest Period will not adequately and fairly
reflect the cost to such Lenders (as conclusively certified by such Lenders) of
making or maintaining their affected Revolving Loans during such Interest
Period,

 

then (x) any Eurodollar
Loans requested to be made on the first day of such Interest Period shall be
made as ABR Loans, (y) any Revolving Loans that were to have been
converted on the first day of such Interest Period to Eurodollar Loans shall be
continued as ABR Loans and (z) any outstanding Eurodollar Loans shall be
converted, on the last day of the then-current Interest Period, to ABR
Loans.  Until such notice has been
withdrawn by the Administrative Agent, no further Eurodollar Loans shall be
made or continued as such, nor shall the Borrower have the right to convert
Revolving Loans to Eurodollar Loans.

 

2.11                           Pro
Rata Treatment and Payments.  (a)   Except as otherwise expressly provided
herein, each borrowing by the Borrower from the Lenders hereunder, each payment
by the Borrower on account of any commitment fee and any reduction of the
Revolving Commitments of the Lenders shall be made pro  rata
according to the respective Revolving Percentages of the Lenders.

 

(b) 
Except as otherwise expressly provided herein, each payment (including each
prepayment) by the Borrower on account of principal of and interest on the
Revolving Loans shall be made pro  rata according to the
respective outstanding principal amounts of the Revolving Loans then held by
the Lenders.

 

(c)  All
payments (including prepayments) to be made by the Borrower hereunder, whether
on account of principal, interest, fees or otherwise, shall be made without
setoff or counterclaim and shall be made prior to 12:00 Noon, New York City
time, on the due date thereof to the Administrative Agent, for the account of
the Lenders, at the Funding Office, in Dollars and in immediately available
funds.  The Administrative Agent shall
distribute such payments to the Lenders promptly upon receipt in like funds as
received.  If any payment hereunder
(other than payments on the Eurodollar Loans) becomes due and payable on a day
other than a Business Day, such payment shall be extended to the next
succeeding Business Day.  If any payment
on a Eurodollar Loan becomes due and payable on a day other than a Business
Day, the maturity thereof shall be extended to the next succeeding Business Day
unless the result of such extension would be to extend such payment into
another calendar month, in which event such payment shall be made on the
immediately preceding Business Day.  In
the case of any extension of any payment of principal pursuant to the preceding
two sentences, interest thereon shall be payable at the then applicable rate
during such extension.

 

 

(d) 
Unless the Administrative Agent shall have been notified in writing by any
Lender prior to a borrowing that such Lender will not make the amount that
would constitute its share of such borrowing available to the Administrative
Agent, the Administrative Agent may assume that such Lender is making such
amount available to the Administrative Agent, and the Administrative Agent may,
in reliance upon such assumption, make available to the Borrower a
corresponding amount.  If such amount is
not made available to the Administrative Agent by the required time on the
Borrowing Date therefor, such Lender shall pay to the Administrative Agent, on
demand, such amount with interest thereon, at a rate equal to the greater of (i) the
Federal Funds Effective Rate and (ii) a rate determined by the
Administrative Agent in accordance with banking industry rules on
interbank compensation, for the period until such Lender makes such amount
immediately available to the Administrative Agent.  A certificate of the Administrative Agent
submitted to any Lender with respect to any amounts owing under this paragraph
shall be conclusive in the absence of manifest error.  If such Lender’s share of such borrowing is
not made available to the Administrative Agent by such Lender within three
Business Days after such Borrowing Date, the Administrative Agent shall also be
entitled to recover such amount with interest thereon at the rate per annum
applicable to ABR Loans, on demand, from the Borrower. 
Nothing herein shall be deemed to limit the rights of the Borrower against
such Lender.

 

(e) 
Unless the Administrative Agent shall have been notified in writing by the
Borrower prior to the date of any payment due to be made by the Borrower
hereunder that the Borrower will not make such payment to the Administrative
Agent, the Administrative Agent may assume that the Borrower is making such
payment, and the Administrative Agent may, but shall not be required to, in
reliance upon such assumption, make available to the Lenders their respective
shares of a corresponding amount.  If
such payment is not made to the Administrative Agent by the Borrower within
three Business Days after such due date, the Administrative Agent shall be
entitled to recover, on demand, from each Lender to which any amount which was
made available pursuant to the preceding sentence, such amount with interest
thereon at the rate per annum equal to the daily average Federal Funds
Effective Rate.  Nothing herein shall be
deemed to limit the rights of the Administrative Agent or any Lender against
the Borrower.

 

2.12                           Requirements
of Law.  (a)   If the adoption of or any change in any
Requirement of Law or in the interpretation or application thereof or
compliance by any Lender with any request or directive (whether or not having
the force of law) from any central bank or other Governmental Authority made
subsequent to the date hereof:

 

(i)  shall subject any Lender to any tax
of any kind whatsoever with respect to this Agreement, any Letter of Credit,
any Application or any Eurodollar Loan made by it, or change the basis of
taxation of payments to such Lender in respect thereof (except, in each case,
for Non-Excluded Taxes covered by Section 2.13 and changes in the rate of
tax on the overall net income of such Lender);

 

(ii)  shall impose, modify or hold applicable
any reserve, special deposit, compulsory loan or similar requirement against
assets held by, deposits or other liabilities in or for the account of,
advances, loans or other extensions of credit by, or any other acquisition of
funds by, any office of such Lender that is not otherwise included in the
determination of the Eurodollar Rate; or

 

(iii)   
shall impose on such Lender any other condition;

 

and the result of any of the
foregoing is to increase the cost to such Lender, by an amount that such Lender
deems to be material, of making, converting into, continuing or maintaining
Eurodollar Loans or issuing or participating in Letters of Credit, or to reduce
any amount receivable hereunder in respect

 

 

thereof, then, in any such
case, the Borrower shall pay such Lender, reasonably promptly after its demand,
any additional amounts necessary to compensate such Lender for such increased
cost or reduced amount receivable.  If
any Lender becomes entitled to claim any additional amounts pursuant to this paragraph,
it shall promptly notify the Borrower (with a copy to the Administrative Agent)
of the event by reason of which it has become so entitled, setting forth in
reasonable detail the calculations upon which such Lender determined such
amounts.

 

(b)  If
any Lender shall have determined that the adoption of or any change in any
Requirement of Law regarding capital adequacy or in the interpretation or
application thereof or compliance by such Lender or any corporation controlling
such Lender with any request or directive regarding capital adequacy (whether
or not having the force of law) from any Governmental Authority made subsequent
to the date hereof shall have the effect of reducing the rate of return on such
Lender’s or such corporation’s capital as a consequence of its obligations
hereunder or under or in respect of any Letter of Credit to a level below that
which such Lender or such corporation could have achieved but for such
adoption, change or compliance (taking into consideration such Lender’s or such
corporation’s policies with respect to capital adequacy) by an amount deemed by
such Lender to be material, then from time to time, after submission by such
Lender to the Borrower (with a copy to the Administrative Agent) of a written
request therefor setting forth in reasonable detail the calculations upon which
such Lender determined such amounts, the Borrower shall pay to such Lender
reasonably promptly after such submission such additional amount or amounts as
will compensate such Lender or such corporation for such reduction.

 

(c)  A
certificate as to any additional amounts payable pursuant to this Section submitted
by any Lender to the Borrower (with a copy to the Administrative Agent) shall
be conclusive in the absence of manifest error. 
Notwithstanding anything to the contrary in this Section, the Borrower
shall not be required to compensate a Lender pursuant to this Section for
any amounts incurred more than six months prior to the date that such Lender
notifies the Borrower of such Lender’s intention to claim compensation
therefor; provided that, if within such six-month period circumstances
occur that give rise to such claim having a retroactive effect, then such
six-month period shall be extended to include the period of such retroactive
effect.  The obligations of the Borrower
pursuant to this Section shall survive the termination of this Agreement
and the payment of the Revolving Loans and all other amounts payable hereunder.

 

2.13                           Taxes.  (a) All payments made by the Borrower
under this Agreement shall be made free and clear of, and without deduction or
withholding for or on account of, any present or future income, stamp or other
taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now
or hereafter imposed, levied, collected, withheld or assessed by any
Governmental Authority, excluding net income taxes and franchise taxes (imposed
in lieu of net income taxes) imposed on the Administrative Agent or any Lender
as a result of a present or former connection between the Administrative Agent
or such Lender and the jurisdiction of the Governmental Authority imposing such
tax or any political subdivision or taxing authority thereof or therein (other
than any such connection arising solely from the Administrative Agent or such Lender
having executed, delivered or performed its obligations or received a payment
under, or enforced, this Agreement or any other Loan Document).  If any such non-excluded taxes, levies,
imposts, duties, charges, fees, deductions or withholdings (“Non-Excluded
Taxes”) or Other Taxes are required to be withheld from any amounts payable
to the Administrative Agent or any Lender hereunder, the amounts so payable to
the Administrative Agent or such Lender shall be increased to the extent
necessary to yield to the Administrative Agent or such Lender (after payment of
all Non-Excluded Taxes and Other Taxes) interest or any such other amounts
payable hereunder at the rates or in the amounts specified in this Agreement, provided,
however, that the Borrower shall not be required to increase any such
amounts payable to any Lender with respect to any Non-Excluded Taxes (i) that
are attributable to such Lender’s failure to comply with the requirements of
paragraph (d) or (e) of this

 

 

Section or (ii) that are United States withholding taxes
imposed on amounts payable to such Lender at the time such Lender becomes a
party to this Agreement, except to the extent that such Lender’s assignor (if
any) was entitled, at the time of assignment, to receive such additional amounts
from the Borrower with respect to such Non-Excluded Taxes pursuant to this
paragraph, so long as such additional amounts payable by the Borrower are not
increased thereby.

 

(b)  In
addition, the Borrower shall pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

 

(c) 
Whenever any Non-Excluded Taxes or Other Taxes are payable by the Borrower, as
promptly as possible thereafter the Borrower shall send to the Administrative
Agent for its own account or for the account of the relevant Lender, as the
case may be, a certified copy of an original official receipt received by the
Borrower showing payment thereof or such other evidence of payment as is
reasonably satisfactory to the Administrative Agent.  If the Borrower fails to pay any Non-Excluded
Taxes or Other Taxes when due to the appropriate taxing authority or fails to
remit to the Administrative Agent the required receipts or other documentary
evidence, the Borrower shall indemnify the Administrative Agent and the Lenders
for any incremental Non-Excluded Taxes, interest or penalties that may become
payable by the Administrative Agent or any Lender as a result of any such
failure.

 

(d)   Each Lender (or Transferee) that is not a “U.S.
Person” as defined in Section 7701(a)(30) of the Code (a “Non-U.S.
Lender”) shall deliver to the Borrower and the Administrative Agent (or, in
the case of a Participant, to the Lender from which the related participation
shall have been purchased) two copies of either U.S. Internal Revenue Service Form W-8BEN
or Form W-8ECI, or, in the case of a Non-U.S. Lender claiming
exemption from U.S. federal withholding tax under Section 871(h) or
881(c) of the Code with respect to payments of “portfolio interest”, a
statement substantially in the form of Exhibit C and a Form W-8BEN,
or any subsequent versions thereof or successors thereto, properly completed
and duly executed by such Non-U.S. Lender claiming complete exemption from, or
a reduced rate of, U.S. federal withholding tax on all payments by the Borrower
under this Agreement and the other Loan Documents.  Such forms shall be delivered by each Non-U.S.
Lender on or before the date it becomes a party to this Agreement (or, in the
case of any Participant, on or before the date such Participant purchases the
related participation).  In addition,
each Non-U.S. Lender shall deliver such forms promptly upon the obsolescence or
invalidity of any form previously delivered by such Non-U.S. Lender.  Each Non-U.S. Lender shall promptly notify
the Borrower at any time it determines that it is no longer in a position to
provide any previously delivered certificate to the Borrower (or any other form
of certification adopted by the U.S. taxing authorities for such purpose).  Notwithstanding any other provision of this
paragraph, a Non-U.S. Lender shall not be required to deliver any form pursuant
to this paragraph that such Non-U.S. Lender is not legally able to deliver.

 

(e)  A
Lender that is entitled to an exemption from or reduction of non-U.S.
withholding tax under the law of the jurisdiction in which the Borrower is
located, or any treaty to which such jurisdiction is a party, with respect to
payments under this Agreement shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law or
reasonably requested by the Borrower, such properly completed and executed
documentation prescribed by applicable law as will permit such payments to be
made without withholding or at a reduced rate, provided that such Lender
is legally entitled to complete, execute and deliver such documentation and in
such Lender’s judgment such completion, execution or submission would not
materially prejudice the legal position of such Lender.

 

(f)  If the Administrative Agent or any Lender
determines, in its sole discretion, that it has received a refund of any
Non-Excluded Taxes or Other Taxes as to which it has been indemnified by the
Borrower or with respect to which the Borrower has paid additional amounts
pursuant to this Section 2.13,

 

 

it shall
pay over such refund to the Borrower (but only to the extent of indemnity
payments made, or additional amounts paid, by the Borrower under this Section 2.13
with respect to the Non-Excluded Taxes or Other Taxes giving rise to such
refund), net of all associated out-of-pocket expenses of the Administrative
Agent or such Lender and without interest (other than any interest paid by the
relevant Governmental Authority with respect to such refund); provided,
that the Borrower, upon the request of the Administrative Agent or such Lender,
shall repay the amount paid over to the Borrower (plus any penalties, interest
or other charges imposed by the relevant Governmental Authority) to the
Administrative Agent or such Lender in the event the Administrative Agent or
such Lender is required to repay such refund to such Governmental Authority.
This paragraph shall not be construed to require the Administrative Agent or
any Lender to make available its tax returns (or any other information relating
to its taxes which it deems confidential) to the Borrower or any other Person.

 

(g)  The
agreements in this Section shall survive the termination of this Agreement
and the payment of the Revolving Loans and all other amounts payable hereunder.

 

2.14                           Indemnity.  The Borrower agrees to indemnify each Lender
for, and to hold each Lender harmless from, any loss or expense that such
Lender may sustain or incur as a consequence of (a) default by the
Borrower in making a borrowing of, conversion into or continuation of
Eurodollar Loans after the Borrower has given a notice requesting the same in
accordance with the provisions of this Agreement, (b) default by the
Borrower in making any prepayment of or conversion from Eurodollar Loans after
the Borrower has given a notice thereof in accordance with the provisions of
this Agreement or (c) the making of a prepayment of Eurodollar Loans on a
day that is not the last day of an Interest Period with respect thereto.  Such indemnification may include an amount
equal to the excess, if any, of (i) the amount of interest that would have
accrued on the amount so prepaid, or not so borrowed, converted or continued,
for the period from the date of such prepayment or of such failure to borrow,
convert or continue to the last day of such Interest Period (or, in the case of
a failure to borrow, convert or continue, the Interest Period that would have
commenced on the date of such failure) in each case at the applicable rate of
interest for such Revolving Loans provided for herein (excluding, however, the
Applicable Margin included therein, if any) over (ii) the amount of
interest (as reasonably determined by such Lender) that would have accrued to
such Lender on such amount by placing such amount on deposit for a comparable
period with leading banks in the interbank eurodollar market.  A certificate as to any amounts payable
pursuant to this Section submitted to the Borrower by any Lender shall be
conclusive in the absence of manifest error. 
This covenant shall survive the termination of this Agreement and the
payment of the Revolving Loans and all other amounts payable hereunder.

 

2.15                           Change
of Lending Office.  Each Lender
agrees that, upon the occurrence of any event giving rise to the operation of Section 2.12
or 2.13(a) with respect to such Lender, it will use reasonable efforts
(subject to overall policy considerations of such Lender) to designate another
lending office for any Revolving Loans affected by such event with the object
of avoiding the consequences of such event; provided, that such
designation is made on terms that, in the sole judgment of such Lender, cause
such Lender and its lending office(s) to suffer no economic, legal or
regulatory disadvantage, and provided, further, that nothing in
this Section shall affect or postpone any of the obligations of the
Borrower or the rights of any Lender pursuant to Section 2.12 or 2.13(a).

 

2.16                           Replacement
of Lenders.  The Borrower shall be
permitted to replace any Lender that (a) requests reimbursement for
amounts owing pursuant to Section 2.12 or 2.13(a), (b) defaults in
its obligation to make Revolving Loans hereunder or (c) is a Non-Extending
Lender, with a replacement financial institution or other entity; provided
that (i) such replacement does not conflict with any Requirement of Law, (ii) no
Event of Default shall have occurred and be continuing at the time of such
replacement, (iii) in the case of clause (a) above, prior to any such
replacement, such Lender shall have taken no action under Section 2.15 so
as to eliminate the continued need for payment of amounts

 

 

owing pursuant to Section 2.12 or 2.13(a), (iv) the
replacement financial institution shall purchase, at par, all Revolving Loans
and other amounts owing to such replaced Lender on or prior to the date of replacement,
(v) the Borrower shall be liable to such replaced Lender under Section 2.14
if any Eurodollar Loan owing to such replaced Lender shall be purchased other
than on the last day of the Interest Period relating thereto, (vi) the
replacement financial institution, if not already a Lender, shall be reasonably
satisfactory to the Administrative Agent, (vii) the replaced Lender shall
be obligated to make such replacement in accordance with the provisions of Section 10.6
(provided that the Borrower shall be obligated to pay the registration and
processing fee referred to therein), (viii) until such time as such
replacement shall be consummated, the Borrower shall pay all additional amounts
(if any) required pursuant to Section 2.12 or 2.13(a), as the case may be,
and (ix) any such replacement shall not be deemed to be a waiver of any
rights that the Borrower, the Administrative Agent or any other Lender shall
have against the replaced Lender.

 

2.17                           Extension
of Revolving Termination Date.  (a) The
Borrower may, by written notice to the Administrative Agent in the form of Exhibit F-1
(the “Extension Request”)
given no earlier than the first anniversary of the Closing Date but no later
than 45 days prior to the then applicable Revolving Termination Date, request
that the then applicable Revolving Termination Date be extended to the date
that is one calendar year after the then applicable Revolving Termination
Date.  Such extension shall be effective
with respect to each Lender that, by a written notice in the form of Exhibit F-2
(a “Continuation Notice”)
to the Administrative Agent given no later than 20 days prior to the then
applicable Revolving Termination Date, consents, in its sole discretion, to
such extension (each Lender giving a Continuation Notice being referred to
herein as a “Continuing Lender”
and each Lender other than a Continuing Lender being referred to herein as a “Non-Extending Lender”), provided that (i) such extension shall be
effective only if the aggregate Revolving Commitments of the Continuing Lenders
constitute at least 66-2/3% of the Total Revolving Commitments on the
date of the Extension Request, (ii) any Lender that fails to submit a
Continuation Notice at least 20 days prior to the then applicable Revolving
Termination Date shall be deemed not to have consented to such extension and
shall constitute a Non-Extending Lender and (iii) the Borrower may give
only one Extension Request during the term of this Agreement.  No Lender shall have any obligation to
consent to any extension of the Revolving Termination Date.  The Administrative Agent shall notify each
Lender of the receipt of an Extension Request promptly after receipt
thereof.  The Administrative Agent shall
notify the Borrower and the Lenders no later than 15 days prior to the then
applicable Revolving Termination Date whether the Administrative Agent has
received Continuation Notices from Lenders holding Revolving Commitments
aggregating at least 66-2/3% of the Total Revolving Commitments on the
date of the Extension Request.

 

(b) The
Revolving Commitment of each Non-Extending Lender shall terminate at the close
of business on the Revolving Termination Date in effect prior to the delivery
of such Extension Request without giving any effect to such proposed extension.  In accordance with Section 2.1(e), on
such Revolving Termination Date, the Borrower shall pay to the Administrative
Agent, for the account of each Non-Extending Lender, an amount equal to such
Non-Extending Lender’s Revolving Loans, together with accrued but unpaid interest
and fees thereon and all other amounts then payable hereunder to such
Non-Extending Lender.  If, however, on or
before the date which is 10 days prior to the Revolving Termination Date in
effect prior to the delivery of an Extension Request pursuant to this Section 2.17,
the Borrower obtains a replacement Lender pursuant to Section 2.16 for any
such Non-Extending Lender and such replacement Lender agrees to the extension
of the Revolving Termination Date pursuant to this Section 2.17, then such
replacement Lender shall for all purposes of this Section 2.17 and this
Agreement be deemed to be a Continuing Lender, and the Revolving Loans of such
Lender shall not be due and payable pursuant to this Section 2.17(b).

 

 

SECTION 3.           LETTERS
OF CREDIT

 

3.1           L/C Commitment.  (a) Subject to the terms and conditions
hereof, each Issuing Lender, in reliance on the agreements of the other Lenders
set forth in Section 3.4(a), agrees to issue Letters of Credit for the
account of the Borrower on any Business Day during the Revolving Commitment
Period in such form as may be approved from time to time by such Issuing
Lender; provided that no Issuing Lender shall issue any Letter of Credit
if, (i) after giving effect to such issuance, (A) the L/C Obligations
would exceed the L/C Commitment or (B) the aggregate amount of the
Available Revolving Commitments would be less than zero or (ii) such
Issuing Lender shall have received written notice from the Administrative Agent
or the Borrower, 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 contained in Section 5.2 shall not have been
satisfied.  On the Closing Date, each
Existing Letter of Credit shall be deemed to be a Letter of Credit issued
hereunder for the account of the Borrower. 
Each Letter of Credit shall (i) be denominated in Dollars and (ii) expire
no later than the earlier of (x) the first anniversary of its date of issuance
and (y) the date that is five Business Days prior to the Revolving Termination
Date (as it may be extended), provided that any Letter of Credit with a
one-year term may provide for the renewal thereof for additional one-year
periods (which shall in no event extend beyond the date referred to in clause
(y) above).

 

(b)  No
Issuing Lender shall at any time be obligated to issue any Letter of Credit if
such issuance would conflict with, or cause such Issuing Lender or any L/C
Participant to exceed any limits imposed by, any applicable Requirement of Law.

 

3.2           Procedure for Issuance of Letter
of Credit.  The Borrower may from
time to time request that an Issuing Lender issue a Letter of Credit by
delivering to such Issuing Lender at its address set forth in its Issuing
Lender Agreement an Application therefor, completed to the satisfaction of such
Issuing Lender, and such other certificates, documents and other papers and
information as such Issuing Lender may request. 
Upon receipt of any Application, such Issuing Lender will process such
Application and the certificates, documents and other papers and information
delivered to it in connection therewith in accordance with its customary
procedures and shall promptly issue the Letter of Credit requested thereby (but
in no event shall an Issuing Lender be required to issue any Letter of Credit
earlier than three Business Days after its receipt of the Application therefor
and all such other certificates, documents and other papers and information
relating thereto) by issuing the original of such Letter of Credit to the
beneficiary thereof or as otherwise may be agreed to by such Issuing Lender and
the Borrower.  Such Issuing Lender shall
furnish a copy of such Letter of Credit to the Borrower promptly following the
issuance thereof.  The applicable Issuing
Lender shall promptly furnish to the Administrative Agent, which shall in turn
promptly furnish to the Lenders, notice of the issuance of each Letter of
Credit (including the amount thereof).

 

3.3           Fees and Other Charges.  (a) The Borrower will pay a fee on all
outstanding Letters of Credit at a per annum rate equal to the Applicable
Margin then in effect with respect to Eurodollar Loans, shared ratably among
the Lenders and payable quarterly in arrears on each Fee Payment Date after the
issuance date.  In addition, the Borrower
shall pay to the applicable Issuing Lender for its own account a fronting fee
for each Letter of Credit requested by the Borrower in such amount and at such
times as may be set forth in a separate letter agreement between the Borrower
and such Issuing Lender (each, an “Issuing Lender Agreement”), which
shall contain such Issuing Lender’s address for notices..

 

(b)   In addition to the foregoing fees, the
Borrower shall pay or reimburse each Issuing Lender for such normal and
customary costs and expenses as are incurred or charged by such Issuing

 

 

Lender in issuing, negotiating, effecting payment under, amending or
otherwise administering any Letter of Credit.

 

3.4           L/C Participations.  (a)  Each Issuing Lender irrevocably
agrees to grant and hereby grants to each L/C Participant, and, to induce such
Issuing Lender to issue Letters of Credit, each L/C Participant irrevocably
agrees to accept and purchase and hereby accepts and purchases from such Issuing
Lender, on the terms and conditions set forth below, for such L/C Participant’s
own account and risk an undivided interest equal to such L/C Participant’s
Revolving Percentage in such Issuing Lender’s obligations and rights under and
in respect of each Letter of Credit and the amount of each draft paid by such
Issuing Lender thereunder.  Each L/C
Participant agrees with each Issuing Lender that, if a draft is paid under any
Letter of Credit for which such Issuing Lender is not reimbursed in full by the
Borrower in accordance with the terms of this Agreement, such L/C Participant
shall pay to such Issuing Lender upon demand at such Issuing Lender’s address
for notices specified herein an amount equal to such L/C Participant’s
Revolving Percentage of the amount of such draft, or any part thereof, that is
not so reimbursed.  Each L/C Participant’s
obligation to pay such amount shall be absolute and unconditional and shall not
be affected by any circumstance, including (i) any setoff, counterclaim,
recoupment, defense or other right that such L/C Participant may have against
such Issuing Lender, the Borrower or any other Person for any reason
whatsoever, (ii) the occurrence or continuance of a Default or an Event of
Default or the failure to satisfy any of the other conditions specified in Section 5,
(iii) any adverse change in the condition (financial or otherwise) of the
Borrower, (iv) any breach of this Agreement or any other Loan Document by
the Borrower or any other L/C Participant or (v) any other circumstance,
happening or event whatsoever, whether or not similar to any of the foregoing

 

(b)  If
any amount required to be paid by any L/C Participant to an Issuing Lender
pursuant to Section 3.4(a) in respect of any unreimbursed portion of
any payment made by such Issuing Lender under any Letter of Credit is paid to
such Issuing Lender within three Business Days after the date such payment is
due, such L/C Participant shall pay to such Issuing Lender on demand an amount
equal to the product of (i) such amount, times (ii) the daily average
Federal Funds Effective Rate during the period from and including the date such
payment is required to the date on which such payment is immediately available
to such Issuing Lender, times (iii) a fraction the numerator of which is
the number of days that elapse during such period and the denominator of which
is 360.  If any such amount required to
be paid by any L/C Participant pursuant to Section 3.4(a) is not made
available to an Issuing Lender by such L/C Participant within three Business
Days after the date such payment is due, such Issuing Lender shall be entitled
to recover from such L/C Participant, on demand, such amount with interest
thereon calculated from such due date at the rate per annum applicable to ABR
Loans.  A certificate of an Issuing
Lender submitted to any L/C Participant with respect to any amounts owing under
this Section shall be conclusive in the absence of manifest error.

 

(c) 
Whenever, at any time after an Issuing Lender has made payment under any Letter
of Credit and has received from any L/C Participant its pro  rata
share of such payment in accordance with Section 3.4(a), such Issuing
Lender receives any payment related to such Letter of Credit (whether directly
from the Borrower or otherwise, including proceeds of collateral applied
thereto by such Issuing Lender), or any payment of interest on account thereof,
such Issuing Lender will distribute to such L/C Participant its pro  rata
share thereof; provided, however, that in the event that any such
payment received by an Issuing Lender shall be required to be returned by such
Issuing Lender, such L/C Participant shall return to such Issuing Lender the
portion thereof previously distributed by such Issuing Lender to it.

 

3.5           Reimbursement Obligation of the
Borrower.  If any draft is paid under
any Letter of Credit, the Borrower shall reimburse the applicable Issuing
Lender for the amount of (a) the draft so paid and (b) any taxes,
fees, charges or other costs or expenses incurred by such Issuing Lender in
connection with such payment, not later than 12:00 Noon, New York City time, on
(i) the Business Day

 

 

that the Borrower receives
notice of such draft, if such notice is received on such day prior to 10:00 A.M.,
New York City time, or (ii) if clause (i) above does not apply, the
Business Day immediately following the day that the Borrower receives such
notice.  Each such payment shall be made
to the applicable Issuing Lender at its address set forth in its Issuing Lender
Agreement in Dollars and in immediately available funds.  Interest shall be payable on any such amounts
from the date on which the relevant draft is paid until payment in full at the
rate set forth in (x) until the Business Day next succeeding the date of the
relevant notice, Section 2.8(b) and (y) thereafter, Section 2.8(c).

 

3.6           Obligations Absolute.  The Borrower’s obligations under this Section 3
shall be absolute and unconditional under any and all circumstances and
irrespective of any setoff, counterclaim or defense to payment that the
Borrower may have or have had against any Issuing Lender, any beneficiary of a
Letter of Credit or any other Person. 
The Borrower also agrees with each Issuing Lender that, absent gross
negligence or willful misconduct of such Issuing Lender, such Issuing Lender
shall not be responsible for, and the Borrower’s Reimbursement Obligations
under Section 3.5 shall not be affected by, among other things, the
validity or genuineness of documents or of any endorsements thereon, even
though such documents shall in fact prove to be invalid, fraudulent or forged,
or any dispute between or among the Borrower and any beneficiary of any Letter
of Credit or any other party to which such Letter of Credit may be transferred
or any claims whatsoever of the Borrower against any beneficiary of such Letter
of Credit or any such transferee.  No
Issuing Lender shall be liable for any error, omission, interruption or delay
in transmission, dispatch or delivery of any message or advice, however
transmitted, in connection with any Letter of Credit, except for errors or
omissions resulting from the gross negligence or willful misconduct of such
Issuing Lender.  The Borrower agrees that
any action taken or omitted by an Issuing Lender under or in connection with
any Letter of Credit or the related drafts or documents, if done in the absence
of gross negligence or willful misconduct, shall be binding on the Borrower and
shall not result in any liability of such Issuing Lender to the Borrower; provided
that the Borrower shall not be precluded from asserting any claim for direct
(but not consequential) damages suffered by the Borrower to the extent caused
by (i) the gross negligence or willful misconduct of such Issuing Lender
in determining whether a request presented under any Letter of Credit issued by
it complied with the terms of such Letter of Credit or (ii) such Issuing
Lender’s willful failure or gross negligence in failing to pay under any Letter
of Credit issued by it after the presentation to it of a request strictly
complying with the terms and conditions of such Letter of Credit.

 

3.7           Letter of Credit Payments.  If any draft shall be presented for payment
under any Letter of Credit, the applicable Issuing Lender shall promptly notify
the Borrower of the date and amount thereof. 
The responsibility of the applicable Issuing Lender to the Borrower in
connection with any draft presented for payment under any Letter of Credit
shall, in addition to any payment obligation expressly provided for in such
Letter of Credit, be limited to determining that the documents (including each
draft) delivered under such Letter of Credit in connection with such
presentment are substantially in conformity with such Letter of Credit.

 

3.8           Applications.  To the extent that any provision of any
Application related to any Letter of Credit is inconsistent with the provisions
of this Section 3, the provisions of this Section 3 shall apply.

 

SECTION 4.           REPRESENTATIONS AND WARRANTIES

 

To induce the Administrative Agent and the Lenders
to enter into this Agreement and to make the Revolving Loans and issue or
participate in the Letters of Credit, the Borrower hereby represents and
warrants to the Administrative Agent and each Lender that:

 

 

4.1           Financial Condition.  The audited consolidated balance sheet of the
Borrower as at December 31, 2004, and the related consolidated statement
of income and cash flows for the fiscal year then ended, reported on by and
accompanied by an unqualified report from Deloitte & Touche LLP,
present fairly the consolidated financial condition of the Borrower as of such
date, and the consolidated results of its operations and its consolidated cash
flows for the fiscal year then ended. 
All such financial statements, including the related schedules and notes
thereto, have been prepared in accordance with GAAP applied consistently
throughout the periods involved (except as approved by the aforementioned firm
of accountants and disclosed therein). 
Except as set forth on Schedule 4.1, neither the Borrower nor any
Significant Subsidiary has any material Guarantee Obligations, contingent
liabilities and liabilities for taxes, or any long-term leases or unusual
forward or long-term commitments, including any interest rate or foreign
currency swap or exchange transaction or other obligation in respect of
derivatives, that are not reflected in the most recent financial statements
referred to in this paragraph.

 

4.2           No Change.  Except as set forth on Schedule 4.2,
since December 31, 2004, there has been no development or event that has
had or could reasonably be expected to have a Material Adverse Effect.

 

4.3           Existence; Compliance with Law.  The Borrower and each Significant Subsidiary (a) is
duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, (b) has the power and authority, and the
legal right, to own and operate its material properties, to lease the material
properties it operates as lessee and to conduct the business in which it is
currently engaged, (c) is duly qualified as a foreign corporation or other
organization and in good standing under the laws of each jurisdiction where its
ownership, lease or operation of property or the conduct of its business
requires such qualification, except to the extent that the failure to be so qualified
or in good standing could not, in the aggregate, reasonably be expected to have
a Material Adverse Effect and (d) is in compliance with all Requirements
of Law except to the extent that the failure to comply therewith could not, in
the aggregate, reasonably be expected to have a Material Adverse Effect.

 

4.4           Power; Authorization; Enforceable
Obligations.  The Borrower has the
corporate power and authority to make, deliver and perform the Loan Documents
to which it is a party and to obtain extensions of credit hereunder.  The Borrower has taken all necessary
organizational action to authorize the execution, delivery and performance of
the Loan Documents to which it is a party and to authorize the extensions of
credit on the terms and conditions of this Agreement.  No consent or authorization of, filing with,
notice to or other act by or in respect of, any Governmental Authority or any
other Person is required in connection with (a) any extension of credit
hereunder when made (except for consents, authorizations, filings, notices or
other acts required with respect to such extension of credit that have been
obtained or made and are in full force and effect at the time of such extension
of credit) or (b) the execution, delivery, performance, validity or enforceability
of this Agreement or any of the Loan Documents. 
Each Loan Document has been duly executed and delivered on behalf of the
Borrower.  This Agreement constitutes,
and each other Loan Document upon execution will constitute, a legal, valid and
binding obligation of the Borrower, enforceable against the Borrower in
accordance with its terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors’ rights generally and by general
equitable principles (whether enforcement is sought by proceedings in equity or
at law).

 

4.5           No Legal Bar.  The execution, delivery and performance of
this Agreement and the other Loan Documents, the issuance of Letters of Credit,
the borrowings hereunder and the use of the proceeds thereof will not (a) violate
any (i) Requirement of Law or (ii) Contractual Obligation of the
Borrower or any Significant Subsidiary (except in the case of this clause (a) to
the extent any such violations could not, in the aggregate, reasonably be
expected to have a Material Adverse Effect) and 

 

 

(b) result in, or require, the
creation or imposition of any Lien on any of their respective properties or
revenues pursuant to any Requirement of Law or any such Contractual Obligation.

 

4.6           Litigation.  Except as set forth on Schedule 4.6, no
litigation, investigation or proceeding of or before any arbitrator or
Governmental Authority is pending or, to the knowledge of the Borrower,
threatened by or against the Borrower or any Significant Subsidiary or against
any of their respective properties or revenues (a) with respect to any of
the Loan Documents or any of the transactions contemplated hereby or thereby,
or (b) that could reasonably be expected to have a Material Adverse
Effect.

 

4.7           Ownership of Property; Liens.  Except (i) for assets disposed of in the
ordinary course of business since December 31, 2004 and (ii) as set
forth on Schedule 4.7, on the Closing Date the Borrower and its
Significant Subsidiaries have good title, free of all Liens other than
Permitted Liens, to all of the material assets reflected in the Borrower’s
consolidated balance sheet as of December 31, 2004 as owned by the
Borrower and/or its Significant Subsidiaries.

 

4.8           Taxes.  Each of the Borrower and each Significant
Subsidiary has filed or caused to be filed all Federal, state and other
material tax returns that are required to be filed and has paid all taxes shown
to be due and payable on said returns or on any assessments made against it or
any of its property and all other taxes, fees or other charges imposed on it or
any of its property by any Governmental Authority (other than (i) those
that are not in the aggregate material and (ii) any taxes, fees or other
charges the amount or validity of which are currently being contested in good
faith by appropriate proceedings and with respect to which reserves in
conformity with GAAP have been provided on the books of the Borrower or such
Significant Subsidiary).

 

4.9           Federal Regulations.  No part of the proceeds of any Revolving
Loans, and no other extensions of credit hereunder, will be used (a) for “buying”
or “carrying” any “margin stock” within the respective meanings of each of the
quoted terms under Regulation U as now and from time to time hereafter in
effect for any purpose that violates the provisions of the Regulations of the
Board or (b) for any purpose that violates the provisions of the
Regulations of the Board.  If requested
by any Lender or the Administrative Agent, the Borrower will furnish to the
Administrative Agent and each Lender a statement to the foregoing effect in
conformity with the requirements of FR Form G-3 or FR Form U-1,
as applicable, referred to in Regulation U.

 

4.10         ERISA.  Except as could not reasonably be expected to
have a Material Adverse Effect, (a) neither a Reportable Event nor an “accumulated
funding deficiency” (within the meaning of Section 412 of the Code or Section 302
of ERISA), as applicable, has occurred during the five-year period prior to the
date on which this representation is made or deemed made with respect to any
Plan subject to Title IV of ERISA, Section 412 of the Code or Section 302
of ERISA, and each Plan has complied in all material respects with the
applicable provisions of ERISA and the Code; (b) no termination of a
Single Employer Plan has occurred, and no Lien on the assets of the Borrower or
any Significant Subsidiary in favor of the PBGC or a Plan has arisen, during
such five-year period; (c) the present value of all accrued benefits under
each Single Employer Plan (based on those assumptions used to fund such Plans)
did not, as of the last annual valuation date for which a valuation report is
available prior to the date on which this representation is made or deemed made,
exceed the value of the assets of such Plan allocable to such accrued benefits
by a material amount; and (d) neither the Borrower nor any Commonly
Controlled Entity has had a complete or partial withdrawal from any
Multiemployer Plan that has resulted or could reasonably be expected to result
in a material liability under ERISA, and, to the knowledge of the Borrower or
any Commonly Controlled Entity, neither the Borrower nor any Commonly
Controlled Entity would become subject to any material liability under ERISA if
the Borrower or any Commonly Controlled Entity were to withdraw completely from
all Multiemployer

 

 

Plans as of the valuation date
most closely preceding the date on which this representation is made or deemed
made.  Neither the Borrower nor any
Commonly Controlled Entity has knowledge that any such Multiemployer Plan is in
Reorganization or Insolvent.

 

4.11         Investment Company Act; Other
Regulations.  The Borrower is not an “investment
company”, or a company “controlled” by an “investment company”, within the
meaning of the Investment Company Act of 1940, as amended.  The Borrower is not subject to regulation
under any Requirement of Law (other than Regulation X of the Board, the Public
Utilities Commission of the State of Colorado and PUHCA) that limits its
ability to incur Indebtedness.

 

4.12         Use of Proceeds.  The proceeds of the Revolving Loans and the
Letters of Credit shall be used to effect the Refinancing, to pay fees and
expenses incurred in connection therewith and for general corporate purposes
(including commercial paper support).

 

4.13         Accuracy of Information, etc.  The information, taken as a whole, contained
in this Agreement, the other Loan Documents, the Confidential Information
Memorandum or the other documents, certificates or statements furnished by or
on behalf of the Borrower to the Administrative Agent or the Lenders, or any of
them, for use in connection with the transactions contemplated by this
Agreement or the other Loan Documents, did not contain as of the date such information
was so furnished (or, in the case of the Confidential Information Memorandum,
together with all other information so furnished to the Lenders prior to the
Closing Date, as of the date of this Agreement), any untrue statement of a
material fact or omit to state a material fact necessary to make the
information contained herein or therein not misleading in light of the
circumstances under which such information was furnished.  The projections and pro  forma
financial information contained in the materials referenced above are based
upon good faith estimates and assumptions believed by management of the
Borrower to be reasonable at the time made, it being recognized by the Lenders
that such financial information as it relates to future events is not to be
viewed as fact and that actual results during the period or periods covered by
such financial information may differ from the projected results set forth
therein by a material amount.

 

4.14         Solvency.  The Borrower is, and after giving effect to
the incurrence of all Indebtedness and obligations being incurred in connection
herewith will be, Solvent.

 

SECTION 5.           CONDITIONS
PRECEDENT

 

5.1           Conditions to Initial Extension of
Credit.  The agreement of each Lender
to make the initial extension of credit requested to be made by it is subject
to the satisfaction, prior to or concurrently with the making of such extension
of credit on the Closing Date, of the following conditions precedent:

 

(a)           Credit
Agreement.  The Administrative Agent
shall have received this Agreement or, in the case of the Lenders, an Addendum,
executed and delivered by the Administrative Agent, the Borrower and each
Person listed on Schedule 1.1A.

 

(b)           Termination of Existing Credit
Facility.  The Administrative Agent
shall have received satisfactory evidence that the Existing Credit Agreement
shall have been terminated, all commitments thereunder shall have been
terminated and all amounts owing thereunder shall have been paid in full (the “Refinancing”).

 

 

(c)           Financial Statements.  The Lenders shall have received audited
consolidated financial statements of the Borrower for the 2002, 2003 and 2004
fiscal years, and such financial statements shall not, in the reasonable
judgment of the Lenders, reflect any material adverse change in the consolidated
financial condition of the Borrower, as reflected in the financial statements
or projections contained in the Confidential Information Memorandum.

 

(d)           Projections.  The Lenders shall have received satisfactory
projections, on an annual basis, of the Borrower and its Subsidiaries through
2009.

 

(e)           Approvals.  All governmental and third party approvals,
if any, required as of the Closing Date in connection with the Refinancing and
the transactions contemplated hereby shall have been obtained on satisfactory
terms and shall be in full force and effect.

 

(f)            Fees.  The Lenders and the Administrative Agent
shall have received all fees required to be paid, and all expenses for which
invoices have been presented (including the reasonable fees and expenses of
legal counsel), on or before the Closing Date.

 

(g)           Closing Certificate; Certified
Articles of Incorporation; Good Standing Certificates.  The Administrative Agent shall have received (i) a
certificate of the Borrower, dated the Closing Date, substantially in the form
of Exhibit A, with appropriate insertions and attachments, including the
articles of incorporation of the Borrower certified by the relevant authority
of the jurisdiction of organization of the Borrower, and (ii) a long form
good standing certificate for the Borrower from its jurisdiction of
organization.

 

(h)           Legal Opinions.  The Administrative Agent shall have received
the following executed legal opinions:

 

(i)    the legal opinion of Jones Day, special New
York counsel to the Borrower; and

 

(ii)   the legal opinion of Paula Connelly,
Assistant General Counsel, Xcel Energy Services Inc.

 

Each such legal opinion shall
cover such matters incident to the transactions contemplated by this Agreement
as the Administrative Agent may reasonably require.

 

5.2           Conditions to Each Extension of
Credit.  The agreement of each Lender
to make any extension of credit requested to be made by it on any date
(including its initial extension of credit) is subject to the satisfaction of
the following conditions precedent:

 

(a)           Representations and Warranties.  Each of the representations and warranties
made by the Borrower in or pursuant to the Loan Documents (other than the
representations and warranties contained in Sections 4.2 and 4.6, which
representations and warranties need only be true and correct on and as of the
Closing Date) shall be true and correct in all material respects on and as of
such date as if made on and as of such date, except to the extent any such
representation or warranty is stated to relate solely to an earlier date, in
which case such representation or warranty shall have been true and correct in
all material respects as of such earlier date.

 

(b)           No Default.  No Default or Event of Default shall have
occurred and be continuing on such date or after giving effect to the
extensions of credit requested to be made on such date.

 

 

(c)           Other Documents.  In the case of any extension of credit made
on an Increased Revolving Commitment Closing Date, the Administrative Agent
shall have received such customary documents and information as it may
reasonably request.

 

Each borrowing by and
issuance of a Letter of Credit on behalf of the Borrower hereunder shall
constitute a representation and warranty by the Borrower as of the date of such
extension of credit that the conditions contained in this Section 5.2 have
been satisfied.

 

SECTION 6.           AFFIRMATIVE
COVENANTS

 

The Borrower hereby agrees that, so long as the
Revolving Commitments remain in effect, any Letter of Credit remains
outstanding or any Revolving Loan or other amount is owing to any Lender or the
Administrative Agent hereunder:

 

6.1           Financial Statements.  The Borrower shall furnish to the
Administrative Agent (which shall in turn furnish to the Lenders):

 

(a)           as soon as available, but in any
event within 90 days after the end of each fiscal year of the Borrower, a
copy of the audited consolidated balance sheet of the Borrower and its
consolidated Subsidiaries as of the end of such year and the related audited
consolidated statements of income and of cash flows for such year, setting
forth in each case in comparative form the figures for the previous year,
reported on without a “going concern” or like qualification or exception, or
qualification arising out of the scope of the audit, by Deloitte &
Touche LLP or other independent certified public accountants of nationally
recognized standing; and

 

(b)           as soon as available, but in any
event not later than 45 days after the end of each of the first three quarterly
periods of each fiscal year of the Borrower, the unaudited consolidated balance
sheet of the Borrower and its consolidated Subsidiaries as at the end of such
quarter and the related unaudited consolidated statements of income and of cash
flows for such quarter and the portion of the fiscal year through the end of
such quarter, setting forth in each case in comparative form the figures for
the previous year, certified by a Responsible Officer as being fairly stated in
all material respects (subject to normal year-end audit adjustments).

 

All such financial
statements shall present fairly, in all material respects, the financial
position of the Borrower and its Subsidiaries and shall be prepared in
reasonable detail and in accordance with GAAP applied (except as approved by
such accountants or officer, as the case may be, and disclosed in reasonable
detail therein) consistently throughout the periods reflected therein and with
prior periods.

 

6.2           Certificates; Other Information.  The Borrower shall furnish to the
Administrative Agent (which shall in turn furnish to the Lenders, or, in the
case of clause (c), to the relevant Lender):

 

(a)           concurrently with the delivery of any
financial statements pursuant to Section 6.1, (i) a certificate of a
Responsible Officer stating that, to the best of such Responsible Officer’s
knowledge, during such period the Borrower has observed or performed all of its
covenants and other agreements, and satisfied every condition contained in this
Agreement and the other Loan Documents to which it is a party to be observed,
performed or satisfied by it, and that such Responsible Officer has obtained no
knowledge of any Default or Event of Default except as specified in such
certificate and (ii) a compliance certificate containing all information
and calculations necessary for determining compliance by the Borrower with the
provisions of

 

 

Section 7.1 of this
Agreement as of the last day of the fiscal quarter or fiscal year of the
Borrower, as the case may be;

 

(b)           within five days after the same are
sent, copies of all financial statements and reports that the Borrower sends to
the holders of any class of its debt securities or public equity securities
and, within five days after the same are filed, copies of all reports on Forms
10-K, 10-Q and 8-K that the Borrower files with the SEC; and

 

(c)           promptly, such additional financial
and other information as any Lender may from time to time reasonably request
through the Administrative Agent.

 

6.3           Payment of Obligations and Taxes.  The Borrower shall and shall cause each of its
Significant Subsidiaries to pay, discharge or otherwise satisfy at or before
maturity or before they become delinquent, as the case may be, all its
obligations (including, without limitation, obligations with respect to taxes)
of whatever nature which, if unpaid, undischarged or otherwise unsatisfied are
or might become a Lien or other charge upon any properties of the Borrower or
any Significant Subsidiary, except that neither the Borrower nor any Subsidiary
shall be required to pay, discharge or otherwise satisfy any such obligation (a) whose
amount, applicability or validity is being contested in good faith by
appropriate proceedings and for which the Borrower or such Subsidiary has
provided adequate reserves in accordance with GAAP or (ii) where failure
to pay, discharge or otherwise satisfy such obligation could not, in the
aggregate, reasonably be expected to result in a Material Adverse Effect.

 

6.4           Maintenance of Existence;
Compliance.  The Borrower shall and
shall cause each of its Significant Subsidiaries:

 

(a) to
preserve, renew and keep in full force and effect its organizational existence,
except as otherwise permitted by Section 7.3;

 

(b) to
take all reasonable action to maintain all rights, privileges and franchises
necessary or desirable in the normal conduct of its business, except (i) as
otherwise permitted by Section 7.3 and (ii) to the extent that
failure to do so could not, in the aggregate, reasonably be expected to have a
Material Adverse Effect; and

 

(c) to
comply with all Contractual Obligations and Requirements of Law, except to the
extent that failure to comply therewith could not, in the aggregate, reasonably
be expected to have a Material Adverse Effect.

 

6.5           Maintenance of Property; Insurance.  The Borrower shall and shall cause each of
its Significant Subsidiaries to (a) keep all property useful and necessary
in its business in good working order and condition, ordinary wear and tear
excepted and except where the failure to do so could not, in the aggregate,
reasonably be expected to result in a Material Adverse Effect, and (b) maintain
with financially sound and reputable insurance companies insurance on its
property in at least such amounts (subject to deductibles and self-retention
limits) and against at least such risks as are usually insured against in the
same general area by companies engaged in the same or a similar business.

 

6.6           Inspection of Property; Books and
Records; Discussions.  The Borrower
shall and shall cause each of its Significant Subsidiaries to (a) keep
proper books of records and account in which full, true and correct entries in
conformity with GAAP and all Requirements of Law shall be made of all dealings
and transactions in relation to its business and activities and (b) from
time to time during normal business hours and on reasonable prior notice,
permit representatives of any Lender to visit and inspect any of its properties
(subject to such physical security requirements
as the Borrower or the

 

 

applicable
Significant Subsidiary may require) and examine and make
abstracts from any of its books and records (except
to the extent that such access is restricted by law or by a bona fide
non-disclosure agreement not entered into for the purpose of evading the
requirements of this Section 6.6), at any reasonable time and as
often as may reasonably be desired and to discuss the business, operations,
properties and financial and other condition of the Borrower and the
Significant Subsidiaries with officers and employees of the Borrower and the
Significant Subsidiaries and with their independent certified public
accountants.

 

6.7           Notices.  Promptly after any officer of the Borrower
with responsibility for the matter in question becomes aware thereof, the
Borrower shall give notice to the Administrative Agent (which shall in turn
furnish such notice to the Lenders) of:

 

(a)           the occurrence of any Default or
Event of Default;

 

(b)           any (i) default or event of
default under any Contractual Obligation of the Borrower or any Significant
Subsidiary or (ii) litigation, investigation or proceeding that may exist
at any time between the Borrower or any Significant Subsidiary, on the one
hand, and any Governmental Authority, on the other hand, that in either case,
if not cured could reasonably be expected to have a Material Adverse Effect;

 

(c)           (i) the occurrence of any
Reportable Event with respect to any Plan, a failure to make any required
contribution to a Plan, the creation of any Lien in favor of the PBGC or a Plan
or any withdrawal from, or the termination, Reorganization or Insolvency of,
any Multiemployer Plan or (ii) the institution of proceedings or the
taking of any other action by the PBGC or the Borrower or any Commonly
Controlled Entity or any Multiemployer Plan with respect to the withdrawal
from, or the termination, Reorganization or Insolvency of, any Plan, which in
any case could reasonably be expected to have a Material Adverse Effect; and

 

(d)           any development or event that has had
or could reasonably be expected to have a Material Adverse Effect.

 

Each notice pursuant to this
Section 6.7 shall be accompanied by a statement of a Responsible Officer
setting forth details of the occurrence referred to therein and stating what
action the Borrower or such Significant Subsidiary proposes to take with
respect thereto.

 

6.8           Environmental Laws. The
Borrower shall and shall cause each of its Significant Subsidiaries to:

 

(a) except to the
extent that failure to do so could not, in the aggregate, reasonably be
expected to have a Material Adverse Effect, comply with, and ensure compliance
by all tenants and subtenants, if any, with, all applicable Environmental Laws,
and obtain and comply with and maintain, and ensure that all tenants and
subtenants, if any, obtain and comply with and maintain, any and all licenses,
approvals, notifications, registrations or permits required by applicable
Environmental Laws; and

 

(b) except to the
extent that failure to do so could not, in the aggregate, reasonably be
expected to have a Material Adverse Effect, conduct and complete all investigations,
studies, sampling and testing, and all remedial, removal and other actions
required under Environmental Laws and promptly comply in all material respects
with all lawful orders and directives of all Governmental Authorities regarding
Environmental Laws.

 

 

6.9           Ownership of Significant
Subsidiaries. Except as permitted by Section 6.11 or 7.3, the Borrower
shall at all times, directly or indirectly own, beneficially and of record,
100% of each class of issued and outstanding common stock of each Significant
Subsidiary.

 

6.10         Scope of Business.  The Borrower shall, and shall cause each
Significant Subsidiary to, engage only in energy-related businesses,
functionally related businesses (as interpreted under PUHCA) or such other
businesses as may be permitted pursuant to an order issued by the SEC pursuant
to PUHCA.

 

6.11         Significant Subsidiaries.  So long as no Default or Event of Default
then exists or arises as a result thereof, the Borrower may from time to time
by written notice delivered to the Administrative Agent:

 

(a) designate any Subsidiary as a Significant Subsidiary; and

 

(b) with respect to any Designated Significant Subsidiary, revoke
its designation as a Significant Subsidiary; provided that the assets of
such Designated Significant Subsidiary could
have been disposed of pursuant to the provisions of Section 7.4 if such
transaction were treated as a Disposition of the assets of such Designated
Significant Subsidiary.

 

SECTION 7.           NEGATIVE
COVENANTS

 

The Borrower hereby agrees that, so long as the
Revolving Commitments remain in effect, any Letter of Credit remains
outstanding or any Revolving Loan or other amount is owing to any Lender or the
Administrative Agent hereunder:

 

7.1           Ratio of Funded Debt to Total
Capital.  The Borrower shall not permit
the ratio of Funded Debt of the Borrower and its Subsidiaries on a consolidated
basis to Total Capital as at the last day of any fiscal quarter of the Borrower
to exceed 0.65 to 1.00.

 

7.2           Liens.  The Borrower shall not, and shall not permit
any of its Significant Subsidiaries to, directly or indirectly, create, incur,
assume or suffer to exist any Lien upon any of its property, whether now owned
or hereafter acquired, except for Permitted Liens.

 

7.3           Fundamental Changes.  The Borrower shall not, and shall not permit
any of its Significant Subsidiaries to, directly or indirectly, merge or
consolidate with any Person, except that, if after giving effect thereto no
Default or Event of Default would exist, this Section 7.3 shall not apply
to (a) any merger or consolidation of the Borrower with any one or more
Persons so long as (i) the successor entity (if other than the Borrower)
assumes, in form reasonably satisfactory to the Administrative Agent, all of
the obligations of the Borrower under this Agreement, (ii) the successor
(whether or not the Borrower) has a debt rating issued (and confirmed after
giving effect to such merger or consolidation) by S&P and Moody’s of at
least BBB- and Baa3, in each case with a stable outlook and (iii) the
successor (whether or not the Borrower) is a “public utility company” (as
defined in PUHCA), (b) any merger or consolidation of a Significant
Subsidiary with another Subsidiary, provided that the continuing Person
shall be a Significant Subsidiary, and (c) any
merger or consolidation of a Significant Subsidiary with another Person if
after giving effect thereto the survivor is no longer a Significant Subsidiary
and the assets of such Significant Subsidiary could have been Disposed of
pursuant to the provisions of Section 7.4 if such transaction were treated
as a Disposition of the assets of such Significant Subsidiary.  In the event of any merger or
consolidation of or by the Borrower in which the Borrower is not the surviving
entity, the surviving entity of such merger or consolidation shall deliver to
the Administrative Agent for the benefit of the Lenders all information
reasonably necessary to comply with the identification requirements of the Act
(as defined in Section 10.17).

 

 

7.4           Disposition of Property.  The Borrower shall not, and shall not permit
any of its Significant Subsidiaries to, directly or indirectly, Dispose of any
of its property, whether now owned or hereafter acquired, except:

 

(a)           any Disposition of any asset or any
interest therein in the ordinary course of business;

 

(b)           any Disposition of any obsolete or
retired property not used or useful in its business;

 

(c)           any Disposition of any asset or any
interest therein to the Borrower or a Significant Subsidiary;

 

(d)           Dispositions
of assets to the extent that the net proceeds thereof are invested or
re-invested, or held as cash or cash equivalents for reinvestment, in each case
in other energy-related assets of the Borrower or any Significant Subsidiary;

 

(e)           the transfer of operational control
of transmission assets by the Borrower or any Significant Subsidiary to a
regional transmission organization, independent system operator or independent
transmission company approved by or required by the FERC pursuant to a FERC
order;

 

(f)            any Disposition (whether by sale,
transfer or otherwise) of the stock of PSR Investments, Inc.,

 

(g)           Dispositions in connection with the
transactions described on Schedule 7.4; and

 

(h)           any Disposition of any asset or any
interest therein the book value of which, together with the book value of any
other assets and interests therein Disposed of by the Borrower and the
Significant Subsidiaries during the twelve-month period ending with the month
during which such Disposition occurs, other than Dispositions to which this Section 7.4
does not otherwise apply by virtue of clauses (a), (b), (c), (d), (e), (f) or
(g) hereof, represents less than 10% of the consolidated total assets of
the Borrower and its Subsidiaries, as reflected on the financial statements
most recently delivered pursuant to Section 6.1(a) or (b) prior
to such Disposition, provided that the book value of all assets and
interests Disposed of before the Revolving Termination Date pursuant to this
clause (h) shall not exceed 30% of the consolidated total assets of the Borrower
and its Subsidiaries, as reflected on the financial statements most recently
delivered pursuant to Section 6.1(a) or (b) prior to such
Disposition.

 

7.5           Transactions with Affiliates.  The Borrower shall not, and shall not permit
any of its Significant Subsidiaries to, directly or indirectly, enter into any
transaction with any Affiliate (other than the Borrower or any Significant
Subsidiary) unless such transaction is upon fair and reasonable terms no less
favorable to the Borrower or such Significant Subsidiary than it would obtain
in a comparable arm’s length transaction with a Person that is not an
Affiliate; provided, however, that this Section 7.5 shall
not prohibit (a) any transaction subject to the jurisdiction of the FERC,
the SEC or any applicable state regulatory commission or (b) any
allocation of taxes, tax benefits and tax credits required by PUHCA.

 

7.6           Swap Agreements.  The
Borrower shall not, and shall not permit any of its Significant Subsidiaries
to, directly or indirectly, enter into any Swap Agreement, except (a) Swap
Agreements entered into to hedge or mitigate risks to which the Borrower or any
Significant Subsidiary has actual exposure or in respect of an anticipated
transaction and (b) Swap Agreements entered into in order to effectively
cap, collar or exchange interest rates (from fixed to floating rates, from one
floating 

 

 

rate to another floating rate
or otherwise) with respect to any interest-bearing liability or investment of
the Borrower or any Significant Subsidiary.

 

7.7           Clauses Restricting Subsidiary
Distributions.  The Borrower shall
not, and shall not permit any of its Significant Subsidiaries to, directly or
indirectly, enter into or suffer to exist or become effective (including by way
of amendment, supplement or other modification of an agreement existing on the
Closing Date) any consensual encumbrance or restriction on the ability of any
Significant Subsidiary of the Borrower to make payments, directly or
indirectly, to its shareholders by way of dividends, repayment of loans or
intercompany charges, or other returns on investments that is more restrictive
than any such encumbrance or restriction applicable to such Significant
Subsidiary on the Closing Date; provided that this Section 7.7
shall not apply to (a) limitations or restrictions imposed by law or in
regulatory proceedings or (b) financial covenants contained in any
agreement or indenture requiring compliance with financial tests or ratios, so
long as such financial covenants could not reasonably be expected to impair the
Borrower’s ability to repay the Obligations as and when due.

 

SECTION 8.           EVENTS
OF DEFAULT

 

If any of the following events shall occur and be
continuing:

 

(a)           the Borrower shall fail to pay any
principal of any Revolving Loan or Reimbursement Obligation when due in
accordance with the terms hereof; or the Borrower shall fail to pay any
interest on any Revolving Loan or Reimbursement Obligation, or any other amount
payable hereunder or under any other Loan Document, within five days after any
such interest or other amount becomes due in accordance with the terms hereof;
or

 

(b)           any representation or warranty made
or deemed made by the Borrower herein or in any other Loan Document or that is
contained in any certificate, document or financial or other statement
furnished by it at any time under or in connection with this Agreement or any
such other Loan Document shall prove to have been inaccurate in any material
respect on or as of the date made or deemed made; or

 

(c)           the Borrower shall default in the
observance or performance of any agreement contained in Section 6.4(a) (with
respect to the Borrower only), Section 6.7(a) or Section 7 of
this Agreement; or

 

(d)           the Borrower shall default in the
observance or performance of any other agreement contained in this Agreement or
any other Loan Document (other than as provided in paragraphs (a) through (c) of
this Section), and such default shall continue unremedied for a period of 30
days after notice to the Borrower from the Administrative Agent or the Required
Lenders; or

 

(e)           any event or condition occurs that
results in any Material Indebtedness becoming due prior to its scheduled
maturity or that enables or permits the holder or holders of any Material
Indebtedness or any trustee or agent on its or their behalf to cause any
Material Indebtedness to become due, or to require the prepayment, repurchase,
redemption or defeasance thereof, prior to its scheduled maturity; provided
that this clause (e) shall not apply to secured Indebtedness that
becomes due as a result of the voluntary sale or transfer of the property or
assets securing such Indebtedness; or

 

(f)            (i) the Borrower or any
Significant Subsidiary shall commence any case, proceeding or other action (A) under
any existing or future law of any jurisdiction, domestic or foreign, relating
to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have
an order

 

 

for relief entered with
respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking
reorganization, arrangement, adjustment, winding-up, liquidation, dissolution,
composition or other relief with respect to it or its debts, or (B) seeking
appointment of a receiver, trustee, custodian, conservator or other similar
official for it or for all or any substantial part of its assets, or the
Borrower or any Significant Subsidiary shall make a general assignment for the
benefit of its creditors; or (ii) there shall be commenced against the
Borrower or any Significant Subsidiary any case, proceeding or other action of
a nature referred to in clause (i) above that (A) results in the
entry of an order for relief or any such adjudication or appointment or (B) remains
undismissed or undischarged for a period of 60 days; or (iii) there shall
be commenced against the Borrower or any Significant Subsidiary any case,
proceeding or other action seeking issuance of a warrant of attachment,
execution, distraint or similar process against all or any substantial part of
its assets that results in the entry of an order for any such relief that shall
not have been vacated, discharged, or stayed or bonded pending appeal within 60
days from the entry thereof; or (iv) the Borrower or any Significant
Subsidiary shall take any corporate action in furtherance of, or indicating its
consent to, approval of, or acquiescence in, any of the acts set forth in
clause (i), (ii), or (iii) above; or (v) the Borrower or any
Significant Subsidiary shall generally not, or shall be unable to, or shall
admit in writing its inability to, pay its debts as they become due; or

 

(g)           (i) any Person shall engage in
any non-exempt “prohibited transaction” (as defined in Section 406 of
ERISA or Section 4975 of the Code) involving any Plan, (ii) any “accumulated
funding deficiency” (as defined in Section 302 of ERISA), whether or not
waived, shall exist with respect to any Plan subject to Section 412 of the
Code or Section 302 of ERISA or any Lien in favor of the PBGC or a Plan
shall arise on the assets of any Commonly Controlled Entity, (iii) a
Reportable Event shall occur with respect to, or proceedings shall commence to
have a trustee appointed, or a trustee shall be appointed, to administer or to
terminate, any Single Employer Plan, which Reportable Event or commencement of
proceedings or appointment of a trustee is, in the reasonable opinion of the
Required Lenders, likely to result in the termination of such Plan for purposes
of Title IV of ERISA, (iv) any Single Employer Plan shall terminate for
purposes of Title IV of ERISA, (v) in connection with a withdrawal from,
or the Insolvency or Reorganization of, a Multiemployer Plan, any Commonly
Controlled Entity shall, or is reasonably likely to, incur any unpaid liability
or (vi) any other similar event or condition shall occur or exist with
respect to a Plan; and in each case in clauses (i) through (vi) above,
such event or condition, together with all other such events or conditions, if
any, could reasonably be expected to have a Material Adverse Effect; or

 

(h)           one or more judgments or decrees
shall be entered against the Borrower or any Significant Subsidiary involving
in the aggregate a liability (not paid or fully covered by insurance as to
which the relevant insurance company has acknowledged coverage) of $50,000,000
or more, and such judgments or decrees shall not have been vacated, discharged,
stayed or bonded pending appeal within 30 days from the entry thereof; or

 

(i)            a Change in Control shall occur;

 

then, and in any such event,
(A) if such event is an Event of Default specified in paragraph (f) above,
automatically the Revolving Commitments shall immediately terminate and the
Revolving Loans (with accrued interest thereon) and all other amounts owing
under this Agreement and the other Loan Documents shall immediately become due
and payable, and (B) if such event is any other Event of Default, either
or both of the following actions may be taken: 
(i) with the consent of the Required Lenders, the Administrative
Agent may, or upon the request of the Required Lenders, the Administrative
Agent shall, by notice to the Borrower declare the Revolving Commitments to be
terminated forthwith, whereupon the Revolving Commitments shall immediately
terminate; and (ii) with the consent of the

 

 

Required Lenders, the Administrative Agent may, or upon the request of
the Required Lenders, the Administrative Agent shall, by notice to the
Borrower, declare the Revolving Loans (with accrued interest thereon) and all
other amounts owing under this Agreement and the other Loan Documents to be due
and payable forthwith, whereupon the same shall immediately become due and
payable.  With respect to all Letters of
Credit with respect to which presentment for honor shall not have occurred at
the time of an acceleration pursuant to this paragraph, the Borrower shall at
such time deposit in a cash collateral account opened by the Administrative
Agent an amount equal to the aggregate then undrawn and unexpired amount of
such Letters of Credit.  Amounts held in
such cash collateral account shall be applied by the Administrative Agent to the
payment of drafts drawn under such Letters of Credit.  During the continuance of an Event of
Default, the Administrative Agent may, or upon the request of the Required
Lenders shall, apply any Excess Balance (as defined below) to repay the
Obligations.  If all Obligations (other
than L/C Obligations in respect of undrawn Letters of Credit) have been paid in
full, the Excess Balance shall be returned to the Borrower (or such other
Person as may be lawfully entitled thereto). 
If no Event of Default is then continuing, the Administrative Agent
shall return to the Borrower the balance in the cash collateral account.  For purposes hereof, “Excess Balance” means
the amount by which the balance in the cash collateral account exceeds the
undrawn and unexpired amount of the Letters of Credit.  Except as expressly provided above in this
Section, presentment, demand, protest and all other notices of any kind are
hereby expressly waived by the Borrower.

 

SECTION 9.           THE
AGENTS

 

9.1           Appointment.  Each Lender hereby irrevocably designates and
appoints the Administrative Agent as the agent of such Lender under this
Agreement and the other Loan Documents, and each such Lender irrevocably
authorizes the Administrative Agent, in such capacity, to take such action on
its behalf under the provisions of this Agreement and the other Loan Documents
and to exercise such powers and perform such duties as are expressly delegated
to the Administrative Agent by the terms of this Agreement and the other Loan
Documents, together with such other powers as are reasonably incidental
thereto.   Notwithstanding any provision
to the contrary elsewhere in this Agreement, the Administrative Agent shall not
have any duties or responsibilities, except those expressly set forth herein,
or any fiduciary relationship with any Lender, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read
into this Agreement or any other Loan Document or otherwise exist against the
Administrative Agent.

 

9.2           Delegation of Duties.  The Administrative Agent may execute any of
its duties under this Agreement and the other Loan Documents by or through
agents or attorneys-in-fact and shall be entitled to advice of counsel
concerning all matters pertaining to such duties.  The Administrative Agent shall not be
responsible for the negligence or misconduct of any agents or attorneys in-fact
selected by it with reasonable care.

 

9.3           Exculpatory Provisions.  Neither any Agent nor any of their respective
officers, directors, employees, agents, attorneys-in-fact or affiliates shall
be (i) liable for any action lawfully taken or omitted to be taken by it
or such Person under or in connection with this Agreement or any other Loan
Document (except to the extent that any of the foregoing are found by a final
and nonappealable decision of a court of competent jurisdiction to have
resulted from its or such Person’s own gross negligence or willful misconduct)
or (ii) responsible in any manner to any of the Lenders for any recitals,
statements, representations or warranties made by the Borrower or any officer
thereof contained in this Agreement or any other Loan Document or in any
certificate, report, statement or other document referred to or provided for
in, or received by the Agents under or in connection with, this Agreement or
any other Loan Document or for the value, validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement or any other Loan Document or
for any failure of the Borrower to perform its obligations hereunder or
thereunder.  The Agents shall not be
under any obligation to any Lender to ascertain or to inquire as to the
observance or performance of any of the agreements contained in, or

 

 

conditions of, this Agreement
or any other Loan Document, or to inspect the properties, books or records of
the Borrower.  Neither any Agent nor any
of their respective officers, directors, employees, agents, attorneys-in-fact
or affiliates shall, except as expressly set forth herein and in the other Loan
Documents, have any duty to disclose, and shall not be liable for the failure
to disclose, any information relating to the Borrower or any of its Affiliates
that is communicated to or obtained by the Person serving as an Agent or any of
its Affiliates in any capacity.

 

9.4           Reliance by Administrative Agent.  The Administrative Agent shall be entitled to
rely, and shall be fully protected in relying, upon any instrument, writing,
resolution, notice, consent, certificate, affidavit, letter, telecopy, telex or
teletype message, statement, order or other document or conversation believed
by it to be genuine and correct and to have been signed, sent or made by the
proper Person or Persons and upon advice and statements of legal counsel
(including counsel to the Borrower), independent accountants and other experts
selected by the Administrative Agent. 
The Administrative Agent may deem and treat the payee of any Note as the
owner thereof for all purposes unless such Note had been assigned in accordance
with the provisions of Section 10.6 hereof.  The Administrative Agent shall be fully
justified in failing or refusing to take any action under this Agreement or any
other Loan Document unless it shall first receive such advice or concurrence of
the Required Lenders (or, if so specified by this Agreement, all Lenders) as it
deems appropriate or it shall first be indemnified to its satisfaction by the
Lenders against any and all liability and expense that may be incurred by it by
reason of taking or continuing to take any such action.  The Administrative Agent shall in all cases
be fully protected in acting, or in refraining from acting, under this
Agreement and the other Loan Documents in accordance with a request of the
Required Lenders (or, if so specified by this Agreement, all Lenders), and such
request and any action taken or failure to act pursuant thereto shall be
binding upon all the Lenders and all future holders of the Revolving Loans.

 

9.5           Notice of Default.  The Administrative Agent shall not be deemed
to have knowledge or notice of the occurrence of any Default or Event of
Default unless the Administrative Agent has received notice from a Lender or
the Borrower referring to this Agreement, describing such Default or Event of
Default and stating that such notice is a “notice of default”.  In the event that the Administrative Agent
receives such a notice, the Administrative Agent shall give notice thereof to
the Lenders.  The Administrative Agent
shall take such action with respect to such Default or Event of Default as
shall be reasonably directed by the Required Lenders (or, if so specified by
this Agreement, all Lenders); provided that unless and until the
Administrative Agent shall have received such directions, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to such Default or Event of Default as it
shall deem advisable in the best interests of the Lenders.

 

9.6           Non-Reliance on Agents and Other
Lenders.  Each Lender expressly
acknowledges that neither the Agents nor any of their respective officers,
directors, employees, agents, attorneys-in-fact or affiliates have made any
representations or warranties to it and that no act by any Agent hereafter
taken, including any review of the affairs of the Borrower or any affiliate of
the Borrower, shall be deemed to constitute any representation or warranty by
any Agent to any Lender.  Each Lender
represents to the Agents that it has, independently and without reliance upon
any Agent or any other Lender, and based on such documents and information as
it has deemed appropriate, made its own appraisal of and investigation into the
business, operations, property, financial and other condition and
creditworthiness of the Borrower and its affiliates and made its own decision
to make its Revolving Loans hereunder and enter into this Agreement.  Each Lender also represents that it will,
independently and without reliance upon any Agent or any other Lender, and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under this Agreement and the other Loan Documents,
and to make such investigation as it deems necessary to inform itself as to the
business, operations, property, financial and other condition and
creditworthiness of the Borrower and its affiliates.  Except for notices, reports and

 

 

other documents expressly
required to be furnished to the Lenders by the Administrative Agent hereunder,
the Administrative Agent shall not have any duty or responsibility to provide
any Lender with any credit or other information concerning the business,
operations, property, condition (financial or otherwise), prospects or
creditworthiness of the Borrower or any affiliate of the Borrower that may come
into the possession of the Administrative Agent or any of its officers,
directors, employees, agents, attorneys-in-fact or affiliates.

 

9.7           Indemnification.  The Lenders agree to indemnify each Agent in
its capacity as such (to the extent not reimbursed by the Borrower and without
limiting the obligation of the Borrower to do so), ratably according to their
respective Aggregate Exposure Percentages in effect on the date on which
indemnification is sought under this Section (or, if indemnification is
sought after the date upon which the Revolving Commitments shall have
terminated and the Revolving Loans shall have been paid in full, ratably in
accordance with such Aggregate Exposure Percentages immediately prior to such
date), from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind whatsoever that may at any time (whether before or after the payment of
the Revolving Loans) be imposed on, incurred by or asserted against such Agent
in any way relating to or arising out of, the Revolving Commitments, this
Agreement, any of the other Loan Documents or any documents contemplated by or
referred to herein or therein or the transactions contemplated hereby or
thereby or any action taken or omitted by such Agent under or in connection
with any of the foregoing; provided that no Lender shall be liable for
the payment of any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements that are
found by a final and nonappealable decision of a court of competent
jurisdiction to have resulted from such Agent’s gross negligence or willful
misconduct.  The agreements in this Section shall
survive the payment of the Revolving Loans and all other amounts payable
hereunder.

 

9.8           Agent in Its Individual Capacity.  Each Agent and its affiliates may make loans
to, accept deposits from and generally engage in any kind of business with the
Borrower as though such Agent were not an Agent.  With respect to its Revolving Loans made or
renewed by it and with respect to any Letter of Credit issued or participated
in by it, each Agent shall have the same rights and powers under this Agreement
and the other Loan Documents as any Lender and may exercise the same as though
it were not an Agent, and the terms “Lender” and “Lenders” shall include each
Agent in its individual capacity.

 

9.9           Successor Administrative Agent.  The Administrative Agent may resign as
Administrative Agent upon 10 days’ notice to the Lenders and the Borrower.  If the Administrative Agent shall resign as
Administrative Agent under this Agreement and the other Loan Documents, then
the Required Lenders shall appoint from among the Lenders a successor agent for
the Lenders, which successor agent shall (unless an Event of Default under Section 8(a) or
Section 8(f) with respect to the Borrower shall have occurred and be
continuing) be subject to approval by the Borrower (which approval shall not be
unreasonably withheld or delayed), whereupon such successor agent shall succeed
to the rights, powers and duties of the Administrative Agent, and the term “Administrative
Agent” shall mean such successor agent effective upon such appointment and
approval, and the former Administrative Agent’s rights, powers and duties as
Administrative Agent shall be terminated, without any other or further act or
deed on the part of such former Administrative Agent or any of the parties to this
Agreement or any holders of the Revolving Loans.  If no successor agent has accepted
appointment as Administrative Agent by the date that is 10 days following a
retiring Administrative Agent’s notice of resignation, the retiring
Administrative Agent’s resignation shall nevertheless thereupon become
effective, and the Lenders shall assume and perform all of the duties of the
Administrative Agent hereunder until such time, if any, as the Required Lenders
appoint a successor agent as provided for above.  After any retiring Administrative Agent’s
resignation as Administrative Agent, the provisions of

 

 

this Section 9 shall inure
to its benefit as to any actions taken or omitted to be taken by it while it
was Administrative Agent under this Agreement and the other Loan Documents.

 

9.10         Documentation Agents and Syndication
Agents.  Neither any Documentation
Agent nor any Syndication Agent shall have any duties or responsibilities
hereunder in its capacity as such.

 

SECTION 10.         MISCELLANEOUS

 

10.1         Amendments and Waivers.  Neither this Agreement, any other Loan
Document, nor any terms hereof or thereof may be amended, supplemented or
modified except in accordance with the provisions of this Section 10.1.  The Required Lenders and the Borrower may,
or, with the written consent of the Required Lenders, the Administrative Agent
and the Borrower may, from time to time, (a) enter into written
amendments, supplements or modifications hereto and to the other Loan Documents
for the purpose of adding any provisions to this Agreement or the other Loan
Documents or changing in any manner the rights of the Lenders or of the
Borrower hereunder or thereunder or (b) waive, on such terms and
conditions as the Required Lenders or the Administrative Agent, as the case may
be, may specify in such instrument, any of the requirements of this Agreement
or the other Loan Documents or any Default or Event of Default and its
consequences; provided, however, that no such waiver and no such
amendment, supplement or modification shall (i) except as set forth in Section 2.17,
forgive the principal amount or extend the final scheduled date of maturity of
any Revolving Loan or Reimbursement Obligation, reduce the stated rate of any
interest or fee payable hereunder (except in connection with the waiver of
applicability of any post-default increase in interest rates (which waiver
shall be effective with the consent of the Required Lenders)) or extend the
scheduled date of any payment thereof, or increase the amount or extend the
expiration date of any Lender’s Revolving Commitment, in each case without the
written consent of each Lender directly affected thereby; (ii) eliminate
or reduce the voting rights of any Lender under this Section 10.1 without
the written consent of such Lender; (iii) reduce any percentage specified
in the definition of Required Lenders or consent to the assignment or transfer
by the Borrower of any of its rights and obligations under this Agreement and
the other Loan Documents, in each case without the written consent of all Lenders;
(iv) amend, modify or waive any provision of Section 2.11(a) or Section 2.11(b) without
the written consent of each Lender directly affected thereby, (v) amend,
modify or waive any provision of Section 9 without the written consent of
the Administrative Agent; or (vi) amend, modify or waive any provision of Section 3
without the written consent of each Issuing Lender.  Notwithstanding anything contained in this Section 10.1,
the affirmative vote of Lenders holding at least 66-2/3% of the Total
Revolving Commitments then in effect (or, if the Revolving Commitments have
been terminated, the Total Revolving Extensions of Credit then outstanding)
shall be required to amend, modify or waive any provision of Section 2.17;
provided that the Revolving Termination Date with respect to any Lender
may not be extended with respect to such Lender without its written
consent.  Any such waiver and any such
amendment, supplement or modification shall apply equally to each of the
Lenders and shall be binding upon the Borrower, the Lenders, the Administrative
Agent and all future holders of the Revolving Loans.  In the case of any waiver, the Borrower, the
Lenders and the Administrative Agent shall be restored to their former position
and rights hereunder and under the other Loan Documents, and any Default or
Event of Default waived shall be deemed to be cured and not continuing; but no
such waiver, except to the extent expressly provided therein, shall extend to
any subsequent or other Default or Event of Default, or impair any right
consequent thereon.

 

10.2         Notices.  All notices, requests and demands to or upon
the respective parties hereto to be effective shall be in writing (including by
electronic transmission or telecopy), and, unless otherwise expressly provided herein,
shall be deemed to have been duly given or made when delivered, or three
Business Days after being deposited in the mail, postage prepaid, or, in the
case of telecopy notice, when received, addressed as follows in the case of the
Borrower and the Administrative Agent, and as set

 

 

forth in an administrative
questionnaire delivered to the Administrative Agent in the case of the Lenders,
or to such other address as may be hereafter notified by the respective parties
hereto:

 

	
  Borrower:

  	
  800 Nicollet
  Mall

  
	
   

  	
  Minneapolis,
  MN 55402

  
	
   

  	
  Attention:
  Treasurer

  
	
   

  	
  Telecopy:
  612-215-5311

  
	
   

  	
  Telephone:
  612-215-4627

  
	
   

  	
   

  
	
   Administrative Agent:

  	
  c/o Loan and
  Agency Services Group

  
	
   

  	
  1111 Fannin,
  10th Floor

  
	
   

  	
  Houston, TX
  77002

  
	
   

  	
  Attention:
  Jamie Garcia

  
	
   

  	
  Telecopy:
  713-427-6307

  
	
   

  	
  Telephone:
  713-750-2377

  
	
   

  	
   

  
	
  with a copy
  to:

  	
  JPMorgan
  Chase Bank, N.A.

  
	
   

  	
  270 Park
  Avenue, 4th Floor

  
	
   

  	
  New York, NY
  10017

  
	
   

  	
  Attention:
  Peter Ling

  
	
   

  	
  Telecopy:
  212-270-0213

  
	
   

  	
  Telephone:
  212-270-4676

  
	
   

  	
   

  
	
  and, if
  regarding Letters

  of Credit, with a copy to:

  	
  

  JPMorgan Chase LOC Tampa

  
	
   

  	
  10420
  Highland Mn Dr

  
	
   

  	
  Block 2,
  Floor 4

  
	
   

  	
  Tampa, FL
  33610

  
	
   

  	
  Attention:
  James Alonzo

  
	
   

  	
  Telecopy:
  813-432-5161

  
	
   

  	
  Telephone:
  813-432-6339

  

  And if to any other Issuing Lender, at

  its address for notices set forth in its

  Issuing Lender Agreement.

  

 

; provided that any
notice, request or demand to or upon the Administrative Agent or the Lenders
shall not be effective until received.

 

Unless and until the
Administrative Agent is notified in writing by the Borrower to the contrary, the
Borrower hereby authorizes the Administrative Agent to rely on any notices in
respect of the making, extension, conversion or continuation of Revolving Loans
and the Types of Revolving Loans and the Interest Periods applicable to
Eurodollar Loans given by any Responsible Officer or any designee of a
Responsible Officer of which the Administrative Agent is notified in
writing.  Notices by the Borrower in
respect of the making, extension, conversion or continuation of Revolving Loans
and the Types of Revolving Loans and the Interest Periods applicable to
Eurodollar Loans may be given telephonically, and the Borrower agrees that the
Administrative Agent may rely on any such notices made by any person or persons
which the Administrative Agent in good faith believes to be acting on behalf of
the Borrower.  The Borrower agrees to
deliver promptly to the Administrative Agent a written confirmation of any
telephonic notice, if such confirmation is requested by the Administrative
Agent.  Notices and other communications
to the Lenders hereunder may be delivered or furnished by electronic
communications pursuant to procedures approved by the Administrative Agent; provided
that the foregoing shall not apply

 

 

to notices pursuant to Section 2 unless otherwise agreed by the
Administrative Agent and the applicable Lender. 
The Administrative Agent or the 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.

 

Information
required to be delivered pursuant to Sections 6.1 and 6.2(b) shall be
deemed to have been delivered on the date on which the Borrower provides notice
to the Administrative Agent (which notice the Administrative Agent shall
promptly provide to the Lenders)  that
such information has been posted on the SEC website on the Internet at
sec.gov/edaux/searches.htm, on the Borrower’s IntraLinks site at intralinks.com
or at another website identified in such notice and accessible by the Lenders
without charge.

 

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

 

10.4         Survival of Representations and Warranties.  All representations and warranties made
hereunder, in the other Loan Documents and in any document, certificate or
statement delivered pursuant hereto or in connection herewith shall survive the
execution and delivery of this Agreement and the making of the Revolving Loans
and other extensions of credit hereunder.

 

10.5         Payment of Expenses and Taxes.  The Borrower agrees (a) to pay or
reimburse the Administrative Agent for all its out-of-pocket costs and expenses
incurred in connection with the development, preparation and execution of, and
any amendment, supplement or modification to, this Agreement and the other Loan
Documents and any other documents prepared in connection herewith or therewith,
and the consummation and administration of the transactions contemplated hereby
and thereby, including the reasonable fees and disbursements of counsel to the
Administrative Agent and filing and recording fees and expenses, with
statements with respect to the foregoing to be submitted to the Borrower prior to
the Closing Date (in the case of amounts to be paid on the Closing Date) and
from time to time thereafter on a quarterly basis or such other periodic basis
as the Administrative Agent shall deem appropriate, (b) to pay or
reimburse each Lender and the Administrative Agent for all its costs and
expenses incurred in connection with the enforcement or preservation of any
rights under this Agreement, the other Loan Documents and any such other
documents, including the reasonable fees and disbursements of counsel
(including the allocated fees and expenses of in-house counsel) to each Lender
and of counsel to the Administrative Agent, (c) to pay, indemnify, and
hold each Lender and the Administrative Agent harmless from, any and all
recording and filing fees and any and all liabilities with respect to, or
resulting from any delay in paying, stamp, excise and other taxes, if any, that
may be payable or determined to be payable in connection with the execution and
delivery of, or consummation or administration of any of the transactions
contemplated by, or any amendment, supplement or modification of, or any waiver
or consent under or in respect of, this Agreement, the other Loan Documents and
any such other documents, and (d) to pay, indemnify, and hold each Lender
and the Administrative Agent and their respective officers, directors,
employees, affiliates, agents and controlling persons (each, an “Indemnitee”)
harmless from and against any and all other liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of this Agreement, the other Loan
Documents and any such other documents, including any of the foregoing relating
to the use of proceeds of the Revolving Loans or the violation of,
noncompliance with

 

 

or liability under, any
Environmental Law applicable to the operations of the Borrower or any of its
Subsidiaries or any of their properties and the reasonable fees and expenses of
legal counsel in connection with claims, actions or proceedings by any
Indemnitee against the Borrower under any Loan Document (all the foregoing in
this clause (d), collectively, the “Indemnified Liabilities”), provided,
that the Borrower shall have no obligation hereunder to any Indemnitee with
respect to Indemnified Liabilities to the extent such Indemnified Liabilities
resulted from the gross negligence or willful misconduct of such Indemnitee.  Without limiting the foregoing, and to the
extent permitted by applicable law, the Borrower agrees not to assert and to
cause its Subsidiaries not to assert, and hereby waives and agrees to cause its
Subsidiaries to waive, all rights for contribution or any other rights of
recovery with respect to all claims, demands, penalties, fines, liabilities,
settlements, damages, costs and expenses of whatever kind or nature, under or
related to Environmental Laws, that any of them might have by statute or
otherwise against any Indemnitee, except to the extent that such claims,
demands, penalties, fines, liabilities, settlements, damages, costs and
expenses have resulted from the gross negligence or willful misconduct of such
Indemnitee.  All amounts due under this Section 10.5
shall be payable not later than 10 days after written demand therefor.  Statements payable by the Borrower pursuant
to this Section 10.5 shall be submitted to the Borrower at the address of
the Borrower set forth in Section 10.2, or to such other Person or address
as may be hereafter designated by the Borrower in a written notice to the
Administrative Agent.  The agreements in
this Section 10.5 shall survive repayment of the Revolving Loans and all
other amounts payable hereunder.

 

10.6         Successors and Assigns;
Participations and Assignments.  (a) 
The provisions of this Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns permitted
hereby (including any affiliate of an Issuing Lender that issues any Letter of
Credit), except that (i) the Borrower may not assign or otherwise transfer
any of its rights or obligations hereunder without the prior written consent of
each Lender (and any attempted assignment or transfer by the Borrower without
such consent shall be null and void) and (ii) no Lender may assign or
otherwise transfer its rights or obligations hereunder except in accordance
with this Section.

 

(b)(i)  Subject to the conditions set forth in paragraph (b)(ii) below,
any Lender may assign to one or more financial institutions or other entities
(each, an “Assignee”) all or a portion of its rights and obligations
under this Agreement (including all or a portion of its Revolving Commitments
and the Revolving Loans at the time owing to it) with the prior written consent
of:

 

(A) the Borrower (such consent not to be
unreasonably withheld or delayed), provided that no consent of the
Borrower shall be required for an assignment to a Lender or, if an Event of
Default has occurred and is continuing, any other Person; and

 

(B) the Administrative Agent and each
Issuing Lender.

 

(ii) Assignments shall be subject to the following additional
conditions:

 

(A) except in the case of an assignment
to a Lender or an affiliate of a Lender or an assignment of the entire
remaining amount of the assigning Lender’s Revolving Commitments or Revolving
Loans, the amount of the Revolving Commitments or Revolving Loans of the
assigning Lender subject to each such assignment (determined as of the date the
Assignment and Assumption with respect to such assignment is delivered to the
Administrative Agent) shall not be less than $5,000,000 unless each of the
Borrower, the Administrative Agent and each Issuing Lender otherwise consent, provided
that (1) no such consent of the Borrower shall be required if an Event of
Default has occurred and is continuing and (2) such amounts shall be
aggregated in respect of each Lender and its affiliates, if any;

 

 

(B) the parties to each assignment shall
execute and deliver to the Administrative Agent an Assignment and Assumption,
together with a processing and recordation fee of $3,500; and

 

(C) the Assignee, if it shall not be a
Lender, shall deliver to the Administrative Agent an administrative
questionnaire.

 

(iii) Subject to acceptance and recording thereof pursuant to
paragraph (b)(iv) below, from and after the effective date specified
in each Assignment and Assumption the Assignee thereunder shall be a party
hereto and, to the extent of the interest assigned by such Assignment and Assumption,
have the rights and obligations of a Lender under this Agreement, and the
assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Assumption, be released from its obligations under this
Agreement (and, in the case of an Assignment and Assumption covering all of the
assigning Lender’s rights and obligations under this Agreement, such Lender
shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 2.12, 2.13, 2.14 and 10.5 in respect of the period
that it was a Lender).  Any assignment or
transfer by a Lender of rights or obligations under this Agreement that does
not comply with this Section 10.6 shall be treated for purposes of this
Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with paragraph (c) of this Section.

 

(iv)  The Administrative Agent, acting for this purpose as an
agent of the Borrower, shall maintain at one of its offices a copy of each
Assignment and Assumption delivered to it and a register for the recordation of
the names and addresses of the Lenders, and the Revolving Commitments of, and
principal amount of the Revolving Loans and L/C Obligations owing to, each
Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent, the Issuing Lenders and
the Lenders may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary.

 

(v)  Upon its receipt of a duly completed Assignment and
Assumption executed by an assigning Lender and an Assignee, the Assignee’s
completed administrative questionnaire (unless the Assignee shall already be a
Lender hereunder), the processing and recordation fee referred to in
paragraph (b) of this Section and any written consent to such
assignment required by paragraph (b) of this Section, the Administrative
Agent shall accept such Assignment and Assumption and record the information
contained therein in the Register.  No
assignment shall be effective for purposes of this Agreement unless it has been
recorded in the Register as provided in this paragraph.

 

(c)(i)  Any Lender may, without the consent of the Borrower or the
Administrative Agent, sell participations to one or more banks or other
entities (a “Participant”) in all or a portion of such Lender’s rights
and obligations under this Agreement (including all or a portion of its
Revolving Commitments and the Revolving Loans owing to it); provided
that (A) such Lender’s obligations under this Agreement shall remain
unchanged, (B) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations and (C) the
Borrower, the Administrative Agent, each Issuing Lender and the other Lenders
shall continue to deal solely and directly with such Lender in connection with
such Lender’s rights and obligations under this Agreement.  Any agreement pursuant to which a Lender
sells such a participation shall provide that such Lender shall retain the sole
right to enforce this Agreement and to approve any amendment, modification or
waiver of any provision of this Agreement; provided that such agreement
may provide that such Lender will not, without the consent of the Participant,
agree to any amendment, modification or waiver that (1) requires the
consent of such Lender pursuant to the proviso to the second sentence of Section 10.1
and (2) directly affects such Participant. 
Subject to paragraph (c)(ii) of this Section, the Borrower agrees
that each Participant shall be entitled to the benefits of Sections 2.12, 2.13
and 2.14 to the same extent as if it were a Lender and had

 

 

acquired its interest by
assignment pursuant to paragraph (b) of this Section.  To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 10.7(b) as
though it were a Lender, provided such Participant shall be subject to Section 10.7(a) as
though it were a Lender.

 

(ii)  A Participant shall not be entitled to receive any greater
payment under Section 2.12 or 2.13 than the applicable Lender would have
been entitled to receive with respect to the participation sold to such
Participant, unless the sale of the participation to such Participant is made
with the Borrower’s prior written consent. 
In addition, any Participant that is a Non-U.S. Lender shall not be
entitled to the benefits of Section 2.13 unless such Participant complies
with Section 2.13(d).

 

(d)  Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Agreement to secure
obligations to a Federal Reserve Bank.

 

(e)  The
Borrower, upon receipt of written notice from the relevant Lender, agrees to
issue Notes to any Lender requiring Notes to facilitate transactions of the
type described in paragraph (d) above.

 

10.7         Adjustments; Set-off.  (a)  Except to the extent that this
Agreement expressly provides for payments to be allocated to a particular
Lender, if any Lender (a “Benefitted Lender”) shall, at any time after
the Revolving Loans and other amounts payable hereunder shall immediately
become due and payable pursuant to Section 8, receive any payment of all
or part of the Obligations owing to it, or receive any collateral in respect
thereof (whether voluntarily or involuntarily, by set-off, pursuant to events
or proceedings of the nature referred to in Section 8(f), or otherwise),
in a greater proportion than any such payment to or collateral received by any
other Lender, if any, in respect of the Obligations owing to such other Lender,
such Benefitted Lender shall purchase for cash from the other Lenders a
participating interest in such portion of the Obligations owing to each such
other Lender, or shall provide such other Lenders with the benefits of any such
collateral, as shall be necessary to cause such Benefitted Lender to share the
excess payment or benefits of such collateral ratably with each of the Lenders;
provided, however, that if all or any portion of such excess
payment or benefits is thereafter recovered from such Benefitted Lender, such
purchase shall be rescinded, and the purchase price and benefits returned, to
the extent of such recovery, but without interest.

 

(b)  In
addition to any rights and remedies of the Lenders provided by law, each Lender
shall have the right, without prior notice to the Borrower, any such notice
being expressly waived by the Borrower to the extent permitted by applicable
law, upon any amount becoming due and payable by the Borrower hereunder
(whether at the stated maturity, by acceleration or otherwise), to set off and
appropriate and apply against such amount any and all deposits (general or
special, time or demand, provisional or final), in any currency, and any other
credits, indebtedness or claims, in any currency, in each case whether direct
or indirect, absolute or contingent, matured or unmatured, at any time held or
owing by such Lender or any branch or agency or Affiliate thereof to or for the
credit or the account of the Borrower, as the case may be.  Each Lender agrees promptly to notify the
Borrower and the Administrative Agent after any such setoff and application
made by such Lender, provided that the failure to give such notice shall
not affect the validity of such setoff and application.

 

10.8         Counterparts.  This Agreement may be executed by one or more
of the parties to this Agreement on any number of separate counterparts, and
all of said counterparts taken together shall be deemed to constitute one and
the same instrument.  Delivery of an
executed signature page of this Agreement by facsimile transmission shall
be effective as delivery of a manually executed counterpart hereof.  A set of the copies of this Agreement signed
by all the parties shall be lodged with the Borrower and the Administrative
Agent.

 

 

10.9         Severability.  Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

10.10       Integration.  This Agreement and the other Loan Documents
represent the entire agreement of the Borrower, the Administrative Agent and
the Lenders with respect to the subject matter hereof and thereof, and there
are no promises, undertakings, representations or warranties by the
Administrative Agent or any Lender relative to the subject matter hereof not
expressly set forth or referred to herein or in the other Loan Documents.

 

10.11       GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

10.12       Submission To Jurisdiction; Waivers.  The Borrower hereby irrevocably and
unconditionally:

 

(a)           submits
for itself and its property in any legal action or proceeding relating to this
Agreement and the other Loan Documents to which it is a party, or for
recognition and enforcement of any judgment in respect thereof, to the non-exclusive
general jurisdiction of the courts of the State of New York, the courts of the
United States for the Southern District of New York, and appellate courts
from any thereof;

 

(b)           consents that any such action or
proceeding may be brought in such courts and waives any objection that it may
now or hereafter have to the venue of any such action or proceeding in any such
court or that such action or proceeding was brought in an inconvenient court
and agrees not to plead or claim the same;

 

(c)           agrees that service of process in any
such action or proceeding may be effected by mailing a copy thereof by
registered or certified mail (or any substantially similar form of mail),
postage prepaid, to the Borrower, as the case may be at its address set forth
in Section 10.2 or at such other address of which the Administrative Agent
shall have been notified pursuant thereto;

 

(d)           agrees that nothing herein shall
affect the right to effect service of process in any other manner permitted by
law or shall limit the right to sue in any other jurisdiction; and

 

(e)           waives, to the maximum extent not
prohibited by law, any right it may have to claim or recover in any legal
action or proceeding referred to in this Section any special, exemplary,
punitive or consequential damages.

 

10.13       Acknowledgements.  The Borrower hereby acknowledges that:

 

(a)           it has been advised by counsel in the
negotiation, execution and delivery of this Agreement and the other Loan
Documents;

 

(b)           neither the Administrative Agent nor
any Lender has any fiduciary relationship with or duty to the Borrower arising
out of or in connection with this Agreement or any of the other Loan Documents,
and the relationship between Administrative Agent and Lenders, on one hand,

 

 

and the Borrower, on the
other hand, in connection herewith or therewith is solely that of debtor and
creditor; and

 

(c)           no joint venture is created hereby or by the other
Loan Documents or otherwise exists by virtue of the transactions contemplated
hereby among the Lenders or among the Borrower and the Lenders.

 

10.14       Confidentiality.  Each of the Administrative Agent and each
Lender agrees to keep confidential all information provided to it by or on
behalf of the Borrower, the Administrative Agent or any Lender pursuant to or
in connection with this Agreement and to use such information solely in
connection with evaluating, administering, structuring and/or approving the
credit facility contemplated hereby; provided that nothing herein shall
prevent the Administrative Agent or any Lender from disclosing any such
information (a) to the Administrative Agent, any other Lender or any
affiliate thereof, solely for the purpose of evaluating, administering,
structuring and/or approving the credit facility contemplated hereby, (b) subject
to an agreement to comply with the provisions of this Section, to any actual or
prospective Transferee or any direct or indirect counterparty to any Swap
Agreement (or any professional advisor to such counterparty), (c) to its
employees, directors, agents, attorneys, accountants and other professional
advisors or those of any of its affiliates, solely for the purpose of
evaluating, administering, structuring and/or approving the credit facility
contemplated hereby, (d) upon the request or demand of any Governmental
Authority, (e) in response to any order of any court or other Governmental
Authority or as may otherwise be required pursuant to any Requirement of Law, (f) if
requested or required to do so in connection with any litigation or similar
proceeding, (g) that has been publicly disclosed, (h) to the National
Association of Insurance Commissioners or any similar organization or any
nationally recognized rating agency that requires access to information about a
Lender’s investment portfolio in connection with ratings issued with respect to
such Lender, or (i) in connection with the exercise of any remedy
hereunder or under any other Loan Document.

 

10.15       WAIVERS OF JURY TRIAL.  THE BORROWER, THE ADMINISTRATIVE AGENT AND
THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY
LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

10.16       Delivery of Addenda.  Each initial Lender shall become a party to
this Agreement by delivering to the Administrative Agent an Addendum duly executed
by such Lender.

 

10.17       USA Patriot Act Notice.  Each
Lender hereby notifies the 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 the Borrower, which information includes the name
and address of the Borrower and other information that will allow such Lender
to identify the Borrower in accordance with the Act.

 

10.18       Existing Credit Agreement.  The Borrower, Bank One, N.A., as
administrative agent, and the Banks (as defined in the Existing Credit
Agreement) party to the Existing Credit Agreement comprising the “Required
Banks” as defined therein, hereby agree that (i) the commitments and all
other obligations of the Banks under the Existing Credit Agreement shall
terminate in their entirety immediately and automatically upon the
effectiveness of this Agreement, without further action by any party to the
Existing Credit Agreement, (ii) all accrued fees under the Existing Credit
Agreement shall be due and payable at such time and (iii) subject to the
funding loss indemnities in the Existing Credit Agreement, the Borrower may
prepay any and all loans outstanding thereunder on the date of effectiveness of
this Agreement.  

 

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed and delivered by
their proper and duly authorized officers as of the day and year first above
written.

 

	
   

  	
  PUBLIC
  SERVICE COMPANY OF COLORADO

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George E. Tyson II

  
	
   

  	
   

  	
  Name:

  	
  George E.
  Tyson II

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President and Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK, N.A. as Administrative Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Casey

  
	
   

  	
   

  	
  Name:

  	
  Thomas Casey

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF
  NEW YORK, as Syndication Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Cynthia D. Howells

  
	
   

  	
   

  	
  Name:

  	
  Cynthia D.
  Howells

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO
  BANK, NATIONAL ASSOCIATION, as Syndication Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott Bjelde

  
	
   

  	
   

  	
  Name:

  	
  Scott Bjelde

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jennifer Barrett

  
	
   

  	
   

  	
  Name:

  	
  Jennifer
  Barrett

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President and Loan Team Manager

  

 

 

	
   

  	
  KEYBANK
  NATIONAL ASSOCIATION, as Documentation Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Keven D. Smith

  
	
   

  	
   

  	
  Name:

  	
  Keven D.
  Smith

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UBS LOAN
  FINANCE LLC, as Documentation Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward Cripps

  
	
   

  	
   

  	
  Name:

  	
  Edward
  Cripps

  
	
   

  	
   

  	
  Title:

  	
  Director
  Banking Product Services, US

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CITICORP
  USA, INC., as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marie Haddad

  
	
   

  	
   

  	
  Name:

  	
  Marie Haddad

  
	
   

  	
   

  	
  Title:

  	
  Associate
  Director Banking Products

  Services, US

  

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Public Service Company of Colorado
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Harris
  Nesbitt Financing, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Cahal B. Carmody

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Cahal B. Carmody

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

Dated as of April 21,
2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Public Service Company of Colorado
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Bank of
  Tokyo-Mitsubishi, Ltd.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Douglas M. Barnell

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Douglas M. Barnell

  
	
   

  	
   

  	
  Title:

  	
  VP & Manager

  
					

 

Dated as of April 20,
2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Public Service Company of Colorado
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  U.S. Bank
  National Association

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Christine Geer

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Christine Geer

  
	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

  
					

 

Dated as of April 20,
2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Public Service Company of Colorado
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Morgan Stanley Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Daniel Twenge

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Daniel Twenge

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  Morgan Stanley Bank

  
					

 

Dated
as of April 20, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Public Service Company of Colorado
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  CREDIT SUISSE FIRST BOSTON, ACTING THROUGH
  ITS CAYMAN ISLANDS BRANCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Sarah Wu

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Sarah Wu

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Denise Alvarez

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Denise Alvarez

  
	
   

  	
   

  	
  Title:

  	
  Associate

  
					

 

Dated
as of April 20, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Public Service Company of Colorado
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without limitation,
the obligation to make extensions of credit to the Borrower in an aggregate
principal amount not to exceed the amount of its Revolving Commitment as set
forth opposite the undersigned Lender’s name in Schedule 1.1A to the
Credit Agreement, as such amount may be changed from time to time as provided
in the Credit Agreement.    Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Commerzbank AG, New York and Grand Cayman
  Branches

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Andrew Campbell

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Andrew Campbell

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Andrew Kjoller

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Andrew Kjoller

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

Dated
as of April 20, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Public Service Company of Colorado
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.  Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LEHMAN BROTHERS BANK, FSB

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Gary T. Taylor

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Gary T. Taylor

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
					

 

Dated
as of April 21, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Public Service Company of Colorado
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BNP Paribas

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Francis J. DeLaney

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Francis J. DeLaney

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Ralph Scholtz

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Ralph Scholtz

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
					

 

Dated as of April 21, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Public Service Company of Colorado
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as provided
in the Credit Agreement.    Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HSBC Bank
  USA, National Association

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Jose Aldeanueva

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jose Aldeanueva

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

Dated
as of April 19, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Public Service Company of Colorado
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Mizuho Corporate Bank Ltd.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Mark Gronich

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Mark Gronich

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
					

 

Dated
as of April 20, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Public Service Company of Colorado
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as Administrative
Agent, and (ii) becomes a party thereto, as a Lender, with obligations
applicable to such Lender thereunder, including, without limitation, the
obligation to make extensions of credit to the Borrower in an aggregate
principal amount not to exceed the amount of its Revolving Commitment as set
forth opposite the undersigned Lender’s name in Schedule 1.1A to the
Credit Agreement, as such amount may be changed from time to time as provided
in the Credit Agreement.    Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  KBC BANK N.V.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Eric Raskin

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Eric Raskin

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Robert Snauffer

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert Snauffer

  
	
   

  	
   

  	
  Title:

  	
  First Vice President

  
					

 

Dated
as of April 19, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Public Service Company of Colorado
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Royal Bank of Scotland plc

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Emily Freedman

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Emily Freedman

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

Dated
as of April 20, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Public Service Company of Colorado
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as Administrative
Agent, and (ii) becomes a party thereto, as a Lender, with obligations
applicable to such Lender thereunder, including, without limitation, the
obligation to make extensions of credit to the Borrower in an aggregate
principal amount not to exceed the amount of its Revolving Commitment as set
forth opposite the undersigned Lender’s name in Schedule 1.1A to the
Credit Agreement, as such amount may be changed from time to time as provided
in the Credit Agreement.    Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WILLIAM STREET COMMITMENT CORPORATION
  (Recourse only to assets of

  William Street Commitment Corporation)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Manda D’Agata

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Manda D’Agata

  
	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

  
					

 

Dated
as of April 19, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Public Service Company of Colorado
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Amarillo National Bank.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Craig L. Sanders

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Craig L. Sanders

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President

  
					

 

Dated
as of April 21, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Public Service Company of Colorado
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MERRILL LYNCH BANK USA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Louis Alder

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Louis Alder

  
	
   

  	
   

  	
  Title:

  	
  Director

  
					

 

Dated
as of April 21, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Public Service Company of Colorado
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Michelle A. Schoenfeld

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michelle A. Schoenfeld

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
					

 

Dated
as of April 21, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Public Service Company of Colorado
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Citicorp USA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Richard Evans

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Richard Evans

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

Dated
as of April 19, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Public Service Company of Colorado
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BARCLAYS BANK PLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Sydney G. Dennis

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Sydney G. Dennis

  
	
   

  	
   

  	
  Title:

  	
  Director

  
					

 

Dated
as of April 21, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Public Service Company of Colorado
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Bank of Nova Scotia

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Thane Rattew

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Thane Rattew

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
					

 

Dated
as of April 19, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Public Service Company of Colorado
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SUMITOMO MITSUI BANKING

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ David A. Buck

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David A. Buck

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
					

 

Dated
as of April 19, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Public Service Company of Colorado
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  J.P. Morgan Securities Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Thomas Casey

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Thomas Casey

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

Dated
as of April 19, 2005

 

 

SCHEDULE 1.1A

PUBLIC SERVICE COMPANY OF COLORADO

REVOLVING COMMITMENTS

 

	
  Lender

  	
   

  	
  Revolving Commitment

  	
   

  
	
  JPMorgan
  Chase Bank, N.A.

  	
   

  	
  $

  	
  26,666,666.67

  	
   

  
	
  The Bank of
  New York

  	
   

  	
  $

  	
  26,666,666.67

  	
   

  
	
  Wells Fargo
  Bank, National Association

  	
   

  	
  $

  	
  26,666,666.67

  	
   

  
	
  KeyBank
  National Association

  	
   

  	
  $

  	
  22,222,222.22

  	
   

  
	
  UBS Loan
  Finance LLC

  	
   

  	
  $

  	
  22,222,222.22

  	
   

  
	
  The Bank of
  Tokyo-Mitsubishi, Ltd., Chicago Branch

  	
   

  	
  $

  	
  22,222,222.22

  	
   

  
	
  Citicorp USA, Inc.

  	
   

  	
  $

  	
  22,222,222.22

  	
   

  
	
  Harris
  Nesbitt Financing, Inc.

  	
   

  	
  $

  	
  22,222,222.22

  	
   

  
	
  Barclays
  Bank PLC

  	
   

  	
  $

  	
  22,222,222.22

  	
   

  
	
  Credit
  Suisse First Boston

  	
   

  	
  $

  	
  22,222,222.22

  	
   

  
	
  Bank of
  America

  	
   

  	
  $

  	
  22,222,222.22

  	
   

  
	
  Royal Bank
  of Scotland

  	
   

  	
  $

  	
  22,222,222.22

  	
   

  
	
  BNP Paribas

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  
	
  Commerzbank
  AB, New York Branch

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  
	
  William
  Street Commitment Corporation

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  
	
  HSBC

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  
	
  Lehman
  Brothers

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  
	
  Merrill
  Lynch

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  
	
  Morgan
  Stanley Bank

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  
	
  Mizuho
  Corporate Bank, Ltd.

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  
	
  KBC Bank

  	
   

  	
  $

  	
  13,333,333.33

  	
   

  
	
  Bank of Nova
  Scotia

  	
   

  	
  $

  	
  13,333,333.33

  	
   

  
	
  Sumitomo
  Mitsui Banking Corporation

  	
   

  	
  $

  	
  13,333,333.33

  	
   

  
	
  U.S. Bank
  National Association

  	
   

  	
  $

  	
  13,333,333.33

  	
   

  
	
  Amarillo
  National Bank

  	
   

  	
  $

  	
  6,666,666.67

  	
   

  
	
  TOTAL

  	
   

  	
  $

  	
  500,000,000.00

  	
   

  

 

 

EXHIBIT A

 

FORM OF

CLOSING CERTIFICATE

 

Pursuant to Section 5.1(g) of
the Credit Agreement, dated as of April     , 2005 (as
amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”; terms defined therein being used herein as therein defined),
among Public Service Company of Colorado (the “Borrower”), the Lenders
party thereto, the Documentation Agents and Syndication Agents named therein
and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative
Agent”), the undersigned [INSERT TITLE OF OFFICER] of the Borrower hereby
certifies as follows:

 

1.                                       The
representations and warranties of the Borrower set forth in each of the Loan
Documents to which it is a party or which are contained in any certificate furnished
by or on behalf of the Borrower pursuant to any of the Loan Documents to which
it is a party are true and correct in all material respects on and as of the
date hereof with the same effect as if made on the date hereof, except for
representations and warranties expressly stated to relate to a specific earlier
date, in which case such representations and warranties were true and correct
in all material respects as of such earlier date.

 

2.                                                                  is the duly
elected and qualified [Corporate Secretary] of the Borrower and the signature
set forth for such officer below is such officer’s true and genuine signature.

 

3.                                       No Default or
Event of Default has occurred and is continuing as of the date hereof or after
giving effect to the Revolving Loans to be made on the date hereof and the use
of proceeds thereof.

 

4.                                       The conditions
precedent set forth in Section 5.1 of the Credit Agreement were satisfied
as of the Closing Date.

 

5.                                       There are no
liquidation or dissolution proceedings pending or to my knowledge threatened
against the Borrower, nor has any other event occurred adversely affecting or
threatening the continued corporate existence of the Borrower.

 

The undersigned [Corporate
Secretary] of the Borrower certifies as follows:

 

6.                                       The Borrower is
a corporation duly incorporated, validly existing and in good standing under
the laws of the jurisdiction of its organization.

 

7.                                       Attached hereto
as Annex 1 is a true and complete copy of resolutions duly adopted by
the Board of Directors of the Borrower on                                 ,
2005; such resolutions have not in any way been amended, modified, revoked or
rescinded, have been in full force and effect since their adoption to and
including the date hereof and are now in full force and effect and are the only
corporate proceedings of the Borrower now in force relating to or affecting the
matters referred to therein.

 

8.                                       Attached hereto
as Annex 2 is a true and complete copy of the By-Laws of the Borrower as
in effect on the date hereof.

 

9.                                       Attached hereto
as Annex 3 is a true and complete copy of the Articles of Incorporation
of the Borrower as in effect on the date hereof.

 

 

10.                                 The following
persons are now duly elected and qualified officers of the Borrower holding the
offices indicated next to their respective names below, and the signatures
appearing opposite their respective names below are the true and genuine
signatures of such officers, and each of such officers is duly authorized to
execute and deliver on behalf of the Borrower each of the Loan Documents to
which it is a party and any certificate or other document to be delivered by
the Borrower pursuant to the Loan Documents to which it is a party:

 

	
  Name

  	
   

  	
  Office

  	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

IN
WITNESS WHEREOF, the undersigned have hereunto set our names as of the date set
forth below.

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Name:

  
	
  Title:

  	
   

  	
  Title: [Corporate
  Secretary]

  

 

Date:  April     ,
2005

 

 

EXHIBIT B

 

FORM OF

ASSIGNMENT AND ASSUMPTION

 

Reference is made to the
Credit Agreement, dated as of April     , 2005 (as
amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among Public Service Company of Colorado (the “Borrower”),
the Lenders party thereto, the Documentation Agents and Syndication Agents
named therein and JPMorgan Chase Bank, N.A., as administrative agent for the
Lenders (in such capacity, the “Administrative Agent”).  Unless otherwise defined herein, terms
defined in the Credit Agreement and used herein shall have the meanings given
to them in the Credit Agreement.

 

The Assignor identified on Schedule l
hereto (the “Assignor”) and the Assignee identified on Schedule l
hereto (the “Assignee”) agree as follows:

 

1.                                       The Assignor
hereby irrevocably sells and assigns to the Assignee without recourse to the
Assignor, and the Assignee hereby irrevocably purchases and assumes from the
Assignor without recourse to the Assignor, as of the Effective Date (as defined
below), the interest described in Schedule 1 hereto (the “Assigned
Interest”) in and to the Assignor’s rights and obligations under the Credit
Agreement with respect to the credit facility contained in the Credit Agreement
in a principal amount as set forth on Schedule 1 hereto.

 

2.                                       The Assignor (a) makes
no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with the
Credit Agreement or with respect to the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Credit Agreement, any
other Loan Document or any other instrument or document furnished pursuant
thereto, other than that the Assignor has not created any adverse claim upon
the interest being assigned by it hereunder and that such interest is free and
clear of any such adverse claim and (b) makes no representation or
warranty and assumes no responsibility with respect to the financial condition
of the Borrower, any of its Affiliates or any other obligor or the performance
or observance by the Borrower, any of its Affiliates or any other obligor of
any of their respective obligations under the Credit Agreement or any other
Loan Document or any other instrument or document furnished pursuant hereto or
thereto.

 

3.                                       The Assignee (a) represents
and warrants that it is legally authorized to enter into this Assignment and
Assumption; (b) confirms that it has received a copy of the Credit
Agreement, together with copies of the financial statements delivered pursuant
to Section 4.1 thereof and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
this Assignment and Assumption; (c) agrees that it will, independently and
without reliance upon the Assignor, any Agent or any Lender and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under the Credit
Agreement, the other Loan Documents or any other instrument or document
furnished pursuant hereto or thereto; (d) appoints and authorizes the
Administrative Agent to take such action as agent on its behalf and to exercise
such powers and discretion under the Credit Agreement, the other Loan Documents
or any other instrument or document furnished pursuant hereto or thereto as are
delegated to the Administrative Agent by the terms thereof, together with such
powers as are incidental thereto; and (e) agrees that it will be bound by
the provisions of the Credit Agreement and will perform in accordance with its
terms all the obligations which by the terms of the Credit Agreement are
required to be performed

 

 

by it as a Lender including, if it is organized under the laws of a
jurisdiction outside the United States, its obligation pursuant to Section 2.13(d) of
the Credit Agreement.

 

4.                                       Subject to
obtaining all necessary consents on or prior to such date, the effective date
of this Assignment and Assumption shall be the Effective Date of Assignment
described in Schedule 1 hereto (the “Effective Date”).  Following the execution of this Assignment
and Assumption and receipt of all necessary consents, it will be delivered to
the Administrative Agent for acceptance by it and recording by the
Administrative Agent pursuant to the Credit Agreement, effective as of the
Effective Date (which shall not, unless otherwise agreed to by the
Administrative Agent, be earlier than five Business Days after the date of such
acceptance and recording by the Administrative Agent).

 

5.                                       Upon such
acceptance and recording, from and after the Effective Date, the Administrative
Agent shall make all payments in respect of the Assigned Interest (including
payments of principal, interest, fees and other amounts) to the Assignor for
amounts that have accrued to the Effective Date and to the Assignee for amounts,
which have accrued subsequent to the Effective Date.

 

6.                                       From and after
the Effective Date, (a) the Assignee shall be a party to the Credit
Agreement and, to the extent provided in this Assignment and Assumption, have
the rights and obligations of a Lender thereunder and under the other Loan
Documents and shall be bound by the provisions thereof and (b) the
Assignor shall, to the extent provided in this Assignment and Assumption,
relinquish its rights and be released from its obligations under the Credit Agreement.

 

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

 

IN WITNESS WHEREOF, the
parties hereto have caused this Assignment and Assumption to be executed as of
the date first above written by their respective duly authorized officers on Schedule 1
hereto.

 

 

Schedule 1 to
Assignment and Assumption

with respect to the Credit Agreement, dated as of April     ,
2005,

among Public Service Company of Colorado (the “Borrower”), the Lenders
party thereto

the Documentation Agents and Syndication Agents named therein

and JPMorgan Chase Bank, N.A., as Administrative Agent

 

Name of Assignor:                                               

 

Name of Assignee:                                               

 

Effective Date of
Assignment:                                   

 

Principal Amount Assigned: $                                  

 

 

	
  [Name of Assignee]

  	
  [Name of Assignor]

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
     Title:

  	
   

  	
     Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  JPMorgan Chase Bank, N.A.,
  as Administrative Agent(1)

  	
  Public Service Company of
  Colorado(2)

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Title:

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
                   ,
  as an Issuing Lender(3)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  
							

 

(1)                                  Consent
of Administrative Agent required for each assignment.

 

(2)                                  Consent
of Borrower required for each assignment unless (x) assignment is to a Lender
or (y) an Event of Default has occurred and is continuing.

 

(3)                                  Consent
of each Issuing Lender required for each assignment.

 

 

EXHIBIT C

 

FORM OF EXEMPTION CERTIFICATE

 

Reference is made to the
Credit Agreement, dated as of April     , 2005 (as
amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among Public Service Company of Colorado (the “Borrower”),
the Lenders party thereto, the Documentation Agents and Syndication Agents
named therein and JPMorgan Chase Bank, N.A., as administrative agent (in such
capacity, the “Administrative Agent”). 
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

                                            
(the “Non-U.S. Lender”) is providing this certificate pursuant to Section 2.13(d) of
the Credit Agreement.  The Non-U.S.
Lender hereby represents and warrants that:

 

1.  The Non-U.S. Lender is the sole record and
beneficial owner of the Revolving Loans in respect of which it is providing
this certificate.

 

2.  The Non-U.S. Lender is not a “bank” for
purposes of Section 881(c)(3)(A) of the Internal Revenue Code of
1986, as amended (the “Code”).  In
this regard, the Non-U.S. Lender further represents and warrants that:

 

(a) the Non-U.S. Lender
is not subject to regulatory or other legal requirements as a bank in any
jurisdiction; and

 

(b) the Non-U.S. Lender
has not been treated as a bank for purposes of any tax, securities law or other
filing or submission made to any Governmental Authority, any application made
to a rating agency or qualification for any exemption from tax, securities law
or other legal requirements.

 

3.  The Non-U.S. Lender is not a 10-percent
shareholder of the Borrower within the meaning of Section 881(c)(3)(B) of
the Code.

 

4.  The Non-U.S. Lender is not a controlled
foreign corporation receiving interest from a related person within the meaning
of Section 881(c)(3)(C) of the Code.

 

IN WITNESS WHEREOF, the
undersigned has duly executed this certificate.

 

	
   

  	
  [NAME OF NON-U.S. LENDER]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
						

 

 

EXHIBIT D

 

FORM OF ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April     ,
2005 (the “Credit Agreement”), among Public Service Company of Colorado
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.    Unless otherwise defined herein, terms
defined in the Credit Agreement and used herein shall have the meanings given
to them in the Credit Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  (Name of
  Lender)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

Dated as of April     ,
2005

 

 

EXHIBIT E-1

 

FORM OF NEW LENDER SUPPLEMENT

 

NEW LENDER SUPPLEMENT, dated
                                  ,
to the Credit Agreement, dated as of April     , 2005
(as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among Public Service Company of Colorado (the “Borrower”),
the Lenders party thereto, the Documentation Agents and Syndication Agents
named therein and JPMorgan Chase Bank, N.A., as administrative agent for the
Lenders (in such capacity, the “Administrative Agent”).  Unless otherwise defined herein, terms defined
in the Credit Agreement and used herein shall have the meanings given to them
in the Credit Agreement.

 

W I T N E S S E T H :

 

WHEREAS, the Credit
Agreement provides in Section 2.1(c) thereof that any bank, financial
institution or other entity may become a party to the Credit Agreement with the
consent of the Borrower and the Administrative Agent (which consent shall not
be unreasonably withheld) by executing and delivering to the Borrower and the
Administrative Agent a supplement to the Credit Agreement in substantially the
form of this New Lender Supplement; and

 

WHEREAS, the undersigned now
desires to become a party to the Credit Agreement;

 

NOW, THEREFORE, the
undersigned hereby agrees as follows:

 

1.  The
undersigned agrees to be bound by the provisions of the Credit Agreement, and
agrees that it shall, on the date this New Lender Supplement is accepted by the
Borrower and the Administrative Agent, become a Lender for all purposes of the
Credit Agreement to the same extent as if originally a party thereto, with a
Revolving Commitment of $                                    .

 

2.  The
undersigned (a) represents and warrants that it is legally authorized to
enter into this New Lender Supplement; (b) confirms that it has received a
copy of the Credit Agreement, together with copies of the financial statements
referred to in Section 4.1 thereof and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into this New Lender Supplement; (c) agrees that it has
made and will, independently and without reliance upon any Agent or any other
Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under the Credit Agreement or any instrument or document furnished
pursuant hereto or thereto; (d) appoints and authorizes the Administrative
Agent to take such action as agent on its behalf and to exercise such powers
and discretion under the Credit Agreement or any instrument or document
furnished pursuant hereto or thereto as are delegated to the Administrative
Agent by the terms thereof, together with such powers as

 

 

are incidental thereto; and (e) agrees
that it will be bound by the provisions of the Credit Agreement and will
perform in accordance with its terms all the obligations which by the terms of
the Credit Agreement are required to be performed by it as a Lender including,
without limitation, if it is organized under the laws of a jurisdiction outside
the United States, its obligation pursuant to Section 2.13(d) of the
Credit Agreement.

 

3.  The
undersigned’s address for notices for the purposes of the Credit Agreement is
as follows:

 

[insert notice address]

 

IN WITNESS WHEREOF, the
undersigned has caused this New Lender Supplement to be executed and delivered
by a duly authorized officer on the date first above written.

 

 

	
   

  	
  [INSERT NAME
  OF LENDER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

Accepted this
      day of

                              ,
    .

 

PUBLIC SERVICE COMPANY OF
COLORADO

 

	
  By

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

Accepted this
     day of

                              ,
    .

 

JPMORGAN CHASE BANK, N.A.,
as Administrative Agent

 

	
  By

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

EXHIBIT E-2

 

FORM OF INCREASED
REVOLVING COMMITMENT ACTIVATION NOTICE

 

To:                              JPMORGAN CHASE
BANK, N.A., as Administrative Agent

 

Reference is hereby made to
the Credit Agreement, dated as of April     , 2005 (as
amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among Public Service Company of Colorado (the “Borrower”),
the Lenders party thereto, the Documentation Agents and Syndication Agents
named therein and JPMorgan Chase Bank, N.A., as administrative agent for the Lenders
(in such capacity, the “Administrative Agent”).  Unless otherwise defined herein, terms
defined in the Credit Agreement and used herein shall have the meanings given
to them in the Credit Agreement.

 

This notice is the Increased
Revolving Commitment Activation Notice referred to in the Credit Agreement, and
the Borrower and each of the Lenders party hereto hereby notify you that:

 

1.                                       Each Lender
party hereto agrees to make or increase the amount of its Revolving Commitment
to the amount set forth opposite such Lender’s name below under the caption “Increased
Revolving Commitment Amount”.

 

2.                                       The Increased
Revolving Commitment Closing Date is             .(4)

 

3.                                       The Borrower
hereby represents and warrants that no Default or Event of Default has occurred
and is continuing as of the date hereof and no Default or Event of Default will
exist after giving effect to the increase specified herein.

 

 

	
   

  	
  PUBLIC SERVICE COMPANY OF COLORADO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

(4)                                  No
later than the fourth anniversary of the Closing Date.

 

 

	
  Increased
  Revolving Commitment Amount

  	
  [NAME OF LENDER]

  
	
   

  	
   

  
	
  $

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

 

EXHIBIT F-1

 

FORM OF EXTENSION
REQUEST(5)

 

                    ,
200  

 

JPMorgan Chase Bank, N.A.,
as Administrative Agent

 

Reference is made to the
Credit Agreement, dated as of April     , 2005 (as
amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among Public Service Company of Colorado (the “Borrower”),
the Lenders party thereto, the Documentation Agents and Syndication Agents
named therein and JPMorgan Chase Bank, N.A., as administrative agent for the
Lenders (in such capacity, the “Administrative Agent”).  Unless otherwise defined herein, terms
defined in the Credit Agreement and used herein shall have the meanings given
to them in the Credit Agreement.

 

Pursuant to Section 2.17(a) of
the Credit Agreement, the Borrower hereby requests that the Lenders extend the
Revolving Termination Date now in effect by a period of one year, to April     ,
2011.

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  PUBLIC SERVICE COMPANY OF COLORADO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

(5)                                  Extension
Request may be given no earlier than the first anniversary of the Closing Date
and no later than 45 days prior to the Revolving Termination Date then in
effect.

 

 

EXHIBIT F-2

 

FORM OF CONTINUATION
NOTICE(6)

 

                    ,
200  

 

JPMorgan Chase Bank, N.A.,
as Administrative Agent

 

Reference is made to the
Credit Agreement, dated as of April     , 2005 (as
amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among Public Service Company of Colorado (the “Borrower”),
the Lenders party thereto, the Documentation Agents and Syndication Agents
named therein and JPMorgan Chase Bank, N.A., as administrative agent for the
Lenders (in such capacity, the “Administrative Agent”).  Unless otherwise defined herein, terms
defined in the Credit Agreement and used herein shall have the meanings given
to them in the Credit Agreement.

 

The undersigned Lender is
delivering this Continuation Notice in response to the Extension Request dated                         ,
200  .  Pursuant to Section 2.17(a) of
the Credit Agreement, the undersigned Lender hereby consents, in its sole
discretion, to the extension of the Revolving Termination Date to April     ,
2011, as requested by the Borrower in the Extension Request.

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [NAME OF LENDER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

(6)                                  Continuation
Notice must be received by the Administrative Agent no later than 20 days prior
to the then applicable Revolving Termination Date.  Any Lender that fails to submit a
Continuation Notice by such date shall be deemed not to have consented to the
requested extension and shall constitute a Non-Extending Lender.

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