Document:

Converted by EDGARwiz

Exhibit 10.1

August
29, 2008

Madison Gas and
Electric Company

133 S. Blair
St.
Madison, WI  53701

Attention: Vice
President and Treasurer

Ladies
and Gentlemen:

JPMorgan
Chase Bank, N.A. (the “Bank”) is pleased to advise Madison Gas and
Electric Company (the “Borrower”) that the Bank has approved a committed
credit facility in an amount not exceeding $20,000,000 (such amount, as reduced
from time to time pursuant hereto, the “Commitment Amount”).  The
facility shall be available on the terms and conditions set forth below.

1.

DEFINITIONS
AND INTERPRETATION.

1.1

Definitions.
 In addition to the terms defined in the introductory paragraph, (a)
capitalized terms used but not defined herein have the respective meanings set
forth in the Syndicated Agreement (as defined below), mutatis mutandis,
and (b) the following terms have the following meanings:

“Agreement”
means this C redit
Agreement as amended or
otherwise modified from time to time.

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

“Commitment”
means the commitment of the Bank to make Loans hereunder.

“Default”
means any event described in Section 7.1.

“Dollar”
and the “$” sign each mean lawful currency of the United States of
America.

“Eurodollar
Loan” means a Loan that bears interest based upon the Eurodollar Rate.

“Interest
Payment Date” means (a) for any Eurodollar Loan, the last day of each
Interest Period therefor and, if any such Interest Period is longer than three
months, the three-month anniversary of the first day of such Interest Period,
(b) for any Base Rate Loan, the last day of each calendar quarter and (c) for
any Loan, (i) any date on which such Loan is converted, prepaid or repaid and
(ii) after the maturity of such Loan, any date on which demand is made by the
Bank.

“Interest
Period” means, for any Eurodollar Loan, the period commencing on the
borrowing date therefor or the date such Loan was converted to a Eurodollar Loan
or continued as a Eurodollar Loan for a new Interest Period and ending on the
date one, two, three or six months thereafter (or such other period as the
Borrower and the Bank may agree) as the Borrower shall specify pursuant to
Section 2.2 or 2.3; provided that (i) no Interest Period
shall extend beyond the scheduled Termination Date; and (ii) the length of any
Interest Period shall be subject to the proviso in the second sentence of the
definition of “Interest Period” in the Syndicated Agreement
and the entire third sentence of such definition.

“Loan”
- see Section 2.1.

“Syndicated
Agreement” means the Amended and Restated Credit Agreement dated as of
December 21, 2005 among the Borrower, various financial institutions and the
Bank, as administrative agent, as such agreement is in effect on the date
hereof, without giving effect to (a) any subsequent amendment thereof or waiver
or consent thereunder unless the Bank is a signatory, or otherwise consents,
thereto or (b) any termination thereof.  Wherever a portion of the
Syndicated Agreement is incorporated herein by reference, each reference in such
incorporated provision to the “Administrative Agent,” a “Lender,” the “Required
Lenders” or any similar term shall be deemed to be a reference to the Bank.
 

“Termination
Date” means the earliest to occur of (a) March 31,
2009, (b) the date on which the Commitment Amount is reduced
to zero pursuant to Section 2.4 or (c) the date on which all obligations
of the Borrower hereunder become due and payable pursuant to Section
7.2.

“Unmatured
Default” means  an
event
that (unless cured or waived) would, with the
lapse of time or  the giving of 
notice, or both, constitute a Default.

1.2

Interpretation.
 Unless otherwise specified herein, (a) references herein to a
Section shall mean a Section hereof; and (b) the word “including” and
derivatives thereof shall be deemed to be followed by the words “without
limitation”.

2.

THE
CREDIT.

2.1

Availability.
 The Bank agrees to make loans (each a “Loan” and collectively the
“Loans”) in Dollars to the Borrower from time to time before the
Termination Date; provided that the outstanding principal amount of all
Loans shall not at any time exceed the Commitment Amount.

2.2

Loan
Procedures.  Each Loan shall be made on prior written notice from the
Borrower received by the Bank not later than 1:00 p.m. (New York time) (a) in the case of a Eurodollar Loan, three
Business Days prior to the requested date of such Loan and (b) in the case of a
Base Rate Loan, on the requested date of such Loan.  Each such notice shall
be substantially in the form of Exhibit A (with appropriate insertions).
 Each Loan shall be in the amount of $1,000,000 or a higher integral
multiple of $500,000.  The Bank will make such funds available to the
Borrower by crediting an account designated in writing by the Borrower from time
to time.

2.3

Conversion/Continuation
Procedures.  The Borrower may from time to time convert any Base Rate
Loan to a Eurodollar Loan (in whole or in part), or vice versa, or on the last
day of the Interest Period for any Eurodollar Loan continue such Eurodollar Loan
(in whole or in part) for a new Interest Period, by prior written notice from
the Borrower received by the Bank not later than 1:00 p.m. (New York time) on
(a) in the case of conversion to or
continuation of a Eurodollar Loan, three Business Days prior to the requested
date of such conversion or continuation, and (b) in the case of conversion to a
Base Rate Loan, the requested date of such conversion; provided that (i)
after giving effect to any such conversion or continuation, each outstanding
Eurodollar Loan shall be in the amount of $1,000,000 or a higher integral
multiple of $500,000; (ii) any conversion of a Eurodollar Loan on a day other
than the last day of an Interest Period therefor shall be subject to Section
3.3; and (iii) if the Borrower does not timely specify a new Interest Period
for a Eurodollar Loan (and such Loan is not paid in full on the last day of the
relevant Interest Period), such Loan shall convert to a Base Rate Loan on the
last day of the Interest Period therefor.  Each notice of conversion or
continuation of a Loan shall be substantially in the form of Exhibit B
(with appropriate insertions).

2.4

Reduction
of the Commitment Amount.  The Borrower may from time to time, upon two
Business Days’ notice to the Bank (which notice shall be irrevocable), reduce
the Commitment Amount to an amount that is not less than the outstanding
principal amount of the Loans.  Any such reduction shall be in the amount
of $5,000,000 or an integral multiple thereof.  

2.5

Repayment
of Loans.  The Borrower shall repay all outstanding Loans on the
Termination Date.  

2.6

Prepayments.
 The Borrower may from time to time prepay any Loan in whole or in part;
provided that (a) the Borrower shall notify the Bank of such prepayment
not later than 1:00 p.m. (New York time) (i) two Business Days prior to the date
of such prepayment, in the case of a Eurodollar Loan, and (ii) on the prepayment
date, in the case of a Base Rate Loan; and (b) any partial prepayment of a Loan
shall be in the amount of (and, after giving effect thereto all Loans shall be
in an amount equal to) $1,000,000 or a higher integral multiple of $500,000.
 Any prepayment of a Loan shall be made on a Business Day and shall be
subject to the provisions of Section 3.3.

2.7

Interest.
 The unpaid principal amount of each Loan shall bear interest at a rate per
annum equal to (a) at any time such Loan is a Eurodollar Loan, the Eurodollar
Rate for each applicable Interest Period plus 0.40%; and (b) at any time
such Loan is a Base Rate Loan, the Base Rate as in effect from time to time;
provided that during the existence of a Default, the Bank may, upon
notice to the Borrower, require the Borrower to pay interest (i) on the unpaid
principal amount of each Loan at a rate that is 2% per annum above the rate
otherwise applicable thereto, and (ii) to the fullest extent permitted by law,
on the amount of any interest, fee or other amount payable hereunder that is not
paid when due, for each day during the period from the date such amount becomes
due until such amount is paid in full, at a rate per annum equal to the sum of
(A) at the Base Rate as in effect from time to time plus (B) 2.00%, in
each case payable on demand. 

2.8

Non-Use
Fee.  The Borrower agrees to pay the Bank, for the period beginning on
the date hereof and continuing to the Termination Date, a non-use fee of 0.125%
per annum on the unused Commitment Amount as in effect from time to time.
 Such fee shall be payable in arrears on the last day of each calendar
quarter and on the Termination Date.

2.9

Computation
of Interest and Fees.  All computations of interest and fees shall be
made on the basis of a year of 360 days; provided that any computation of
interest when the Base Rate is based upon the Bank’s prime rate shall be made on
the basis of a year of 365 or, if applicable, 366 days.  Each determination
of an interest rate by the Bank shall be conclusive and binding on the Borrower
in the absence of manifest error.

2.10

Payments.
 All payments to the Bank shall be made in immediately available funds,
without setoff, counterclaim or other deduction, at its principal office in
Chicago, Illinois (or at such other office as the Bank may reasonably specify)
not later than 1:00 p.m. (New York time) on the date due (and funds received
after that hour shall be deemed received on the next Business Day).
 Whenever any payment hereunder shall be stated to be due on a day other
than a Business Day, such payment shall be made on the immediately following
Business Day; provided that, with respect to any payment to be made on a
Eurodollar Loan, if the immediately following Business Day is the first Business
Day of a calendar month, such payment shall be made on the immediately preceding
Business Day. 

2.11

Taxes.
 The Borrower agrees to pay, or to reimburse the Bank for, all Taxes on the
same basis as, and subject to the limitations and requirements of, the terms of
Section 3.5 of the Syndicated Agreement as if such Section were set forth in
full herein, mutatis mutandis.

2.12

Limitation
on Interest Periods.  Notwithstanding any provision of Section
2.2 or 2.3, not more than five Interest Periods shall be in effect at
any time.  

3.

INCREASED
COSTS; ADDITIONAL PROVISIONS RELATING TO EURODOLLAR LOANS.

3.1

Increased
Costs.  The Borrower agrees to reimburse the Bank for any increase in
the cost to the Bank of, or any reduction in the amount of any sum receivable by
the Bank in respect of, making or maintaining any Loan as described in Section
3.1 of the Syndicated Agreement, and for any increased capital costs of the type
described in Section 3.2 of the Syndicated Agreement, in each case as if the
relevant Section were set forth in full herein, mutatis
mutandis.

3.2

Changes
in Law Rendering Eurodollar Loans Unlawful.  If the Bank makes any
determination of the type described in Section 3.3 of the Syndicated Agreement,
then, so long as the circumstances giving rise to such determination shall
continue, (a) no Loans shall be made or continued as Eurodollar Loans (and each
outstanding Loan shall (i) cease to bear interest based on the Eurodollar Rate
on the date that the Bank specifies to the Borrower is required as a result of
such determination and (ii) automatically convert to a Base Rate Loan on such
date) and (b) except to the extent (and for so long as) any Loan may continue to
bear interest at the Eurodollar Rate (or the provisions of Section 2.7
apply), all Loans shall bear interest at the Base Rate as in effect from time to
time.

3.3

Funding
Losses.  The Borrower will indemnify the Bank upon demand against any
loss, cost or expense that the Bank may sustain or incur as a consequence of (a)
any failure of the Borrower to borrow or continue a Loan on a date specified
therefor in a notice thereof or (b) any payment (including any payment upon
the Bank’s acceleration of the Loans) of a Loan on a day other than the last day
of an Interest Period therefor, in each case in accordance with the terms of
Section 3.4 of the Syndicated Agreement as if such Section were set forth in
full herein, mutatis mutandis.

4.

CONDITIONS
PRECEDENT.

4.1

Initial
Loan.  The obligation of the Bank to make the initial Loan is subject
to the condition precedent that the Bank shall have received all of the
following, each duly executed and in form and substance (and dated a date)
reasonably satisfactory to the Bank: 

(a)

 A
certificate of
the Secretary or an Assistant Secretary
of the Borrower identifying by name
and  title,
and  bearing the
signatures of,  the
officers  of the Borrower 
authorized to  sign

 this Agreement and the other documents
related hereto
, upon which certificate the Bank
shall be entitled to
rely until  informed
of
any change in writing by
the  Borrower.

(b)

A
certificate of the Borrower stating that:

(i)

The
representations and warranties contained in Section 5 are correct in
all material respects on and as of the date of this Agreement .

(ii)

No
event has occurred and is continuing, or will result from the funding of the
initial Loan, that constitutes a Default or an Unmatured.

(c)

Such
other certificates and documents as the Bank may reasonably request.

4.2

Each
Loan.  The obligation of the Bank to make any Loan (including the
initial Loan) is subject to the conditions precedent that (a) all of the
representations and warranties set forth in Section 5 are true and
correct in all material respects as of the date of such Loan, except to the
extent any such representation or warranty is stated to relate solely to an
earlier date, in which case such representation or warranty shall have been true
and correct on and as of such earlier date and (b) no Default or Unmatured
Default shall have occurred and be continuing or would result from the making of
such Loan.  

5.

REPRESENTATIONS
AND WARRANTIES.  The Borrower represents and warrants to the Bank
that:

5.1

Authorization
and Validity.  The Borrower has the power, authority and legal right to
execute and deliver this Agreement and to perform its obligations hereunder, and
such execution, delivery and performance have been duly authorized by proper
corporate proceedings of the Borrower.  This Agreement constitutes 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
bankruptcy, insolvency or similar laws affecting the enforcement of creditors'
rights generally or by equitable principles. 

5.2

No
Conflict; Governmental Approvals.  None of the execution and delivery
by the Borrower of this Agreement, the consummation of the transactions herein
contemplated or compliance by the Borrower with the provisions hereof will
violate (i) any law, rule, regulation, order, writ, judgment, injunction, decree
or award binding on the Borrower or any Principal Subsidiary, (ii) the
Borrower's or any Principal Subsidiary's articles or certificate of
incorporation, partnership agreement, certificate of partnership, articles or
certificate of organization, by-laws, or operating or other management
agreement, as the case may be, or (iii) the provisions of any indenture,
instrument or agreement to which the Borrower or any Principal Subsidiary is a
party or is subject, or by which it, or its Property, is bound, or conflict with
or constitute a default thereunder, or result in, or require, the creation or
imposition of any Lien in, of or on the Property of the Borrower or a Principal
Subsidiary pursuant to the terms of any such indenture, instrument or agreement.
 No order, consent, adjudication, approval, license, authorization or
validation of, or filing, recording or registration with, or exemption by, or
other action in respect of, any governmental or public body or authority, or any
subdivision thereof, which has not been obtained by the Borrower or a Principal
Subsidiary, is required to be obtained by the Borrower or any Principal
Subsidiary in connection with the execution and delivery, or the legality,
validity, binding effect or enforceability, of this Agreement, the borrowings
hereunder or the payment and performance by the Borrower of the Obligations.

5.3

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

5.4

Representations
and Warranties in Syndicated Agreement.  Each
representation and warranty of the Borrower set forth in Section 5.1, 5.4
through 5.7, 5.9, 5.10, 5.12 through 5.16 and 5.18 of the Syndicated Agreement is true and correct as if such
representation and warranty and all related definitions were set forth in full
herein, mutatis mutandis (it being understood that (a) references
in Sections 5.4 and 5.5 of the Syndicated Agreement to “December 31, 2004” shall
be deemed to be references to December 31, 2007; (b) the reference in Section
5.6 of the Syndicated Agreement to “December 31, 1996” shall be deemed to be a
reference to December 31, 2003; and (c) the reference in Section 5.13 of the
Syndicated Agreement to “the date of this Agreement” and the reference in
Section 5.15 of the Syndicated Agreement to “the date hereof” shall be deemed to
be references to August 29, 2008).

6.

COVENANTS.
 The Borrower agrees that, so long as the Commitment has not been
terminated or any obligation of the Borrower hereunder remains unpaid, the
Borrower will:

6.1

Use
of Proceeds.  The Borrower will, and will cause each Subsidiary to, use
the proceeds of the Loans for general corporate purposes (in compliance with all
applicable legal and regulatory requirements)

6.2

Syndicated
Agreement Covenants.  Observe and perform each covenant set forth in
Article VI of the Syndicated Agreement as if such covenant
(and all related definitions) were set forth herein, mutatis
mutandis (it being understood that any requirement that the Borrower
provide notice or information to the Bank pursuant to the covenants incorporated
herein shall be deemed satisfied if the Borrower provides such notice or
information to the Bank pursuant to, and in accordance with the terms of, the
Syndicated Agreement).

7.

EVENTS
OF DEFAULT ; REMEDIES
..

7.1

Events
of Default.   The occurrence and continuance of
any one or more
of the following  events 
shall constitute a
Default:

(a)

The
Borrower shall fail to pay (i) any principal of any Loan when due and payable;
or (ii) any interest on any Loan or other amount payable by the Borrower under
this Agreement within two Business Days after the same becomes due and payable.

(b)

Any
representation, warranty or certification made or deemed made herein by the
Borrower, or any certificate furnished to the Bank pursuant to the provisions
hereof, shall prove to have been false or misleading as of the time made, deemed
made, or furnished in any material respect.

(c)

The
Borrower shall fail to perform or observe (i) any covenant set forth in
Section 6.3, 6.4, 6.10, 6.11, 6.12, 6.13, 6.14 or 6.15 of the Syndicated
Agreement as incorporated herein by reference; (ii) any
other obligation (other than any obligation described in Section 7.1(a)
or the preceding clause (i)) set forth in this Agreement (including any
other provision of the Syndicated Agreement incorporated herein by reference)
and such default shall continue unremedied for a period of 30 days after the
earlier of (i) the date on which a senior officer of the Borrower becomes aware
of such default, or (ii) the date on which notice thereof is given to the
Borrower by the Bank.

(d)

Any
“Default” under and as defined in the Syndicated Agreement
shall occur and be continuing under Section 7.3, 7.7, 7.8, 7.9. 7.10, 7.11, 7.12
or 7.13 of the Syndicated Agreement; provided for purposes of this
Section, “Indebtedness” as used in Section 7.3 of the Syndicated Agreement shall
include Indebtedness under the Syndicated Agreement.

7.2

Remedies.
 If any Default occurs as a result of an event described in Section 7.7 or
7.8 of the Syndicated Agreement with respect to the Borrower, the obligation of
the Bank to make Loans shall automatically terminate and the Obligations shall
immediately become due and payable without any election or action on the part of
the Bank.  If any other Default occurs and is continuing, the Bank may
terminate or suspend its obligation to make Loans or declare the Obligations to
be due and payable, or both, whereupon such obligation shall be terminated or
suspended and/or the Obligations shall become immediately due and payable,
without presentment, demand, protest or notice of any kind, all of which the
Borrower hereby expressly waives.

8.

GENERAL.

8.1

Amendments
and Waivers.  Except as otherwise expressly provided in the definition
of “Syndicated Agreement”, no amendment or waiver of any provision of this
Agreement, and no consent with respect to any departure by the Borrower
therefrom, shall be effective unless the same shall be in writing and signed by
the Borrower and the Bank.

8.2

Severability;
No Waiver; Remedies.  The illegality or unenforceability of any
provision of this Agreement shall not in any way affect or impair the legality
or enforceability of the remaining provisions of this Agreement.  No
failure on the part of the Bank to exercise, and no delay in exercising, any
right hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right preclude any other or further exercise
thereof or the exercise of any other right.  The remedies herein provided
are cumulative and not exclusive of any remedies provided by law.

8.3

Costs
and Expenses.  The Borrower shall pay, within 10 days after receipt of
a reasonably detailed invoice therefor, all reasonable costs and expenses of the
Bank (including reasonable attorneys’ fees and charges) arising out of, or in
connection with, the preparation, execution and delivery of this Agreement or
the protection or enforcement of any of the Bank’s rights hereunder.
 

8.4

Indemnification.
 The Borrower agrees to indemnifies the Bank and its affiliates and each of
their respective officers, directors, employees and agents (collectively the
“Indemnified Persons”) for, and agrees to hold each Indemnified Person
harmless against, all losses, claims, damages, penalties, judgments, liabilities
and expenses (including all expenses of litigation or preparation therefor
whether or not any Indemnified Person is a party thereto) that such Indemnified
Person may incur in connection with this Agreement and the Loans hereunder, all
to the same extent, on the same basis and subject to the same limitations set
forth for indemnified parties in Section 9.6(ii) of the Syndicated Agreement.

8.5

Notices.
 Except as otherwise provided herein, all notices and other communications
hereunder shall be in writing, shall be directed to the applicable party at its
address below its signature hereto (or such other address as it shall have
specified by notice to the other party) and shall be deemed received in
accordance with the provisions of Section 13.1 of the Syndicated Agreement.

8.6

Survival.
 The obligations of the Borrower under Sections  2.11,
3.1, 3.3, 8.3 and 8.4 shall, subject to the
limitations set forth therein and in the relevant provisions of the Syndicated
Agreement that are incorporated therein by reference, survive repayment of the
Loans and the termination of this Agreement.

8.7

Counterparts.
 This Agreement may be executed in any number of separate counterparts,
each of which when so executed and delivered shall be an original, and all such
counterparts shall together constitute one and the same instrument.
 Delivery of a counterpart hereof, or a signature page hereto, by facsimile
or other electronic transmission (such as in a .pdf file) shall be effective as
delivery of a manually-signed counterpart hereof.

8.8

Successors
and Assigns.  Neither the Borrower nor the Bank may assign any of its
rights or obligations hereunder without the prior written consent of the other
party; provided that no consent of the Borrower shall be required for any
assignment by the Bank during the existence of a Default.  Notwithstanding
any other provision set forth in this Agreement, the Bank may at any time create
a security interest in all or any portion of its rights under this Agreement in
favor of any Federal Reserve Bank in accordance with Regulation A of the
FRB.

8.9

Right
of Set-off.  In addition to, and without limitation of, any right of
the Bank under applicable law, if the Borrower becomes insolvent, however
evidenced, or any Default exists, any and all deposits (including all account
balances, whether provisional or final and whether or not collected or
available) and any other Indebtedness at any time held or owing by the Bank or
any Affiliate of the Bank to or for the credit or account of the Borrower may be
offset and applied toward the payment of the Obligations, whether or not the
Obligations, or any part thereof, shall then be due.

8.10

GOVERNING
LAW.  THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE
INTERNAL LAWS OF THE STATE OF WISCONSIN, BUT GIVING EFFECT TO FEDERAL LAWS
APPLICABLE TO NATIONAL BANKS.

8.11

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

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

8.12

Waiver
of Jury Trial.  THE BORROWER AND THE BANK HEREBY WAIVE TRIAL BY JURY
IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER
(WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF,
RELATED TO, OR CONNECTED WITH THIS AGREEMENT OR THE RELATIONSHIP ESTABLISHED
HEREUNDER.

[Remainder of page intentionally left
blank.]

Please
acknowledge your agreement to the foregoing by signing and returning a copy of
this Agreement.

JPMORGAN
CHASE BANK, N.A.

By:
/s/ David N. Slezewski

Name:
David N. Slezewski

22
E. Mifflin St.
Madison, WI 53703

Attention:
David N. Slezewski
Telephone: 608-282-6575
Facsimile:
 608-282-6596

Agreed
to as of the date first above written:

MADISON
GAS AND ELECTRIC COMPANY

By /s/ Jeffrey C.
Newman

Name: Jeffrey C.
Newman

Title:
 Vice President and Treasurer

133 S. Blair
St.
Madison, WI  53701

Attention: Vice
President and Treasurer

Telephone:
608-252-7149

Facsimile:
 608-252-7098

EXHIBIT
A

Form
of 
Borrowing Request

JPMorgan Chase Bank,
N.A.

[Address]

Attention:  

Telephone: 

Facsimile:  

Ladies/Gentlemen:

Please
refer to the Credit Agreement dated as of August 29, 2008 between the
undersigned and JPMorgan Chase Bank, N.A. (as amended from time to time, the
“Credit Agreement”).  Capitalized terms used but not defined herein
have the respective meanings set forth in the Credit Agreement.

The
Borrower requests a Loan as follows:

1.

Date
of Loan: 

.

2.

Amount
of Loan: 

$

.

3.

Rate
Basis:

[Eurodollar
or Base] Rate.

[4.

Initial
Interest Period:

 month[s].]

The
Borrower represents and warrants that (a) all of the representations and
warranties set forth in Section 5 of the Credit Agreement are true and correct
in all material respects as of the date of the requested Loan, except to the
extent any such representation or warranty is stated to relate solely to an
earlier date, in which case such representation or warranty shall have been true
and correct on and as of such earlier date, and (b) no Default or Unmatured
Default has occurred and is continuing or will result from the making of such
Loan.

MADISON
GAS AND ELECTRIC COMPANY

By

Title

EXHIBIT
B

Form
of 
Conversion/Continuation Request

JPMorgan Chase Bank,
N.A.

[Address]

Attention:  

Telephone: 

Facsimile:  

Ladies/Gentlemen:

Please
refer to the Credit Agreement dated as of August 29, 2008 between the
undersigned and JPMorgan Chase Bank, N.A. (as amended from time to time, the
“Credit Agreement”).  Capitalized terms used but not defined herein
have the respective meanings set forth in the Credit Agreement.

The
Borrower requests the [conversion] [continuation] of the Loan specified below as
follows:

1.

The
Conversion/Continuation Date is
           ,
20__.

2.

The
aggregate amount of the Loan to be [converted] [continued] is
$            .

3.

The
Loan is to be [converted into] [continued as] [Base Rate] [Eurodollar]
Loans.

[4.

The
duration of the Interest Period for the Eurodollar Loans being [converted]
[continued] shall be [     ] month[s]].

MADISON
GAS AND ELECTRIC COMPANY

By

TitleConverted by EDGARwiz

EXHIBIT 10.2

CREDIT AGREEMENT

DATED AS OF AUGUST 29, 2008

AMONG

MGE ENERGY, INC.,

THE LENDERS

and

JPMORGAN CHASE BANK, N.A.,

AS ADMINISTRATIVE AGENT,

J.P. MORGAN SECURITIES INC.

LEAD
ARRANGER AND SOLE BOOK RUNNER

ARTICLE
I

DEFINITIONS;
ETC.

1

1.1.

Definitions

1

1.2.

Interpretation

9

THE
CREDITS

9

2.1.

The
Facility

9

2.2.

Advances

10

2.3.

Method
of Borrowing

11

2.4.

Commitment
Fee; Reductions in Aggregate Commitment

11

2.5.

Minimum
Amount of Each Advance

11

2.6.

Optional
Principal Payments

11

2.7.

Changes
in Interest Rate, etc

12

2.8.

Rates
Applicable After Default

12

2.9.

Method
of Payment

12

2.10.

Noteless
Agreement; Evidence of Indebtedness

13

2.11.

Telephonic
Notices

13

2.12.

Interest
Payment Dates; Interest and Fee Basis

13

2.13.

Notification
of Advances, Interest Rates, Prepayments and Commitment Reductions  14

2.14.

Lending
Installations

14

2.15.

Non-Receipt
of Funds by the Administrative Agent

14

2.16.

Extension
of Facility Termination Date

14

ARTICLE
III

YIELD
PROTECTION; TAXES

15

3.1.

Yield
Protection

15

3.2.

Changes
in Capital Adequacy Regulations

16

3.3.

Availability
of Types of Advances

17

3.4.

Funding
Indemnification

17

3.5.

Taxes

17

3.6.

Lender
Statements; Survival of Indemnity

19

3.7.

Substitution
of Affected Lender

19

ARTICLE
IV

CONDITIONS
PRECEDENT

20

4.1.

Initial
Loan

20

4.2.

Each
Loan

20

ARTICLE
V

REPRESENTATIONS
AND WARRANTIES

21

5.1.

Existence
and Standing

21

5.2.

Authorization
and Validity

21

5.3.

No
Conflict; Government Consent

21

5.4.

Financial
Statements

22

5.5.

Material
Adverse Change

22

5.6.

Taxes

22

5.7.

Litigation
and Contingent Obligations

22

5.8.

Subsidiaries

23

5.9.

ERISA

23

5.10.

Accuracy
of Information

23

5.11.

Regulation
U

23

5.12.

Compliance
With Laws

23

5.13.

Ownership
of Properties

23

5.14.

Plan
Assets; Prohibited Transactions

23

5.15.

Environmental
Matters

24

5.16.

Investment
Company Act

24

5.17.

Insurance

24

5.18.

Regulatory
Approval

24

ARTICLE
VI

COVENANTS

24

6.1.

Financial
Reporting

24

6.2.

Litigation

25

6.3.

Use
of Proceeds

26

6.4.

Notice
of Default

26

6.5.

Conduct
of Business

26

6.6.

Taxes

26

6.7.

Insurance

26

6.8.

Compliance
with Laws

26

6.9.

Maintenance
of Properties

26

6.10.

Inspection

27

6.11.

Merger

27

6.12.

Sale
of Assets

27

6.13.

Liens

27

6.14.

Affiliates

29

6.15.

Financial
Covenant

30

ARTICLE
VII

DEFAULTS

30

ARTICLE
VIII

ACCELERATION,
WAIVERS, AMENDMENTS AND REMEDIES

32

8.1.

Acceleration

32

8.2.

Amendments

32

8.3.

Preservation
of Rights

32

ARTICLE
IX

GENERAL
PROVISIONS

33

9.1.

Survival
of Representations

33

9.2.

Governmental
Regulation

33

9.3.

Headings

33

9.4.

Entire
Agreement

33

9.5.

Several
Obligations; Benefits of this Agreement

33

9.6.

Expenses;
Indemnification

33

9.7.

Numbers
of Documents

34

9.8.

Accounting

34

9.9.

Severability
of Provisions

35

9.10.

Nonliability
of Lenders

35

9.11.

Confidentiality

35

9.12.

Nonreliance

35

9.13.

Disclosure

35

9.14.

USA
PATRIOT ACT NOTIFICATION

36

ARTICLE
X

THE
ADMINISTRATIVE AGENT

36

10.1.

Appointment;
Nature of Relationship

36

10.2.

Powers

36

10.3.

General
Immunity

36

10.4.

No
Responsibility for Loans, Recitals, etc

37

10.5.

Action
on Instructions of Lenders

37

10.6.

Employment
of Administrative Agents and Counsel

37

10.7.

Reliance
on Documents; Counsel

37

10.8.

Administrative
Agent’s Reimbursement and Indemnification

38

10.9.

Notice
of Default

38

10.10.

Rights
as a Lender

38

10.11.

Lender
Credit Decision

39

10.12.

Successor
Administrative Agent

39

10.13.

Administrative
Agent and Arranger Fees

40

10.14.

Delegation
to Affiliates

40

ARTICLE
XI

SETOFF;
RATABLE PAYMENTS

40

11.1.

Setoff

40

11.2.

Ratable
Payments

40

ARTICLE
XII

BENEFIT
OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

40

12.1.

Successors
and Assigns

40

12.2.

Participations

41

12.3.

Assignments

42

12.4.

Dissemination
of Information

43

12.5.

Tax
Treatment

43

ARTICLE
XIII

NOTICES

43

13.1.

Notices

43

13.2.

Electronic
Communications

43

13.3.

Change
of Address

44

ARTICLE
XIV

COUNTERPARTS;
EFFECTIVENESS

44

ARTICLE
XV

CHOICE
OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL  44

15.1.

CHOICE
OF LAW

44

15.2.

WAIVER
OF JURY TRIAL

44

SCHEDULES

Schedule
I

Lenders
and Commitments 

Schedule
II

Pricing
Schedule
Schedule 5.8

Subsidiaries
Schedule
6.13

Liens

EXHIBITS

Exhibit
A

Form
of Opinion of Borrower’s Counsel
Exhibit B

Form
of Compliance Certificate
Exhibit C

Form
of Assignment
Exhibit D

Form
of Note

CREDIT AGREEMENT

This Agreement, dated as of August 29, 2008, is among MGE Energy,
Inc., the Lenders and JPMorgan Chase Bank, N.A., a national banking association,
as Administrative Agent.  The parties hereto agree as follows:

ARTICLE I

DEFINITIONS; ETC.

1.1.  Definitions.  As used in this
Agreement:

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

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

“Affiliate” of any Person means any other Person directly or
indirectly controlling, controlled by or under common control with such Person.
 

 “Aggregate Commitment” means the aggregate of the
Commitments of all the Lenders, in the initial aggregate amount of $20,000,000
as reduced from time to time pursuant to the terms hereof.

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

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

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

“Applicable Fee Rate” means, at any time, the percentage rate per
annum at which commitment fees are accruing on the Aggregate Commitment at such
time as set forth in the Pricing Schedule.

“Applicable Margin” means, at any time, the percentage rate per
annum applicable to Eurodollar Advances at such time as set forth in the Pricing
Schedule.

“Arranger” means J.P. Morgan Securities Inc., a Delaware
corporation, and its successors, in its capacity as Lead Arranger and Sole Book
Runner.

“Authorized Officer” means any of the Chairman, President, Chief
Financial Officer, Treasurer or an Assistant Treasurer of the Borrower, acting
singly.

“Bankruptcy Code” means the Federal Bankruptcy Reform Act of 1978
(11 U.S.C. §101 et seq.).

“Borrower” means MGE Energy, Inc., a Wisconsin corporation, and
its successors and assigns.

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

“Borrowing Notice” is defined in Section 2.2.3.

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

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

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

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

“CERCLA” means the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended from time to time.

“CERCLIS” means the Comprehensive Environmental Response
Compensation Liability Information System List, as amended from time to
time.

“Change in Control” means (i) that the Borrower shall own less
than 100% of the voting equity interests of Madison Gas or (ii) the acquisition
by any Person, or two or more Persons acting in concert, of beneficial ownership
(within the meaning of Rule 13d-3 of the Securities and Exchange Commission
under the Securities Exchange Act of 1934) of 30% or more of the outstanding
shares of voting stock of the Borrower.

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

“Commitment” means, for each Lender, the obligation of such Lender
to make Loans in an aggregate not exceeding the amount set forth on Schedule I
hereto or as set forth in any assignment agreement relating to any assignment
that has become effective pursuant to Section 12.3.2, as such amount may be
modified from time to time pursuant to the terms hereof.

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

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

“Consolidated Total Capitalization” means at any time the sum of
Consolidated Indebtedness and Consolidated Net Worth, each calculated at such
time.

“Contingent Obligation” of a Person means any agreement,
undertaking or arrangement by which such Person assumes, guarantees, endorses,
contingently agrees to purchase or provide funds for the payment of, or
otherwise becomes or is contingently liable upon, the Indebtedness of any other
Person, or agrees to maintain the net worth or working capital or other
financial condition of any other Person, or otherwise assures any creditor of
such other Person against loss, including any comfort letter, operating
agreement, take-or-pay contract or the obligations of any such Person as general
partner of a partnership with respect to the liabilities of the partnership.

“Controlled Group” means all members of a controlled group of
corporations or other business entities and all members of a controlled group of
trades or businesses (whether or not incorporated) under common control which,
together with the Borrower, are treated as a single employer under
Section 414 of the Code or Section 4001 of ERISA.

“Conversion/Continuation Notice” is defined in Section 2.2.4.

“Default” means an event described in Article VII.

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

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

“Eurodollar Advance” means an Advance which bears interest based
on the Eurodollar Rate.

“Eurodollar Base Rate” means, with respect to a Eurodollar Advance
for the relevant Interest Period, the applicable British Bankers’ Association
Interest Settlement Rate for deposits in U.S. dollars appearing on the Telerate
Screen 3750 (or any successor screen) as of 11:00 a.m. (London time) two
Business Days prior to the first day of such Interest Period, and having a
maturity equal to such Interest Period, provided that if no such British
Bankers’ Association Interest Settlement Rate is available to the Administrative
Agent, the applicable Eurodollar Base Rate for the relevant Interest Period
shall instead be the rate determined by the Administrative Agent to be the rate
at which JPMCB or one of its Affiliate banks offers to place deposits in U.S.
dollars with first-class banks in the London interbank market at approximately
11:00 a.m. (London time) two Business Days prior to the first day of such
Interest Period, in the approximate amount of JPMCB’s relevant Eurodollar Loan
and having a maturity equal to such Interest Period.

“Eurodollar Loan” means a Loan which bears interest based on the
Eurodollar Rate.

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

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

“Extension Request” is defined in Section 2.16.

“Facility Termination Date” means August 28, 2009 or any later
date as may be specified as the Facility Termination Date in accordance with
Section 2.16 or any earlier date on which the Aggregate Commitment is reduced to
zero or otherwise terminated pursuant to the terms hereof.

“Federal Funds Effective Rate” means, for any day, an interest
rate per annum equal to the weighted average of the rates on overnight Federal
funds transactions with members of the Federal Reserve System arranged by
Federal funds brokers on such day, as published for such day (or, if such day is
not a Business Day, for the immediately preceding Business Day) by the Federal
Reserve Bank of New York, or, if such rate is not so published for any day which
is a Business Day, the average of the quotations at approximately 11:00 a.m.
(New York time) on such day on such transactions received by the Administrative
Agent from three Federal funds brokers of recognized standing selected by the
Administrative Agent in its sole discretion.

“Floating Rate” means, for any day, a rate per annum equal to the
Alternate Base Rate for such day, in each case changing when and as the
Alternate Base Rate changes.

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

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

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

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

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

“including” means “including without the limiting the generality
of the foregoing”.

“Indebtedness” of a Person means, without duplication, such
Person’s (i) obligations for borrowed money, (ii) obligations representing the
deferred purchase price of Property or services (other than accounts payable
arising in the ordinary course of such Person’s business payable on terms
customary in the trade), (iii) obligations for borrowed money or for the
deferred purchase price of Property or services, whether or not assumed, secured
by Liens or payable out of the proceeds or production from Property now or
hereafter owned or acquired by such Person, (iv) obligations which are evidenced
by notes, acceptances, or other instruments, (v) obligations of such Person to
purchase securities or other Property arising out of or in connection with the
sale of the same or substantially similar securities or Property, (vi)
Capitalized Lease Obligations, (vii) any other obligation for borrowed money or
other financial accommodation which in accordance with Agreement Accounting
Principles would be shown as a liability on the consolidated balance sheet of
such Person, (viii) Contingent Obligations in respect of any type of obligation
described in any of the other clauses of this definition, (ix) obligations in
respect of letters of credit (excluding obligations in respect of letters of
credit supporting timely construction payments under a generation/transmission
agreement with American Transmission Company, LLC or under similar agreements
with American Transmission Company, LLC or other parties), (x) obligations in
respect of Sale and Leaseback Transactions and (xi) Off-Balance Sheet
Liabilities.  Obligations of any Person that would constitute Indebtedness
solely because of such Person’s capacity as a general partner of a partnership
that incurred such Indebtedness shall not constitute Indebtedness of such Person
if such Indebtedness is non-recourse to the partnership and neither such Person
nor any Subsidiary thereof has any Contingent Obligations with respect to such
Indebtedness.

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

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

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

“Lending Installation” means, with respect to a Lender or the
Administrative Agent, the office, branch, subsidiary or affiliate of such Lender
or the Administrative Agent listed on the signature pages hereof or on a
Schedule or otherwise selected by such Lender or the Administrative Agent
pursuant to Section 2.14.

“Lien” means any lien (statutory or other), mortgage, pledge,
hypothecation, assignment, deposit arrangement, encumbrance or preference,
priority or other security agreement or preferential arrangement of any kind or
nature whatsoever (including the interest of a vendor or lessor under any
conditional sale, Capitalized Lease or other title retention agreement).

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

“Loan Documents” means this Agreement and each Note issued
pursuant to Section 2.10.

“Madison Gas” means Madison Gas and Electric Company, a Wisconsin
corporation.

“Material Adverse Effect” means a material adverse effect on the
business, condition (financial or otherwise), operations, performance or
properties of the Borrower and its Subsidiaries, taken as a whole, on the
ability of the Borrower to perform its obligations under this Agreement, or on
the validity or enforceability of this Agreement.

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

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

“Non-U.S. Lender” is defined in Section 3.5(iv).

“Note” means any promissory note in the form of Exhibit D issued
at the request of a Lender pursuant to Section 2.10 to evidence its Loans.

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

“Off-Balance Sheet Liability” of a Person means (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 which is not a Capitalized Lease, (iii) any liability under any
so-called “synthetic lease” transaction entered into by such Person, or (iv) any
obligation arising with respect to any other transaction which is the functional
equivalent of or takes the place of borrowing but which does not constitute a
liability on the balance sheets of such Person, but excluding from this clause
(iv) Operating Leases.

“Operating Lease” of a Person means any lease of Property (other
than a Capitalized Lease) by such Person as lessee which has an original term
(including any required renewals and any renewals effective at the option of the
lessor) of one year or more.

“Other Taxes” is defined in Section 3.5(ii).

“Participants” is defined in Section 12.2.1.

“Payment Date” means the last day of each month.

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

“Pension Plan” means a “pension plan”, as such term is defined in
section 3(2) of ERISA, which is subject to Title IV of ERISA, and to which the
Borrower or any corporation, trade or business that is, along with the Borrower,
a member of a Controlled Group, may have liability, including any liability by
reason of having been a substantial employer within the meaning of section 4063
of ERISA at any time during the preceding five years, or by reason of being
deemed to be a contributing sponsor under section 4069 of ERISA.

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

“Pricing Schedule” means Schedule II.

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

“Principal Subsidiary” means any Subsidiary  (i) which
together with its Subsidiaries has assets having an aggregate book value
exceeding 10% of the consolidated assets of the Borrower and its Subsidiaries,
or (ii) which together with its Subsidiaries had net income in excess of 10% of
the consolidated net income of the Borrower and its Subsidiaries for the most
recently ended period of four fiscal quarters.

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

“Purchasers” is defined in Section 12.3.1.

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

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

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

“Reports” is defined in Section 9.6.

“Required Lenders” means Lenders in the aggregate having at least
66-2/3% of the Aggregate Commitment or, if the Aggregate Commitment has been
terminated, Lenders in the aggregate holding at least 66-2/3% of the principal
amount of the outstanding Advances.

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

“Resource Conservation and Recovery Act” means the Resource
Conservation and Recovery Act, 42 U.S.C. Section 690, et seq., as
amended from time to time.

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

“Sale and Leaseback Transaction” means any sale or other transfer
of Property by any Person with the intent to lease such Property as lessee.

“SEC” means the Securities and Exchange Commission.

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

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

“Substantial Portion” means, with respect to the Property of the
Borrower and its Subsidiaries, Property which represents more than 10% of the
consolidated assets of the Borrower and its Subsidiaries or property which is
responsible for more than 10% of the consolidated net sales or of the
consolidated net income of the Borrower and its Subsidiaries, in each case, as
would be shown in the consolidated financial statements of the Borrower and its
Subsidiaries as at the beginning of the twelve-month period ending with the
month in which such determination is made (or if financial statements have not
been delivered hereunder for that month which begins the twelve-month period,
then the financial statements delivered hereunder for the quarter ending
immediately prior to that month).

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

“Transferee” is defined in Section 12.4.

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

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

“Welfare Plan” means a “welfare plan”, as such term is defined in
section 3(1) of ERISA.

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

1.2.
 Interpretation.  All definitions shall be equally applicable
to both the singular and plural forms of the defined terms.  Unless
otherwise specified, any reference to an “Article”, “Section”, “Exhibit” or
“Schedule” shall be a reference to an Article or Section hereof or an Exhibit or
Schedule hereto.

1)

THE CREDITS

1.1.
 The Facility.  

1.1.1.  Description of Facility.  The Lenders
grant to the Borrower a revolving credit facility pursuant to which, and upon
the terms and subject to the conditions herein set forth, each Lender severally
agrees to make Loans to the Borrower in accordance with Section 2.2 from time to
time during the period from the date hereof to the Facility Termination Date;
provided that the aggregate principal amount of all Advances shall not at
any time exceed the Aggregate Commitment and (b) the outstanding principal
amount of all Loans of any Lender shall not at any time exceed the amount of
such Lender’s Commitment..  The Borrower may borrow, repay and reborrow
hereunder at any time prior to the Facility Termination Date. 

1.1.2.  Repayment of Facility.  All outstanding
Advances and all other unpaid Obligations shall be paid in full by the Borrower
on the Facility Termination Date.

1.2.  Advances.  

1.2.1.  Advances.  Each Advance hereunder shall
consist of Loans made from the several Lenders ratably in proportion to the
ratio that their respective Commitments bear to the Aggregate Commitment.
 

1.2.2.  Types of Advances.  The Advances may be
Floating Rate Advances or Eurodollar Advances, or a combination thereof,
selected by the Borrower in accordance with Section 2.2.3.

1.2.3.  Method of Selecting Types and Interest Periods for
Advances.  The Borrower shall select the Type of Advance and, in the
case of each Eurodollar Advance, the Interest Period applicable thereto, from
time to time.  The Borrower shall give the Administrative Agent irrevocable
notice (a “Borrowing Notice”) not later than 1:00 p.m. (New York time) (x) on
the Borrowing Date of each Floating Rate Advance and (y) at least three Business
Days before the Borrowing Date for each Eurodollar Advance.  A Borrowing
Notice shall specify:

(i)

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

(ii)

the aggregate amount of such Advance,

(iii)

the Type of Advance selected, and

(iv)

in the case of each Eurodollar Advance, the Interest Period
applicable thereto (which may not end after the Facility Termination Date).

1.2.4.  Conversion and Continuation of Outstanding
Advances.  Floating Rate Advances shall continue as Floating Rate
Advances unless and until such Floating Rate Advances are either converted into
Eurodollar Advances in accordance with this Section 2.2.4 or are repaid in
accordance with Section 2.6.  Each Eurodollar Advance shall continue as a
Eurodollar Advance until the end of the then applicable Interest Period
therefor, at which time such Eurodollar  Advance shall be automatically
converted into a Floating Rate Advance unless (x) such Eurodollar Advance is or
was repaid in accordance with Section 2.6 or (y) the Borrower shall have given
the Administrative Agent a Conversion/Continuation Notice (as defined below)
requesting that, at the end of such Interest Period, such Eurodollar Advance
continue as a Eurodollar Advance for the same or another Interest Period.
 Subject to the terms of Section 2.5, the Borrower may elect from time to
time to convert all or any part of a Floating Rate Advance into a Eurodollar
Advance.  The Borrower shall give the Administrative Agent irrevocable
notice (a “Conversion/Continuation Notice”) of each conversion of a Floating
Rate Advance into a Eurodollar Advance, or continuation of a Eurodollar Advance,
not later than 1:00 p.m. (New York time) at least three Business Days prior to
the date of the requested conversion or continuation, specifying:

(i)

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

(ii)

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

(iii)

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

1.3.  Method of Borrowing.  Not later than 2:00
p.m. (New York time) on each Borrowing Date, each Lender shall make available
its Loan or Loans in funds immediately available in Chicago to the
Administrative Agent at its address specified pursuant to Article XIII.
 The Administrative Agent will make the funds so received from the Lenders
available to the Borrower at the Administrative Agent’s aforesaid address.

1.4.  Commitment Fee; Reductions in Aggregate
Commitment.  The Borrower agrees to pay to the Administrative Agent for
the account of each Lender a commitment fee at a per annum rate equal to the
Applicable Fee Rate on the average daily unused amount of such Lender’s
Commitment from the date hereof to and including the Facility Termination Date,
payable on the last day of each calendar quarter hereafter and on the Facility
Termination Date.  The Borrower may permanently reduce the Aggregate
Commitment in whole, or in part ratably among the Lenders in an amount equal to
$5,000,000 or a higher integral multiple of $1,000,000 upon at least three
Business Days’ written notice to the Administrative Agent, which notice shall
specify the amount of any such reduction, provided, that the amount of
the Aggregate Commitment may not be reduced below the aggregate principal amount
of the outstanding Advances.  All accrued commitment fees shall be payable
on the effective date of any termination of the obligations of the Lenders to
make Loans hereunder.

1.5.  Minimum Amount of Each Advance.  Each
Eurodollar Advance shall be in the amount of $1,000,000 (or a higher integral
multiple of $500,000), and each Floating Rate Advance shall be in the amount of
(i) $1,000,000 (or a higher integral multiple of $500,000) or, if applicable,
(ii) the amount of then outstanding commercial paper being repaid with the
proceeds of such Floating Rate Advance, provided that any Floating Rate
Advance may be in the amount of the unused Aggregate Commitment.  The
Borrower shall not request a Eurodollar Advance if, after giving effect to the
requested Eurodollar Advance, more than ten separate Eurodollar Advances would
be outstanding.

1.6.  Optional Principal Payments.  The Borrower
may from time to time pay on any Business Day, without penalty or premium, all
outstanding Floating Rate Advances, or, in the amount of $1,000,000 or a higher
integral multiple of $500,000, any portion of the outstanding Floating Rate
Advances upon notice to the Administrative Agent (not later than 1:00 p.m. (New
York time) on the proposed day of payment.  The Borrower may from time to
time pay, subject to the payment of any funding indemnification amounts required
by Section 3.4 but without penalty or premium, all outstanding Eurodollar
Advances or, in the amount of $1,000,000 or a higher integral multiple of
$500,000, any portion of the outstanding Eurodollar Advances upon three Business
Days’ prior notice to the Administrative Agent. 

1.7.  Changes in Interest Rate, etc.  Each
Floating Rate Advance shall bear interest on the outstanding principal amount
thereof, for each day from and including the date such Advance is made or is
converted from a Eurodollar Advance into a Floating Rate Advance pursuant to
Section 2.2.4 to but excluding the date it becomes due or is converted into a
Eurodollar Advance pursuant to Section 2.2.4, at a rate per annum equal to the
Floating Rate for such day.  Changes in the rate of interest on that
portion of any Advance maintained as a Floating Rate Advance will take effect
simultaneously with each change in the Alternate Base Rate.  Each
Eurodollar Advance shall bear interest on the outstanding principal amount
thereof from and including the first day of the Interest Period applicable
thereto to (but not including) the last day of such Interest Period at the
interest rate determined as applicable to such Eurodollar Advance.  No
Interest Period may end after the Facility Termination Date.

1.8.  Rates Applicable After Default.
 Notwithstanding anything to the contrary contained in Section 2.2.3 or
Section 2.2.4, during the continuance of a Default or Unmatured Default the
Required Lenders may, at their option, by notice to the Borrower (which notice
may be revoked at the option of the Required Lenders notwithstanding any
provision of Section 8.2 requiring unanimous consent of the Lenders to changes
in interest rates), declare that no Advance may be made as, converted into or
continued as a Eurodollar Advance.  During the continuance of a Default,
the Required Lenders may, at their option, by notice to the Borrower (which
notice may be revoked at the option of the Required Lenders notwithstanding any
provision of Section 8.2 requiring unanimous consent of the Lenders to changes
in interest rates), declare that (i) each Eurodollar Advance shall bear interest
for the remainder of the applicable Interest Period at the rate otherwise
applicable to such Interest Period plus 1% per annum and/or (ii) each Floating
Rate Advance shall bear interest at a rate per annum equal to the Floating Rate
in effect from time to time plus 1% per annum, provided that, during the
continuance of a Default under Section 7.7 or 7.8, the interest rates set forth
in clauses (i) and (ii) above shall be applicable to all applicable Advances
without any election or action on the part of the Administrative Agent or any
Lender. 

1.9.  Method of Payment.  All payments of the
Obligations hereunder shall be made, without setoff, deduction, or counterclaim,
in immediately available funds to the Administrative Agent at the Administrative
Agent’s address specified pursuant to Article XIII, or at any other Lending
Installation of the Administrative Agent specified in writing by the
Administrative Agent to the Borrower, by noon (local time) on the date when due
and shall be applied ratably by the Administrative Agent among the Lenders.
 Each payment delivered to the Administrative Agent for the account of any
Lender shall be delivered promptly by the Administrative Agent to such Lender in
the same type of funds that the Administrative Agent received at its address
specified pursuant to Article XIII or at any Lending Installation specified in a
notice received by the Administrative Agent from such Lender.  The
Administrative Agent is hereby authorized to charge the account of the Borrower
maintained with JPMCB for each payment of principal, interest and fees as it
becomes due hereunder.

1.10.  Noteless Agreement; Evidence of Indebtedness.
 (1)  Each Lender shall maintain in accordance with its usual practice
an account or accounts evidencing the indebtedness of the Borrower to such
Lender resulting from each Loan made by such Lender from time to time, including
the amounts of principal and interest payable and paid to such Lender from time
to time hereunder.

(ii)

The Administrative Agent shall also maintain accounts in which it
will record (a) the amount of each Loan made hereunder, the Type thereof and the
Interest Period with respect thereto, (b) the amount of any principal or
interest due and payable or to become due and payable from the Borrower to each
Lender hereunder and (c) the amount of any sum received by the Administrative
Agent hereunder from the Borrower and each Lender’s share thereof.

(iii)

The entries maintained in the accounts maintained pursuant to
paragraphs (i) and (ii) above shall be prima facie evidence of the
existence and amounts of the Obligations therein recorded; provided, that
the failure of the Administrative Agent or any Lender to maintain such accounts
or any error therein shall not in any manner affect the obligation of the
Borrower to repay the Obligations in accordance with their terms.

(iv)

Any Lender may request that its Loans be evidenced by Notes.
 In such event, the Borrower shall prepare, execute and deliver to such
Lender a Note payable to the order of such Lender.  Thereafter, the Loans
evidenced by such Note and interest thereon shall at all times (including after
any assignment pursuant to Section 12.3) be represented by a Note payable to the
order of the payee named therein or any assignee pursuant to Section 12.3,
except to the extent that any such Lender or assignee subsequently returns any
such Note for cancellation and requests that such Loans once again be evidenced
as described in paragraphs (i) and (ii) above.

1.2.  Telephonic Notices.  The Borrower hereby
authorizes the Lenders and the Administrative Agent to extend, convert or
continue Advances, effect selections of Types of Advances, and to transfer funds
based on telephonic notices made by any person or persons the Administrative
Agent or any Lender in good faith believes to be acting on behalf of the
Borrower, it being understood that the foregoing authorization is specifically
intended to allow Borrowing Notices and Conversion/Continuation Notices to be
given telephonically.  The Borrower agrees to deliver promptly to the
Administrative Agent a written confirmation, if such confirmation is requested
by the Administrative Agent or any Lender, of each telephonic notice signed by
an Authorized Officer.  If the written confirmation differs in any material
respect from the action taken by the Administrative Agent and the Lenders, the
records of the Administrative Agent and the Lenders shall govern absent manifest
error.

1.3.  Interest Payment Dates; Interest and Fee Basis.
 Interest accrued on each Floating Rate Advance shall be payable on each
Payment Date, commencing with the first such date to occur after the date
hereof, on any date on which the Floating Rate Advance is prepaid, whether due
to acceleration or otherwise, and at maturity.  Interest accrued on that
portion of the outstanding principal amount of any Floating Rate Advance
converted into a Eurodollar Advance on a day other than a Payment Date shall be
payable on the date of conversion.  Interest accrued on each Eurodollar
Advance shall be payable on the last day of its applicable Interest Period, on
any date on which such Eurodollar Advance is prepaid, whether by acceleration or
otherwise, and at maturity.  Interest accrued on each Eurodollar Advance
having an Interest Period longer than three months shall also be payable on the
last day of each three-month interval during such Interest Period.
 Interest and commitment fees shall be calculated for actual days elapsed
on the basis of a 360-day year, except that interest calculated based on the
Prime Rate shall be calculated for actual days elapsed on the basis of a 365, or
when appropriate 366, day year.  Interest shall be payable for the day an
Advance is made but not for the day of any payment on the amount paid if payment
is received prior to noon (local time) at the place of payment.  If any
payment of principal of or interest on an Advance shall become due on a day
which is not a Business Day, such payment shall be made on the next succeeding
Business Day and, in the case of a principal payment, such extension of time
shall be included in computing interest in connection with such payment.

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

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

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

1.7.  Extension of Facility Termination Date.
 (2)  Not more than 60 days or less than 45 days prior to the Facility
Termination Date then in effect, the Borrower may request an extension of the
Facility Termination Date by submitting to the Administrative Agent an Extension
Request, a copy of which the Administrative Agent shall promptly furnish to each
Lender.  Each Lender shall, not less than 30 days prior to the Facility
Termination Date then in effect, notify the Borrower and the Administrative
Agent of its election, in its sole and absolute discretion, to extend or not
extend the Facility Termination Date as requested in such Extension Request.
 If the Required Lenders approve in writing the extension of the Facility
Termination Date requested in such Extension Request, the Facility Termination
Date shall automatically and without any further action by any Person be
extended for the period specified in such Extension Request; provided
that (i) each extension pursuant to this Section 2.16 shall be for a
maximum of 364 days and (ii) the Commitment of any Lender that does not consent
in writing to an Extension Request (an “Objecting Lender”) shall, unless
earlier terminated in accordance with this Agreement, expire on the Facility
Termination Date in effect on the date of such Extension Request (such Facility
Termination Date, the “Commitment Expiration Date” for such Objecting Lender).
 If, as of the 30th day prior to the Facility Termination Date then in
effect, the Required Lenders have not approved in writing the extension of the
Facility Termination Date requested in an Extension Request, the Facility
Termination Date shall not be extended pursuant to such Extension Request.
 The Administrative Agent shall promptly notify (a) the Lenders and the
Borrower of any extension of the Facility Termination Date pursuant to this
Section 2.16 and (z) the Borrower and each other Lender of any Lender
that becomes an Objecting Lender.

(iii)

Subject
to Section 2.16(iii), Loans owing to any Objecting Lender shall be repaid in
full on or before such Objecting Lender’s Commitment Expiration Date.

(iv)

The
Borrower may, at its sole expense and effort, upon notice to any Objecting
Lender and the Administrative Agent, require such Objecting Lender to assign and
delegate, without recourse (in accordance with and subject to the restrictions
contained in Section 12.3), all its interests, rights and obligations
under this Agreement to an assignee that shall assume such obligations (which
assignee may be another Lender, if a Lender accepts such assignment);
provided that (a) the Borrower shall have received the prior written
consent of the Administrative Agent, which consent shall not unreasonably be
withheld or delayed, and (b) such Objecting Lender shall have received payment
of an amount equal to the outstanding principal of its Loans, accrued interest
thereon, accrued fees and all other amounts payable to it hereunder, including
amounts payable pursuant to Section 3.4 (assuming for such purpose, that
such Objecting Lender’s Loans were prepaid on the date of such assignment), from
the assignee (to the extent of such outstanding principal and accrued interest
and fees) or the Borrower (in the case of all other amounts). 

ARTICLE II

YIELD PROTECTION; TAXES

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

(i)

subjects any Lender or any applicable Lending Installation to any
Taxes, or changes the basis of taxation of payments (other than with respect to
Excluded Taxes) to any Lender in respect of its Eurodollar Loans, or

(ii)

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

(iii)

imposes any other condition the result of which is to increase the
cost to any Lender or applicable Lending Installation of making, funding or
maintaining its Eurodollar Loans or reduces any amount receivable by any Lender
or applicable Lending Installation in connection with its Eurodollar Loans, or
requires any Lender or applicable Lending Installation to make any payment
calculated by reference to the amount of Eurodollar Loans held or interest
received by it, by an amount deemed material by such Lender, and the result of
any of the foregoing is to increase the cost to such Lender or the applicable
Lending Installation of making or maintaining its Eurodollar Loans or Commitment
or to reduce the return received by such Lender or the applicable Lending
Installation in connection with such Eurodollar Loans or Commitment, then,
within 15 days of demand by such Lender, the Borrower shall pay such Lender such
additional amount or amounts as will compensate such Lender for such increased
cost or reduction in amount received; provided that no Lender shall be
entitled to demand such compensation more than 90 days following the last day of
the Interest Period in respect of which such demand is made; and
provided, further, that the foregoing proviso shall in no way
limit the right of any Lender to demand or receive such compensation to the
extent that such compensation relates to the retroactive application of any law,
regulation, guideline or request described above if such demand is made within
90 days after the implementation of such retroactive law, interpretation,
guideline or request.

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

2.3.  Availability of Types of Advances.  If any
Lender determines that maintenance of its Eurodollar Loans at a suitable Lending
Installation would violate any applicable law, rule, regulation, or directive,
whether or not having the force of law, or if the Required Lenders determine
that (i) deposits of a type and maturity appropriate to match fund Eurodollar
Advances are not available or (ii) the interest rate applicable to Eurodollar
Advances does not accurately reflect the cost of making or maintaining
Eurodollar Advances, then (i) the obligation of any such affected Lender to
make, continue or convert Loans into Eurodollar Loans shall be suspended
(subject to the following paragraph of this Section 3.3) until the
Administrative Agent shall notify the Borrower and the Lenders that the
circumstances causing such suspension no longer exist and (ii) all Eurodollar
Loans of such affected Lender then outstanding shall, on the last day of the
then applicable Interest Period (or such earlier date as such affected Lender
shall designate upon not less than five Business Days’ prior written notice to
the Administrative Agent), be automatically converted into Floating Rate
Loans.

If the obligation of any Lender to make, continue or convert into
Eurodollar Loans has been suspended pursuant to the preceding paragraph, then,
unless and until the Administrative Agent shall notify the applicable Borrower
and the Lenders that the circumstances causing such suspension no longer exist,
(i) all Loans that would otherwise be made by such Lender as Eurodollar Loans
shall instead be made as Floating Rate Loans and (ii) to the extent that
Eurodollar Loans of such Lender have been converted into Floating Rate Loans
pursuant to the preceding paragraph or made instead as Floating Rate Loans
pursuant to the preceding clause (i), all payments and prepayments of principal
that would have otherwise been applied to such Eurodollar Loans of such Lender
shall be applied instead to such Floating Rate Loans of such Lender.

2.4.  Funding Indemnification.  If any conversion
or payment of a Eurodollar Advance occurs on a date which is not the last day of
the applicable Interest Period, whether because of acceleration, prepayment or
otherwise, or a Eurodollar Advance is not made, paid, continued or converted on
the date specified by the Borrower for any reason other than default by the
Lenders, the Borrower will indemnify each Lender for any loss or cost incurred
by it resulting therefrom, including any loss or cost in liquidating or
employing deposits acquired to fund or maintain such Eurodollar Advance.

2.5.  Taxes.  (3)  All payments by the
Borrower to or for the account of any Lender or the Administrative Agent
hereunder or under any Note shall be made free and clear of and without
deduction for any and all Taxes.  If the Borrower shall be required by law
to deduct any Taxes from or in respect of any sum payable hereunder to any
Lender or the Administrative Agent, (a) the sum payable shall be increased as
necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section 3.5) such Lender or the
Administrative Agent (as the case may be) receives an amount equal to the sum it
would have received had no such deductions been made, (b) the Borrower shall
make such deductions, (c) the Borrower shall pay the full amount deducted to the
relevant authority in accordance with applicable law and (d) the Borrower shall
furnish to the Administrative Agent the original copy of a receipt evidencing
payment thereof within 30 days after such payment is made.

(iv)

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

(v)

The Borrower hereby agrees to indemnify the Administrative Agent
and each Lender for the full amount of Taxes or Other Taxes (including any Taxes
or Other Taxes imposed on amounts payable under this Section 3.5) paid by the
Administrative Agent or such Lender as a result of its Commitment, any Loans
made by it hereunder, or otherwise in connection with its participation in this
Agreement and any liability (including penalties, interest and expenses) arising
therefrom or with respect thereto.  Payments due under this indemnification
shall be made within 30 days of the date the Administrative Agent or the
applicable Lender makes demand therefor pursuant to Section 3.6.

(vi)

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

(vii)

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

(viii)

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

(ix)

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

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

1.3.  Substitution of Affected Lender.  If (i)
the obligation of any Lender to make or to convert or continue outstanding Loans
as or into Eurodollar Loans has been suspended pursuant to Section 3.3 or (ii)
any Lender has demanded compensation under Section 3.1, 3.2 or 3.5, then the
Borrower shall have the right to designate a substitute lender or lenders (which
may be one or more of the other Lenders) mutually satisfactory to the Borrower
and the Administrative Agent (whose consent shall not be unreasonably withheld
or delayed) to purchase for cash, pursuant to an Assignment Agreement in
substantially the form of Exhibit C, the Loans of such Lender and to assume the
Commitment of such Lender, without recourse to or warranty by, or expense to,
such Lender, for a purchase price equal to the principal amount of all of such
Lender’s Loans plus any accrued and unpaid interest thereon and the accrued but
unpaid fees in respect of such Lender’s Commitment hereunder plus such amount,
if any, as would be payable pursuant to Section 3.4 if the Loans of such Lender
were prepaid in its entirety on the date of consummation of such
assignment.

ARTICLE II

CONDITIONS PRECEDENT

2.1.  Initial Loan.  The Lenders shall not be
required to make the initial Loan unless the Borrower has furnished to the
Administrative Agent with sufficient copies for the Lenders:

(i)

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

(ii)

Copies, certified by the Secretary or Assistant Secretary of the
Borrower, of its by-laws and of its Board of Directors’ resolutions and of
resolutions or actions of any other body authorizing the execution of the Loan
Documents to which the Borrower is a party.

(iii)

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

(iv)

A certificate, signed by the chief financial officer or treasurer
of the Borrower, stating that on the date of the initial Loan no Default or
Unmatured Default has occurred and is continuing.

(v)

A written opinion of the Borrower’s counsel, addressed to the
Lenders in substantially the form of Exhibit A.

(vi)

Any Note requested by a Lender pursuant to Section 2.10 payable to
the order of such requesting Lender.

(vii)

Evidence satisfactory to the Administrative Agent of any required
governmental approvals or consents regarding this Agreement.

(viii)

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

2.2.  Each Loan.  The Lenders shall not be
required to make any Loan unless on the date of such Loan:

(i)

No Default or Unmatured Default exists or would result from such
Loan.

(ii)

The representations and warranties contained in Article V (other
than, in the case of each Loan to be made after the date of the initial Loan,
Sections 5.5 and 5.7) are true and correct in all material respects as of the
date of such Loan except to the extent any such representation or warranty is
stated to relate solely to an earlier date, in which case such representation or
warranty shall have been true and correct on and as of such earlier date.

(iii)

All legal matters incident to the making of such Loan shall be
satisfactory to the Lenders and their counsel (including evidence satisfactory
to the Administrative Agent of any required governmental approvals or consents
regarding such Loan).

Each delivery of a Borrowing Notice shall constitute a
representation and warranty by the Borrower that the conditions contained in
Sections 4.2(i) and (ii) have been satisfied.  Any Lender may require
delivery of a duly completed compliance certificate in substantially the form of
Exhibit B as a condition to making a Loan.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

The Borrower represents and warrants to the Lenders that:

3.1.  Existence and Standing.  Each of the
Borrower and each Principal Subsidiary is a corporation, partnership (in the
case of Principal Subsidiaries only) or limited liability company duly and
properly incorporated or organized, as the case may be, validly existing and (to
the extent such concept applies to such entity) in good standing under the laws
of its jurisdiction of incorporation or organization.  Each of the Borrower
and each Principal Subsidiary has all requisite authority to conduct its
business in each jurisdiction in which its business is conducted other than
where the failure to be so authorized would not reasonably be expected to have a
Material Adverse Effect.

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

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

3.4.  Financial Statements.  The December 31,
2007 consolidated financial statements of the Borrower and its Subsidiaries
heretofore delivered to the Lenders were prepared in accordance with generally
accepted accounting principles in effect on the date such statements were
prepared and fairly present in all material respects the consolidated financial
condition and operations of the Borrower and its Subsidiaries at such date and
the consolidated results of their operations for the period then ended. 

3.5.  Material Adverse Change.  Since December
31, 2007, there has been no change in the business, Property, condition
(financial or otherwise) or results of operations of the Borrower and its
Subsidiaries, taken as a whole, which could reasonably be expected to have a
Material Adverse Effect.

3.6.  Taxes.  The Borrower and its Subsidiaries
have filed all United States federal tax returns and all other material tax
returns which are required to be filed and have paid all taxes due pursuant to
said returns or pursuant to any assessment received by the Borrower or any of
its Subsidiaries, except such taxes, if any, as are being contested in good
faith and as to which adequate reserves have been provided in accordance with
GAAP.  The United States income tax returns of the Borrower and its
Subsidiaries have been audited by the Internal Revenue Service through the
fiscal year ended December 31, 2003.  No tax liens have been filed and no
claims are being asserted with respect to any such taxes, except such taxes, if
any, as are being contested in good faith and as to which adequate reserves have
been provided in accordance with GAAP.  The charges, accruals and reserves
on the books of the Borrower and its Subsidiaries in respect of any taxes or
other governmental charges are adequate.

3.7.  Litigation and Contingent Obligations.
 There is no litigation, arbitration, governmental investigation,
proceeding or inquiry pending or, to the knowledge of any of their officers,
overtly threatened against or affecting the Borrower or any of its Principal
Subsidiaries which could reasonably be expected to have a Material Adverse
Effect or which seeks to prevent, enjoin or delay the making of any Loan.
 Other than any liability incident to any litigation, arbitration or
proceeding which could not reasonably be expected to have a Material Adverse
Effect, the Borrower has no material contingent obligations not provided for or
disclosed in the financial statements referred to in Section 5.4.

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

3.9.  ERISA.  The Unfunded Liabilities of all
Single Employer Plans do not in the aggregate exceed $40,000,000.  Neither
the Borrower nor any other member of the Controlled Group has incurred, or is
reasonably expected to incur, any withdrawal liability to Multiemployer Plans in
excess of $40,000,000 in the aggregate.  Each Plan complies in all material
respects with all applicable requirements of law and regulations, no Reportable
Event for which the PBGC has not waived the 30-day notice requirement has
occurred with respect to any Plan, neither the Borrower nor any other member of
the Controlled Group has withdrawn from any Plan or initiated steps to do so,
and no steps have been taken to reorganize or terminate any Plan.

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

3.11.  

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

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

3.13.  Ownership of Properties.  On the date of
this Agreement, the Borrower and its Principal Subsidiaries have good title,
free of all Liens other than those permitted by Section 6.13, to all of the
Property and assets reflected in the Borrower's most recent consolidated
financial statements provided to the Administrative Agent as owned by the
Borrower and its Subsidiaries.

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

3.15.  Environmental Matters.  In the ordinary
course of its business, the officers of the Borrower consider the effect of
Environmental Laws on the business of the Borrower and its Subsidiaries, in the
course of which they identify and evaluate potential risks and liabilities
accruing to the Borrower due to Environmental Laws.  On the basis of this
consideration, the Borrower has concluded that Environmental Laws cannot
reasonably be expected to have a Material Adverse Effect, except to the extent
disclosed in the Borrower’s Form 10-K and Form 10-Q reports filed with the SEC
prior to the date hereof.  Neither the Borrower nor any Principal
Subsidiary has received any notice to the effect that its operations are not in
material compliance with any of the requirements of applicable Environmental
Laws or are the subject of any federal or state investigation evaluating whether
any remedial action is needed to respond to a release of any toxic or hazardous
waste or substance into the environment, which non-compliance or remedial action
could reasonably be expected to have a Material Adverse Effect.

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

3.17.  Insurance.  The Borrower and its Principal
Subsidiaries maintain with financially sound and reputable insurance companies
insurance on all their Property in such amounts and covering such risks as is
consistent with sound business practice.

3.18.  Regulatory Approval.  No consent,
authorization or approval of, and/or filing or registration with, any
governmental body or regulatory authority is required in connection with the
execution, delivery or performance of the Loan Documents or for the consummation
of the transactions herein contemplated, or for the validity or enforceability
thereof.

ARTICLE IV

COVENANTS

During the term of this Agreement, unless the Required Lenders
shall otherwise consent in writing:

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

(i)

Within 90 days after the close of each of its fiscal years, an
unqualified (except for qualifications relating to changes in accounting
principles or practices reflecting changes in generally accepted accounting
principles and required or approved by the Borrower's independent certified
public accountants) audit report certified by independent certified public
accountants reasonably acceptable to the Lenders, prepared in accordance with
GAAP on a consolidated basis for itself and its Subsidiaries, including balance
sheets as of the end of such period, related profit and loss and reconciliation
of surplus statements, and a statement of cash flows.

(ii)

Within 45 days after the close of the first three quarterly
periods of each of its fiscal years, for itself and its Subsidiaries,
consolidated unaudited balance sheets as at the close of each such period and
consolidated profit and loss and reconciliation of surplus statements and a
statement of cash flows for the period from the beginning of such fiscal year to
the end of such quarter, all certified by its chief executive officer, chief
financial officer or treasurer.

(iii)

Notwithstanding the preceding provisions of this Section 6.1, if
and so long as the Borrower shall file regular and periodic reports with the SEC
pursuant to Sections 13 and 15 of the Securities Exchange Act of 1934, delivery
to the Administrative Agent of copies of the Borrower’s reports on Forms 10K and
10Q promptly following filing thereof with the SEC, but in any event not later
than within the periods set forth in subsections 6.1(i) and (ii), shall
constitute full compliance with those sections.

(iv)

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

(v)

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

(vi)

As soon as possible and in any event within 10 days after receipt
by the Borrower, a copy of (a) any notice or claim to the effect that the
Borrower or any of its Principal Subsidiaries is or may be liable to any Person
as a result of the release by the Borrower, any of its Principal Subsidiaries,
or any other Person of any toxic or hazardous waste or substance into the
environment, and (b) any notice alleging any violation of any federal, state or
local environmental, health or safety law or regulation by the Borrower or any
of its Principal Subsidiaries, which, in either case, could reasonably be
expected to have a Material Adverse Effect.  The Borrower may satisfy any
such notice requirement by delivering to the Administrative Agent a copy of the
Borrower’s report on Form 8-K describing such event, promptly following filing
thereof with the SEC.

(vii)

Promptly upon the filing thereof, copies of all registration
statements and annual, quarterly, monthly or other regular reports which the
Borrower or any of its Principal Subsidiaries files with the SEC.

(viii)

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

4.2.  Litigation.  The Borrower shall promptly
give to each Lender notice of all legal or arbitral proceedings, and of all
proceedings before any governmental or regulatory authority or agency, to which
the Borrower or its Principal Subsidiaries is a party, except proceedings as to
which there is no reasonable possibility of an adverse determination or which,
if adversely determined, would not have a Material Adverse Effect.  The
Borrower may satisfy any such notice requirement by delivering to the
Administrative Agent a copy of the Borrower’s report on Form 8-K describing such
event, promptly following filing thereof with the SEC.

4.3.  Use of Proceeds.  The Borrower will, and
will cause each Subsidiary to, use the proceeds of the Advances for general
corporate purposes (in compliance with all applicable legal and regulatory
requirements). 

4.4.  Notice of Default.  The Borrower will, and
will cause each Principal Subsidiary to, give prompt notice in writing to the
Lenders of the occurrence of any Default or Unmatured Default of which it
becomes aware and of any other development, financial or otherwise, of which it
becomes aware which could reasonably be expected to have a Material Adverse
Effect.  The Borrower may satisfy any such notice requirement by delivering
to the Administrative Agent a copy of the Borrower’s report on Form 8-K
describing such event, promptly following filing thereof with the SEC.

4.5.  Conduct of Business.  The Borrower will,
and will cause each Principal Subsidiary to, (a) carry on and conduct its
business in substantially the same manner and in substantially the same fields
of enterprise as it is presently conducted, (b) do all things necessary to
remain duly incorporated or organized, validly existing and (to the extent such
concept applies to such entity) in good standing as a domestic corporation,
partnership or limited liability company in its jurisdiction of incorporation or
organization, as the case may be, and (c) maintain all requisite authority to
conduct its business in each jurisdiction in which its business is conducted and
the failure so to maintain such authority would reasonably be expected to have a
Material Adverse Effect, provided that this Section shall not be deemed
to prohibit any transaction permitted under Section 6.11 or 6.12.

4.6.  Taxes.  The Borrower will, and will cause
each Principal Subsidiary to, timely file complete and correct United States
federal and applicable foreign, state and local tax returns required by law and
pay when due all taxes, assessments and governmental charges and levies upon it
or its income, profits or Property, except those which are being contested in
good faith by appropriate proceedings and with respect to which adequate
reserves have been set aside in accordance with GAAP or where nonpayment could
not reasonably be expected to have a Material Adverse Effect.  

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

4.8.  Compliance with Laws.  The Borrower will,
and will cause each Principal Subsidiary to, comply with all laws, rules,
regulations, orders, writs, judgments, injunctions, decrees or awards to which
it may be subject including all Environmental Laws, except where noncompliance
would not have a Material Adverse Effect.

4.9.  Maintenance of Properties.  The Borrower
will, and will cause each Principal Subsidiary to, do all things necessary to
maintain, preserve, protect and keep its Property (except such Property the
failure of which to maintain or preserve would not have individually or in the
aggregate, a Material Adverse Effect) in good repair, working order and
condition, ordinary wear and tear excepted, and make all necessary and proper
repairs, renewals and replacements so that its business carried on in connection
therewith may be properly conducted at all times.

4.10.  Inspection.  Subject to Section 9.11, the
Borrower will, and will cause each Principal Subsidiary to, permit the
Administrative Agent and the Lenders, by their respective representatives and
Administrative Agents, to inspect any of the Property, books and financial
records of the Borrower and each Principal Subsidiary, to examine and make
copies of the books of accounts and other financial records of the Borrower and
each Principal Subsidiary, and to discuss the affairs, finances and accounts of
the Borrower and each Principal Subsidiary with, and to be advised as to the
same by, their respective officers at such reasonable times and intervals as the
Administrative Agent or any Lender may designate.

4.11.  Merger.  The Borrower will not, nor will
it permit any Principal Subsidiary to, merge or consolidate with or into any
other Person, except that a Subsidiary may merge into the Borrower or a
Wholly-Owned Subsidiary.

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

(i)

Dispositions of inventory in the ordinary course of business.

(ii)

Dispositions of assets which have become obsolete or no longer
used or useful in the business of the Borrower or any such Principal
Subsidiary.

(iii)

Dispositions of equipment or real property to the extent that (A)
such disposition is in the ordinary course of Business or (B) such property is
exchanged for credit against the purchase price of similar replacement property
or the proceeds of such disposition are reasonably promptly applied to the
purchase price of such replacement property.

(iv)

Dispositions of Property by a Subsidiary to the Borrower or
another Subsidiary.

(v)

Dispositions of Property that, together with all other Property of
the Borrower and its Principal Subsidiaries previously leased, sold or disposed
of (other than dispositions permitted by the foregoing provisions of this
Section 6.12) as permitted by this Section during the twelve-month period ending
with the month in which any such lease, sale or other disposition occurs, do not
constitute a Substantial Portion of the Property of the Borrower and its
Subsidiaries.

4.13.  Liens.  The Borrower will not, nor will it
permit any Principal Subsidiary to, create, incur, or suffer to exist any Lien
in, of or on the Property of the Borrower or any of its Principal Subsidiaries,
except:

(i)

Liens for taxes, assessments or governmental charges or levies on
its Property if the same shall not at the time be delinquent or thereafter can
be paid without penalty, or are being contested in good faith and by appropriate
proceedings.

(ii)

Liens imposed by law, such as carriers', warehousemen's and
mechanics' liens and other similar liens arising in the ordinary course of
business which secure payment of obligations not more than 60 days past due or
which are being contested in good faith and by appropriate proceedings
diligently conducted.

(iii)

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

(iv)

Liens incidental to the normal conduct of the business of the
Borrower or any Subsidiary or the ownership of its property or the conduct of
the ordinary course of its business, including (A) zoning restrictions,
easements, rights of way, reservations, restrictions on the use of real property
and other minor irregularities of title, (B) rights of lessees under leases, (C)
rights of collecting banks having rights of setoff, revocation, refund or
chargeback with respect to money or instruments of the Borrower or any
Subsidiary on deposit with or in the possession of such banks, (D) Liens or
deposits to secure the performance of statutory obligations, tenders, bids,
leases, progress payments, performance or return-of-money bonds, performance or
other similar bonds or other obligations of a similar nature incurred in the
ordinary course of business, and (E) Liens required by any contract or statute
in order to permit the Borrower or a Subsidiary of the Borrower to perform any
contract or subcontract made by it with or pursuant to the requirements of a
governmental entity, in each case which are not incurred in connection with the
borrowing of money, the obtaining of advances or credit or the payment of the
deferred purchase price of Property and which do not in the aggregate impair the
use of property in the operation of the business of the Borrower and its
Subsidiaries taken as a whole.

(v)

Liens on property existing at the time of acquisition thereof or
Liens affecting property of a Person existing at the time it becomes a
Subsidiary of the Borrower or at the time it is merged into or consolidated with
the Borrower or a Subsidiary of the Borrower; provided that, in either
case, such Liens were not granted in contemplation of such acquisition or in
contemplation of the transaction pursuant to which such Person became a
Subsidiary; and provided, further, that in either case, such Liens
do not extend to or cover any property of the Borrower or of any of its
Subsidiaries other than the property that secured the acquired Indebtedness
prior to the time such Indebtedness became Indebtedness of the Borrower or a
Subsidiary.

(vi)

Liens on property securing Indebtedness incurred prior to, at the
time of, or within 12 months after the acquisition thereof for the purpose of
financing all or part of the purchase price thereof, provided that such
Liens do not extend to or cover any other property of the Borrower or any
Subsidiary and the Indebtedness secured thereby was incurred to pay, and does
not exceed, the purchase price thereof.

(vii)

Liens on any improvements to property securing Indebtedness
incurred to provide funds for all or part of the cost of such improvements in a
principal amount not exceeding the cost of acquisition or construction of such
improvements and incurred within 12 months after completion of such improvements
or construction, provided that such Liens do not extend to or cover any
property of the Borrower or any Subsidiary other than such improvements.

(viii)

Liens to government entities granted to secure pollution control
or industrial revenue bond financings, which Liens in each financing transaction
cover only the property the acquisition of which, or the construction of which,
was financed by such financing, and property related thereto.

(ix)

any Lien incurred or deposits made to secure the performance of
surety bonds incurred in the ordinary course of business consistent with past
practice, provided that, except in the case of deposits, such Lien shall
cover only the Borrower’s or its Subsidiary’ interests in and relating to the
contract underlying the transaction for which such surety bonds were issued.

(x)

Liens on cash or cash equivalents created or existing to secure
stay or appeal bonds or otherwise resulting from any litigation or legal
proceeding which are being contested in good faith by appropriate action
promptly initiated and diligently conducted, including the Lien of any judgment;
provided that the aggregate amount secured by all such Liens does not
exceed $25,000,000.

(xi)

Liens securing any extension, renewal, replacement or refinancing
of Indebtedness secured by any Lien referred to in the foregoing clauses (v),
(vi), (vii), (viii), and (xii); provided that

(A)

such new Lien shall be limited to all or part of the same property
that secured the original Lien (plus improvements on such property) and

(B)

the amount secured by such Lien at such time is not increased to
any amount greater than the amount outstanding at the time of such renewal,
replacement or refinancing.

(xii)

agreements for and obligations relating to the joint or common use
of property owned by the Borrower or any Principal Subsidiary in common or
jointly with one or more other parties.

(xiii)

Liens existing on December 21, 2005 and described in Schedule
6.13.

4.14.  Affiliates.  The Borrower will not, and
will not permit any Principal Subsidiary to, enter into any transaction
(including the purchase or sale of any Property or service) with, or make any
payment or transfer to, any Affiliate except (i) in the ordinary course of
business and pursuant to the reasonable requirements of the Borrower's or such
Principal Subsidiary's business and upon fair and reasonable terms no less
favorable to the Borrower or such Principal Subsidiary than the Borrower or such
Subsidiary would obtain in a comparable arms-length transaction, (ii) capital
contributions to, or equity investments in, MGE Transco Investments, LLC in
connection with MGE Transco Investments, LLC’s capital contributions to, or
equity investments in, American Transmission Company LLC or (iii) pursuant to
agreements or transactions authorized or approved by the Public Service
Commission of Wisconsin or federal utilities regulatory bodies (provided
that in the case of any agreement or transaction having terms that are less
favorable to the Borrower or such Principal Subsidiary than the Borrower or such
Subsidiary would obtain in a comparable arms-length transaction, such
authorization or approval acknowledges the non-arms-length nature of such
terms).  

4.15.  Financial Covenant.  The Borrower will not
permit the ratio of (i) its Consolidated Indebtedness to (ii) its Consolidated
Total Capitalization to exceed 0.65 to 1.0 at any time.

ARTICLE V

DEFAULTS

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

5.1.  The Borrower shall default in the payment of any
principal of any Loan when due.

5.2.  The Borrower shall default in the payment of interest
on any Loan or any other amount payable by it hereunder and such default shall
continue for two Business Days after the same becomes due and payable.

5.3.  The Borrower or any of its Principal Subsidiaries shall
default in the payment when due of any principal of or interest on any of its
other Indebtedness having a principal amount of $25,000,000 or more; or any
event specified in any note, agreement, indenture or other document evidencing
or relating to any such Indebtedness shall occur if the effect of such event is
to cause, or (with the giving of any notice or the lapse of time or both) to
permit the holder or holders of such Indebtedness (or a trustee or agent on
behalf of such holder or holders) to cause, such Indebtedness to become due
prior to its stated maturity.

5.4.  Any representation, warranty or certification made or
deemed made herein by the Borrower, or any certificate furnished to any Lender
or the Administrative Agent pursuant to the provisions hereof, shall prove to
have been false or misleading as of the time made, deemed made, or furnished in
any material respect.

5.5.  The Borrower shall default in the performance of its
obligations under Section 6.3, 6.4, 6.10, 6.11, 6.12, 6.13, 6.14 or
6.15.

5.6.  The Borrower shall default in the performance of any of
its other obligations in this Agreement and such default shall continue
unremedied for a period of 30 days after the earlier of (i) the date on which a
senior officer of the Borrower becomes aware of such default, or (ii) the date
on which notice thereof is given to the Borrower by the Administrative Agent or
any Lender (through the Administrative Agent).

5.7.  The Borrower shall admit in writing its inability to,
or be generally unable to, pay its debts as such debts become due.

5.8.  The Borrower shall (i) apply for or consent to the
appointment of, or the taking of possession by, a receiver, custodian, trustee
or liquidator of itself or of all or a substantial part of its property, (ii)
make a general assignment for the benefit of its creditors, (iii) commence a
voluntary case under the Bankruptcy Code (as now or hereafter in effect), (iv)
file a petition seeking to take advantage of any other law relating to
bankruptcy, insolvency, reorganization, winding-up, or composition or
readjustment of debts, (v) fail to controvert in a timely and appropriate
manner, or acquiesce in writing to, any petition filed against it in an
involuntary case under the Bankruptcy Code, or (vi) take any corporate action
for the purpose of effecting any of the foregoing.

5.9.  A proceeding or case shall be commenced, without the
application or consent of the Borrower, in any court of competent jurisdiction,
seeking (i) its liquidation, reorganization, dissolution or winding-up, or the
composition or readjustment of its debts, (ii) the appointment of a trustee,
receiver, custodian, liquidator or the like of the Borrower or of all or any
substantial part of its assets, or (iii) similar relief in respect of the
Borrower under any law relating to bankruptcy, insolvency, reorganization,
winding-up or composition or adjustment of debts, and such proceeding or case
shall continue undismissed, or an order, judgment or decree approving or
ordering any of the foregoing shall be entered and continue unstayed and in
effect, for a period of 60 days; or an order for relief against the Borrower
shall be entered in an involuntary case under the Bankruptcy Code.

5.10.  A final judgment or judgments for the payment of money
in excess of $25,000,000 in the aggregate that is not covered by insurance,
performance bonds or the like shall be rendered by a court or courts against the
Borrower or any of its Principal Subsidiaries, and the same shall not be
discharged (or provision shall not be made for such discharge), or a stay of
execution thereof shall not be procured, within 90 days from the date of entry
thereof and the Borrower or the relevant Principal Subsidiary shall not, within
said period of 90 days, or such longer period during which execution of the same
shall have been stayed, appeal therefrom and cause the execution thereof to be
stayed during such appeal.

5.11.  Any of the following events shall occur with respect
to any Pension Plan:

(i)

the institution of any steps by the Borrower, any member of its
Controlled Group or any other Person to terminate a Pension Plan if, as a result
of such termination, the Borrower or any such member could be required to make a
contribution to such Pension Plan, or could reasonably expect to incur a
liability or obligation to such Pension Plan, in excess of $40,000,000; or

(ii)

the complete or partial withdrawal from any Pension Plan by the
Borrower or any member of its Controlled Group if, as a result of such
withdrawal, the Borrower or any such member could incur any liability by such
Pension Plan in excess of $40,000,000; or

(iii)

a contribution failure occurs with respect to any Pension Plan
sufficient to give rise to a Lien under Section 302(f) of ERISA.

5.12.  Any license, consent, authorization or approval,
filing or registration now or hereafter necessary to enable the Borrower to
comply with its obligations hereunder or under any other Loan Document shall be
revoked, withdrawn, withheld or not effected or shall cease to be in full force
and effect.

5.13.  A Change in Control shall occur.

ARTICLE VI

ACCELERATION, WAIVERS, AMENDMENTS AND
REMEDIES

6.1.  Acceleration.  If any Default described in
Section 7.7 or 7.8 occurs with respect to the Borrower, the obligations of the
Lenders to make Loans hereunder shall automatically terminate and the
Obligations shall immediately become due and payable without any election or
action on the part of the Administrative Agent or any Lender.  If any other
Default occurs, the Required Lenders (or the Administrative Agent with the
consent of the Required Lenders) may terminate or suspend the obligations of the
Lenders to make Loans hereunder, or declare the Obligations to be due and
payable, or both, whereupon such obligations shall terminate and/or the
Obligations shall become immediately due and payable, without presentment,
demand, protest or notice of any kind, all of which the Borrower hereby
expressly waives.

If, within 30 days after acceleration of the maturity of the
Obligations or termination of the obligations of the Lenders to make Loans
hereunder as a result of any Default (other than any Default as described in
Section 7.7 or 7.8 with respect to the Borrower) and before any judgment or
decree for the payment of the Obligations due shall have been obtained or
entered, the Required Lenders (in their sole discretion) shall so direct, the
Administrative Agent shall, by notice to the Borrower, rescind and annul such
acceleration and/or termination.

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

(i)

Extend the final maturity of any Loan or forgive all or any
portion of the principal amount thereof, or reduce the rate or extend the time
of payment of interest or fees thereon.

(ii)

Reduce the percentage specified in the definition of Required
Lenders.

(iii)

Extend the Facility Termination Date, or reduce the amount or
extend the payment date for the mandatory payments required under Section 2.1.4,
or increase the amount of the Commitment of any Lender hereunder, or permit the
Borrower to assign its rights under this Agreement.

(iv)

Amend this Section 8.2.

No amendment of any provision of this Agreement relating to the
Administrative Agent shall be effective without the written consent of the
Administrative Agent.  The Administrative Agent may waive payment of the
fee required under Section 12.3.2 without obtaining the consent of any other
party to this Agreement.

6.3.  Preservation of Rights.  No delay or
omission of the Lenders or the Administrative Agent to exercise any right under
the Loan Documents shall impair such right or be construed to be a waiver of any
Default or an acquiescence therein, and the making of a Loan notwithstanding the
existence of a Default or the inability of the Borrower to satisfy the
conditions precedent to such Loan shall not constitute any waiver or
acquiescence.  Any single or partial exercise of any such right shall not
preclude other or further exercise thereof or the exercise of any other right,
and no waiver, amendment or other variation of the terms, conditions or
provisions of the Loan Documents whatsoever shall be valid unless in writing
signed by the Lenders required pursuant to Section 8.2, and then only to the
extent in such writing specifically set forth.  All remedies contained in
the Loan Documents or by law afforded shall be cumulative and all shall be
available to the Administrative Agent and the Lenders until the Obligations have
been paid in full.

ARTICLE VII

GENERAL PROVISIONS

7.1.  Survival of Representations.  All
representations and warranties of the Borrower contained in this Agreement shall
survive during the period that the Loans are outstanding.

7.2.  Governmental Regulation.  Anything
contained in this Agreement to the contrary notwithstanding, no Lender shall be
obligated to extend credit to the Borrower in violation of any limitation or
prohibition provided by any applicable statute or regulation.

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

7.4.  Entire Agreement.  The Loan Documents
embody the entire agreement and understanding among the Borrower, the
Administrative Agent and the Lenders and supersede all prior agreements and
understandings among the Borrower, the Administrative Agent and the Lenders
relating to the subject matter thereof other than the fee letter described in
Section 10.13.

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

7.6.  Expenses; Indemnification.  (4)  The
Borrower shall reimburse the Administrative Agent and the Arranger for any
reasonable costs, internal charges and out-of-pocket expenses (including
attorneys’ fees and charges of attorneys for the Administrative Agent, which
attorneys may be employees of the Administrative Agent) paid or incurred by the
Administrative Agent or the Arranger in connection with the preparation,
negotiation, execution, delivery, syndication, distribution (including via the
internet, review, amendment, modification, and administration of the Loan
Documents.  The Borrower also agrees to reimburse the Administrative Agent,
the Arranger and each Lender for any costs, internal charges and out-of-pocket
expenses (including attorneys’ fees and time charges of attorneys for the
Administrative Agent, the Arranger and such Lender, which attorneys may be
employees of the Administrative Agent, the Arranger or such Lender) paid or
incurred by the Administrative Agent, the Arranger or any Lender in connection
with the collection and enforcement of the Loan Documents.  Expenses being
reimbursed by the Borrower under this Section include costs and expenses
incurred in connection with the Reports described in the following sentence.
 The Borrower acknowledges that from time to time JPMCB may prepare and may
distribute to the Lenders (but shall have no obligation or duty to prepare or to
distribute to the Lenders) certain audit reports (the “Reports”)
pertaining to the Borrower’s assets for internal use by JPMCB from information
furnished to it by or on behalf of the Borrower, after JPMCB has exercised its
rights of inspection pursuant to this Agreement.

(v)

The Borrower hereby further agrees to indemnify the Administrative
Agent, the Arranger, each Lender, their respective affiliates, and each of their
directors, officers and employees against all losses, claims, damages,
penalties, judgments, liabilities and expenses (including all expenses of
litigation or preparation therefor whether or not the Administrative Agent, the
Arranger, any Lender or any affiliate is a party thereto) which any of them may
pay or incur arising out of or relating to this Agreement, the other Loan
Documents, the transactions contemplated hereby or the direct or indirect
application or proposed application of the proceeds of any Loan hereunder except
to the extent that they are determined in a final non-appealable judgment by a
court of competent jurisdiction to have resulted from the gross negligence or
willful misconduct of the party seeking indemnification.  In the case of
any investigation, litigation or proceeding to which the indemnity in this
Section applies, such indemnity shall be effective whether or not such
investigation, litigation or proceeding is brought by a third party, by the
Borrower or by an affiliate of the Borrower.  The obligations of the
Borrower under this Section 9.6 shall survive the payment of the Obligations and
the termination of this Agreement.

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

1.3.  Accounting.  Except as provided to the
contrary herein, all accounting terms used herein shall be interpreted and all
accounting determinations hereunder shall be made in accordance with Agreement
Accounting Principles, except that any calculation or determination which is to
be made on a consolidated basis (i) shall be made for the Borrower and all its
Subsidiaries, and (ii) shall exclude any assets, liabilities, revenues and
expenses that are included in Borrower’s financial statements from other
“variable interest entities” as a result of the application of FIN No. 46,
Consolidation of Variable Interest Entities – an Interpretation of ARB No. 51,
as updated through FIN No. 46-R and as modified by FIN No. 94.  

If at any time any change in GAAP would affect the computation of
any financial ratio or requirement set forth in this Agreement, and either the
Borrower or the Required Lenders shall so request, the Lenders and the Borrower
shall negotiate in good faith to amend such ratio or requirement to preserve the
original intent thereof in light of such change in GAAP (subject to the approval
of the Required Lenders, which shall not be unreasonably withheld, delayed or
conditioned); provided that, until so amended, such ratio or requirement
shall continue to be computed in accordance with GAAP prior to such change
therein.

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

1.5.  Nonliability of Lenders.  The relationship
between the Borrower on the one hand and the Lenders and the Administrative
Agent on the other hand shall be solely that of borrower and lender.  None
of the Administrative Agent, the Arranger or any Lender shall have any fiduciary
responsibilities to the Borrower.  None of the Administrative Agent, the
Arranger or any Lender undertakes any responsibility to the Borrower to review
or inform the Borrower of any matter in connection with any phase of the
Borrower’s business or operations.  The Borrower agrees that none of the
Administrative Agent, the Arranger or any Lender shall have liability to the
Borrower (whether sounding in tort, contract or otherwise) for losses suffered
by the Borrower in connection with, arising out of, or in any way related to,
the transactions contemplated and the relationship established by the Loan
Documents, or any act, omission or event occurring in connection therewith,
unless it is determined in a final non-appealable judgment by a court of
competent jurisdiction that such losses resulted from the gross negligence or
willful misconduct of the party from which recovery is sought.  None of the
Administrative Agent, the Arranger or any Lender shall have any liability with
respect to, and the Borrower hereby waives, releases and agrees not to sue for,
any special, indirect or consequential damages suffered by the Borrower in
connection with, arising out of, or in any way related to the Loan Documents or
the transactions contemplated thereby.

1.6.  Confidentiality.  Each Lender agrees to
hold any confidential information which it may receive from the Borrower
pursuant to this Agreement or in connection with any inspection conducted
pursuant to Section 6.10 in confidence, except for disclosure (i) to its
Affiliates and to other Lenders and their respective Affiliates, (ii) to legal
counsel, accountants, and other professional advisors to such Lender or to a
Transferee, (iii) to regulatory officials, (iv) to any Person as requested
pursuant to or as required by law, regulation, or legal process, (v) to any
Person in connection with any legal proceeding to which such Lender is a party,
(vi) to such Lender’s direct or indirect contractual counterparties in swap
agreements or to legal counsel, accountants and other professional advisors to
such counterparties, and (vii) permitted by Section 12.4.

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

1.8.  Disclosure.  The Borrower and each Lender
hereby acknowledge and agree that JPMCB and/or its Affiliates from time to time
may hold investments in, make other loans to or have other relationships with
the Borrower and its Affiliates.

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

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT.
To help the government fight the funding of terrorism and money laundering
activities, Federal law requires all financial institutions to obtain, verify
and record information that identifies each person or entity that opens an
account, including any deposit account, treasury management account, loan, other
extension of credit or other financial services product. What this means for the
Borrower: When the Borrower opens an account, the Lenders will ask for the
Borrower’s name, tax identification number, business address and other
information that will allow the Administrative Agent and the Lenders to identify
the Borrower.  The Administrative Agent and the Lenders may also ask to see
the Borrower’s legal organizational documents or other identifying
documents.

ARTICLE II

THE ADMINISTRATIVE AGENT

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

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

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

2.4.  No Responsibility for Loans, Recitals, etc.
 Neither the Administrative Agent nor any of its directors, officers,
agents or employees shall be responsible for or have any duty to ascertain,
inquire into, or verify (a) any statement, warranty or representation made in
connection with any Loan Document or any borrowing hereunder; (b) the
performance or observance of any of the covenants or agreements of any obligor
under any Loan Document, including any agreement by an obligor to furnish
information directly to each Lender; (c) the satisfaction of any condition
specified in Article IV, except receipt of items required to be delivered solely
to the Administrative Agent; (d) the existence or possible existence of any
Default or Unmatured Default; (e) the validity, enforceability, effectiveness,
sufficiency or genuineness of any Loan Document or any other instrument or
writing furnished in connection therewith; (f) the value, sufficiency, creation,
perfection or priority of any Lien in any collateral security; or (g) the
financial condition of the Borrower or any guarantor of any of the Obligations
or of any of the Borrower’s or any such guarantor’s respective Subsidiaries.
 The Administrative Agent shall have no duty to disclose to the Lenders
information that is not required to be furnished by the Borrower to the
Administrative Agent at such time, but is voluntarily furnished by the Borrower
to the Administrative Agent (either in its capacity as Administrative Agent or
in its individual capacity).

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

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

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

2.8.  Administrative Agent’s Reimbursement and
Indemnification.  The Lenders agree to reimburse and indemnify the
Administrative Agent ratably in proportion to their respective Commitments (or,
if the Commitments have been terminated, in proportion to their Commitments
immediately prior to such termination) (i) for any amounts not reimbursed by the
Borrower for which the Administrative Agent is entitled to reimbursement by the
Borrower under the Loan Documents, (ii) for any other expenses incurred by the
Administrative Agent on behalf of the Lenders, in connection with the
preparation, execution, delivery, administration and enforcement of the Loan
Documents (including for any expenses incurred by the Administrative Agent in
connection with any dispute between the Administrative Agent and any Lender or
between two or more of the Lenders) and (iii) for any liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind and nature whatsoever which may be imposed on,
incurred by or asserted against the Administrative Agent in any way relating to
or arising out of the Loan Documents or any other document delivered in
connection therewith or the transactions contemplated thereby (including for any
such amounts incurred by or asserted against the Administrative Agent in
connection with any dispute between the Administrative Agent and any Lender or
between two or more of the Lenders), or the enforcement of any of the terms of
the Loan Documents or of any such other documents, provided that (i) no
Lender shall be liable for any of the foregoing to the extent any of the
foregoing is found in a final non-appealable judgment by a court of competent
jurisdiction to have resulted from the gross negligence or willful misconduct of
the Administrative Agent and (ii) any indemnification required pursuant to
Section 3.5(vii) shall, notwithstanding the provisions of this Section 10.8, be
paid by the relevant Lender in accordance with the provisions thereof.  The
obligations of the Lenders under this Section 10.8 shall survive payment of the
Obligations and termination of this Agreement.

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

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

2.11.  Lender Credit Decision.  Each Lender
acknowledges that it has, independently and without reliance upon the
Administrative Agent, the Arranger or any other Lender and based on the
financial statements prepared by the Borrower and such other documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement and the other Loan Documents.  Each
Lender also acknowledges that it will, independently and without reliance upon
the Administrative Agent, the Arranger or any other Lender and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under this
Agreement and the other Loan Documents.  Except for any notice, report,
document or other information expressly required to be furnished to the Lenders
by the Administrative Agent or Arranger hereunder, neither the Administrative
Agent nor the Arranger shall have any duty or responsibility (either initially
or on a continuing basis) to provide any Lender with any notice, report,
document, credit information or other information concerning the affairs,
financial condition or business of the Borrower or any of its Affiliates that
may come into the possession of the Administrative Agent or Arranger (whether or
not in their respective capacity as Administrative Agent or Arranger) or any of
their Affiliates.

2.12.  Successor Administrative Agent.  The
Administrative Agent may resign at any time by giving written notice thereof to
the Lenders and the Borrower, such resignation to be effective upon the
appointment of a successor Administrative Agent or, if no successor
Administrative Agent has been appointed, 45 days after the retiring
Administrative Agent gives notice of its intention to resign.  The
Administrative Agent may be removed at any time with or without cause by written
notice received by the Administrative Agent from the Required Lenders, such
removal to be effective on the date specified by the Required Lenders.
 Upon any such resignation or removal, the Required Lenders shall have the
right to appoint, on behalf of the Borrower and the Lenders, a successor
Administrative Agent.  If no successor Administrative Agent shall have been
so appointed by the Required Lenders within 30 days after the resigning
Administrative Agent’s giving notice of its intention to resign, then the
resigning Administrative Agent may appoint, on behalf of the Borrower and the
Lenders, a successor Administrative Agent.  Notwithstanding the previous
sentence, the Administrative Agent may at any time without the consent of the
Borrower or any Lender, appoint any of its Affiliates which is a commercial bank
as a successor Administrative Agent hereunder.  If the Administrative Agent
has resigned or been removed and no successor Administrative Agent has been
appointed, the Lenders may perform all the duties of the Administrative Agent
hereunder and the Borrower shall make all payments in respect of the Obligations
to the applicable Lender and for all other purposes shall deal directly with the
Lenders.  No successor Administrative Agent shall be deemed to be appointed
hereunder until such successor Administrative Agent has accepted the
appointment.  Any such successor Administrative Agent shall be a commercial
bank having capital and retained earnings of at least $100,000,000.  Upon
the acceptance of any appointment as Administrative Agent hereunder by a
successor Administrative Agent, such successor Administrative Agent shall
thereupon succeed to and become vested with all the rights, powers, privileges
and duties of the resigning or removed Administrative Agent.  Upon the
effectiveness of the resignation or removal of the Administrative Agent, the
resigning or removed Administrative Agent shall be discharged from its duties
and obligations hereunder and under the Loan Documents.  After the
effectiveness of the resignation or removal of an Administrative Agent, the
provisions of this Article X shall continue in effect for the benefit of such
Administrative Agent in respect of any actions taken or omitted to be taken by
it while it was acting as the Administrative Agent hereunder and under the other
Loan Documents.  In the event that there is a successor to the
Administrative Agent by merger, or the Administrative Agent assigns its duties
and obligations to an Affiliate pursuant to this Section 10.12, then the term
“Prime Rate” as used in this Agreement shall mean the prime rate, base rate or
other analogous rate of the new Administrative Agent.

2.13.  Administrative Agent and Arranger Fees.
 The Borrower agrees to pay to the Administrative Agent and the Arranger,
for their respective accounts, the fees agreed to by the Borrower, the
Administrative Agent and the Arranger from time to time.

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

ARTICLE III

SETOFF; RATABLE PAYMENTS

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

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

ARTICLE IV

BENEFIT OF AGREEMENT; ASSIGNMENTS;
PARTICIPATIONS

4.1.  Successors and Assigns.  The terms and
provisions of the Loan Documents shall be binding upon and inure to the benefit
of the Borrower and the Lenders and their respective successors and assigns,
except that (i) the Borrower shall not have the right to assign its rights or
obligations under the Loan Documents and (ii) any assignment by any Lender must
be made in compliance with Section 12.3.  The parties to this Agreement
acknowledge that clause (ii) of this Section 12.1 relates only to absolute
assignments and does not prohibit assignments creating security interests,
including (x) any pledge or assignment by any Lender of all or any portion of
its rights under this Agreement and any Note to a Federal Reserve Bank or (y) in
the case of a Lender which is a Fund, any pledge or assignment of all or any
portion of its rights under this Agreement and any Note to its trustee in
support of its obligation to its trustees; provided that no such pledge
or assignment creating a security interest shall release the transferor Lender
from its obligations hereunder unless and until the parties thereto have
complied with the provisions of Section 12.3.  The Administrative Agent may
treat the Person which made any Loan or which holds any Note as the owner
thereof for all purposes hereof unless and until such Person complies with
Section 12.3; provided that the Administrative Agent may in its
discretion (but shall not be required to) follow instructions from the Person
which made any Loan or which holds any Note to direct payments relating to such
Loan or Note to another Person.  Any assignee of the rights to any Loan or
any Note agrees by acceptance of such assignment to be bound by all the terms
and provisions of the Loan Documents.  Any request, authority or consent of
any Person, who at the time of making such request or giving such authority or
consent is the owner of the rights to any Loan (whether or not a Note has been
issued in evidence thereof), shall be conclusive and binding on any subsequent
holder, transferee or assignee of the rights to such Loan.

4.2.  Participations.  

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

4.2.2.  Voting Rights.  Each Lender shall retain
the sole right to approve, without the consent of any Participant, any
amendment, modification or waiver of any provision of the Loan Documents other
than any amendment, modification or waiver with respect to any Loan or
Commitment in which such Participant has an interest which would require consent
of all of the Lenders pursuant to the terms of Section 8.2 or of any other Loan
Document.

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

4.3.  Assignments.  

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

4.3.2.  Effect; Effective Date.  Upon (i)
delivery to the Administrative Agent of an assignment, together with any
consents required by Section 12.3.1, and (ii) payment of a $4,000 fee to the
Administrative Agent for processing such assignment (unless such fee is waived
by the Administrative Agent), such assignment shall become effective on the
effective date specified in such assignment.  The assignment shall contain
a representation by the Purchaser to the effect that none of the consideration
used to make the purchase of the Commitment and the Loans under the applicable
assignment agreement constitutes “plan assets” as defined under ERISA and that
the rights and interests of the Purchaser in and under the Loan Documents will
not be “plan assets” under ERISA.  On and after the effective date of such
assignment, such Purchaser shall for all purposes be a Lender party to this
Agreement and any other Loan Document executed by or on behalf of the Lenders
and shall have all the rights and obligations of a Lender under the Loan
Documents, to the same extent as if it were an original party hereto, and no
further consent or action by the Borrower, the Lenders or the Administrative
Agent shall be required to release the transferor Lender with respect to the
percentage of the Aggregate Commitment and the Advances assigned to such
Purchaser.  Upon the consummation of any assignment to a Purchaser pursuant
to this Section 12.3.2, the transferor Lender, the Administrative Agent and the
Borrower shall, if the Purchaser desires that its Loans be evidenced by a Note,
make appropriate arrangements so that a Note is issued to such Purchaser.

4.3.3.  Register.  The Administrative Agent,
acting solely for this purpose as an agent of the Borrower, shall maintain at
one of its offices in the United States a copy of each Assignment and Assumption
delivered to it and a register for the recordation of the names and addresses of
the Lenders, and the Commitments of, and principal amounts of the Loans owing
to, each Lender pursuant to the terms hereof from time to time (the “Register”).
 The entries in the Register shall be conclusive, and the Borrower, the
Administrative Agent and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary.
 The Register shall be available for inspection by the Borrower at any
reasonable time and from time to time upon reasonable prior notice.

4.4.  Dissemination of Information.  The Borrower
authorizes each Lender to disclose to any Participant or Purchaser or any other
Person acquiring an interest in the Loan Documents by operation of law (each a
“Transferee”) and any prospective Transferee any and all information in such
Lender’s possession concerning the creditworthiness of the Borrower and its
Subsidiaries, including any information contained in any Reports;
provided that each Transferee and prospective Transferee agrees to be
bound by Section 9.11 of this Agreement.

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

ARTICLE V

NOTICES

5.1.  Notices.  Except as otherwise permitted by
Section 2.14 with respect to borrowing notices, all notices, requests and other
communications to any party hereunder shall be in writing (including electronic
transmission, facsimile transmission or similar writing) and shall be given to
such party: (x) in the case of the Borrower or the Administrative Agent, at its
address or facsimile number set forth on the signature pages hereof, (y) in the
case of any Lender, at its address or facsimile number set forth in its
administrative questionnaire delivered to the Administrative Agent or (z) in the
case of any party, at such other address or facsimile number as such party may
hereafter specify for the purpose by notice to the Administrative Agent and the
Borrower in accordance with the provisions of this Section 13.1.  Each such
notice, request or other communication shall be effective (i) if given by
facsimile transmission, when transmitted to the facsimile number specified in
this Section and confirmation of receipt is received, (ii) if given by mail, 72
hours after such communication is deposited in the mails with first class
postage prepaid, addressed as aforesaid, or (iii) if given by any other means,
when delivered (or, in the case of electronic transmission, received) at the
address specified in this Section; provided that notices to the
Administrative Agent under Article II shall not be effective until
received.

5.2.  Electronic Communications.  Notices and
other communications to the Lenders may be delivered or furnished by electronic
communication (including e-mail and internet or intranet websites) pursuant to
procedures approved by the Administrative Agent or as otherwise determined by
the Administrative Agent, provided that the foregoing shall not apply to
notices to any Lender pursuant to Article II if such Lender has notified the
Administrative Agent that it is incapable of receiving notices under such
Article by electronic communication.  The Administrative Agent or the
Borrower may, in its respective discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it or as it otherwise determines, provided that
such determination or approval may be limited to particular notices or
communications. 

Unless the Administrative Agent otherwise prescribes, (i) notices
and other communications sent to an e-mail address shall be deemed received upon
the sender’s receipt of an acknowledgement from the intended recipient (such as
by the “return receipt requested” function, as available, return e-mail or other
written acknowledgement), provided that if such notice or other
communication is not given during the normal business hours of the recipient,
such notice or communication shall be deemed to have been given at the opening
of business on the next Business Day for the recipient, and (ii) notices or
communications posted to an Internet or intranet website shall be deemed
received upon the deemed receipt by the intended recipient at its e-mail address
as described in the foregoing clause (i) of notification that such notice or
communication is available and identifying the website address therefor.

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

ARTICLE VI

COUNTERPARTS; EFFECTIVENESS

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

ARTICLE VII

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

7.1.  CHOICE OF LAW.  THE LOAN DOCUMENTS
(OTHER THAN THOSE CONTAINING A CONTRARY EXPRESS CHOICE OF LAW PROVISION) SHALL
BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF WISCONSIN, BUT
GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.

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

[Signature Pages Follow]

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

MGE ENERGY, INC.

By:

/s/ Jeffrey C. Newman

Title:  Vice President and Treasurer

133
S. Blair St.
Madison, WI  53701

Attention:

Vice President and Treasurer

Telephone: 

608-252-7149

Fax:

608-252-7098

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

By:

/s/ David N. Slezewski

Title:

22
E. Mifflin St.
Madison, WI 53703

Attention:

David
N. Slezewski
Telephone:

608-282-6575
Fax:

608-282-6596

U.S.
BANK NATIONAL ASSOCIATION, 
as a Lender

By:

/s/ Mary Pat Williams

Title:

1
South Pinckney Street
Madison, WI  53707

Attention:

Mary
Pat Williams 
Telephone:

608-252-4353
Fax:

608-252-4379

SCHEDULE I

LENDERS
AND COMMITMENTS

		
	
Lender
	
Commitment

	
JPMorgan Chase
Bank, N.A.
	
$10,000,000

	
U.S. Bank
National Association
	
$10,000,000

	
 
	
 

	
TOTAL
	
$20,000,000

SCHEDULE II

PRICING
SCHEDULE

							
	
STATUS
	
LEVEL
I

STATUS
	
LEVEL
II

STATUS
	
LEVEL
III

STATUS
	
LEVEL
IV

STATUS
	
LEVEL
V

STATUS
	
LEVEL
VI STATUS

	
Applicable
Margin 
	
0.550%
	
0.650%
	
0.750%
	
0.800%
	
0.900%
	
1.000%

	
Applicable Fee
Rate
	
0.115%
	
0.125%
	
0.130%
	
0.140%
	
0.150%
	
0.200%

The Applicable Margin and the Applicable Fee Rate shall be
determined in accordance with the foregoing table based on the Status as
determined from the then-current Moody’s and S&P Ratings.  The credit
rating in effect on any date for the purposes of this Schedule is that in effect
at the close of business on such date.  If at any time Madison Gas has no
Moody’s Rating or no S&P Rating, but has a Rating, the Status shall be
determined based on the Rating that is then in effect.  If at any time
Madison Gas has no Moody’s Rating and no S&P Rating, Level VI Status shall
exist.

“Level I Status” exists at any date if, on such date, the Moody’s
Rating is Aa2 or better or the S&P Rating is AA or better.

“Level II Status” exists at any date if, on such date, (i) the
Borrower has not qualified for Level I Status and (ii) the Moody’s Rating is Aa3
or better or the S&P Rating is AA- or better.

“Level III Status” exists at any date if, on such date, (i) the
Borrower has not qualified for Level I Status or Level II Status and (ii) the
Moody’s Rating is A1 or better or the S&P Rating is A+ or better.

“Level IV Status” exists at any date if, on such date, (i) the
Borrower has not qualified for Level I, Level II or Level III Status and (ii)
the Moody’s Rating is A2 or better or the S&P Rating is A or better.

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

“Level VI Status” exists at any date if, on such date, the
Borrower has not qualified for any other Status.

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

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

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

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

If Madison Gas is split-rated and the ratings differential is one
level, the better rating will apply.  If Madison Gas is split-rated and the
ratings differential is two levels or more, the intermediate rating at the
midpoint will apply.  If there is no midpoint, the higher of the
intermediate ratings will apply.

Schedule 5.8

Subsidiaries

			
	
Name
	
Jurisdiction
of Incorporation
	
Percentage
Owned

	
Madison
Gas and Electric Company
	
Wisconsin
	
100%

	
Central
Wisconsin Development Corporation
	
Wisconsin
	
100%

	
MAGAEL,
LLC
	
Wisconsin
	
100%

	
MGE Construct
LLC
	
Wisconsin
	
100%

	
MGE Power
LLC
	
Wisconsin
	
100%

	
MGE
Power Elm Road, LLC
	
Wisconsin
	
100%

	
MGE
Power West Campus, LLC
	
Wisconsin
	
100%

	
MGE
Transco Investment, LLC
	
Wisconsin
	
100%*

*

MGE Energy, Inc. owns 22.59% directly and the remaining 77.41%
indirectly (through its ownership of Madison Gas and Electric Company).

Schedule 6.13

Liens

Indenture of Mortgage and Deed of Trust between Madison Gas and
Electric Company and U.S. Bank National Association (successor to First
Wisconsin Trust Company), as Trustee, dated as of January 1, 1946.

Amended
and Restated Leasehold Mortgage with Assignment of Rents dated
as of October 27, 2005 from MGE Power West Campus, LLC, as Mortgagor, to
The Bank of New York Mellon Trust Company, N.A., not in its individual capacity,
except as expressly stated herein, but solely as Indenture
Trustee under the Trust Indenture dated as of September 30, 2003 between
MGE Power West Campus, LLC and The Bank of New York Mellon Trust Company, N.A.,
as trustee.

EXHIBIT A

FORM OF OPINION

August
29, 2008

To
the Administrative Agent and each of the Lenders 

who
are parties to the Credit Agreement dated as of 

August
29, 2008 among MGE Energy, Inc., the Lenders

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

Ladies
and Gentlemen:

We have been asked to furnish this letter to you pursuant to
Section 4.1(v) of the Credit Agreement dated as of August 29, 2008 (the "Credit
Agreement") among MGE Energy, Inc. (the "Borrower"), the Lenders and JPMorgan
Chase Bank N.A., as Administrative Agent. All capitalized terms used in this
letter and not otherwise defined herein shall have the respective meanings
attributed to them in the Credit Agreement.

We have acted as Wisconsin counsel to the Borrower in connection
with the execution and delivery of the Credit Agreement. In that capacity, we
have examined (i) the Credit Agreement, (ii) the Borrower's Restated Articles of
Incorporation and all amendments thereto (the "Charter") and (iii) the
Borrower's Bylaws and all amendments thereto (the "Bylaws").

We are familiar with the corporate proceedings taken by the
Borrower in connection with the Credit Agreement and the transactions
contemplated thereby. For purposes of expressing the opinions expressed in this
letter, we have relied, as to various questions of fact material thereto, upon
the representations made by the Borrower in the Credit Agreement and upon
certificates of officers of the Borrower. We have also examined originals, or
copies of originals certified to our satisfaction, of such corporate records of
the Borrower and such agreements, documents, certificates and other statements
of government officials and other instruments, have examined such questions of
law and have satisfied ourselves as to such matters of fact as we have
considered relevant and necessary as a basis for this letter. We have assumed
the genuineness of all signatures, the legal capacity of all natural persons,
the authenticity of all documents submitted to us as originals and the
conformity with the original documents of all documents submitted to us as
certified or photostatic copies or by facsimile or other means of electronic
transmission. With respect to any instrument or agreement executed or to be
executed by any party other than the Borrower, we have assumed, to the extent
relevant to the opinions set forth herein, that (i) such other party (if not a
natural person) has been duly organized and is validly existing and in good
standing under the laws of its jurisdiction of organization and (ii) such other
party has full right, power and authority to execute, deliver and perform its
obligations under each instrument or agreement to which it is a party and each
such instrument or agreement has been duly authorized (if applicable), executed
and delivered by, and is a valid, binding and enforceable agreement or
obligation, as the case may be, of, such other party.

Based
upon the foregoing and subject to the qualifications and limitations stated
below, it is our opinion that:

(1)

The
Borrower is a corporation validly existing and in good standing under

the
laws of Wisconsin and has all requisite authority to conduct its business in
each jurisdiction in which its business is conducted.

(2)

The
execution and delivery by the Borrower of, and the performance by

the
Borrower of its obligations under, the Loan Documents have been duly authorized
by proper corporate proceedings on the part of the Borrower and do not:

(a)

require
any consent of the Borrower's shareholder;

(b)

(i)
violate the Charter, the Bylaws or any law, rule or regulation

known to us to be customarily applicable to transactions of the
nature contemplated by the Loan Documents, (ii) violate any order, writ,
judgment, injunction, decree or award known to us to be binding on the Borrower
or (iii) to our knowledge, violate, or constitute a default under, the
provisions of any indenture, instrument or agreement to which the Borrower is a
party, or by which it, or its Property, is bound; or

(c)

result
in, or require, the creation or imposition of any Lien in, of or

on
the Property of the Borrower pursuant to the terms of any indenture, instrument
or agreement known to us to be binding upon the Borrower.

(3)

The
Loan Documents have been duly executed and delivered by the

Borrower and constitute legal, valid and binding obligations of
the Borrower enforceable against the Borrower in accordance with their terms
except to the extent the enforcement thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance or other similar
laws affecting the enforcement of creditors' rights generally and subject also
to the availability of equitable remedies if equitable remedies are sought.

(4)

To
our knowledge, except as disclosed in the Borrower's Annual Report

on Form 10-K for the year ended December 31, 2008 and its
Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2008,
there is no litigation, arbitration, governmental investigation, proceeding or
inquiry pending or overtly threatened against the Borrower which could
reasonably be expected to affect materially and adversely the Borrower's
performance of its obligations under the Loan Documents.

 (5) 

No order, consent, adjudication, approval, license, authorization,
or

validation of, or filing, recording or registration with, or
exemption by, or other action in respect of any governmental or public body or
authority, or any subdivision thereof, which has not been obtained by the
Borrower, is required to be obtained by the Borrower in connection with its
execution and delivery of the Loan Documents, the borrowings under the Credit
Agreement, the payment and performance by the Borrower of the Obligations, or
the legality, validity, binding effect or enforceability against the Borrower of
any of the Loan Documents.

The opinion as to enforceability set forth in paragraph 3 above is
subject to the qualification that the enforceability of the Borrower's
obligations under the Loan Documents is subject to general principles of equity
(regardless of whether such enforceability is considered in a proceeding at law
or in equity). Such principles of equity are of general application and, in
applying such principles, a court, among other things, might not allow a
contracting party to exercise remedies in respect of a default deemed
immaterial, or might decline to order an obligor to perform covenants. Such
principles would include an expectation that parties act with reasonableness and
in good faith, and might be applied, for example, to provisions which purport to
grant a party with the authority to exercise sole discretion or make conclusive
determinations. We note further, that, in addition to the application of
equitable principles described above, courts have imposed an obligation on
contracting parties to act reasonably and in good faith in the exercise of their
contractual rights and remedies, and may also apply public policy considerations
in limiting the rights of parties seeking to obtain indemnification.

We express no opinion as to the enforceability of provisions of the
Credit Agreement that

(a)

attempt to exculpate other parties from liability for future
actions, inactions or practices,

(b)

purport to establish evidentiary standards, (c) purport to confer
subject matter jurisdiction on any court or fix venue, (d) relate to
severability or separability, (f) relate to payment without set­off or that
otherwise purport to make obligations of, or determinations by, any party
unconditional and absolute or (g) constitute agreements to agree. We also
express no opinion as to the enforceability of provisions in the Credit
Agreement to the effect that terms may not be waived or modified except in
writing.

Any opinion herein which is expressed to be "to our knowledge" or
is otherwise qualified by words of like import means that the lawyers in this
firm who have had an involvement in reviewing the Loan Documents have no current
conscious awareness of any facts or information contrary to such opinion.

This letter is limited to the federal laws of the United States of
America and the laws of the State of Wisconsin.

This letter is being delivered solely for the benefit of the
persons to whom it is addressed (together with their participants, assignees and
other transferees, subject in all respects to the last sentence of this
paragraph); accordingly, it may not be relied upon by any other person or for
any other purpose without, in each case, our written consent. This letter may
not be quoted or filed

August
29, 2008 Page 4

with any governmental authority or other regulatory agency (except
to the extent required by law). We assume no obligation to update or supplement
the opinions expressed herein to reflect any facts or circumstances which may
hereafter come to our attention with respect to such opinions, including any
changes in applicable law which may hereafter occur.

Very
truly yours,

STAFFORD
ROSENBAUM LLP

EXHIBIT B

COMPLIANCE CERTIFICATE

To:

The
Lenders parties to the
Credit Agreement Described Below

This Compliance Certificate is furnished pursuant to that certain
Credit Agreement dated as of August 29, 2008 (as amended, modified, renewed or
extended from time to time, the “Agreement”) among MGE Energy, Inc. (the
“Borrower”), the lenders party thereto and JPMorgan Chase Bank, N.A., as
Administrative Agent for the Lenders.  Unless otherwise defined herein,
capitalized terms used in this Compliance Certificate have the meanings ascribed
thereto in the Agreement.

THE
UNDERSIGNED HEREBY CERTIFIES THAT:

1.  I am the duly elected __________ of the Borrower;

2.  I have reviewed the terms of the Agreement and I have
made, or have caused to be made under my supervision, a detailed review of the
transactions and conditions of the Borrower and its Subsidiaries during the
accounting period covered by the attached financial statements;

3.  The examinations described in paragraph 2 did not
disclose, and I have no knowledge of, the existence of any condition or event
which constitutes a Default or Unmatured Default during or at the end of the
accounting period covered by the attached financial statements or as of the date
of this Certificate, except as set forth below; and

4.  Schedule I attached hereto sets forth financial data and
computations evidencing the Borrower’s compliance with certain covenants of the
Agreement, all of which data and computations are true, complete and
correct.

**[5. Schedule II attached hereto sets forth the various reports
and deliveries which are required at this time under the Credit Agreement and
the other Loan Documents and the status of compliance.]**

Described below are the exceptions, if any, to paragraph 3 by
listing, in detail, the nature of the condition or event, the period during
which it has existed and the action which the Borrower has taken, is taking, or
proposes to take with respect to each such condition or event:

The foregoing certifications, together with the computations set
forth in Schedule I hereto and the financial statements delivered with this
Certificate in support hereof, are made and delivered this
     day of
              ,
       .

SCHEDULE I TO COMPLIANCE CERTIFICATE

Compliance as of _________, ____ with
Provisions of ____ and
______ of
the Agreement

SCHEDULE II TO COMPLIANCE CERTIFICATE

REPORTS AND DELIVERIES CURRENTLY DUE

EXHIBIT C

ASSIGNMENT AGREEMENT

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

For an agreed consideration, the Assignor hereby irrevocably sells
and assigns to the Assignee, and the Assignee hereby irrevocably purchases and
assumes from the Assignor, subject to and in accordance with the Standard Terms
and Conditions and the Credit Agreement, as of the Effective Date inserted by
the Administrative Agent as contemplated below, the interest in and to all of
the Assignor’s rights and obligations in its capacity as a Lender under the
Credit Agreement and any other documents or instruments delivered pursuant
thereto that represents the amount and percentage interest identified below of
all of the Assignor’s outstanding rights and obligations under the respective
facilities identified below (including any letters of credit and guaranties
included in such facilities and, to the extent permitted to be assigned under
applicable law, all claims (including contract claims, tort claims, malpractice
claims, statutory claims and all other claims at law or in equity), suits,
causes of action and any other right of the Assignor against any Person whether
known or unknown arising under or in connection with the Credit Agreement, any
other documents or instruments delivered pursuant thereto or the loan
transactions governed thereby) (the “Assigned Interest”).  Such sale
and assignment is without recourse to the Assignor and, except as expressly
provided in this Assignment and Assumption, without representation or warranty
by the Assignor.

1.

Assignor:

2.

Assignee:

 

3.

Borrower:

MGE
Energy, Inc.

4.

Administrative

Agent:

JPMorgan
Chase Bank, N.A., as the Administrative Agent under the Credit Agreement.

5.

Credit
Agreement:

Credit
Agreement dated as of August 29, 2008 among the Borrower, the Lenders party
thereto and JPMorgan Chase Bank, N.A., as Administrative Agent.

6.

Assigned
Interest:

				
	
Facility
Assigned
	
Aggregate
Amount of Commitment/Loans for all Lenders*
	
Amount of
Commitment/Loans Assigned*
	
Percentage
Assigned of Commitment/Loans1

	
____________
	
$
	
$
	
_______%

	
____________
	
$
	
$
	
_______%

	
____________
	
$
	
$
	
_______%

7.

Trade
Date:

1

Effective Date:
____________________, 20__ TO BE INSERTED BY AGENT AND WHICH SHALL BE THE
EFFECTIVE DATE OF RECORDATION OF TRANSFER BY THE ADMINISTRATIVE
AGENT.]

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

ASSIGNOR
[NAME
OF ASSIGNOR]

By:

Title:

ASSIGNEE
[NAME
OF ASSIGNEE]

By:

Title:

[Consented
to and]1 Accepted:

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

By:

Title:

[Consented
to:]1

[MGE
ENERGY, INC.]

By:

Title:

ANNEX 1

TERMS AND CONDITIONS FOR
ASSIGNMENT AND ASSUMPTION

1.  Representations and Warranties.  

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

.2.

Assignee.  The Assignee (a) represents and warrants
that (i) it has full power and authority, and has taken all action necessary, to
execute and deliver this Assignment and to consummate the transactions
contemplated hereby and to become a Lender under the Credit Agreement, (ii) from
and after the Effective Date, it shall be bound by the provisions of the Credit
Agreement as a Lender thereunder and, to the extent of the Assigned Interest,
shall have the obligations of a Lender thereunder, (iii) it has received a copy
of the Credit Agreement, together with copies of the most recent financial
statements delivered pursuant to Section 6.1(i) and (ii) thereof, as applicable,
and such other documents and information as it has deemed appropriate to make
its own credit analysis and decision to enter into this Assignment and to
purchase the Assigned Interest on the basis of which it has made such analysis
and decision independently and without reliance on the Administrative Agent or
any other Lender and (iv) if it is a Non-U.S. Lender, attached hereto is any
documentation required to be delivered by it pursuant to the terms of the Credit
Agreement, duly completed and executed by the Assignee; and (b) agrees that (i)
it will, independently and without reliance on the Administrative Agent, the
Assignor or any other Lender, and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Loan Documents, and (ii) it will perform
in accordance with their terms all of the obligations which by the terms of the
Loan Documents are required to be performed by it as a Lender.

2.

Payments.  From and after the Effective Date, the
Administrative Agent shall make all payments in respect of the Assigned Interest
(including payments of principal, interest, fees and other amounts) to the
Assignor for amounts which have accrued to but excluding the Effective Date and
to the assignee for amounts which have accrued from and after the Effective
Date.

3.

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

EXHIBIT D

NOTE

[Date]

MGE Energy, Inc., a Wisconsin corporation (the “Borrower”),
promises to pay to the order of ____________________________________ (the
“Lender”) the aggregate unpaid principal amount of all Loans made by the Lender
to the Borrower pursuant to Section 2.2 of the Agreement (as hereinafter
defined), in immediately available funds at the office of the Administrative
Agent determined pursuant to the terms of the Agreement referred to below,
together with interest on the unpaid principal amount hereof at the rates and on
the dates set forth in the Agreement.  The Borrower shall pay the principal
of and accrued and unpaid interest on the Loans in full on the Facility
Termination Date.

The Lender shall, and is hereby authorized to, record on the
schedule attached hereto, or to otherwise record in accordance with its usual
practice, the date and amount of each Loan and the date and amount of each
principal payment hereunder.

This Note is one of the Notes issued pursuant to, and is entitled
to the benefits of, the Credit Agreement dated as of August 29, 2008 (which, as
it may be amended or modified and in effect from time to time, is herein called
the “Agreement”), among the Borrower, the lenders party thereto, including the
Lender, and JPMorgan Chase Bank, N.A., as Administrative Agent, to which
Agreement reference is hereby made for a statement of the terms and conditions
governing this Note, including the terms and conditions under which this Note
may be prepaid or its maturity date accelerated.  Capitalized terms used
herein and not otherwise defined herein are used with the meanings attributed to
them in the Agreement.

MGE
ENERGY, INC.

By:

Print
Name:
         
Title:

SCHEDULE OF LOANS AND PAYMENTS OF PRINCIPAL
TO
NOTE OF MGE
ENERGY, INC.,
DATED _____________,

					
	
Date
	
Principal
Amount of
Loan
	
Maturity
of Interest
Period
	
Principal
Amount
Paid
	
Unpaid
Balance

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