Document:

PPL 8k Exhibit 10a Electric Utilities

    Exhibit
      10(a)

    

    
      	
              CUSIP
                Number: 69351YAA3

            

    

    

    

    $200,000,000

     

    SECOND
      AMENDED AND RESTATED FIVE-YEAR CREDIT AGREEMENT

     

    dated
      as of June 9, 2006

     

    among

     

    PPL
      ELECTRIC UTILITIES CORPORATION,

     

    THE
      LENDERS FROM TIME TO TIME PARTY HERETO,

     

    WACHOVIA
      BANK, NATIONAL ASSOCIATION

    as
      Administrative Agent and Issuing Lender,

     

    BARCLAYS
      BANK PLC and CITIBANK, N.A.,

    as
      Syndication Agents,

     

    WACHOVIA
      CAPITAL MARKETS, LLC, 

     

    CITIGROUP
      GLOBAL MARKETS, INC.,

     

    and

     

    BARCLAYS
      CAPITAL,

    as
      Joint Lead Arrangers,

     

    and

     

    UBS
      LOAN FINANCE, LLC and JPMORGAN CHASE BANK,

    as
      Documentation Agents

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    TABLE
      OF CONTENTS

    Page

    

      

        
          	
                  Article
                    I DEFINITIONS

                	
                  1

                
	
                   

                	
                  Section
                    1.01

                	
                  Definitions

                	
                  1

                
	
                  Article
                    II THE CREDITS

                	
                  17

                
	
                   

                	
                  Section
                    2.01

                	
                  Commitments
                    to Lend

                	
                  17

                
	
                   

                	
                  Section
                    2.02

                	
                  Notice
                    of Borrowings

                	
                  17

                
	
                   

                	
                  Section
                    2.03

                	
                  Notice
                    to Lenders; Funding of Loans

                	
                  17

                
	
                   

                	
                  Section
                    2.04

                	
                  Noteless
                    Agreement; Evidence of Indebtedness

                	
                  18

                
	
                   

                	
                  Section
                    2.05

                	
                  Interest
                    Rates

                	
                  19

                
	
                   

                	
                  Section
                    2.06

                	
                  Fees

                	
                  21

                
	
                   

                	
                  Section
                    2.07

                	
                  Adjustments
                    of Commitments

                	
                  21

                
	
                   

                	
                  Section
                    2.08

                	
                  Maturity
                    of Loans; Mandatory Prepayments

                	
                  24

                
	
                   

                	
                  Section
                    2.09

                	
                  Optional
                    Prepayments and Repayments

                	
                  25

                
	
                   

                	
                  Section
                    2.10

                	
                  General
                    Provisions as to Payments

                	
                  25

                
	
                   

                	
                  Section
                    2.11

                	
                  Funding
                    Losses

                	
                  26

                
	
                   

                	
                  Section
                    2.12

                	
                  Computation
                    of Interest and Fees

                	
                  26

                
	
                   

                	
                  Section
                    2.13

                	
                  Basis
                    for Determining Interest Rate Inadequate, Unfair or
                    Unavailable

                	
                  26

                
	
                   

                	
                  Section
                    2.14

                	
                  Illegality

                	
                  27

                
	
                   

                	
                  Section
                    2.15

                	
                  Increased
                    Cost and Reduced Return

                	
                  27

                
	
                   

                	
                  Section
                    2.16

                	
                  Taxes

                	
                  28

                
	
                   

                	
                  Section
                    2.17

                	
                  Base
                    Rate Loans Substituted for Affected Euro-Dollar Loans

                	
                  31

                
	
                  Article
                    III LETTERS OF CREDIT

                	
                  31

                
	
                   

                	
                  Section
                    3.01

                	
                  Existing
                    Letters of Credit

                	
                  31

                
	
                   

                	
                  Section
                    3.02

                	
                  Additional
                    Letters of Credit

                	
                  31

                
	
                   

                	
                  Section
                    3.03

                	
                  Method
                    of Issuance of Letters of Credit

                	
                  32

                
	
                   

                	
                  Section
                    3.04

                	
                  Conditions
                    to Issuance of Additional Letters of Credit

                	
                  32

                
	
                   

                	
                  Section
                    3.05

                	
                  Purchase
                    and Sale of Letter of Credit Participations

                	
                  32

                
	
                   

                	
                  Section
                    3.06

                	
                  Drawings
                    under Letters of Credit

                	
                  33

                
	
                   

                	
                  Section
                    3.07

                	
                  Reimbursement
                    Obligations

                	
                  33

                
	
                   

                	
                  Section
                    3.08

                	
                  Duties
                    of Issuing Lenders to Lenders; Reliance

                	
                  33

                
	
                   

                	
                  Section
                    3.09

                	
                  Obligations
                    of Lenders to Reimburse Issuing Lender for Unpaid Drawings

                	
                  34

                
	
                   

                	
                  Section
                    3.10

                	
                  Funds
                    Received from the Borrower in Respect of Drawn Letters of
                    Credit

                	
                  35

                
	
                   

                	
                  Section
                    3.11

                	
                  Obligations
                    in Respect of Letters of Credit Unconditional

                	
                  35

                
	
                   

                	
                  Section
                    3.12

                	
                  Indemnification
                    in Respect of Letters of Credit

                	
                  36

                
	
                   

                	
                  Section
                    3.13

                	
                  ISP98

                	
                  37

                
	
                  Article
                    IV CONDITIONS

                	
                  37

                
	
                   

                	
                  Section
                    4.01

                	
                  Conditions
                    to Closing

                	
                  37

                
	
                   

                	
                  Section
                    4.02

                	
                  Conditions
                    to All Credit Events

                	
                  39

                
	
                  Article
                    V REPRESENTATIONS AND WARRANTIES

                	
                  39

                
	
                   

                	
                  Section
                    5.01

                	
                  Status

                	
                  40

                
	
                   

                	
                  Section
                    5.02

                	
                  Authority;
                    No Conflict

                	
                  40

                
	
                   

                	
                  Section
                    5.03

                	
                  Legality;
                    Etc

                	
                  40

                
	
                   

                	
                  Section
                    5.04

                	
                  Financial
                    Condition

                	
                  40

                
	
                   

                	
                  Section
                    5.05

                	
                  Litigation

                	
                  41

                
	
                   

                	
                  Section
                    5.06

                	
                  No
                    Violation

                	
                  41

                
	
                   

                	
                  Section
                    5.07

                	
                  ERISA

                	
                  41

                
	
                   

                	
                  Section
                    5.08

                	
                  Governmental
                    Approvals

                	
                  41

                
	
                   

                	
                  Section
                    5.09

                	
                  Investment
                    Company Act

                	
                  41

                
	
                   

                	
                  Section
                    5.10

                	
                  Tax
                    Returns and Payments

                	
                  41

                
	
                   

                	
                  Section
                    5.11

                	
                  Compliance
                    with Laws

                	
                  42

                
	
                   

                	
                  Section
                    5.12

                	
                  No
                    Default

                	
                  42

                
	
                   

                	
                  Section
                    5.13

                	
                  Environmental
                    Matters

                	
                  42

                
	
                   

                	
                  Section
                    5.14

                	
                  OFAC

                	
                  43

                
	
                  Article
                    VI COVENANTS

                	
                  43

                
	
                   

                	
                  Section
                    6.01

                	
                  Information

                	
                  43

                
	
                   

                	
                  Section
                    6.02

                	
                  Maintenance
                    of Property; Insurance

                	
                  45

                
	
                   

                	
                  Section
                    6.03

                	
                  Conduct
                    of Business and Maintenance of Existence

                	
                  45

                
	
                   

                	
                  Section
                    6.04

                	
                  Compliance
                    with Laws, Etc

                	
                  45

                
	
                   

                	
                  Section
                    6.05

                	
                  Books
                    and Records

                	
                  45

                
	
                   

                	
                  Section
                    6.06

                	
                  Use
                    of Proceeds

                	
                  46

                
	
                   

                	
                  Section
                    6.07

                	
                  Merger
                    or Consolidation

                	
                  46

                
	
                   

                	
                  Section
                    6.08

                	
                  Asset
                    Sales

                	
                  46

                
	
                   

                	
                  Section
                    6.09

                	
                  Consolidated
                    Debt to Consolidated Capitalization Ratio

                	
                  46

                
	
                  Article
                    VII DEFAULTS

                	
                  46

                
	
                   

                	
                  Section
                    7.01

                	
                  Events
                    of Default

                	
                  46

                
	
                  Article
                    VIII THE AGENTS

                	
                  48

                
	
                   

                	
                  Section
                    8.01

                	
                  Appointment
                    and Authorization

                	
                  48

                
	
                   

                	
                  Section
                    8.02

                	
                  Individual
                    Capacity

                	
                  49

                
	
                   

                	
                  Section
                    8.03

                	
                  Delegation
                    of Duties

                	
                  49

                
	
                   

                	
                  Section
                    8.04

                	
                  Reliance
                    by the Administrative Agent

                	
                  49

                
	
                   

                	
                  Section
                    8.05

                	
                  Notice
                    of Default

                	
                  49

                
	
                   

                	
                  Section
                    8.06

                	
                  Non-Reliance
                    on the Agents and Other Lenders

                	
                  50

                
	
                   

                	
                  Section
                    8.07

                	
                  Exculpatory
                    Provisions

                	
                  50

                
	
                   

                	
                  Section
                    8.08

                	
                  Indemnification

                	
                  51

                
	
                   

                	
                  Section
                    8.09

                	
                  Resignation;
                    Successors

                	
                  51

                
	
                   

                	
                  Section
                    8.10

                	
                  Administrative
                    Agent’s Fees

                	
                  51

                
	
                  Article
                    IX MISCELLANEOUS

                	
                  52

                
	
                   

                	
                  Section
                    9.01

                	
                  Notices

                	
                  52

                
	
                   

                	
                  Section
                    9.02

                	
                  No
                    Waivers; Non-Exclusive Remedies

                	
                  53

                
	
                   

                	
                  Section
                    9.03

                	
                  Expenses;
                    Indemnification

                	
                  53

                
	
                   

                	
                  Section
                    9.04

                	
                  Sharing
                    of Set-Offs

                	
                  54

                
	
                   

                	
                  Section
                    9.05

                	
                  Amendments
                    and Waivers

                	
                  55

                
	
                   

                	
                  Section
                    9.06

                	
                  Successors
                    and Assigns

                	
                  55

                
	
                   

                	
                  Section
                    9.07

                	
                  Governing
                    Law; Submission to Jurisdiction

                	
                  57

                
	
                   

                	
                  Section
                    9.08

                	
                  Counterparts;
                    Integration; Effectiveness

                	
                  58

                
	
                   

                	
                  Section
                    9.09

                	
                  Generally
                    Accepted Accounting Principles

                	
                  58

                
	
                   

                	
                  Section
                    9.10

                	
                  Usage

                	
                  58

                
	
                   

                	
                  Section
                    9.11

                	
                  WAIVER
                    OF JURY TRIAL

                	
                  59

                
	
                   

                	
                  Section
                    9.12

                	
                  Confidentiality

                	
                  59

                
	
                   

                	
                  Section
                    9.13

                	
                  USA
                    PATRIOT Act Notice

                	
                  60

                
	
                   

                	
                  Section
                    9.14

                	
                  Effect
                    of Agreement

                	
                  60

                

        

      

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Appendices
      and Schedules:

    Commitment
      Appendix

    Schedules:

    Schedule
      3.01 - Existing
      Letters of Credit

    Exhibits:

    Exhibit
      A-1 - Form
      of
      Notice of Borrowing

    Exhibit
      A-2 - Form
      of
      Notice of Conversion/Continuation

    Exhibit
      A-3  - Form
      of
      Letter of Credit Request

    Exhibit
      A-4  - Form
      of
      Extension Letter

    Exhibit
      B
 - Form
      of
      Revolving Note

    Exhibit
      C
 - Form
      of
      Assignment and Assumption Agreement

    Exhibit
      D
 - Forms
      of
      Opinion of Counsel for the Borrower

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SECOND
      AMENDED AND RESTATED FIVE-YEAR CREDIT AGREEMENT (this
      “Agreement”)
      dated
      as of June 9, 2006 among PPL ELECTRIC UTILITIES CORPORATION, a Pennsylvania
      corporation (the “Borrower”),
      the
      LENDERS party hereto from time to time, WACHOVIA BANK, NATIONAL ASSOCIATION,
      as
      Administrative Agent and Issuing Lender, BARCLAYS BANK PLC and CITIBANK, N.A.,
      as Syndication Agents, WACHOVIA CAPITAL MARKETS, LLC, BARCLAYS CAPITAL (the
      investment banking division of Barclays Bank PLC) and CITIGROUP GLOBAL MARKETS,
      INC., as Joint Lead Arrangers, and UBS LOAN FINANCE, LLC and JPMORGAN CHASE
      BANK, as Documentation Agents.

     

    Pursuant
      to that certain Amended and Restated Five-Year Credit Agreement, dated as of
      June 22, 2005 (as such agreement has been extended through the extension of
      the
      Revolving Termination Date (as defined therein) pursuant to Section 2.07(c)
      thereof, and as further amended, extended or otherwise modified, the “Existing
      Credit Agreement”), among the Borrower, the lenders party thereto (the “Existing
      Lenders”) and Wachovia Bank, National Association, as Administrative Agent and
      Issuing Lender, the Existing Lenders provided certain credit facilities to
      the
      Borrower.

     

    The
      Borrower has requested and the Lenders (as hereinafter defined) have agreed
      to
      amend and restate the Existing Credit Agreement as set forth
      herein.

     

    ARTICLE
      I

     

    DEFINITIONS

     

    Section
      1.01  Definitions.
      All
      capitalized terms used in this Agreement or in any Appendix, Schedule or Exhibit
      hereto which are not otherwise defined herein or therein shall have the
      respective meanings set forth below.

    “Additional
      Commitment Lender”
shall
      have the meaning set forth in Section 2.07(c)(iii).

    “Additional
      Letter of Credit”
means
      any standby letter of credit issued under this Agreement by Wachovia Bank,
      National Association, as Issuing Lender, on or after the Closing
      Date.

    “Adjusted
      London Interbank Offered Rate”
means,
      for any Interest Period, a rate per annum equal to the quotient obtained
      (rounded upward, if necessary, to the nearest 1/100th of 1%) by dividing (i)
      the
      London Interbank Offered Rate for such Interest Period by (ii) 1.00 minus the
      Euro-Dollar Reserve Percentage.

    “Administrative
      Agent”
means
      Wachovia Bank, National Association, in its capacity as administrative agent
      for
      the Lenders hereunder and under the other Loan Documents, and its successor
      or
      successors in such capacity.

    “Administrative
      Questionnaire”
means,
      with respect to each Lender, an administrative questionnaire in the form
      provided by the Administrative Agent and submitted to the Administrative Agent
      (with a copy to the Borrower) duly completed by such Lender.

    “Affiliate”
means,
      with respect to any Person, any other Person who is directly or indirectly
      controlling, controlled by or under common control with such Person. A Person
      shall be deemed to control another Person if such Person possesses, directly
      or
      indirectly, the power to direct or cause the direction of the management or
      policies of the controlled Person, whether through the ownership of stock or
      its
      equivalent, by contract or otherwise.

    “Agent”
means
      the Administrative Agent, the Syndication Agents, the Joint Lead Arrangers
      or
      the Documentation Agents, and “Agents” means any two or more of
      them.

    “Agreement”
means
      this Credit Agreement, as amended, restated supplemented or modified from time
      to time.

    “Applicable
      Lending Office”
means,
      with respect to any Lender, (i) in the case of its Base Rate Loans, its Base
      Rate Lending Office and (ii) in the case of its Euro-Dollar Loans, its
      Euro-Dollar Lending Office.

    “Applicable
      Percentage”
means,
      for purposes of calculating (i) the applicable interest rate for any day for
      any
      Base Rate Loans or Euro-Dollar Loans, (ii) the applicable rate for the
      Commitment Fee for any day for purposes of Section 2.06(a) or (iii) the
      applicable rate for the Letter of Credit Fee for any day for purposes of Section
      2.06(b), the appropriate applicable percentage set forth below corresponding
      to
      the then current highest Borrower’s Ratings; provided,
      that,
      in the event that (a) the Borrower’s Ratings shall fall within different levels
      and ratings are maintained by all Rating Agencies, (i) if two applicable ratings
      are equal and higher than the third applicable rating, the higher applicable
      rating will apply, (ii) if two applicable ratings are equal and lower than
      the
      third applicable rating, the lower applicable rating will apply, (iii) if no
      applicable ratings are equal, the intermediate applicable rating will apply;
      (b)
      if the Borrower’s Ratings shall fall within different levels and ratings are
      then maintained by only two Rating Agencies, the applicable rating shall be
      based on the higher of the two applicable ratings unless one of the two
      applicable ratings is two or more levels lower than the other, in which case
      the
      applicable rating shall be determined by reference to the level one rating
      lower
      than the higher of the two applicable ratings:

     

    
      	 	
              Borrower’s
                Ratings

              (S&P
                /Moody’s /Fitch)

            	
              Applicable
                Percentage for Commitment Fees

            	
              Applicable
                Percentage for Base Rate Loans

            	
              Applicable
                Percentage for Euro-Dollar Loans and

              Letter
                of

              Credit
                Fees

            
	
              Category
                A

            	
              ≥
A
                from S&P / A2 from Moody’s / A from Fitch

            	
              0.050%

            	
              0.0%

            	
              0.200%

            
	
              Category
                B

            	
              A-
                from S&P / A3 from Moody’s/ A- from Fitch

            	
              0.060%

            	
              0.0%

            	
              0.250%

            
	
              Category
                C

            	
              BBB+
                from S&P / Baa1 from Moody’s / BBB+ from Fitch

            	
              0.080%

            	
              0.0%

            	
              0.350%

            
	
              Category
                D

            	
              BBB
                from S&P / Baa2 from Moody’s / BBB from Fitch

            	
              0.100%

            	
              0.0%

            	
              0.450%

            
	
              Category
                E

            	
              BBB-
                from S&P / Baa3 from Moody’s / BBB- from Fitch

            	
              0.125%

            	
              0.0%

            	
              0.550%

            
	
              Category
                F

            	
              <
                BBB- from S&P / Baa3 from Moody’s / BBB- from Fitch

            	
              0.175%

            	
              0.0%

            	
              0.700%

            
	 	 	 	 	 

    

     

    “Applicable
      Utilization Fee”
means
      on any day the appropriate applicable percentage set forth below corresponding
      to (a) the percentage of the aggregate of the Lenders’ Revolving Commitments
      outstanding represented by the aggregate Loans plus the aggregate Letter of
      Credit Liabilities outstanding on such day and (b) the then current highest
      Borrower Rating; provided,
      that,
      in the event that (a) the Borrower’s Ratings shall fall within different levels
      and ratings are maintained by all Rating Agencies, (i) if two applicable ratings
      are equal and higher than the third applicable rating, the higher applicable
      rating will apply, (ii) if two applicable ratings are equal and lower than
      the
      third applicable rating, the lower applicable rating will apply, (iii) if no
      applicable ratings are equal, the intermediate applicable rating will apply;
      (b)
      if the Borrower’s Ratings shall fall within different levels and ratings are
      then maintained by only two Rating Agencies, the applicable rating shall be
      based on the higher of the two applicable ratings unless one of the two
      applicable ratings is two or more levels lower than the other, in which case
      the
      applicable rating shall be determined by reference to the level one rating
      lower
      than the higher of the two applicable ratings:

     

    
      	 	
              Ratings

              (S&P/
                Moody’s/ Fitch)

            	
              Usage
                > 50% of Total Commitments

            
	
              Category
                A

            	
              ≥
A
                from S&P / A2 from Moody’s / A from Fitch

            	
              0.050%

            
	
              Category
                B

            	
              A-
                from S&P / A3 from Moody’s/ A- from Fitch

            	
              0.050%

            
	
              Category
                C

            	
              BBB+
                from S&P / Baa1 from Moody’s / BBB+ from Fitch

            	
              0.050%

            
	
              Category
                D

            	
              BBB
                from S&P / Baa2 from Moody’s / BBB from Fitch

            	
              0.050%

            
	
              Category
                E

            	
              BBB-
                from S&P / Baa3 from Moody’s / BBB- from Fitch

            	
              0.100%

            
	
              Category
                F

            	
              <
                BBB- from S&P / Baa3 from Moody’s / BBB- from Fitch

            	
              0.100%

            
	 	 	 

    

     

    “Asset
      Sale”
shall
      mean any sale of any assets, including by way of the sale by the Borrower or
      any
      of its Subsidiaries of equity interests in such Subsidiaries.

    “Assignee”
has
      the
      meaning set forth in Section 9.06(c).

    “Assignment
      and Assumption Agreement”
means
      an Assignment and Assumption Agreement, substantially in the form of attached
      Exhibit C, under which an interest of a Lender hereunder is transferred to
      an
      Eligible Assignee pursuant to Section 9.06(c).

    “Availability
      Period”
means
      the period from and including the Closing Date to but excluding the Revolving
      Termination Date.

    “Bankruptcy
      Code”
means
      the Bankruptcy Reform Act of 1978, as amended, or any successor
      statute.

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

    “Base
      Rate Borrowing”
means
      a
      Borrowing comprised of Base Rate Loans.

    “Base
      Rate Lending Office”
means,
      as to each Lender, its office located at its address set forth in its
      Administrative Questionnaire (or identified in its Administrative Questionnaire
      as its Base Rate Lending Office) or such other office as such Lender may
      hereafter designate as its Base Rate Lending Office by notice to the Borrower
      and the Administrative Agent.

    “Base
      Rate Loan”
means
      a
      Loan in respect of which interest is computed on the basis of the Base Rate
      plus
      the Applicable Percentage, if any, with respect to Base Rate Loans.

    “Borrower”
has
      the
      meaning set forth in the Recitals.

    “Borrower’s
      Rating”
means
      the senior secured long-term debt rating of the Borrower from S&P, Moody’s
      or Fitch.

    “Borrowing”
means
      a
      group of Loans of a single Type made by the Lenders on a single date and, in
      the
      case of a Euro-Dollar Borrowing, having a single Interest Period.

    “Business
      Day”
means
      any day except a Saturday, Sunday or other day on which commercial banks in
      Charlotte, North Carolina or New York, New York are authorized by law to close;
      provided,
      that,
      when used in Article III with respect to any action taken by or with respect
      to
      any Issuing Lender, the term “Business Day” shall not include any day on which
      commercial banks are authorized by law to close in the jurisdiction where the
      office at which such Issuing Lender books any Letter of Credit is located;
      and
provided,
      further,
      that
      when used with respect to any borrowing of, payment or prepayment of principal
      of or interest on, or the Interest Period for, a Euro-Dollar Loan, or a notice
      by the Borrower with respect to any such borrowing payment, prepayment or
      Interest Period, the term “Business Day” shall also mean that such day is a day
      on which commercial banks are open for international business (including
      dealings in Dollar deposits) in London.

    “Capital
      Lease”
means
      any lease of property which, in accordance with GAAP, should be capitalized
      on
      the lessee’s balance sheet.

    “Capital
      Lease Obligations”
means,
      with respect to any Person, all obligations of such Person as lessee under
      Capital Leases, in each case taken at the amount thereof accounted for as
      liabilities in accordance with GAAP.

    “Change
      of Control”
means
      (i) the acquisition by any Person, or two or more Persons acting in concert,
      of
      beneficial ownership (within the meaning of Rule 13d-3 of the Securities and
      Exchange Commission under the Securities Exchange Act of 1934, as amended)
      of
      25% or more of the outstanding shares of voting stock of PPL Corporation or
      its
      successors or (ii) the failure at any time of PPL Corporation or its successors
      to own 80% or more of the outstanding shares of the Voting Stock in the
      Borrower.

    “Closing
      Date”
means
      the date, not later than June 9, 2006, on which the Administrative Agent
      determines that the conditions specified in or pursuant to Section 4.01 have
      been satisfied.

    “Commitment”
means,
      with respect to any Lender, the commitment of such Lender to make Revolving
      Loans under this Agreement as set forth in the Commitment Appendix and to
      purchase participations in Letters of Credit pursuant to Article III
      hereof.

    “Commitment
      Appendix”
means
      the Appendix attached under this Agreement identified as such.

    “Commitment
      Fee”
has
      the
      meaning set forth in Section 2.06(a).

    “Consolidated
      Capitalization”
shall
      mean the sum of, without duplication, (A) the Consolidated Debt of the Borrower,
      (B) the consolidated shareowners’ equity (determined in accordance with GAAP) of
      the common, preference and preferred shareowners of the Borrower and minority
      interests recorded on the Borrower’s consolidated financial statements
      (excluding from shareowner’s equity the balance of accumulated other
      comprehensive income/loss of the Borrower on any date of determination solely
      with respect to (i) the effect of all unrealized gains and losses reported
      under
      Financial Accounting Standards Board Statement No. 133 in connection with
      forward contracts, futures contracts or other derivatives or commodity hedging
      agreements for the future delivery of electricity or capacity and (ii) the
      effect of any pension and other post-retirement benefit liability adjustment
      recorded in accordance with GAAP), (C) up to an aggregate amount of $200,000,000
      of Hybrid Preferred Securities and (D) up to an aggregate amount of $200,000,000
      of Equity-Linked Securities, except that for purposes of calculating
      Consolidated Capitalization of the Borrower, Consolidated Debt of the Borrower
      shall exclude Non-Recourse Debt and Consolidated Capitalization of the Borrower
      shall exclude that portion of shareowner’s equity attributable to assets
      securing Non-Recourse Debt.

    “Consolidated
      Debt”
means
      the consolidated Debt of the Borrower and its Consolidated Subsidiaries
      (determined in accordance with GAAP), except that for purposes of this
      definition (a) Consolidated Debt shall exclude Non-Recourse Debt of the Borrower
      and its Consolidated Subsidiaries, and (b) Consolidated Debt shall exclude
      (i)
      up to an aggregate amount of $200,000,000 of Hybrid Preferred Securities of
      the
      Borrower and its Consolidated Subsidiaries and (ii) up to an aggregate amount
      of
      $200,000,000 of Equity-Linked Securities of the Borrower and its Consolidated
      Subsidiaries. 

    “Consolidated
      Subsidiary”
means
      with respect to any Person at any date any Subsidiary of such Person or other
      entity the accounts of which would be consolidated with those of such Person
      in
      its consolidated financial statements if such statements were prepared as of
      such date in accordance with GAAP.

    “Continuing
      Lender”
means
      with respect to any event described in Section 2.07(b), a Lender which is not
      a
      Retiring Lender, and “Continuing Lenders” means any two or more of such
      Continuing Lenders.

    “Corporation”
means
      a
      corporation, association, company, joint stock company, limited liability
      company, partnership or business trust.

    “Credit
      Event”
means
      a
      Borrowing or the issuance, renewal or extension of a Letter of
      Credit.

    “Current
      Revolving Termination Date”
shall
      have the meaning set forth in Section 2.07(c)(i).

    “Debt”
of
      any
      Person means, without duplication, (i) all obligations of such Person for
      borrowed money, (ii) all obligations of such Person evidenced by bonds,
      debentures, notes or similar instruments, (iii) all Guarantees by such Person
      of
      Debt of others, (iv) all Capital Lease Obligations and Synthetic Leases of
      such
      Person, (v) all obligations of such Person in respect of Interest Rate
      Protection Agreements, foreign currency exchange agreements or other interest
      or
      exchange rate hedging arrangements (the amount of any such obligation to be
      the
      net amount that would be payable upon the acceleration, termination or
      liquidation thereof), but only to the extent that such net obligations exceed
      $75,000,000 in the aggregate and (vi) all obligations of such Person as an
      account party in respect of letters of credit and bankers’ acceptances;
provided,
      however,
      that
“Debt” of such Person does not include (a) obligations of such Person under any
      installment sale, conditional sale or title retention agreement or any other
      agreement relating to obligations for the deferred purchase price of property
      or
      services (b) obligations under agreements relating to the purchase and sale
      of
      any commodity, including any power sale or purchase agreements, any commodity
      hedge or derivative (regardless of whether any such transaction is a “financial”
or physical transaction), (c) any trade obligations or other obligations of
      such
      Person incurred in the ordinary course of business or (d) obligations of such
      Person under any lease agreement (including any lease intended as security)
      that
      is not a Capital Lease or a Synthetic Lease.

    “Default”
means
      any condition or event which constitutes an Event of Default or which with
      the
      giving of notice or lapse of time or both would, unless cured or waived, become
      an Event of Default.

    “Defaulting
      Lender”
means
      at any time any Lender with respect to which a Lender Default is in effect
      at
      such time.

    “Documentation
      Agents”
means
      UBS Loan Finance, LLC and JPMorgan Chase Bank, in their capacity as
      documentation agents for the Lenders under this Agreement and under the other
      Loan Documents, and their respective successors in such capacity.

    “Dollars”
and
      the
      sign “$” means lawful money of the United States of America.

    “Effective
      Date”
means
      the date this Agreement becomes effective in accordance with Section
      9.08.

    “Election
      Date”
has
      the
      meaning set forth in Section 2.07(c)(i).

    “Eligible
      Assignee”
means
      (i) a Lender; (ii) a commercial bank organized under the laws of the United
      States and having a combined capital and surplus of at least $100,000,000;
      (iii)
      a commercial bank organized under the laws of any other country which is a
      member of the Organization for Economic Cooperation and Development, or a
      political subdivision of any such country, and having a combined capital and
      surplus of at least $100,000,000; provided,
      that
      such bank is acting through a branch or agency located and licensed in the
      United States; or (iv) an Affiliate of a Lender that is an “accredited investor”
(as defined in Regulation D under the Securities Act of 1933, as amended);
      provided, that upon and following the occurrence of an Event of Default, an
      Eligible Assignee shall mean any Person other than the Borrower or its
      Affiliates.

    “Environmental
      Laws”
means
      any and all federal, state and local statutes, laws, regulations, ordinances,
      rules, judgments, orders, decrees, permits, concessions, grants, franchises,
      licenses or other written governmental restrictions relating to the environment
      or to emissions, discharges or releases of pollutants, contaminants, petroleum
      or petroleum products, chemicals or industrial, toxic or Hazardous Substances
      or
      wastes into the environment including, without limitation, ambient air, surface
      water, ground water, or land, or otherwise relating to the manufacture,
      processing, distribution, use, treatment, storage, disposal, transport or
      handling of pollutants, contaminants, petroleum or petroleum products, chemicals
      or industrial, toxic or Hazardous Substances or wastes.

    “Environmental
      Liabilities”
means
      all liabilities (including anticipated compliance costs) in connection with
      or
      relating to the business, assets, presently or previously owned, leased or
      operated property, activities (including, without limitation, off-site disposal)
      or operations of the Borrower or any of its Subsidiaries, whether vested or
      unvested, contingent or fixed, actual or potential, which arise under or relate
      to matters covered by Environmental Laws.

    “Equity-Linked
      Securities”
means
      any securities of the Borrower or any of its Subsidiaries which are convertible
      into, or exchangeable for, equity securities of the Borrower, such Subsidiary
      or
      PPL Corporation, including any securities issued by any of such Persons which
      are pledged to secure any obligation of any holder to purchase equity securities
      of the Borrower, any of its Subsidiaries or PPL Corporation.

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

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

    “Euro-Dollar
      Lending Office”
means,
      as to each Lender, its office, branch or Affiliate located at its address set
      forth in its Administrative Questionnaire (or identified in its Administrative
      Questionnaire as its Euro-Dollar Lending Office) or such other office, branch
      or
      Affiliate of such Lender as it may hereafter designate as its Euro-Dollar
      Lending Office by notice to the Borrower and the Administrative
      Agent.

    “Euro-Dollar
      Borrowing”
means
      a
      Borrowing comprised of Euro-Dollar Loans.

    “Euro-Dollar
      Loan”
means
      a
      Loan in respect of which interest is computed on the basis of the Adjusted
      London Interbank Offered Rate pursuant to the applicable Notice of Borrowing
      or
      Notice of Conversion/Continuation.

    “Euro-Dollar
      Reserve Percentage”
of
      any
      Lender for the Interest Period of any LIBOR Rate Loan means the reserve
      percentage applicable to such Lender during such Interest Period (or if more
      than one such percentage shall be so applicable, the daily average of such
      percentages for those days in such Interest Period during which any such
      percentage shall be so applicable) under regulations issued from time to time
      by
      the Board of Governors of the Federal Reserve System (or any successor) for
      determining the maximum reserve requirement (including, without limitation,
      any
      emergency, supplemental or other marginal reserve requirement) then applicable
      to such Lender with respect to liabilities or assets consisting of or including
      “Eurocurrency Liabilities” (as defined in Regulation D). The Adjusted London
      Interbank Offered Rate shall be adjusted automatically on and as of the
      effective date of any change in the Euro-Dollar Reserve Percentage.

    “Event
      of Default”
has
      the
      meaning set forth in Section 7.01.

    “Existing
      Credit Agreement”
has
      the
      meaning set forth in the Recitals.

    “Existing
      Lenders”
has
      the
      meaning set forth in the Recitals.

    “Existing
      Letters of Credit”
means
      the standby letters of credit issued before the Closing Date pursuant to the
      Existing Credit Agreement and listed in attached Schedule 3.01, and “Existing
      Letter of Credit” means any one of them.

    “Existing
      Revolving Loans”
has
      the
      meaning set forth in Section 4.01(f).

    “Extension
      Date”
means,
      in the event the Revolving Termination Date or the Current Revolving Termination
      Date, as applicable, is extended pursuant to Section 2.07(c), either (i) in
      a
      year in which the Current Revolving Termination Date does not occur, the
      anniversary of the Closing Date occurring in any such year or (ii) in the year
      in which the Current Revolving Termination Date is scheduled to occur, the
      then
      Current Revolving Termination Date.

    “Extension
      Letter”
means
      a
      letter from the Borrower to the Administrative Agent requesting an extension
      of
      the Revolving Termination Date substantially in the form of Exhibit A-4
      hereto.

    “Federal
      Funds Rate”
means
      for any day the rate per annum (rounded upward, if necessary, to the nearest
      1/100th of 1%) equal to the weighted average of the rates on overnight Federal
      funds transactions with members of the Federal Reserve System arranged by
      Federal funds brokers on such day, as published by the Federal Reserve Bank
      of
      New York on the Business Day next succeeding such day; provided,
      that
      (i) if such day is not a Business Day, the Federal Funds Rate for such day
      shall
      be such rate on such transactions on the next preceding Business Day as so
      published on the next succeeding Business Day, and (ii) if no such rate is
      so
      published on such next succeeding Business Day, the Federal Funds Rate for
      such
      day shall be the average of quotations for such day on such transactions
      received by the Administrative Agent from three federal funds brokers of
      recognized standing selected by the Administrative Agent.

    “Fee
      Letter”
means
      the letter designated as such dated as of May 11, 2006 by the Administrative
      Agent and Wachovia Securities, as a Joint Lead Arranger and a Joint Book
      Manager, addressed to and acknowledged and agreed to by the Borrower, as
      amended, modified or supplemented from time to time.

    “Fitch”
means
      Fitch, Inc. and its successors or, absent any such successor, such nationally
      recognized statistical rating organization as the Borrower and the
      Administrative Agent may select.

    “Fronting
      Fee”
has
      the
      meaning set forth in Section 2.06(b).

    “GAAP”
means
      United States generally accepted accounting principles applied on a consistent
      basis.

    “Governmental
      Authority”
means
      any federal, state or local government, authority, agency, central bank,
      quasi-governmental authority, court or other body or entity, and any arbitrator
      with authority to bind a party at law.

    “Group
      of Loans”
means
      at any time a group of Loans consisting of (i) all Loans which are Base Rate
      Loans at such time or (ii) all Loans which are Euro-Dollar Loans of the same
      Type having the same Interest Period at such time; provided,
      that,
      if a Loan of any particular Lender is converted to or made as a Base Rate Loan
      pursuant to Sections 2.14 or 2.17, such Loan shall be included in the same
      Group
      or Groups of Loans from time to time as it would have been in if it had not
      been
      so converted or made.

    “Guarantee”
of
      or
      by any person means any obligation, contingent or otherwise, of such person
      guaranteeing or having the economic effect of guaranteeing any Debt of any
      other
      person (the “primary obligor”) in any manner, whether directly or indirectly,
      and including any obligation of such person, direct or indirect, (i) to purchase
      or pay (or advance or supply funds for the purchase or payment of) such Debt
      or
      to purchase (or to advance or supply funds for the purchase of) any security
      for
      payment of such Debt, (ii) to purchase or lease property, securities or services
      for the purpose of assuring the owner of such Debt of the payment of such Debt
      or (iii) to maintain working capital, equity capital or any other financial
      statement condition or liquidity of the primary obligor so as to enable the
      primary obligor to pay such Debt; provided,
      however,
      that
      the term Guarantee shall not include endorsements for collection or deposit
      in
      the ordinary course of business.

    “Hazardous
      Substances”
means
      any toxic, caustic or otherwise hazardous substance, including petroleum, its
      derivatives, by-products and other hydrocarbons, or any substance having any
      constituent elements displaying any of the foregoing
      characteristics.

    “Hybrid
      Preferred Securities”
means
      any trust preferred securities, or deferrable interest subordinated debt with
      a
      maturity of at least 20 years issued by the Borrower, or any business trusts,
      limited liability companies, limited partnerships (or similar entities)
      (i) all of the common equity, general partner or similar interests of which
      are owned (either directly or indirectly through one or more wholly owned
      Subsidiaries) at all times by the Borrower or any of its Subsidiaries, (ii)
      that
      have been formed for the purpose of issuing hybrid preferred securities and
      (iii) substantially all the assets of which consist of (A) subordinated
      debt of the Borrower or a Subsidiary of the Borrower, as the case may be, and
      (B) payments made from time to time on the subordinated debt.

    “Indemnitee”
has
      the
      meaning set forth in Section 9.03(b).

    “Interest
      Period”
means
      with respect to each Euro-Dollar Loan, a period commencing on the date of
      borrowing specified in the applicable Notice of Borrowing or on the date
      specified in the applicable Notice of Conversion/Continuation and ending one,
      two, three or six months thereafter, as the Borrower may elect in the applicable
      notice; provided,
      that:

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

    (ii)  any
      Interest Period which begins on the last Business Day of a calendar month (or
      on
      a day for which there is no numerically corresponding day in the calendar month
      at the end of such Interest Period) shall, subject to clause (iii) below, end
      on
      the last Business Day of a calendar month;

    (iii)  if
      any
      Interest Period includes a date on which a payment of principal of the Loans
      is
      required (based on circumstances existing at the first day of such Interest
      Period) to be made under Section 2.08 but does not end on such date, then (x)
      the principal amount (if any) of each Euro-Dollar Loan required to be repaid
      on
      such date shall have an Interest Period ending on such date and (y) the
      remainder (if any) of each such Euro-Dollar Loan shall have an Interest Period
      determined as set forth above; and

    (iv)  no
      Interest Period shall end after the Revolving Termination Date.

    “Interest
      Rate Protection Agreements”
means
      any agreement providing for an interest rate swap, cap or collar, or any other
      financial agreement designed to protect against fluctuations in interest
      rates.

    “Internal
      Revenue Code”
means
      the Internal Revenue Code of 1986, as amended, or any successor
      statute.

    “Issuing
      Lender”
means
      (i) Wachovia Bank, National Association, in its capacity as an issuer of Letters
      of Credit under Section 3.02, and its successor or successors in such capacity,
      and (ii) each issuer of an Existing Letter of Credit.

    “Joint
      Lead Arrangers”
means
      Wachovia Securities, Barclays Capital (the investment banking division of
      Barclays Bank PLC) and Citigroup Global Markets, Inc., in their capacities
      as
      joint lead arrangers for the Lenders hereunder and under the other Loan
      Documents, and their successors in such capacity.

    “Lender”
means
      each bank or other lending institution listed in the Commitment Appendix as
      having a Revolving Commitment, each Eligible Assignee that becomes a Lender
      pursuant to Section 9.06(c) and their respective successors and shall include,
      as the context may require and each Issuing Lender in such
      capacity.

    “Lender
      Default”
means
      (i) the failure (which has not been cured) of any Lender to make available
      any
      Loan or any reimbursement for a drawing under a Letter of Credit which in either
      case it is obligated to make available under the terms and conditions of this
      Agreement or (ii) a Lender having notified the Administrative Agent and the
      Borrower that such Lender does not intend to comply with its obligations under
      Article II following the appointment of a receiver or conservator with respect
      to such Lender at the direction or request of any regulatory agency or
      authority.

    “Letter
      of Credit”
means
      an Existing Letter of Credit or an Additional Letter of Credit, and “Letters of
      Credit” means any combination of the foregoing.

    “Letter
      of Credit Commitment”
means
      the aggregate Revolving Commitment.

    “Letter
      of Credit Fee”
has
      the
      meaning set forth in Section 2.06(b).

    “Letter
      of Credit Liabilities”
means,
      for any Lender at any time, the product derived by multiplying (i) the sum,
      without duplication, of (A) the aggregate amount that is (or may thereafter
      become) available for drawing under all Letters of Credit outstanding at such
      time plus (B) the aggregate unpaid amount of all Reimbursement Obligations
      outstanding at such time by (ii) the quotient derived by dividing such Lender’s
      Revolving Commitment by the aggregate of the Revolving Commitments of all
      Revolving Lenders.

    “Letter
      of Credit Request”
has
      the
      meaning set forth in Section 3.03.

    “Lien”
means,
      with respect to any asset, any mortgage, lien, pledge, charge, security interest
      or encumbrance intended to confer or having the effect of conferring upon a
      creditor a preferential interest.

    “Loan”
means
      a
      Base Rate Loan or a Euro-Dollar Loan, and “Loans” means any combination of the
      foregoing.

    “Loan
      Documents”
means
      this Agreement and the Revolving Notes.

    “London
      Interbank Offered Rate”
means,
      for any Euro-Dollar Loan for any Interest Period, the interest rate for deposits
      in Dollars for a period of time comparable to such Interest Period which appears
      on Telerate Page 3750 (or any successor page) as the London interbank offered
      rate for deposits in Dollars at approximately 11:00 A.M. (London time) two
      Business Days before the first day of such Interest Period; provided,
      however,
      if more
      than one rate is specified on Telerate page 3750, the applicable rate shall
      be
      the arithmetic means of all such rates. If for any reason such rate is not
      available, the term “London Interbank Offered Rate” means for any Interest
      Period, the rate per annum appearing on Reuters Screen LIBO Page as the London
      interbank offered rate for deposits in Dollars at approximately 11:00 A.M.
      (London time) two Business Days before the first day of such Interest Period
      for
      a period of time comparable to such Interest Period; provided,
      however,
      that if
      more than one such rate is specified on Reuters Screen LIBO Page, the applicable
      rate shall be the arithmetic mean of all such rates (rounded upwards, if
      necessary, to the nearest 1/100 of 1%). If for any reason the London interbank
      offered rate is not available on either Telerate page 3750 or Reuters Screen
      LIBO Page, the term “London Interbank Offered Rate” means for any Interest
      Period, the rate per annum at which deposits in Dollars are offered to Wachovia
      Bank, National Association in the London interbank market at approximately
      11:00
      A.M. (London time) two Business Days before the first day of such Interest
      Period in an amount approximately equal to the principal amount of the
      Euro-Dollar Loan of Wachovia Bank, National Association to which such Interest
      Period is to apply and for a period of time comparable to such Interest
      Period.

    “Mandatory
      Letter of Credit Borrowing”
has
      the
      meaning set forth on Section 3.09.

    “Margin
      Stock”
means
      “margin stock” as such term is defined in Regulation U.

    “Material
      Adverse Effect”
means
      (i) any material adverse effect upon the business, assets, financial condition
      or operations of the Borrower or the Borrower and its Subsidiaries, taken as
      a
      whole; (ii) a material adverse effect on the ability of the Borrower to perform
      its obligations under this Agreement, the Revolving Notes or the other Loan
      Documents or (iii) a material adverse effect on the validity or enforceability
      of this Agreement, the Revolving Notes or any of the other Loan
      Documents.

    “Material
      Debt”
means
      Debt (other than the Revolving Notes) of the Borrower in a principal or face
      amount exceeding $50,000,000.

    “Material
      Plan”
means
      at any time a Plan or Plans having aggregate Unfunded Liabilities in excess
      of
      $25,000,000.

    “Moody’s”
means
      Moody’s Investors Service, Inc., a Delaware corporation, and its successors or,
      absent any such successor, such nationally recognized statistical rating
      organization as the Borrower and the Administrative Agent may
      select.

    “Multiemployer
      Plan”
means
      at any time an employee pension benefit plan within the meaning of Section
      4001(a)(3) of ERISA to which any member of the ERISA Group is then making or
      accruing an obligation to make contributions or has within the preceding five
      plan years made contributions.

    “New
      Lender”
means
      with respect to any event described in Section 2.07(b), an Eligible Assignee
      which becomes a Lender hereunder as a result of such event, and “New Lenders”
means any two or more of such New Lenders.

    “Non-Defaulting
      Lender”
means
      each Lender other than a Defaulting Lender, and “Non-Defaulting Lenders” means
      any two or more of such Lenders.

    “Non-Extending
      Lender”
shall
      have the meaning set forth in Section 2.07(c)(i).

    “Non-Recourse
      Debt”
shall
      mean (a) Debt that is nonrecourse to the Borrower or any Subsidiary of the
      Borrower and (b) any transition bonds issued by PPL Transition Bond Company,
      LLC, a subsidiary of the Borrower, or any similar special purpose company
      organized for the purpose of issuing bonds payable from revenues associated
      with
      intangible transition property created under the PEGCCCA or other assets of
      PPL
      Transition Bond Company LLC or any such other special purpose company, provided
      that (i) such bonds are nonrecourse to the Borrower or any of its Subsidiaries
      (other than PPL Transition Bond Company LLC or any such other special purpose
      company) and (ii) the aggregate amount of such transition bonds shall not exceed
      $2,850,000,000.

    “Non-U.S.
      Lender”
has
      the
      meaning set forth in Section 2.16(e).

    “Notice
      of Borrowing”
has
      the
      meaning set forth in Section 2.02.

    “Notice
      of Conversion/Continuation”
has
      the
      meaning set forth in Section 2.05(d)(ii).

    “Obligations”
      means:

    (i) all
      principal of and interest (including, without limitation, any interest which
      accrues after the commencement of any case, proceeding or other action relating
      to the bankruptcy, insolvency or reorganization of the Borrower, whether or
      not
      allowed or allowable as a claim in any such proceeding) on any Loan, fees
      payable or Reimbursement Obligation under, or any Revolving Note issued pursuant
      to, this Agreement or any other Loan Document;

    (ii) all
      other
      amounts now or hereafter payable by the Borrower and all other obligations
      or
      liabilities now existing or hereafter arising or incurred (including, without
      limitation, any amounts which accrue after the commencement of any case,
      proceeding or other action relating to the bankruptcy, insolvency or
      reorganization of the Borrower, whether or not allowed or allowable as a claim
      in any such proceeding) on the part of the Borrower pursuant this Agreement
      or
      any other Loan Document;

    (iii) all
      expenses of the Agents as to which such Agents have a right to reimbursement
      under Section 9.03(a) hereof or under any other similar provision of any other
      Loan Document; and

    (iv) all
      amounts paid by any Indemnitee as to which such Indemnitee has the right to
      reimbursement under Section 9.03 hereof or under any other similar provision
      of
      any other Loan Document;

    together
      in each case with all renewals, modifications, consolidations or extensions
      thereof.

    “OFAC”
means
      the U.S. Department of the Treasury’s Office of Foreign Assets
      Control.

    “Other
      Taxes”
has
      the
      meaning set forth in Section 2.16(b).

    “Participant”
has
      the
      meaning set forth in Section 9.06(b).

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

    “PEGCCCA”
means
      the Pennsylvania Electricity Generation Customer Choice and Competition Act,
      and
      any successor statute, regulation or law.

    “Permitted
      Business”
with
      respect to any Person means a business that is the same or similar to the
      business of the Borrower or any Subsidiary as of the date hereof, or any
      business reasonably related thereto.

    “Person”
means
      an individual, a corporation, a partnership, an association, a limited liability
      company, a trust or an unincorporated association or any other entity or
      organization, including a government or political subdivision or an agency
      or
      instrumentality thereof.

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

    “Prime
      Rate”
means
      the rate of interest publicly announced by Wachovia Bank, National Association
      in Charlotte, North Carolina from time to time as its Prime Rate.

    “PUC”
has
      the
      meaning set forth in Section 4.01(h).

    “PUC
      Order”
has
      the
      meaning set forth in Section 4.01(h).

    “Quarterly
      Date”
means
      the last Business Day of each March, June, September and December.

    “Rating
      Agency”
means
      any of S&P, Moody’s or Fitch, and “Rating Agencies” means any two or more of
      them collectively.

    “Register”
has
      the
      meaning set forth in Section 9.06(e).

    “Regulation
      U”
means
      Regulation U of the Board of Governors of the Federal Reserve System, as
      amended, or any successor regulation.

    “Regulation
      X”
means
      Regulation X of the Board of Governors of the Federal Reserve System, as
      amended, or any successor regulation.

    “Reimbursement
      Obligations”
means
      at any time all obligations of the Borrower to reimburse the Issuing Lenders
      pursuant to Section 3.07 for amounts paid by the Issuing Lenders in respect
      of
      drawings under Letters of Credit, including any portion of any such obligation
      to which a Lender has become subrogated pursuant to Section 3.09.

    “Replacement
      Date”
has
      the
      meaning set forth in Section 2.07(b).

    “Replacement
      Lender”
has
      the
      meaning set forth in Section 2.07(b).

    “Required
      Lenders”
means
      at any time Non-Defaulting Lenders having at least 51% of the aggregate amount
      of the Revolving Commitments of all Non-Defaulting Lenders or, if the Revolving
      Commitments shall have been terminated, having at least 51% of the aggregate
      amount of the Revolving Outstandings of the Non-Defaulting Lenders at such
      time.

    “Retiring
      Lender”
means
      a
      Lender that ceases to be a Lender hereunder pursuant to the operation of Section
      2.07(b).

    “Revolving”
means,
      when used with respect to (i) a Lender’s Commitment, such Lender’s Revolving
      Commitment, as such Revolving Commitment may be reduced from time to time
      pursuant to Sections 2.07, 2.08 or 9.06(c) or increased from time to time
      pursuant to Section 9.06(c), (ii) a Borrowing, a Borrowing made by the Borrower
      under Section 2.01, as identified in the Notice of Borrowing with respect
      thereto, or a Mandatory Letter of Credit Borrowing, (iii) a Loan, a Loan made
      under Section 2.01; provided,
      that,
      if any such loan or loans (or portions thereof) are combined or subdivided
      pursuant to a Notice of Conversion/Continuation, the term “Revolving Loan” shall
      refer to the combined principal amount resulting from such combination or to
      each of the separate principal amounts resulting from such subdivision, as
      the
      case may be, and (iv) a Revolving Note, a promissory note, substantially in
      the
      form of Exhibit B hereto, issued at the request of a Lender evidencing the
      obligation of the Borrower to repay outstanding Revolving Loans.

    “Revolving
      Outstandings”
means
      at any time, with respect to any Lender, the sum of (i) the aggregate principal
      amount of such Lender’s outstanding Revolving Loans plus (ii) the aggregate
      amount of such Lender’s outstanding Letter of Credit Liabilities.

    “Revolving
      Termination Date”
means
      June 9, 2011 (or, if such day is not a Business Day, the next preceding Business
      Day), as extended from time to time pursuant to Section 2.07(c), or such earlier
      date upon which the Revolving Commitments shall have been terminated in their
      entirety in accordance with this Agreement.

    “Sanctioned
      Entity”
shall
      mean (i) an agency of the government of, (ii) an organization directly or
      indirectly controlled by, or (iii) a person resident in a country that is
      subject to a sanctions program identified on the list maintained by OFAC and
      available at http://www.treas.gov/offices/enforcement/ofac/sanctions/index.html,
      or as otherwise published from time to time as such program may be applicable
      to
      such agency, organization or person.

    “Sanctioned
      Person”
shall
      mean a person named on the list of Specially Designated Nationals or Blocked
      Persons maintained by OFAC available at
      http://www.treas.gov/offices/enforcement/ofac/sdn/index.html, or as otherwise
      published from time to time.

    “SEC”
means
      the Securities and Exchange Commission.

    “S&P”
means
      Standard & Poor’s Ratings Group, a division of McGraw Hill, Inc., a New York
      corporation, and its successors or, absent any such successor, such nationally
      recognized statistical rating organization as the Borrower and the
      Administrative Agent may select.

    “Subsidiary”
means,
      any Corporation a majority of the outstanding Voting Stock of which is owned,
      directly or indirectly, by the Borrower or one or more other Subsidiaries of
      the
      Borrower.

    “Syndication
      Agents”
means
      Barclays Bank PLC and Citibank, N.A., in their capacities as syndication agents
      for the Lenders hereunder and under the other Loan Documents, and their
      successors in such capacities.

    “Synthetic
      Lease”
means
      any synthetic lease, tax retention operating lease, off-balance sheet loan
      or
      similar off-balance sheet financing product where such transaction is considered
      borrowed money indebtedness for tax purposes but is classified as an operating
      lease in accordance with GAAP.

    “Taxes”
has
      the
      meaning set forth in Section 2.16(a).

    “Type”,
      when
      used in respect of any Loan or Borrowing, shall refer to the rate by reference
      to which interest on such Loan or on the Loans comprising such Borrowing is
      determined.

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

    “United
      States”
means
      the United States of America, including the States and the District of Columbia,
      but excluding its territories and possessions.

    “Voting
      Stock”
means
      stock (or other interests) of a Corporation having ordinary voting power for
      the
      election of directors, managers or trustees thereof, whether at all times or
      only so long as no senior class of stock has such voting power by reason of
      any
      contingency.

    “Wachovia
      Securities”
means
      Wachovia Capital Markets, LLC, and its successors and assigns.

    “Wholly
      Owned Subsidiary”
means,
      with respect to any Person at any date, any Subsidiary of such Person all of
      the
      Voting Stock of which (except directors’ qualifying shares) are at the time
      directly or indirectly owned by such Person.

     

    ARTICLE
      II

     

    THE
      CREDITS

     

    Section
      2.01  Commitments
      to Lend.
      Each
      Lender severally agrees, on the terms and conditions set forth in this
      Agreement, to make Revolving Loans to the Borrower pursuant to this Section
      2.01
      from time to time during the Availability Period in amounts such that its
      Revolving Outstandings shall not exceed its Revolving Commitment; provided,
      that,
      immediately after giving effect to each such Revolving Loan, the aggregate
      Revolving Outstandings of all Lenders shall not exceed the aggregate amount
      of
      the Revolving Commitments of all Lenders. Each Revolving Borrowing (other than
      Mandatory Letter of Credit Borrowings) shall be in an aggregate principal amount
      of $10,000,000 or any larger multiple of $1,000,000 (except that any such
      Borrowing may be in the aggregate amount of the unused Revolving Commitments)
      and shall be made from the several Lenders ratably in proportion to their
      respective Revolving Commitments. Within the foregoing limits, the Borrower
      may
      borrow under this Section 2.01, repay, or, to the extent permitted by Section
      2.09, prepay, Revolving Loans and reborrow under this Section 2.01.

     

    Section
      2.02  Notice
      of Borrowings.
      The
      Borrower shall give the Administrative Agent notice substantially in the form
      of
      Exhibit A-1 hereto (a “Notice
      of Borrowing”)
      not
      later than (a) 11:30 A.M. (Charlotte, North Carolina time) on the date of each
      Base Rate Borrowing and (b) 12:00 Noon (Charlotte, North Carolina time) on
      the
      third Business Day before each Euro-Dollar Borrowing, specifying:

    (i)  the
      date
      of such Borrowing, which shall be a Business Day;

    (ii)  the
      aggregate amount of such Borrowing;

    (iii)  the
      initial Type of the Loans comprising such Borrowing; and

    (iv)  in
      the
      case of a Euro-Dollar Borrowing, the duration of the initial Interest Period
      applicable thereto, subject to the provisions of the definition of Interest
      Period.

    Notwithstanding
      the foregoing, no more than six (6) Groups of Euro-Dollar Loans shall be
      outstanding at any one time, and any Loans which would exceed such limitation
      shall be made as Base Rate Loans.

     

    Section
      2.03  Notice
      to Lenders; Funding of Loans.

     

    (a)  Notice
      to
      Lenders. Upon receipt of a Notice of Borrowing, the Administrative Agent shall
      promptly notify each Lender of such Lender’s ratable share (if any) of the
      Borrowing referred to in the Notice of Borrowing, and such Notice of Borrowing
      shall not thereafter be revocable by the Borrower.

    (b)  Funding
      of Loans. Not later than (a) 1:00 P.M. (Charlotte, North Carolina time) on
      the
      date of each Base Rate Borrowing and (b) 12:00 Noon (Charlotte, North Carolina
      time) on the date of each Euro-Dollar Borrowing, each Lender participating
      therein shall make available its share of such Borrowing, in Federal or other
      funds immediately available in Charlotte, North Carolina, to the Administrative
      Agent at its address referred to in Section 9.01. Unless the Administrative
      Agent determines that any applicable condition specified in Article IV has
      not
      been satisfied, the Administrative Agent shall apply any funds so received
      in
      respect of Revolving Loans available to the Borrower at the Administrative
      Agent’s address not later than (a) 3:00 P.M. (Charlotte, North Carolina time) on
      the date of each Base Rate Borrowing and (b) 2:00 P.M. (Charlotte, North
      Carolina time) on the date of each Euro-Dollar Borrowing.

    (c)  Funding
      By the Administrative Agent in Anticipation of Amounts Due from the Lenders.
      Unless the Administrative Agent shall have received notice from a Lender prior
      to the date of any Borrowing (except in the case of a Base Rate Borrowing,
      in
      which case prior to the time of such Borrowing) that such Lender will not make
      available to the Administrative Agent such Lender’s share of such Borrowing, the
      Administrative Agent may assume that such Lender has made such share available
      to the Administrative Agent on the date of such Borrowing in accordance with
      subsection (b) of this Section, and the Administrative Agent may, in reliance
      upon such assumption, make available to the Borrower on such date a
      corresponding amount. If and to the extent that such Lender shall not have
      so
      made such share available to the Administrative Agent, such Lender and the
      Borrower severally agree to repay to the Administrative Agent forthwith on
      demand such corresponding amount, together with interest thereon for each day
      from the date such amount is made available to the Borrower until the date
      such
      amount is repaid to the Administrative Agent at (i) a rate per annum equal
      to
      the higher of the Federal Funds Rate and the interest rate applicable thereto
      pursuant to Section 2.05, in the case of the Borrower, and (ii) the Federal
      Funds Rate, in the case of such Lender. Any payment by the Borrower hereunder
      shall be without prejudice to any claim the Borrower may have against a Lender
      that shall have failed to make its share of a Borrowing available to the
      Administrative Agent. If such Lender shall repay to the Administrative Agent
      such corresponding amount, such amount so repaid shall constitute such Lender’s
      Loan included in such Borrowing for purposes of this Agreement.

    (d)  Obligations
      of Lenders Several. The failure of any Lender to make a Loan required to be
      made
      by it as part of any Borrowing hereunder shall not relieve any other Lender
      of
      its obligation, if any, hereunder to make any Loan on the date of such
      Borrowing, but no Lender shall be responsible for the failure of any other
      Lender to make the Loan to be made by such other Lender on such date of
      Borrowing.

     

    Section
      2.04  Noteless
      Agreement; Evidence of Indebtedness.

     

    (a)  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.

    (b)  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.

    (c)  The
      entries maintained in the accounts maintained pursuant to paragraphs (a) and
      (b)
      above shall be prima facie evidence of the existence and amounts of the
      Obligations therein recorded; provided, however, 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.

    (d)  Any
      Lender may request that its Revolving Loans be evidenced by a Revolving Note.
      In
      such event, the Borrower shall prepare, execute and deliver to such Lender
      a
      Revolving Note payable to the order of such Lender. Thereafter, the Revolving
      Loans evidenced by such Revolving Note and interest thereon shall at all times
      (including after any assignment pursuant to Section 9.06(c)) be represented
      by
      one or more Revolving Notes payable to the order of the payee named therein
      or
      any assignee pursuant to Section 9.06(c), except to the extent that any such
      Lender or assignee subsequently returns any such Revolving Note for cancellation
      and requests that such Loans once again be evidenced as described in paragraphs
      (a) and (b) above.

     

    Section
      2.05  Interest
      Rates.

     

    (a)  Interest
      Rate Options. The Loans shall, at the option of the Borrower and except as
      otherwise provided herein, be incurred and maintained as, or converted into,
      one
      or more Base Rate Loans or Euro-Dollar Loans.

    (b)  Base
      Rate
      Loans. Each Loan which is made as, or converted into, a Base Rate Loan shall
      bear interest on the outstanding principal amount thereof, for each day from
      the
      date such Loan is made as, or converted into, a Base Rate Loan until it becomes
      due or is converted into a Loan of any other Type, at a rate per annum equal
      to
      the sum of the Base Rate for such day plus the Applicable Percentage, if any,
      for Base Rate Loans for such day. Such interest shall be payable quarterly
      in
      arrears on each Quarterly Date and, with respect to the principal amount of
      any
      Base Rate Loan converted to a Euro-Dollar Loan, on the date such Base Rate
      Loan
      is so converted. Any overdue principal of or interest on any Base Rate Loan
      shall bear interest, payable on demand, for each day until paid at a rate per
      annum equal to the sum of 2% plus the rate otherwise applicable to Base Rate
      Loans for such day.

    (c)  Euro-Dollar
      Loans. Each Euro-Dollar Loan shall bear interest on the outstanding principal
      amount thereof, for each day during the Interest Period applicable thereto,
      at a
      rate per annum equal to the sum of the Adjusted London Interbank Offered Rate
      for such Interest Period plus the Applicable Percentage for Euro-Dollar Loans
      for such day plus the Applicable Utilization Fee for such day, if any; provided,
      that if any Euro-Dollar Loan or any portion thereof shall, as a result of clause
      (iii) of the definition of Interest Period, have an Interest Period of less
      than
      one month, such portion shall bear interest during such Interest Period at
      the
      rate applicable to Base Rate Loans during such period. Such interest shall
      be
      payable for each Interest Period on the last day thereof and, if such Interest
      Period is longer than three months, at intervals of three months after the
      first
      day thereof. Any overdue principal of or interest on any Euro-Dollar Loan shall
      bear interest, payable on demand, for each day until paid at a rate per annum
      equal to the sum of 2% plus the sum of (A) the Adjusted London Interbank Offered
      Rate applicable to such Loan at the date such payment was due plus (B) the
      Applicable Percentage for Euro-Dollar Loans for such day plus (C) the Applicable
      Utilization Fee, if any (or, if the circumstance described in Section 2.13
      shall
      exist, at a rate per annum equal to the sum of 2% plus the rate applicable
      to
      Base Rate Loans for such day).

    (d)  Method
      of
      Electing Interest Rates.

    (i)  Subject
      to Section 2.05(a), the Loans included in each Borrowing shall bear interest
      initially at the type of rate specified by the Borrower in the applicable Notice
      of Borrowing. Thereafter, with respect to each Group of Loans, the Borrower
      shall have the option (A) to convert all or any part of (y) so long as no
      Default or Event of Default is in existence on the date of conversion,
      outstanding Base Rate Loans to Euro-Dollar Loans and (z) outstanding Euro-Dollar
      Loans to Base Rate Loans; provided,
      that in
      each case that the amount so converted shall be equal to $10,000,000 or any
      larger multiple of $1,000,000, or (B) upon the expiration of any Interest Period
      applicable to outstanding Euro-Dollar Loans, so long as no Default or Event
      of
      Default is in existence on the date of continuation, to continue all or any
      portion of such Loans equal to $10,000,000 and any larger multiple of $1,000,000
      in excess of that amount as Euro-Dollar Loans. The Interest Period of any Base
      Rate Loan converted to a Euro-Dollar Loan pursuant to clause (A) above shall
      commence on the date of such conversion. The succeeding Interest Period of
      any
      Euro-Dollar Loan continued pursuant to clause (B) above shall commence on the
      last day of the Interest Period of the Loan so continued. Euro-Dollar Loans
      may
      only be converted on the last day of the then current Interest Period applicable
      thereto or on the date required pursuant to Section 2.17.

    (ii)  The
      Borrower shall deliver a written notice of each such conversion or continuation
      (a “Notice
      of Conversion/Continuation”)
      to the
      Administrative Agent no later than (A) 12:00 Noon (Charlotte, North Carolina
      time) at least three (3) Business Days before the date of the proposed
      conversion to, or continuation of, a Euro-Dollar Loan and (B) 11:30 A.M.
      (Charlotte, North Carolina time) on the day of a conversion to a Base Rate
      Loan.
      A written Notice of Conversion/Continuation shall be substantially in the form
      of Exhibit A-2 attached hereto and shall specify: (A) the Group of Loans (or
      portion thereof) to which such notice applies, (B) the proposed
      conversion/continuation date (which shall be a Business Day), (C) the aggregate
      amount of the Loans being converted/continued, (D) an election between the
      Base
      Rate and the Adjusted London Interbank Offered Rate and (E) in the case of
      a
      conversion to, or a continuation of, Euro-Dollar Loans, the requested Interest
      Period. Upon receipt of a Notice of Conversion/Continuation, the Administrative
      Agent shall give each Lender prompt notice of the contents thereof and such
      Lender’s pro rata share of all conversions and continuations requested therein.
      If no timely Notice of Conversion/Continuation is delivered by the Borrower
      as
      to any Euro-Dollar Loan, and such Loan is not repaid by the Borrower at the
      end
      of the applicable Interest Period, such Loan shall be converted automatically
      to
      a Base Rate Loan on the last day of the then applicable Interest
      Period.

    (e)  Determination
      and Notice of Interest Rates. The Administrative Agent shall determine each
      interest rate applicable to the Loans hereunder. The Administrative Agent shall
      give prompt notice to the Borrower and the participating Lenders of each rate
      of
      interest so determined, and its determination thereof shall be conclusive in
      the
      absence of manifest error. Any notice with respect to Euro-Dollar Loans shall,
      without the necessity of the Administrative Agent so stating in such notice,
      be
      subject to adjustments in the Applicable Percentage applicable to such Loans
      after the beginning of the Interest Period applicable thereto. When during
      an
      Interest Period any event occurs that causes an adjustment in the Applicable
      Percentage applicable to Loans to which such Interest Period is applicable,
      the
      Administrative Agent shall give prompt notice to the Borrower and the Lenders
      of
      such event and the adjusted rate of interest so determined for such Loans,
      and
      its determination thereof shall be conclusive in the absence of manifest
      error.

     

    Section
      2.06  Fees.

     

    (a)  Commitment
      Fees. The Borrower shall pay to the Administrative Agent for the account of
      each
      Lender a fee (the “Commitment Fee”) for each day at a rate per annum equal to
      the Applicable Percentage for the Commitment Fee for such day. The Commitment
      Fee shall accrue from and including the Effective Date to but excluding the
      last
      day of the Availability Period on the amount by which such Lender’s Revolving
      Commitment exceeds the sum of its Revolving Outstandings on such day, and shall
      be payable on the last day of each March, June, September and December and
      on
      the Revolving Termination Date.

    (b)  Letter
      of
      Credit Fees. The Borrower shall pay to the Administrative Agent a fee (the
      “Letter of Credit Fee”) for each day at a rate per annum equal to the Applicable
      Percentage for the Letter of Credit Fee for such day plus the Applicable
      Utilization Fee for such day, if any. The Letter of Credit Fee shall accrue
      from
      and including the Effective Date to but excluding the last day of the
      Availability Period on the aggregate amount available for drawing under any
      Letters of Credit outstanding on such day and shall be payable for the account
      of the Lenders ratably in proportion to their participations in such Letter(s)
      of Credit. In addition, the Borrower shall pay to each Issuing Lender a fee
      (the
“Fronting Fee”) in respect of each Letter of Credit issued by such Issuing
      Lender computed at the rate of .125% per annum on the average amount available
      for drawing under such Letter(s) of Credit. Fronting Fees shall be due and
      payable quarterly in arrears on each Quarterly Date and upon the first day
      after
      the Revolving Termination Date upon which no Letters of Credit remain
      outstanding. In addition, the Borrower agrees to pay to each Issuing Lender,
      upon each issuance of, payment under, and/or amendment of, a Letter of Credit,
      such amount as shall at the time of such issuance, payment or amendment be
      the
      administrative charges and expenses which such Issuing Lender is customarily
      charging for issuances of, payments under, or amendments to letters of credit
      issued by it.

    (c)  Payments.
      Except as otherwise provided in this Section 2.06, accrued fees under this
      Section 2.06 in respect of Loans and Letter of Credit Liabilities shall be
      payable quarterly in arrears on each Quarterly Date, on the last day of the
      Availability Period and, if later, on the date the Loans and Letter of Credit
      Liabilities shall be repaid in their entirety. Fees paid hereunder shall not
      be
      refundable under any circumstances.

     

    Section
      2.07  Adjustments
      of Commitments.

     

    (a)  Optional
      Termination or Reductions of Commitments (Pro-Rata). The Borrower may, upon
      at
      least three Business Days’ prior written notice to the Administrative Agent, (i)
      terminate the Revolving Commitments, if there are no Revolving Outstandings
      at
      such time or (ii) ratably reduce from time to time by a minimum amount of
      $10,000,000 or any integral multiple of $5,000,000, the aggregate amount of
      the
      Revolving Commitments in excess of the aggregate Revolving Outstandings. Upon
      receipt of any such notice, the Administrative Agent shall promptly notify
      the
      Lenders. If the Revolving Commitments are terminated in their entirety, all
      accrued fees shall be payable on the effective date of such
      termination.

    (b)  Optional
      Termination of Commitments (Non-Pro-Rata). If (i) any Lender has demanded
      compensation or indemnification pursuant to Sections 2.13, 2.14, 2.15 or 2.16,
      (ii) the obligation of any Lender to make Euro-Dollar Loans has been suspended
      pursuant to Section 2.14 or (iii) any Lender is a Defaulting Lender (each such
      Lender described in clauses (i), (ii) or (iii) being a “Retiring Lender”), the
      Borrower shall have the right, if no Default or Event of Default then exists,
      to
      replace such Lender with one or more Eligible Assignees (which may be one or
      more of the Continuing Lenders) (each a “Replacement Lender” and, collectively,
      the “Replacement Lenders”) reasonably acceptable to the Administrative Agent.
      The replacement of a Retiring Lender pursuant to this Section 2.07(b) shall
      be
      effective on the tenth Business Day (the “Replacement Date”) following the date
      of notice of such replacement to the Retiring Lender and each Continuing Lender
      through the Administrative Agent, subject to the satisfaction of the following
      conditions:

    (i)  the
      Replacement Lender shall have satisfied the conditions to assignment and
      assumption set forth in Section 9.06(c) (with all fees payable pursuant to
      Section 9.06(c) to be paid by the Borrower) and, in connection therewith, the
      Replacement Lender(s) shall pay:

    (A)  to
      the
      Retiring Lender an amount equal in the aggregate to the sum of (x) the principal
      of, and all accrued but unpaid interest on, all outstanding Loans of the
      Retiring Lender, (y) all unpaid drawings that have been funded by (and not
      reimbursed to) the Retiring Lender under Section 3.10, together with all accrued
      but unpaid interest with respect thereto and (z) all accrued but unpaid fees
      owing to the Retiring Lender pursuant to Section 2.07; and

    (B)  to
      the
      Issuing Lenders an amount equal to the aggregate amount owing by the Retiring
      Lender to the Issuing Lenders as reimbursement pursuant to Section 3.09, to
      the
      extent such amount was not theretofore funded by such Retiring Lender;
      and

    (ii)  the
      Borrower shall have paid to the Administrative Agent for the account of the
      Retiring Lender an amount equal to all obligations owing to the Retiring Lender
      by the Borrower pursuant to this Agreement and the other Loan Documents (other
      than those obligations of the Borrower referred to in clause (i)(A)
      above).

    On
      the
      Replacement Date, each Replacement Lender that is a New Lender shall become
      a
      Lender hereunder, and the Retiring Lender shall cease to constitute a Lender
      hereunder; provided,
      that
      the provisions of this Agreement (including, without limitation, the provisions
      of Sections 2.11, 2.15, 2.16 and 9.03) shall continue to govern the rights
      and
      obligations of a Retiring Lender with respect to any Loans made, any Letters
      of
      Credit issued or any other actions taken by such Retiring Lender while it was
      a
      Lender.

    In
      lieu
      of the foregoing, upon express written consent of a majority of the Continuing
      Lenders, the Borrower shall have the right to terminate the Revolving Commitment
      of a Retiring Lender in full. Upon payment by the Borrower to the Administrative
      Agent for the account of the Retiring Lender of an amount equal to the sum
      of
      (i) the aggregate principal amount of all Loans and Letter of Credit Liabilities
      held by the Retiring Lender and (ii) all accrued interest, fees and other
      amounts owing to the Retiring Lender hereunder, including, without limitation,
      all amounts payable by the Borrower to the Retiring Lender under Sections 2.11,
      2.15, 2.16 or 9.03, such Retiring Lender shall cease to constitute a Lender
      hereunder; provided,
      that
      the provisions of this Agreement (including, without limitation, the provisions
      of Sections 2.11, 2.15, 2.16 and 9.03) shall continue to govern the rights
      and
      obligations of a Retiring Lender with respect to any Loans made, any Letters
      of
      Credit issued or any other actions taken by such Retiring Lender while it was
      a
      Lender.

    (c)  Optional
      Extensions of Commitments.

    (i)  The
      Borrower may, by sending an Extension Letter to the Administrative Agent (in
      which case the Administrative Agent shall promptly deliver a copy to each of
      the
      Lenders), not less than thirty (30) days and not more than sixty (60) days
      prior
      to each anniversary of the Closing Date, request that the Lenders extend the
      Revolving Termination Date then in effect (the “Current
      Revolving Termination Date”)
      so
      that it will occur one year after the Current Revolving Termination Date. Each
      Lender, acting in its sole discretion, shall, by notice to the Administrative
      Agent given no later than fifteen (15) days prior to any anniversary of the
      Closing Date (the “Election
      Date”),
      advise the Administrative Agent in writing whether or not such Lender agrees
      to
      such extension (each Lender that so advises the Administrative Agent that it
      will not extend the Current Revolving Termination Date being referred to herein
      as a “Non-Extending
      Lender”);
      provided,
      that
      any Lender that does not advise the Administrative Agent by the Election Date
      shall be deemed to be a Non-Extending Lender. The election of any Lender to
      agree to such extension shall not obligate any other Lender to
      agree.

    (ii)  (A)
      If
      Lenders holding Revolving Commitments that aggregate at least 51% of the
      aggregate Commitments of the Lenders on or prior to the Election Date shall
      not
      have agreed to extend the Revolving Termination Date, then the Current Revolving
      Termination Date shall not be so extended and the outstanding principal balance
      of all loans and other amounts payable hereunder shall be due and payable on
      the
      Current Revolving Termination Date. (B) If (and only if) Lenders holding
      Revolving Commitments that aggregate at least 51% of the aggregate Commitment
      of
      the Lenders on or prior to the Election Date shall have agreed to extend the
      Current Revolving Termination Date, then the Revolving Termination Date
      applicable to the Lenders that are Continuing Lenders shall, as of the Extension
      Date, be the day that is one year after the Current Revolving Termination Date.
      In the event of such extension, the Commitment of each Non-Extending Lender
      shall terminate on the Current Revolving Termination Date applicable to such
      Non-Extending Lender, all Loans and other amounts payable hereunder to such
      Non-Extending Lender shall become due and payable on such Current Revolving
      Termination Date and the aggregate Commitment of the Lenders hereunder shall
      be
      reduced by the aggregate Commitments of Non-Extending Lenders so terminated
      on
      and after such Current Revolving Termination Date. Each Non-Extending Lender
      shall be required to maintain its original Commitment up to the Revolving
      Termination Date, or Current Revolving Termination Date, as applicable, for
      which such Non-Extending Lender had previously agreed upon.

    (iii)  In
      the
      event that the conditions of clause (B) of paragraph (ii) above have been
      satisfied, the Borrower shall have the right on or before the Extension Date,
      at
      its own expense, to require any Non-Extending Lender to transfer and assign
      without recourse or representation (except as to title and the absence of Liens
      created by it) (in accordance with and subject to the restrictions contained
      in
      Section 9.06(c)) all its interests, rights and obligations under the Loan
      Documents (including with respect to any Letter of Credit Liabilities) to one
      or
      more Eligible Assignees (which may include any Lender) (each, an “Additional
      Commitment Lender”),
      provided,
      that
      (x) such Additional Commitment Lender, if not already a Lender hereunder, shall
      be subject to the approval of the Administrative Agent (not to be unreasonably
      withheld), (y) such assignment shall become effective as of the Extension Date
      and (z) the Additional Commitment Lender shall pay to such Non-Extending Lender
      in immediately available funds on the effective date of such assignment the
      principal of and interest accrued to the date of payment on the Loans made
      by
      such Non-Extending Lender hereunder and all other amounts accrued for such
      Non-Extending Lender’s account or owed to it hereunder. 

    (iv)  Notwithstanding
      the foregoing, no extension of the Revolving Termination Date shall become
      effective unless, on the Extension Date, the conditions set forth in Section
      4.02 shall be satisfied (with all references in such paragraphs to the making
      of
      a Loan or issuance of a Letter of Credit being deemed to be references to the
      extension of the Commitments on the Extension Date) and the Administrative
      Agent
      shall have received a certificate to that effect dated the Extension Date and
      executed by a responsible officer of the Borrower.

     

    Section
      2.08  Maturity
      of Loans; Mandatory Prepayments.

     

    (a)  Scheduled
      Repayments and Prepayments of Loans; Overline Repayments.

    (i)  The
      Revolving Loans shall mature on the Revolving Termination Date, and any
      Revolving Loans or Letter of Credit Liabilities then outstanding (together
      with
      accrued interest thereon and fees in respect thereof) shall be due and payable
      or, in the case of Letters of Credit, cash collateralized pursuant to Section
      2.08(a)(ii), on such date.

    (ii)  If
      on any
      date the aggregate Revolving Outstandings exceed the aggregate amount of the
      Revolving Commitments (such excess, a “Revolving Outstandings Excess”), the
      Borrower shall prepay, and there shall become due and payable (together with
      accrued interest thereon) on such date, an aggregate principal amount of
      Revolving Loans equal to such Revolving Outstandings Excess. If, at a time
      when
      a Revolving Outstandings Excess exists, (x) no Revolving Loans are outstanding
      or (y) the Revolving Termination Date shall have occurred and, in either case,
      any Letter of Credit Liabilities remain outstanding, then, in either case,
      the
      Borrower shall cash collateralize any Letter of Credit Liabilities by depositing
      into a cash collateral account established and maintained (including the
      investments made pursuant thereto) by the Administrative Agent pursuant to
      a
      cash collateral agreement in form and substance satisfactory to the
      Administrative Agent an amount in cash equal to the then outstanding Letter
      of
      Credit Liabilities. In determining Revolving Outstandings for purposes of this
      clause (ii), Letter of Credit Liabilities shall be reduced to the extent that
      they are cash collateralized as contemplated by this Section
      2.08(a)(ii).

    (b)  Applications
      of Prepayments and Reductions.

    (i)  Each
      prepayment of Loans pursuant to this Section 2.08 shall be applied ratably
      to
      the respective Loans of all of the Lenders.

    (ii)  Each
      payment of principal of the Loans shall be made together with interest accrued
      on the amount repaid to the date of payment.

    (iii)  Each
      payment of the Loans shall be applied to such Group or Groups of Loans as the
      Borrower may designate (or, failing such designation, as determined by the
      Administrative Agent).

     

    Section
      2.09  Optional
      Prepayments and Repayments.

     

    (a)  Prepayments
      of Loans. Subject to Section 2.11, the Borrower may (i) upon at least one
      (1) Business Day’s notice to the Administrative Agent, prepay any Base Rate
      Borrowing or (ii) upon at least three (3) Business Days’ notice to the
      Administrative Agent, prepay any Euro-Dollar Borrowing, in each case in whole
      at
      any time, or from time to time in part in amounts aggregating $10,000,000 or
      any
      larger multiple of $1,000,000, by paying the principal amount to be prepaid
      together with accrued interest thereon to the date of prepayment. Each such
      optional prepayment shall be applied to prepay ratably the Loans of the several
      Lenders included in such Borrowing.

    (b)  Notice
      to
      Lenders. Upon receipt of a notice of prepayment pursuant to Section 2.09(a),
      the
      Administrative Agent shall promptly notify each Lender of the contents thereof
      and of such Lender’s ratable share (if any) of such prepayment, and such notice
      shall not thereafter be revocable by the Borrower.

     

    Section
      2.10  General
      Provisions as to Payments.

     

    (a)  Payments
      by the Borrower. The Borrower shall make each payment of principal of and
      interest on the Loans and Letter of Credit Liabilities and fees hereunder (other
      than fees payable directly to the Issuing Lenders) not later than 12:00 Noon
      (Charlotte, North Carolina time) on the date when due, without set-off,
      counterclaim or other deduction, in Federal or other funds immediately available
      in Charlotte, North Carolina, to the Administrative Agent at its address
      referred to in Section 9.01. The Administrative Agent will promptly distribute
      to each Lender its ratable share of each such payment received by the
      Administrative Agent for the account of the Lenders. Whenever any payment of
      principal of or interest on the Base Rate Loans or Letter of Credit Liabilities
      or of fees shall be due on a day which is not a Business Day, the date for
      payment thereof shall be extended to the next succeeding Business Day. Whenever
      any payment of principal of or interest on the Euro-Dollar Loans shall be due
      on
      a day which is not a Business Day, the date for payment thereof shall be
      extended to the next succeeding Business Day unless such Business Day falls
      in
      another calendar month, in which case the date for payment thereof shall be
      the
      next preceding Business Day. If the date for any payment of principal is
      extended by operation of law or otherwise, interest thereon shall be payable
      for
      such extended time.

    (b)  Distributions
      by the Administrative Agent. Unless the Administrative Agent shall have received
      notice from the Borrower prior to the date on which any payment is due to the
      Lenders hereunder that the Borrower will not make such payment in full, the
      Administrative Agent may assume that the Borrower has made such payment in
      full
      to the Administrative Agent on such date, and the Administrative Agent may,
      in
      reliance upon such assumption, cause to be distributed to each Lender on such
      due date an amount equal to the amount then due such Lender. If and to the
      extent that the Borrower shall not have so made such payment, each Lender shall
      repay to the Administrative Agent forthwith on demand such amount distributed
      to
      such Lender together with interest thereon, for each day from the date such
      amount is distributed to such Lender until the date such Lender repays such
      amount to the Administrative Agent, at the Federal Funds Rate.

     

    Section
      2.11  Funding
      Losses.
      If the
      Borrower makes any payment of principal with respect to any Euro-Dollar Loan
      pursuant to the terms and provisions of this Agreement (any conversion of a
      Euro-Dollar Loan to a Base Rate Loan pursuant to Section 2.17 being treated
      as a
      payment of such Euro-Dollar Loan on the date of conversion for purposes of
      this
      Section 2.11) on any day other than the last day of the Interest Period
      applicable thereto, or the last day of an applicable period fixed pursuant
      to
      Section 2.05(c), or if the Borrower fails to borrow, convert or prepay any
      Euro-Dollar Loan after notice has been given in accordance with the provisions
      of this Agreement, the Borrower shall reimburse each Lender within fifteen
      (15)
      days after demand for any resulting loss or expense incurred by it (and by
      an
      existing Participant in the related Loan), including, without limitation, any
      loss incurred in obtaining, liquidating or employing deposits from third
      parties, but excluding loss of margin for the period after any such payment
      or
      failure to borrow or prepay; provided,
      that
      such Lender shall have delivered to the Borrower a certificate as to the amount
      of such loss or expense, which certificate shall be conclusive in the absence
      of
      manifest error.

     

    Section
      2.12  Computation
      of Interest and Fees.
      Interest on Loans based on the Prime Rate hereunder shall be computed on the
      basis of a year of 365 days (or 366 days in a leap year) and paid for the actual
      number of days elapsed. All other interest and fees shall be computed on the
      basis of a year of 360 days and paid for the actual number of days elapsed
      (including the first day but excluding the last day).

     

    Section
      2.13  Basis
      for Determining Interest Rate Inadequate, Unfair or
      Unavailable.
      If on
      or prior to the first day of any Interest Period for any Euro-Dollar Loan:
      (a)
      Lenders having 50% or more of the aggregate amount of the Revolving Commitments
      advise the Administrative Agent that the Adjusted London Interbank Offered
      Rate
      as determined by the Administrative Agent, will not adequately and fairly
      reflect the cost to such Lenders of funding their Euro-Dollar Loans for such
      Interest Period; or (b) the Administrative Agent shall determine that no
      reasonable means exists for determining the Adjusted London Interbank Offered
      Rate, the Administrative Agent shall forthwith give notice thereof to the
      Borrower and the Lenders, whereupon until the Administrative Agent notifies
      the
      Borrower that the circumstances giving rise to such suspension no longer exist,
      (i) the obligations of the Lenders to make Euro-Dollar Loans or to convert
      outstanding Loans into Euro-Dollar Loans shall be suspended; and (ii) each
      outstanding Euro-Dollar Loan shall be converted into a Base Rate Loan on the
      last day of the current Interest Period applicable thereto. Unless the Borrower
      notifies the Administrative Agent at least two (2) Domestic Business Days before
      the date of (or, if at the time the Borrower receives such notice the day is
      the
      date of, or the date immediately preceding, the date of such Euro-Dollar
      Borrowing, by 10:00 A.M. on the date of) any Euro-Dollar Borrowing for which
      a
      Notice of Borrowing has previously been given that it elects not to borrow
      on
      such date, such Borrowing shall instead be made as a Base Rate
      Borrowing.

     

    Section
      2.14  Illegality.
      If, on
      or after the date of this Agreement, the adoption of any applicable law, rule
      or
      regulation, or any change in any applicable law, rule or regulation, or any
      change in the interpretation or administration thereof by any Governmental
      Authority, central bank or comparable agency charged with the interpretation
      or
      administration thereof, or compliance by any Lender (or its Euro-Dollar Lending
      Office) with any request or directive (whether or not having the force of law)
      of any such authority, central bank or comparable agency shall make it unlawful
      or impossible for any Lender (or its Euro-Dollar Lending Office) to make,
      maintain or fund its Euro-Dollar Loans and such Lender shall so notify the
      Administrative Agent, the Administrative Agent shall forthwith give notice
      thereof to the other Lenders and the Borrower, whereupon until such Lender
      notifies the Borrower and the Administrative Agent that the circumstances giving
      rise to such suspension no longer exist, the obligation of such Lender to make
      Euro-Dollar Loans, or to convert outstanding Loans into Euro-Dollar Loans,
      shall
      be suspended. Before giving any notice to the Administrative Agent pursuant
      to
      this Section, such Lender shall designate a different Euro-Dollar Lending Office
      if such designation will avoid the need for giving such notice and will not,
      in
      the judgment of such Lender, be otherwise disadvantageous to such Lender. If
      such notice is given, each Euro-Dollar Loan of such Lender then outstanding
      shall be converted to a Base Rate Loan either (i) on the last day of the then
      current Interest Period applicable to such Euro-Dollar Loan if such Lender
      may
      lawfully continue to maintain and fund such Loan to such day or (ii) immediately
      if such Lender shall determine that it may not lawfully continue to maintain
      and
      fund such Loan to such day.

     

    Section
      2.15  Increased
      Cost and Reduced Return.

     

    (a)  Increased
      Costs. If after the date hereof, the adoption of any applicable law, rule or
      regulation, or any change in any applicable law, rule or regulation, or any
      change in the interpretation or administration thereof by any Governmental
      Authority, central bank or comparable agency charged with the interpretation
      or
      administration thereof, or compliance by any Lender (or its Applicable Lending
      Office) with any request or directive (whether or not having the force of law)
      of any such authority, central bank or comparable agency shall impose, modify
      or
      deem applicable any reserve (including, without limitation, any such requirement
      imposed by the Board of Governors of the Federal Reserve System), special
      deposit, insurance assessment or similar requirement against Letters of Credit
      issued or participated in by, assets of, deposits with or for the account of
      or
      credit extended by, any Lender (or its Applicable Lending Office) or shall
      impose on any Lender (or its Applicable Lending Office) or on the United States
      market for certificates of deposit or the London interbank market any other
      condition affecting its Euro-Dollar Loans, its Revolving Notes, its obligation
      to make Euro-Dollar Loans or its obligations hereunder in respect of Letters
      of
      Credit, and the result of any of the foregoing is to increase the cost to such
      Lender (or its Applicable Lending Office) of making or maintaining any
      Euro-Dollar Loan, or of issuing or participating in any Letter of Credit, or
      to
      reduce the amount of any sum received or receivable by such Lender (or its
      Applicable Lending Office) under this Agreement or under its Revolving Notes
      with respect thereto, then, within fifteen (15) days after demand by such Lender
      (with a copy to the Administrative Agent), the Borrower shall pay to such Lender
      such additional amount or amounts, as determined by such Lender in good faith,
      as will compensate such Lender for such increased cost or reduction, solely
      to
      the extent that any such additional amounts were incurred by the Lender within
      ninety (90) days of such demand.

    (b)  Capital
      Adequacy. If any Lender shall have determined that, after the date hereof,
      the
      adoption of any applicable law, rule or regulation regarding capital adequacy,
      or any change in any such law, rule or regulation, or any change in the
      interpretation or administration thereof by any Governmental Authority, central
      bank or comparable agency charged with the interpretation or administration
      thereof, or any request or directive regarding capital adequacy (whether or
      not
      having the force of law) of any such authority, central bank or comparable
      agency, has or would have the effect of reducing the rate of return on capital
      of such Lender (or any Person controlling such Lender) as a consequence of
      such
      Lender’s obligations hereunder to a level below that which such Lender (or any
      Person controlling such Lender) could have achieved but for such adoption,
      change, request or directive (taking into consideration its policies with
      respect to capital adequacy), then from time to time, within fifteen (15) days
      after demand by such Lender (with a copy to the Administrative Agent), the
      Borrower shall pay to such Lender such additional amount or amounts as will
      compensate such Lender (or any Person controlling such Lender) for such
      reduction, solely to the extent that any such additional amounts were incurred
      by the Lender within ninety (90) days of such demand.

    (c)  Notices.
      Each Lender will promptly notify the Borrower and the Administrative Agent
      of
      any event of which it has knowledge, occurring after the date hereof, that
      will
      entitle such Lender to compensation pursuant to this Section and will designate
      a different Applicable Lending Office if such designation will avoid the need
      for, or reduce the amount of, such compensation and will not, in the judgment
      of
      such Lender, be otherwise disadvantageous to such Lender. A certificate of
      any
      Lender claiming compensation under this Section and setting forth in reasonable
      detail the additional amount or amounts to be paid to it hereunder shall be
      conclusive in the absence of manifest error. In determining such amount, such
      Lender may use any reasonable averaging and attribution methods.

     

    Section
      2.16  Taxes.

     

    (a)  Payments
      Net of Certain Taxes. Any and all payments by the Borrower to or for the account
      of any Lender or any Agent hereunder or under any other Loan Document shall
      be
      made free and clear of and without deduction for any and all present or future
      taxes, duties, levies, imposts, deductions, charges and withholdings and all
      liabilities with respect thereto, excluding: (i) taxes imposed on or measured
      by
      the net income (including branch profits or similar taxes) of, and gross
      receipts, franchise or similar taxes imposed on, any Agent or any Lender by
      the
      jurisdiction (or subdivision thereof) under the laws of which such Lender or
      Agent is organized or in which its principal executive office is located or,
      in
      the case of each Lender, in which its Applicable Lending Office is located,
      and
      (ii) in the case of each Lender, any United States withholding tax imposed
      on
      such payments, but only to the extent that such Lender is subject to United
      States withholding tax at the time such Lender first becomes a party to this
      Agreement or changes its Applicable Lending Office (all such nonexcluded taxes,
      duties, levies, imposts, deductions, charges, withholdings and liabilities
      being
      hereinafter referred to as “Taxes”). If the Borrower shall be required by law to
      deduct any Taxes from or in respect of any sum payable hereunder or under any
      other Loan Document to any Lender or any Agent, (i) the sum payable shall be
      increased as necessary so that after making all such required deductions
      (including deductions applicable to additional sums payable under this Section
      2.16(a)) such Lender or Agent (as the case may be) receives an amount equal
      to
      the sum it would have received had no such deductions been made, (ii) the
      Borrower shall make such deductions, (iii) the Borrower shall pay the full
      amount deducted to the relevant taxation authority or other authority in
      accordance with applicable law and (iv) the Borrower shall furnish to the
      Administrative Agent, for delivery to such Lender, the original or a certified
      copy of a receipt evidencing payment thereof.

    (b)  Other
      Taxes. In addition, the Borrower agrees to pay any and all present or future
      stamp or documentary taxes and any other excise or property taxes, or similar
      charges or levies, which arise from any payment made pursuant to this Agreement,
      any Revolving Note or any other Loan Document or from the execution, delivery,
      registration or enforcement of, or otherwise with respect to, this Agreement,
      any Revolving Note or any other Loan Document (collectively, “Other
      Taxes”).

    (c)  Indemnification.
      The Borrower agrees to indemnify each Lender and each Agent for the full amount
      of Taxes and Other Taxes (including, without limitation, any Taxes or Other
      Taxes imposed or asserted by any jurisdiction on amounts payable under this
      Section 2.16(c)), whether or not correctly or legally asserted, paid by such
      Lender or Agent (as the case may be) and any liability (including penalties,
      interest and expenses) arising therefrom or with respect thereto as certified
      in
      good faith to the Borrower by each Lender or Agent seeking indemnification
      pursuant to this Section 2.16(c). This indemnification shall be paid within
      15
      days after such Lender or Agent (as the case may be) makes demand
      therefor.

    (d)  Refunds
      or Credits. If a Lender or Agent receives a refund, credit or other reduction
      from a taxation authority for any Taxes or Other Taxes for which it has been
      indemnified by the Borrower or with respect to which the Borrower has paid
      additional amounts pursuant to this Section 2.16, it shall within fifteen (15)
      days from the date of such receipt pay over the amount of such refund, credit
      or
      other reduction to the Borrower (but only to the extent of indemnity payments
      made or additional amounts paid by the Borrower under this Section 2.16 with
      respect to the Taxes or Other Taxes giving rise to such refund, credit or other
      reduction), net of all reasonable out-of-pocket expenses of such Lender or
      Agent
      (as the case may be) and without interest (other than interest paid by the
      relevant taxation authority with respect to such refund, credit or other
      reduction); provided, however, that the Borrower agrees to repay, upon the
      request of such Lender or Agent (as the case may be), the amount paid over
      to
      the Borrower (plus penalties, interest or other charges) to such Lender or
      Agent
      in the event such Lender or Agent is required to repay such refund or credit
      to
      such taxation authority.

    (e)  Tax
      Forms
      and Certificates. On or before the date it becomes a party to this Agreement,
      from time to time thereafter if reasonably requested by the Borrower, and at
      any
      time it changes its Applicable Lending Office, each Lender organized under
      the
      laws of a jurisdiction other than the United States, any State thereof or the
      District of Columbia (a “Non-U.S. Lender”) shall deliver to the Borrower and the
      Administrative Agent: (i) two (2) properly completed and duly executed copies
      of
      Internal Revenue Service Form W-8 BEN, or any successor form prescribed by
      the
      Internal Revenue Service, certifying that such Lender is entitled to the
      benefits under an income tax treaty to which the United States is a party which
      exempts the Lender from United States withholding tax or reduces the rate of
      withholding tax on payments of interest for the account of such Lender or (ii)
      two (2) properly completed and duly executed copies of Internal Revenue Service
      Form W-8 ECI, or any successor form prescribed by the Internal Revenue Service,
      certifying that the income receivable pursuant to this Agreement and the other
      Loan Documents is effectively connected with the conduct of a trade or business
      in the United States. In addition, each Non-U.S. Lender agrees that from time
      to
      time after the Closing Date, when a lapse in time or change in circumstances
      renders the previous certification obsolete or inaccurate in any material
      respect, it will deliver to the Borrower and the Administrative Agent two new
      accurate and complete signed originals of Internal Revenue Service Form W-8
      BEN
      or W-8 ECI, or successor forms, as the case may be, and such other forms as
      may
      be required in order to confirm or establish the entitlement of such Non-U.S.
      Lender to a continued exemption from or reduction in United States withholding
      tax with respect to payments under this Agreement and any other Loan Document,
      or it shall immediately notify the Borrower and the Administrative Agent of
      its
      inability to deliver any such Form or certificate.

    (f)  Exclusions.
      The Borrower shall not be required to indemnify any Non-U.S. Lender or Agent,
      or
      to pay any additional amount to any Non-U.S. Lender or Agent, pursuant to
      Section 2.16(a), (b) or (c) in respect of Taxes or Other Taxes to the extent
      that the obligation to indemnify or pay such additional amounts would not have
      arisen but for the failure of such Non-U.S. Lender to comply with the provisions
      of subsection (e) above.

    (g)  Mitigation.
      If the Borrower is required to pay additional amounts to or for the account
      of
      any Lender pursuant to this Section 2.16, then such Lender will use reasonable
      efforts (which shall include efforts to rebook the Revolving Loans held by
      such
      Lender to a new Applicable Lending Office, or through another branch or
      affiliate of such Lender) to change the jurisdiction of its Applicable Lending
      Office if, in the good faith judgment of such Lender, such efforts (i) will
      eliminate or, if it is not possible to eliminate, reduce to the greatest extent
      possible any such additional payment which may thereafter accrue and (ii) is
      not
      otherwise disadvantageous, in the sole determination of such Lender, to such
      Lender. Any Lender claiming any indemnity payment or additional amounts payable
      pursuant to this Section shall use reasonable efforts (consistent with legal
      and
      regulatory restrictions) to file any certificate or document reasonably
      requested in writing by the Borrower or to change the jurisdiction of its
      Applicable Lending Office if the making of such a filing or change would avoid
      the need for or reduce the amount of any such indemnity payment or additional
      amounts that may thereafter accrue and would not, in the sole determination
      of
      such Lender, be otherwise disadvantageous to such Lender.

    (h)  Confidentiality.
      Nothing contained in this Section shall require any Lender or any Agent to
      make
      available any of its tax returns (or any other information that it deems to
      be
      confidential or proprietary).

     

    Section
      2.17  Base
      Rate Loans Substituted for Affected Euro-Dollar Loans.
      If (a)
      the obligation of any Lender to make or maintain, or to convert outstanding
      Loans to, Euro-Dollar Loans has been suspended pursuant to Section 2.14 or
      (b)
      any Lender has demanded compensation under Section 2.15(a) with respect to
      its
      Euro-Dollar Loans and, in any such case, the Borrower shall, by at least four
      Business Days’ prior notice to such Lender through the Administrative Agent,
      have elected that the provisions of this Section shall apply to such Lender,
      then, unless and until such Lender notifies the Borrower that the circumstances
      giving rise to such suspension or demand for compensation no longer
      apply:

    (i)  all
      Loans
      which would otherwise be made by such Lender as (or continued as or converted
      into) Euro-Dollar Loans shall instead be Base Rate Loans (on which interest
      and
      principal shall be payable contemporaneously with the related Euro-Dollar Loans
      of the other Lenders); and

    (ii)  after
      each of its Euro-Dollar Loans has been repaid (or converted to a Base Rate
      Loan), all payments of principal that would otherwise be applied to repay such
      Euro-Dollar Loans shall be applied to repay its Base Rate Loans
      instead.

    If
      such
      Lender notifies the Borrower that the circumstances giving rise to such notice
      no longer apply, the principal amount of each such Base Rate Loan shall be
      converted into a Euro-Dollar Loan on the first day of the next succeeding
      Interest Period applicable to the related Euro-Dollar Loans of the other
      Lenders.

     

    ARTICLE
      III

     

    LETTERS
      OF CREDIT

     

    Section
      3.01  Existing
      Letters of Credit.
      On the
      Closing Date, each Issuing Lender (as defined in the Existing Credit Agreement)
      that has issued an Existing Letter of Credit shall be deemed, without further
      action by any party to this Agreement, to have issued such Existing Letter
      of
      Credit under this Agreement pursuant to the terms and subject to the conditions
      of this Article III.

     

    Section
      3.02  Additional
      Letters of Credit.
      The
      Issuing Lender agrees, on the terms and conditions set forth in this Agreement,
      to issue Letters of Credit from time to time before the fifth day prior to
      the
      Revolving Termination Date for the account, and upon the request, of the
      Borrower and in support of such obligations of the Borrower that are reasonably
      acceptable to the Issuing Lender; provided,
      that,
      immediately after each Letter of Credit is issued, (A) the aggregate amount
      of
      the Letter of Credit Liabilities shall not exceed the Letter of Credit
      Commitment and (B) the Revolving Outstandings shall not exceed the aggregate
      amount of the Revolving Commitments.

     

    Section
      3.03  Method
      of Issuance of Letters of Credit.
      The
      Borrower shall give the Issuing Lender notice substantially in the form of
      Exhibit A-3 to this Agreement (a “Letter
      of Credit Request”)
      of the
      requested issuance or extension of a Letter of Credit prior to 1:00 P.M.
      (Charlotte, North Carolina time) on the proposed date of the issuance or
      extension of Letters of Credit (which shall be a Domestic Business Day) (or
      such
      shorter period as may be agreed by the Issuing Lender in any particular
      instance), specifying the date such Letter of Credit is to be issued or extended
      and describing the terms of such Letter of Credit and the nature of the
      transactions to be supported thereby. The extension or renewal of any Letter
      of
      Credit shall be deemed to be an issuance of such Letter of Credit, and if any
      Letter of Credit contains a provision pursuant to which it is deemed to be
      extended unless notice of termination is given by the Issuing Lender, the
      Issuing Lender shall timely give such notice of termination unless it has
      theretofore timely received a Letter of Credit Request and the other conditions
      to issuance of a Letter of Credit have theretofore been met with respect to
      such
      extension. No Letter of Credit shall have a term of more than one year;
provided,
      that no
      Letter of Credit shall have a term extending or be so extendible beyond the
      fifth Business Day before the Revolving Termination Date.

     

    Section
      3.04  Conditions
      to Issuance of Additional Letters of Credit.
      The
      issuance by the Issuing Lender of each Additional Letter of Credit shall, in
      addition to the conditions precedent set forth in Article IV, be subject to
      the
      conditions precedent that (i) such Letter of Credit shall be satisfactory in
      form and substance to the Issuing Lender, (ii) the Borrower shall have executed
      and delivered such other instruments and agreements relating to such Letter
      of
      Credit as the Issuing Lender shall have reasonably requested and (iii) the
      Issuing Lender shall have confirmed on the date of (and after giving effect
      to)
      such issuance that (A) the aggregate amount of all Letter of Credit Liabilities
      will not exceed the Letter of Credit Commitment and (B) the aggregate Revolving
      Outstandings will not exceed the aggregate amount of the Revolving Commitments.
      Notwithstanding any other provision of this Section 3.04, the Issuing Lender
      shall not be under any obligation to issue any Additional Letter of Credit
      if:
      any order, judgment or decree of any governmental authority shall by its terms
      purport to enjoin or restrain the Issuing Lender from issuing such Additional
      Letter of Credit, or any requirement of law applicable to the Issuing Lender
      or
      any request or directive (whether or not having the force of law) from any
      governmental authority with jurisdiction over the Issuing Lender shall prohibit,
      or request that the Issuing Lender refrain from, the issuance of letters of
      credit generally or such Additional Letter of Credit in particular or shall
      impose upon the Issuing Lender with respect to such Additional Letter of Credit
      any restriction, reserve or capital requirement (for which the Issuing Lender
      is
      not otherwise compensated hereunder) not in effect on the Closing Date, or
      shall
      impose upon the Issuing Lender any unreimbursed loss, cost or expense which
      was
      not applicable on the Closing Date and which the Issuing Lender in good faith
      deems material to it.

     

    Section
      3.05  Purchase
      and Sale of Letter of Credit Participations.
      Upon
      the issuance by an Issuing Lender of a Letter of Credit, such Issuing Lender
      shall be deemed, without further action by any party hereto, to have sold to
      each Lender, and each Lender shall be deemed, without further action by any
      party hereto, to have purchased from such Issuing Lender, without recourse
      or
      warranty, an undivided participation interest in such Letter of Credit and
      the
      related Letter of Credit Liabilities in the proportion its Revolving Commitment
      bears to the aggregate Revolving Commitments (although the Fronting Fee payable
      under Section 2.06(b) shall be payable directly to the Administrative Agent
      for
      the account of the applicable Issuing Lender, and the Lenders (other than such
      Issuing Lender) shall have no right to receive any portion of any such Fronting
      Fee) and any security therefor or guaranty pertaining thereto. Upon any change
      in the Revolving Commitments pursuant to Section 9.06(c), there shall be an
      automatic adjustment to the participations in all outstanding Letters of Credit
      and Letter of Credit Liabilities to reflect the adjusted Revolving Commitments
      of the assigning and assignee Lenders or of all Lenders having Revolving
      Commitments, as the case may be.

     

    Section
      3.06  Drawings
      under Letters of Credit.
      Upon
      receipt from the beneficiary of any Letter of Credit of any notice of a drawing
      under such Letter of Credit, the applicable Issuing Lender shall determine
      in
      accordance with the terms of such Letter of Credit whether such drawing should
      be honored. If the Issuing Lender determines that any such drawing shall be
      honored, such Issuing Lender shall make available to such beneficiary in
      accordance with the terms of such Letter of Credit the amount of the drawing
      and
      shall notify the Borrower as to the amount to be paid as a result of such
      drawing and the payment date.

     

    Section
      3.07  Reimbursement
      Obligations.
      The
      Borrower shall be irrevocably and unconditionally obligated forthwith to
      reimburse the applicable Issuing Lender for any amounts paid by such Issuing
      Lender upon any drawing under any Letter of Credit, together with any and all
      reasonable charges and expenses which the Issuing Lender may pay or incur
      relative to such drawing and interest on the amount drawn at the rate applicable
      to Base Rate Loans for each day from and including the date such amount is
      drawn
      to but excluding the date such reimbursement payment is due and payable. Such
      reimbursement payment shall be due and payable (i) at or before 1:00 P.M.
      (Charlotte, North Carolina time) on the date the Issuing Lender notifies the
      Borrower of such drawing, if such notice is given at or before 10:00 A.M.
      (Charlotte, North Carolina time) on such date or (ii) at or before 10:00 A.M.
      (Charlotte, North Carolina time) on the next succeeding Business Day;
provided,
      that no
      payment otherwise required by this sentence to be made by the Borrower at or
      before 1:00 P.M. (Charlotte, North Carolina time) on any day shall be overdue
      hereunder if arrangements for such payment satisfactory to the Issuing Lender,
      in its reasonable discretion, shall have been made by the Borrower at or before
      1:00 P.M. (Charlotte, North Carolina time) on such day and such payment is
      actually made at or before 3:00 P.M. (Charlotte, North Carolina time) on such
      day. In addition, the Borrower agrees to pay to the Issuing Lender interest,
      payable on demand, on any and all amounts not paid by the Borrower to the
      Issuing Lender when due under this Section 3.07, for each day from and including
      the date when such amount becomes due to but excluding the date such amount
      is
      paid in full, whether before or after judgment, at a rate per annum equal to
      the
      sum of 2% plus the rate applicable to Base Rate Loans for such day. Each payment
      to be made by the Borrower pursuant to this Section 3.07 shall be made to the
      Issuing Lender in Federal or other funds immediately available to it at its
      address referred to Section 9.01.

     

    Section
      3.08  Duties
      of Issuing Lenders to Lenders; Reliance.
      In
      determining whether to pay under any Letter of Credit, the relevant Issuing
      Lender shall not have any obligation relative to the Lenders participating
      in
      such Letter of Credit or the related Letter of Credit Liabilities other than
      to
      determine that any document or documents required to be delivered under such
      Letter of Credit have been delivered and that they substantially comply on
      their
      face with the requirements of such Letter of Credit. Any action taken or omitted
      to be taken by an Issuing Lender under or in connection with any Letter of
      Credit shall not create for the Issuing Lender any resulting liability if taken
      or omitted in the absence of gross negligence or willful misconduct. Each
      Issuing Lender shall be entitled (but not obligated) to rely, and shall be
      fully
      protected in relying, on the representation and warranty by the Borrower set
      forth in the last sentence of Section 4.02 to establish whether the conditions
      specified in clauses (c), (d) and (e) of Section 4.02 are met in connection
      with
      any issuance or extension of a Letter of Credit. Each Issuing Lender shall
      be
      entitled to rely, and shall be fully protected in relying, upon advice and
      statements of legal counsel, independent accountants and other experts selected
      by such Issuing Lender and upon any Letter of Credit, draft, writing,
      resolution, notice, consent, certificate, affidavit, letter, cablegram,
      telegram, telecopier, telex or teletype message, statement, order or other
      document believed by it in good faith to be genuine and correct and to have
      been
      signed, sent or made by the proper Person or Persons, and may accept documents
      that appear on their face to be in order, without responsibility for further
      investigation, regardless of any notice or information to the contrary unless
      the beneficiary and the Borrower shall have notified such Issuing Lender that
      such documents do not comply with the terms and conditions of the Letter of
      Credit. Each Issuing Lender shall be fully justified in refusing to take any
      action requested of it under this Section in respect of any Letter of Credit
      unless it shall first have received such advice or concurrence of the Required
      Lenders as it reasonably deems appropriate or it shall first be indemnified
      to
      its reasonable satisfaction by the Lenders against any and all liability and
      expense which may be incurred by it by reason of taking or continuing to take,
      or omitting or continuing to omit, any such action. Notwithstanding any other
      provision of this Section, each Issuing Lender shall in all cases be fully
      protected in acting, or in refraining from acting, under this Section in respect
      of any Letter of Credit in accordance with a request of the Required Lenders,
      and such request and any action taken or failure to act pursuant hereto shall
      be
      binding upon all Lenders and all future holders of participations in such Letter
      of Credit; provided,
      that
      this sentence shall not affect any rights the Borrower may have against the
      Issuing Lender or the Lenders that make such request.

     

    Section
      3.09  Obligations
      of Lenders to Reimburse Issuing Lender for Unpaid
      Drawings.
      If any
      Issuing Lender makes any payment under any Letter of Credit and the Borrower
      shall not have reimbursed such amount in full to such Issuing Lender pursuant
      to
      Section 3.07, the Issuing Lender shall promptly notify the Administrative Agent,
      and the Administrative Agent shall promptly notify each Lender (other than
      the
      relevant Issuing Lender), and each such Lender shall promptly and
      unconditionally pay to the Administrative Agent, for the account of such Issuing
      Lender, such Lender’s share of such payment (determined by the proportion its
      Revolving Commitment bears to the aggregate Revolving Commitments) in Dollars
      in
      Federal or other immediately available funds, the aggregate of such payments
      relating to each unreimbursed amount being referred to herein as a “Mandatory
      Letter of Credit Borrowing”;
      provided,
      however,
      that no
      Lender shall be obligated to pay to the Administrative Agent its pro rata share
      of such unreimbursed amount for any wrongful payment made by the relevant
      Issuing Lender under a Letter of Credit as a result of acts or omissions
      constituting willful misconduct or gross negligence by such Issuing Lender.
      If
      the Administrative Agent so notifies a Lender prior to 11:00 A.M. (Charlotte,
      North Carolina time) on any Business Day, such Lender shall make available
      to
      the Administrative Agent at its address referred to in Section 9.01 and for
      the
      account of the relevant Issuing Lender such Lender’s pro rata share of the
      amount of such payment by 3:00 P.M. (Charlotte, North Carolina time) on the
      Business Day following such Lender’s receipt of notice from the Administrative
      Agent, together with interest on such amount for each day from and including
      the
      date of such drawing to but excluding the day such payment is due from such
      Lender at the Federal Funds Rate for such day (which funds the Administrative
      Agent shall promptly remit to such Issuing Lender). The failure of any Lender
      to
      make available to the Administrative Agent for the account of an Issuing Lender
      its pro rata share of any unreimbursed drawing under any Letter of Credit shall
      not relieve any other Lender of its obligation hereunder to make available
      to
      the Administrative Agent for the account of such Issuing Lender its pro rata
      share of any payment made under any Letter of Credit on the date required,
      as
      specified above, but no such Lender shall be responsible for the failure of
      any
      other Lender to make available to the Administrative Agent for the account
      of
      the Issuing Lender such other Lender’s pro rata share of any such payment. Upon
      payment in full of all amounts payable by a Lender under this Section 3.09,
      such
      Lender shall be subrogated to the rights of the Issuing Lender against the
      Borrower to the extent of such Lender’s pro rata share of the related Letter of
      Credit Liabilities (including interest accrued thereon). If any Lender fails
      to
      pay any amount required to be paid by it pursuant to this Section 3.09 on the
      date on which such payment is due, interest shall accrue on such Lender’s
      obligation to make such payment, for each day from and including the date such
      payment became due to but excluding the date such Lender makes such payment,
      whether before or after judgment, at a rate per annum equal to (i) for each
      day
      from the date such payment is due to the third succeeding Business Day,
      inclusive, the Federal Funds Rate for such day as determined by the relevant
      Issuing Lender and (ii) for each day thereafter, the sum of 2% plus the rate
      applicable to its Base Rate Loans for such day. Any payment made by any Lender
      after 3:00 P.M. (Charlotte, North Carolina time) on any Business Day shall
      be
      deemed for purposes of the preceding sentence to have been made on the next
      succeeding Business Day.

     

    Section
      3.10  Funds
      Received from the Borrower in Respect of Drawn Letters of
      Credit.
      Whenever an Issuing Lender receives a payment of a Reimbursement Obligation
      as
      to which the Administrative Agent has received for the account of such Issuing
      Lender any payments from the Lenders pursuant to Section 3.09 above, such
      Issuing Lender shall pay the amount of such payment to the Administrative Agent,
      and the Administrative Agent shall promptly pay to each Lender which has paid
      its pro rata share thereof, in Dollars in Federal or other immediately available
      funds, an amount equal to such Lender’s pro rata share of the principal amount
      thereof and interest thereon for each day after relevant date of payment at
      the
      Federal Funds Rate.

     

    Section
      3.11  Obligations
      in Respect of Letters of Credit Unconditional.
      The
      obligations of the Borrower under Section 3.07 above shall be absolute,
      unconditional and irrevocable, and shall be performed strictly in accordance
      with the terms of this Agreement, under all circumstances whatsoever, including,
      without limitation, the following circumstances:

    (a)  any
      lack
      of validity or enforceability of this Agreement or any Letter of Credit or
      any
      document related hereto or thereto;

    (b)  any
      amendment or waiver of or any consent to departure from all or any of the
      provisions of this Agreement or any Letter of Credit or any document related
      hereto or thereto;

    (c)  the
      use
      which may be made of the Letter of Credit by, or any acts or omission of, a
      beneficiary of a Letter of Credit (or any Person for whom the beneficiary may
      be
      acting);

    (d)  the
      existence of any claim, set-off, defense or other rights that the Borrower
      may
      have at any time against a beneficiary of a Letter of Credit (or any Person
      for
      whom the beneficiary may be acting), any Issuing Lender or any other Person,
      whether in connection with this Agreement or any Letter of Credit or any
      document related hereto or thereto or any unrelated transaction;

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

    (f)  payment
      under a Letter of Credit against presentation to an Issuing Lender of a draft
      or
      certificate that does not comply with the terms of such Letter of Credit;
      provided, that the relevant Issuing Lender’s determination that documents
      presented under such Letter of Credit comply with the terms thereof shall not
      have constituted gross negligence or willful misconduct of such Issuing Lender;
      or

    (g)  any
      other
      act or omission to act or delay of any kind by any Issuing Lender or any other
      Person or any other event or circumstance whatsoever that might, but for the
      provisions of this subsection (g), constitute a legal or equitable discharge
      of
      the Borrower’s obligations hereunder.

     

    Nothing
      in this Section 3.11 is intended to limit the right of the Borrower to make
      a
      claim against any Issuing Lender for damages as contemplated by the proviso
      to the
      first sentence of Section 3.12.

     

    Section
      3.12  Indemnification
      in Respect of Letters of Credit.
      The
      Borrower hereby indemnifies and holds harmless each Lender (including each
      Issuing Lender) and the Administrative Agent from and against any and all
      claims, damages, losses, liabilities, costs or expenses which such Lender or
      the
      Administrative Agent may incur by reason of or in connection with the failure
      of
      any other Lender to fulfill or comply with its obligations to such Issuing
      Lender hereunder (but nothing herein contained shall affect any rights which
      the
      Borrower may have against such defaulting Lender), and none of the Lenders
      (including any Issuing Lender) nor the Administrative Agent, their respective
      affiliates nor any of their respective officers, directors, employees or agents
      shall be liable or responsible, by reason of or in connection with the execution
      and delivery or transfer of or payment or failure to pay under any Letter of
      Credit, including, without limitation, any of the circumstances enumerated
      in
      Section 3.11, as well as (i) any error, omission, interruption or delay in
      transmission or delivery of any messages, by mail, cable, telegraph, telex
      or
      otherwise, (ii) any error in interpretation of technical terms, (iii) any loss
      or delay in the transmission of any document required in order to make a drawing
      under a Letter of Credit, (iv) any consequences arising from causes beyond
      the
      control of such indemnitee, including without limitation, any government acts,
      or (v) any other circumstances whatsoever in making or failing to make payment
      under such Letter of Credit; provided,
      that
      the Borrower shall not be required to indemnify any Issuing Lender for any
      claims, damages, losses, liabilities, costs or expenses, and the Borrower shall
      have a claim against such Issuing Lender for direct (but not consequential)
      damages suffered by it, to the extent found by a court of competent jurisdiction
      in a final, non-appealable judgment or order to have been caused by (i) the
      willful misconduct or gross negligence of the Issuing Lender in determining
      whether a request presented under any Letter of Credit issued by it complied
      with the terms of such Letter of Credit or (ii) the Issuing Lender’s failure to
      pay under any Letter of Credit issued by it after the presentation to it of
      a
      request strictly complying with the terms and conditions of such Letter of
      Credit. Nothing in this Section 3.12 is intended to limit the obligations of
      the
      Borrower under any other provision of this Agreement.

     

    Section
      3.13  ISP98.
      The
      rules of the “International Standby Practices 1998” (the “ISP98”)
      as
      published by the ICC most recently at the time of issuance of any Letter of
      Credit shall apply to such Letter of Credit unless otherwise expressly provided
      in such Letter of Credit.

     

    ARTICLE
      IV

     

    CONDITIONS

     

    Section
      4.01  Conditions
      to Closing.
      The
      obligation of each Lender to make a Loan or issue a Letter of Credit on the
      occasion of the first Credit Event hereunder is subject to the satisfaction
      of
      the following conditions:

    (a)  Effectiveness.
      This
      Agreement shall have become effective in accordance with Section
      9.08.

    (b)  Revolving
      Notes.
      On or
      prior to the Closing Date, the Administrative Agent shall have received a duly
      executed Revolving Note for the account of each Lender requesting delivery
      of a
      Revolving Note pursuant to Section 2.04.

    (c)  Officers’
      Certificates.
      The
      Administrative Agent shall have received a certificate dated the Closing Date
      signed on behalf of the Borrower by the Chairman of the Board, the President,
      any Vice President, the Treasurer or Assistant Treasurer of the Borrower stating
      that (A) on the Closing Date and after giving effect to the Loans and Letters
      of
      Credit being made or issued on the Closing Date, no Default or Event of Default
      shall have occurred and be continuing and (B) the representations and warranties
      of the Borrower contained in the Loan Documents are true and correct on and
      as
      of the Closing Date.

    (d)  Proceedings.
      On the
      Closing Date, the Administrative Agent shall have received (i) a copy of the
      Borrower’s certificate of incorporation certified by the Secretary of State of
      the Commonwealth of Pennsylvania; (ii) a certificate of the Secretary of State
      of the Commonwealth of Pennsylvania, dated as of a recent date, as to the good
      standing of the Borrower; and (iii) a certificate of the Secretary or an
      Assistant Secretary of the Borrower dated the Closing Date and certifying (A)
      that attached thereto is a true, correct and complete copy of the articles
      of
      incorporation of the Borrower, (B) that attached thereto is a true, correct
      and
      complete copy of the bylaws of the Borrower, (C) as to the absence of
      dissolution or liquidation proceedings by or against the Borrower, (D) that
      attached thereto is a true, correct and complete copy of resolutions adopted
      by
      the board of directors of the Borrower authorizing the execution, delivery
      and
      performance of the Loan Documents to which the Borrower is a party and each
      other document delivered in connection herewith or therewith and that such
      resolutions have not been amended and are in full force and effect on the date
      of such certificate and (E) as to the incumbency and specimen signatures of
      each
      officer of the Borrower executing the Loan Documents to which the Borrower
      is a
      party or any other document delivered in connection herewith or
      therewith.

    (e)  Opinions
      of Counsel.
      On the
      Closing Date, the Administrative Agent shall have received from counsel to
      the
      Borrower, opinions addressed to the Administrative Agent and each Lender, dated
      the Closing Date, substantially in the form of Exhibit D-1 hereto and covering
      such additional matters incident to the transactions contemplated hereby as
      the
      Administrative Agent or the Required Lenders may reasonably
      request.

    (f)  Repayment
      of Existing Credit Agreement.
      (A) All
      outstanding Revolving Loans (as defined in the Existing Credit Agreement) under
      the Existing Credit Agreement (the “Existing Revolving Loans”) made by any
      Existing Lender thereunder who is not a Lender hereunder shall be repaid in
      full
      and the commitments and other obligations and rights (except as expressly set
      forth in the Existing Credit Agreement) of such Lender shall be terminated,
      (B)
      all Existing Revolving Loans not being repaid under item (A) above, shall be,
      from and after the Closing Date, Revolving Loans hereunder and the
      Administrative Agent shall make such transfers of funds as are necessary in
      order that the outstanding balance of such Revolving Loans, together with any
      Revolving Loans funded hereunder on the Closing Date, reflect the Revolving
      Commitments of the Lenders hereunder, (C) all of the Existing Letters of Credit
      shall be, from and after the Closing Date, Letters of Credit hereunder, (D)
      all
      accrued but unpaid interest due on the Existing Revolving Loans to the Closing
      Date shall be paid in cash in full on the Closing Date, (E) all accrued but
      unpaid fees under the Existing Credit Agreement owing to the Administrative
      Agent and the Lenders under the Existing Credit Agreement to the Closing Date
      shall be paid in cash in full on the Closing Date and (F) all outstanding
      promissory notes issued by the Borrower to the Lenders under the Existing Credit
      Agreement shall be amended and restated pursuant to the terms and conditions
      hereunder and in the other Loan Documents.

    (g)  Financial
      Statements.
      The
      Administrative Agent and each Lender shall have received and be satisfied with
      the (i) the audited consolidated financial statements of the Borrower and its
      Consolidated Subsidiaries for the fiscal year ending December 31, 2005, audited
      by PricewaterhouseCoopers LLP, or other nationally recognized independent public
      accountants, and containing an opinion of such firm that such financial
      statements present fairly, in all material respects and in conformity with
      GAAP,
      the financial position and results of operations of the Borrower and its
      Consolidated Subsidiaries, and (ii) unaudited consolidated interim financial
      statements of the Borrower and its Consolidated Subsidiaries for the fiscal
      quarter ending March 31, 2006.

    (h)  Consents.
      All
      necessary governmental (domestic or foreign), regulatory and third party
      approvals, including, without limitation, the order (“PUC Order”) of the
      Pennsylvania Public Utility Commission (“PUC”) dated May 27, 2004 authorizing
      borrowings hereunder, in connection with the transactions contemplated by this
      Agreement and the other Loan Documents shall have been obtained and remain
      in
      full force and effect, in each case without any action being taken by any
      competent authority which could restrain or prevent such transaction or impose,
      in the reasonable judgment of the Administrative Agent, materially adverse
      conditions upon the consummation of such transactions.

    (i)  Borrower’s
      Structure.
      The
      corporate and capital structure of the Borrower and its Subsidiaries shall
      be
      satisfactory to the Administrative Agent in its reasonable
      discretion.

    (j)  Payment
      of Fees.
      All
      costs, fees and expenses due to the Administrative Agent, the Joint Lead
      Arrangers and the Lenders on or before the Closing Date shall have been
      paid.

    (k)  Counsel
      Fees.
      The
      Administrative Agent shall have received full payment from the Borrower of
      the
      fees and expenses of Kennedy Covington Lobdell & Hickman, L.L.P. described
      in Section 9.03 which are billed through the Closing Date.

    (l)  Other
      Materials.
      The
      Administrative Agent shall have received such other assurances, certificates,
      documents, consents or opinions as the Administrative Agent, any Issuing Lender
      or the Required Lenders may reasonably request, in each case in form and
      substance satisfactory to the Administrative Agent.

     

    Section
      4.02  Conditions
      to All Credit Events.
      The
      obligation of any Lender to make a Loan on the occasion of any Borrowing, and
      the obligation of any Issuing Lender to issue (or renew or extend the term
      of)
      any Letter of Credit, is subject to the satisfaction of the following
      conditions:

    (a)  the
      fact
      that the Closing Date shall have occurred;

    (b)  receipt
      by the Administrative Agent of a Notice of Borrowing as required by Section
      2.02, or receipt by the Issuing Lender of a Letter of Credit Request as required
      by Section 3.03;

    (c)  the
      fact
      that, immediately before and after giving effect to such Credit Event, no
      Default or Event of Default shall have occurred and be continuing;
      and

    (d)  the
      fact
      that the representations and warranties of the Borrower contained in this
      Agreement and the other Loan Documents shall be true and correct on and as
      of
      the date of such Credit Event (except for the representations in Section
      5.04(c), Section 5.05 and Section 5.13, which shall be deemed only to relate
      to
      the matters referred to therein on and as of the Closing Date).

     

    Each
      Credit Event under this Agreement shall be deemed to be a representation and
      warranty by the
      Borrower
      on the date of such Credit Event as to the facts specified in clauses (c) and
      (d) of this Section.

     

    ARTICLE
      V

     

    REPRESENTATIONS
      AND WARRANTIES

     

    The
      Borrower represents and warrants that:

     

    Section
      5.01  Status.
      The
      Borrower is a corporation duly organized, validly existing and in good standing
      under the laws of the Commonwealth of Pennsylvania and has the corporate
      authority to make and perform this Agreement and each other Loan Document to
      which it is a party.

     

    Section
      5.02  Authority;
      No Conflict.
      The
      execution, delivery and performance by the Borrower of this Agreement and each
      other Loan Document to which it is a party have been duly authorized by all
      necessary corporate action and do not violate (i) any provision of law or
      regulation, or any decree, order, writ or judgment, (ii) any provision of its
      articles of incorporation or bylaws, or (iii) result in the breach of or
      constitute a default under any indenture or other agreement or instrument to
      which the Borrower is a party.

     

    Section
      5.03  Legality;
      Etc.
      This
      Agreement and each other Loan Document (other than the Revolving Notes) to
      which
      the Borrower is a party constitute the legal, valid and binding obligations
      of
      the Borrower, and the Revolving Notes, when executed and delivered in accordance
      with this Agreement, will constitute legal, valid and binding obligations of
      the
      Borrower, in each case enforceable against the Borrower in accordance with
      their
      terms except to the extent limited by (a) bankruptcy, insolvency, fraudulent
      conveyance or reorganization laws or by other laws relating to or affecting
      the
      enforceability of creditors’ rights generally and by general equitable
      principles which may limit the right to obtain equitable remedies regardless
      of
      whether enforcement is considered in a proceeding of law or equity or (b) any
      applicable public policy on enforceability of provisions relating to
      contribution and indemnification.

     

    Section
      5.04  Financial
      Condition.

     

    (a)  Audited
      Financial Statements.
      The
      consolidated balance sheet of the Borrower and its Consolidated Subsidiaries
      as
      of December 31, 2005 and the related consolidated statements of income and
      cash
      flows for the fiscal year then ended, reported on by PricewaterhouseCoopers
      LLP,
      copies of which have been delivered to each of the Administrative Agent and
      the
      Lenders, fairly present, in conformity with GAAP, the consolidated financial
      position of the Borrower and its Consolidated Subsidiaries as of such date
      and
      their consolidated results of operations and cash flows for such fiscal
      year.

    (b)  Interim
      Financial Statements.
      The
      unaudited consolidated balance sheet of the Borrower and its Consolidated
      Subsidiaries as of March 31, 2006 and the related unaudited consolidated
      statements of income and cash flows for the three months then ended fairly
      present, in conformity with GAAP applied on a basis consistent with the
      financial statements referred to in subsection (a) of this Section, the
      consolidated financial position of the Borrower and its Consolidated
      Subsidiaries as of such date and their consolidated results of operations and
      cash flows for such three-month period (subject to normal year-end audit
      adjustments).

    (c)  Material
      Adverse Change.
      Since
      December 31, 2005 there has been no change in the business, assets, financial
      condition or operations of the Borrower and its Consolidated Subsidiaries,
      considered as a whole, that would materially and adversely affect the Borrower’s
      ability to perform any of its obligations under this Agreement, the Revolving
      Notes or the other Loan Documents.

     

    Section
      5.05  Litigation.
      Except
      as disclosed in or contemplated by the Borrower’s Form 10-K Report to the SEC
      for the year ended December 31, 2005 or in any subsequent Form 10-Q or 8-K
      Report or otherwise furnished in writing to the Administrative Agent, no
      litigation, arbitration or administrative proceeding against the Borrower is
      pending or, to the Borrower’s knowledge, threatened, which, if adversely
      determined, would materially and adversely affect the ability of the Borrower
      to
      perform any of its obligations under this Agreement, the Revolving Notes or
      the
      other Loan Documents. There is no litigation, arbitration or administrative
      proceeding pending or, to the knowledge of the Borrower, threatened which
      questions the validity of this Agreement or the other Loan Documents to which
      it
      is a party.

     

    Section
      5.06  No
      Violation.
      No part
      of the proceeds of the borrowings by hereunder will be used, directly or
      indirectly by the Borrower for the purpose of purchasing or carrying any “margin
      stock” within the meaning of Regulation U of the Board of Governors of the
      Federal Reserve System, or for any other purpose which violates, or which
      conflicts with, the provisions of Regulations U or X of said Board of Governors.
      The Borrower is not engaged principally, or as one of its important activities,
      in the business of extending credit for the purpose of purchasing or carrying
      any such “margin stock”.

     

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

     

    Section
      5.08  Governmental
      Approvals.
      No
      authorization, consent or approval from any Governmental Authority is required
      for the execution, delivery and performance by the Borrower of this Agreement,
      the Revolving Notes and the other Loan Documents to which it is a party and
      except such authorizations, consents and approvals, including, without
      limitation, the PUC Order, as have been obtained prior to the Closing Date
      and
      are in full force and effect.

     

    Section
      5.09  Investment
      Company Act.
      The
      Borrower is not an “investment company” within the meaning of the Investment
      Company Act of 1940, as amended.

     

    Section
      5.10  Tax
      Returns and Payments.
      The
      Borrower has filed or caused to be filed all Federal, state, local and foreign
      income tax returns required to have been filed by it and has paid or caused
      to
      be paid all income taxes shown to be due on such returns except income taxes
      that are being contested in good faith by appropriate proceedings and for which
      the Borrower shall have set aside on its books appropriate reserves with respect
      thereto in accordance with GAAP or that would not reasonably be expected to
      have
      a Material Adverse Effect.

     

    Section
      5.11  Compliance
      with Laws.
      To the
      knowledge of the Borrower, the Borrower is in compliance with all applicable
      laws, regulations and orders of any Governmental Authority, domestic or foreign,
      in respect of the conduct of its business and the ownership of its property
      (including, without limitation, compliance with all applicable ERISA and
      Environmental Laws and the requirements of any permits issued under such
      Environmental Laws), except to the extent (a) such compliance is being contested
      in good faith by appropriate proceedings or (b) non-compliance would not
      reasonably be expected to materially and adversely affect its ability to perform
      any of its obligations under this Agreement, the Revolving Notes or any other
      Loan Document to which it is a party.

     

    Section
      5.12  No
      Default.
      No
      Default or Event of Default has occurred and is continuing.

     

    Section
      5.13  Environmental
      Matters

    .

    (a)  Except
      (i) as disclosed in or contemplated by the Borrower’s Form 10-K Report to the
      SEC for the year ended December 31, 2005 or in any subsequent Form 10-Q or
      8-K
      Report or otherwise furnished to the Administrative Agent in writing, or (ii)
      to
      the extent that the liabilities of the Borrower and its Subsidiaries, taken
      as a
      whole, that relate to or could result from the matters referred to in clauses
      (i) through (iii) of this Section 5.13, inclusive, would not reasonably be
      expected to result in a Material Adverse Effect, to the Borrower’s or any of its
      Subsidiaries’ knowledge:

    (i)  no
      notice, notification, citation, summons, complaint or order has been issued,
      no
      complaint has been filed, no penalty has been assessed nor is any investigation
      or review pending or threatened by any governmental or other entity with respect
      to any (A) alleged violation by the Borrower or any of its Subsidiaries of
      any
      Environmental Law, (B) alleged failure by the Borrower or any of its
      Subsidiaries to have any environmental permit, certificate, license, approval,
      registration or authorization required in connection with the conduct of its
      business or (C) generation, storage, treatment, disposal, transportation or
      release of Hazardous Substances;

    (ii)  no
      Hazardous Substance has been released (and no written notification of such
      release has been filed) (whether or not in a reportable or threshold planning
      quantity) at, on or under any property now or previously owned, leased or
      operated by the Borrower or any of its Subsidiaries; and

    (iii)  no
      property now or previously owned, leased or operated by the Borrower or any
      of
      its Subsidiaries or any property to which the Borrower or any of its
      Subsidiaries has, directly or indirectly, transported or arranged for the
      transportation of any Hazardous Substances, is listed or, to the Borrower’s or
      any of its Subsidiaries’ knowledge, proposed for listing, on the National
      Priorities List promulgated pursuant to the Comprehensive Environmental
      Response, Compensation and Liability Act of 1980, as amended (“CERCLA”),
      on
      CERCLIS (as defined in CERCLA) or on any similar federal, state or foreign
      list
      of sites requiring investigation or clean-up.

    (b)  Except
      as
      disclosed in or contemplated by the Borrower’s Form 10-K Report to the SEC for
      the year ended December 31, 2005 or in any subsequent Form 10-Q or 8-K Report
      or
      otherwise furnished to the Administrative Agent in writing, to the Borrower’s or
      any of its Subsidiaries’ knowledge, there are no Environmental Liabilities that
      have resulted or could reasonably be expected to result in a Material Adverse
      Effect.

    (c)  For
      purposes of this Section 5.13, the terms “the Borrower” and “Subsidiary” shall
      include any business or business entity (including a corporation) which is
      a
      predecessor, in whole or in part, of the Borrower or any of its Subsidiaries
      from the time such business or business entity became a Subsidiary of PPL
      Corporation.

     

    Section
      5.14  OFAC.
      None of
      the Borrower, any Subsidiary of the Borrower or any Affiliate of the Borrower:
      (i) is a Sanctioned Person, (ii) has more than 10% of its assets in Sanctioned
      Entities, or (iii) derives more than 10% of its operating income from
      investments in, or transactions with Sanctioned Persons or Sanctioned Entities.
      The proceeds of any Loan will not be used and have not been used to fund any
      operations in, finance any investments or activities in, or make any payments
      to, a Sanctioned Person or a Sanctioned Entity.

     

    ARTICLE
      VI

     

    COVENANTS

     

    The
      Borrower agrees that so long as any Lender has any Commitment hereunder or
      any
      amount payable hereunder or under any Revolving Note or other Loan Document
      remains unpaid or any Letter of Credit Liability remains
      outstanding:

     

    Section
      6.01  Information.
      The
      Borrower will deliver or cause to be delivered to each of the Lenders (it being
      understood that the posting of the information required in clauses (a), (b)
      and
      (f) of this Section 6.01 on the Borrower’s website (http://www.pplweb.com) shall
      be deemed to be effective delivery to the Lenders):

    (a)  Annual
      Financial Statements.
      Promptly when available and in any event within ten (10) days after the date
      such information is required to be delivered to the SEC, a consolidated balance
      sheet of the Borrower and its Consolidated Subsidiaries as of the end of such
      fiscal year and the related consolidated statements of income and cash flows
      for
      such fiscal year and accompanied by an opinion thereon by independent public
      accountants of recognized national standing, which opinion shall state that
      such
      consolidated financial statements present fairly the consolidated financial
      position of the Borrower and its Consolidated Subsidiaries as of the date of
      such financial statements and the results of their operations for the period
      covered by such financial statements in conformity with GAAP applied on a
      consistent basis.

    (b)  Quarterly
      Financial Statements.
      Promptly when available and in any event within ten (10) days after the date
      such information is required to be delivered to the SEC, a consolidated balance
      sheet of the Borrower and its Consolidated Subsidiaries as of the end of such
      quarter and the related consolidated statements of income and cash flows for
      such fiscal quarter, all certified (subject to normal year-end audit
      adjustments) as to fairness of presentation, GAAP and consistency by any vice
      president, the treasurer or the controller of the Borrower.

    (c)  Officer’s
      Certificate.
      Simultaneously with the delivery of each set of financial statements referred
      to
      in subsections (a) and (b) above, a certificate of the chief accounting officer
      of the Borrower, (i) setting forth in reasonable detail the calculations
      required to establish compliance with the requirements of Section 6.09 on the
      date of such financial statements and (ii) stating whether there exists on
      the
      date of such certificate any Default or Event of Default and, if any Default
      or
      Event of Default then exists, setting forth the details thereof and the action
      which the Borrower is taking or proposes to take with respect
      thereto.

    (d)  Default.
      Forthwith upon acquiring knowledge of the occurrence of any (i) Default or
      (ii)
      Event of Default, in either case a certificate of a vice president or the
      treasurer of the Borrower setting forth the details thereof and the action
      which
      the Borrower is taking or proposes to take with respect thereto.

    (e)  Change
      in Borrower’s Ratings.
      Upon
      the chief executive officer, the president, any vice president or any senior
      financial officer of the Borrower obtaining knowledge of any change in a
      Borrower’s Rating, a notice of such Borrower’s Rating in effect after giving
      effect to such change.

    (f)  Securities
      Laws Filing.
      Promptly when available and in any event within ten (10) days after the date
      such information is required to be delivered to the SEC, a copy of any Form
      10-K
      Report to the SEC and a copy of any Form 10-Q Report to the SEC, and promptly
      upon the filing thereof, any other filings with the SEC.

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

    (h)  Other
      Information.
      From
      time to time such additional financial or other information regarding the
      financial condition, results of operations, properties, assets or business
      of
      the Borrower or any of its Subsidiaries as any Lender may reasonably
      request.

     

    Section
      6.02  Maintenance
      of Property; Insurance.

     

    (a)  Maintenance
      of Properties.
      The
      Borrower will keep all property useful and necessary in its businesses in good
      working order and condition, subject to ordinary wear and tear, unless the
      Borrower determines in good faith that the continued maintenance of any of
      such
      properties is no longer economically desirable and so long as the failure to
      so
      maintain such properties would not reasonably be expected to have a Material
      Adverse Effect.

    (b)  Insurance.
      The
      Borrower will maintain, or cause to be maintained, insurance with financially
      sound (determined in the reasonable judgment of the Borrower) and responsible
      companies in such amounts (and with such risk retentions) and against such
      risks
      as is usually carried by owners of similar businesses and properties in the
      same
      general areas in which the Borrower operates.

     

    Section
      6.03  Conduct
      of Business and Maintenance of Existence.
      The
      Borrower will (i) continue to engage in businesses of the same general type
      as
      now conducted by the Borrower and its Subsidiaries and businesses related
      thereto or arising out of such businesses, except to the extent that the failure
      to maintain any existing business would not have a Material Adverse Effect
      and
      (ii) except as otherwise permitted in Section 6.07, preserve, renew and keep
      in
      full force and effect, and will cause each of its Subsidiaries to preserve,
      renew and keep in full force and effect, their respective corporate (or other
      entity) existence and their respective rights, privileges and franchises
      necessary or material to the normal conduct of business, except, in each case,
      where the failure to do so could not reasonably be expected to have a Material
      Adverse Effect.

     

    Section
      6.04  Compliance
      with Laws, Etc.
      The
      Borrower will comply with all applicable laws, regulations and orders of any
      Governmental Authority, domestic or foreign, in respect of the conduct of its
      business and the ownership of its property (including, without limitation,
      compliance with all applicable ERISA and Environmental Laws and the requirements
      of any permits issued under such Environmental Laws), except to the extent
      (a)
      such compliance is being contested in good faith by appropriate proceedings
      or
      (b) non-compliance could not reasonably be expected to have a Material Adverse
      Effect.

     

    Section
      6.05  Books
      and Records.
      The
      Borrower (i) will keep, and will cause each of its Subsidiaries to keep, proper
      books of record and account in conformity with GAAP and (ii) will permit
      representatives of the Administrative Agent and each of the Lenders to visit
      and
      inspect any of their respective properties, to examine and make copies from
      any
      of their respective books and records and to discuss their respective affairs,
      finances and accounts with their officers, any employees and independent public
      accountants, all at such reasonable times and as often as may reasonably be
      desired; provided,
      that,
      the rights created in this Section 6.05 to “visit”, “inspect”, “discuss” and
      copy shall not extend to any matters which the Borrower deems, in good faith,
      to
      be confidential, unless the Administrative Agent and any such Lender agree
      in
      writing to keep such matters confidential.

     

    Section
      6.06  Use
      of Proceeds.
      The
      proceeds of the Loans made under this Agreement will be used by the Borrower
      for
      general corporate purposes, including as a commercial paper backstop, of the
      Borrower and its Subsidiaries. The Borrower will request the issuance of Letters
      of Credit solely for general corporate purposes of the Borrower and its
      Subsidiaries. No such use of the proceeds for general corporate purposes will
      be, directly or indirectly, for the purpose, whether immediate, incidental
      or
      ultimate, of buying or carrying any Margin Stock within the meaning of
      Regulation U.

     

    Section
      6.07  Merger
      or Consolidation.
      The
      Borrower will not merge with or into or consolidate with or into any other
      corporation or entity, unless (i) immediately after giving effect thereto,
      no
      event shall occur and be continuing which constitutes a Default or Event
      Default, (ii) the surviving or resulting Person, as the case may be, assumes
      and
      agrees in writing to pay and perform all of the obligations of the Borrower
      under this Agreement, (iii) substantially all of the consolidated assets and
      consolidated revenues of the surviving or resulting person, as the case may
      be,
      are anticipated to come from the utility or energy businesses and (iv) the
      surviving or resulting person, as the case may be, has senior long-term debt
      ratings from at least two Rating Agencies that are at least equal to each
      Borrower’s Rating at the end of the fiscal quarter immediately preceding the
      effective date of such consolidation or merger. 

     

    Section
      6.08  Asset
      Sales.
      Except
      for the sale of assets required to be sold to conform with governmental
      requirements, the Borrower shall not consummate any Asset Sale, if the aggregate
      net book value of all such Asset Sales consummated during the four calendar
      quarters immediately preceding any date of determination would exceed 25% of
      the
      total assets of the Borrower and its Consolidated Subsidiaries as of the
      beginning of the Borrower’s most recently ended full fiscal quarter;
provided,
      however,
      that
      any such Asset Sale will be disregarded for purposes of the 25% limitation
      specified above: (a) if any such Asset Sale is in the ordinary course of
      business of the Borrower; (b) if the assets subject to any such Asset Sale
      are
      worn out or are no longer useful or necessary in connection with the operation
      of the businesses of the Borrower; (c) if the assets subject to any such Asset
      Sale are being transferred to a Wholly Owned Subsidiary of the Borrower; (d)
      if
      the proceeds from any such Asset Sale (i) are, within twelve (12) months of
      such
      Asset Sale, invested or reinvested by the Borrower in a Permitted Business,
      (ii)
      are used by the Borrower to repay Debt of the Borrower, or (iii) are retained
      by
      the Borrower; or (e) if, prior to any such Asset Sale, at least two of the
      Rating Agencies confirm the then-current Borrower Ratings after giving effect
      to
      any such Asset Sale.

     

    Section
      6.09  Consolidated
      Debt to Consolidated Capitalization Ratio.
      The
      ratio of Consolidated Debt of the Borrower to Consolidated Capitalization of
      the
      Borrower shall not exceed 70% at any time.

     

    ARTICLE
      VII

     

    DEFAULTS

     

    Section
      7.01  Events
      of Default.
      If one
      or more of the following events (each an “Event
      of Default”)
      shall
      have occurred and be continuing:

    (a)  the
      Borrower shall fail to pay when due any principal of the Loans or shall fail
      to
      reimburse when due any drawing under any Letter of Credit; or

    (b)  the
      Borrower shall fail to pay when due any interest on the Loans and Reimbursement
      Obligations, any fee or any other amount payable hereunder or under any other
      Loan Document for five (5) days following the date such payment becomes due
      hereunder; or

    (c)  the
      Borrower shall fail to observe or perform any covenant or agreement contained
      in
      clause (ii) of Section 6.05 or Sections 6.06, 6.07, 6.08 or 6.09;
      or

    (d)  the
      Borrower shall fail to observe or perform any covenant or agreement contained
      in
      Section 6.01(d)(i) for 30 days after any such failure or in Section 6.01(d)(ii)
      for ten (10) days after any such failure; or

    (e)  the
      Borrower shall fail to observe or perform any covenant or agreement contained
      in
      this Agreement or any other Loan Document (other than those covered by clauses
      (a), (b), (c) or (d) above) for thirty (30) days after written notice thereof
      has been given to the defaulting party by the Administrative Agent, or at the
      request of the Required Lenders; or

    (f)  any
      representation, warranty or certification made by the Borrower in this Agreement
      or any other Loan Document or in any certificate, financial statement or other
      document delivered pursuant hereto or thereto shall prove to have been incorrect
      in any material respect when made or deemed made; or

    (g)  the
      Borrower shall (i) fail to pay any principal or interest, regardless of amount,
      due in respect of any Material Debt beyond any period of grace provided with
      respect thereto, or (ii) fail to observe or perform any other term, covenant,
      condition or agreement contained in any agreement or instrument evidencing
      or
      governing any such Material Debt beyond any period of grace provided with
      respect thereto if the effect of any failure referred to in this clause (ii)
      is
      to cause, or to permit the holder or holders of such Debt or a trustee on its
      or
      their behalf to cause, such Debt to become due prior to its stated maturity;
      or

    (h)  the
      Borrower shall commence a voluntary case or other proceeding seeking
      liquidation, reorganization or other relief with respect to itself or its debts
      under any bankruptcy, insolvency or other similar law now or hereafter in effect
      or seeking the appointment of a trustee, receiver, liquidator, custodian or
      other similar official of it or any substantial part of its property, or shall
      consent to any such relief or to the appointment of or taking possession by
      any
      such official in an involuntary case or other proceeding commenced against
      it,
      or shall make a general assignment for the benefit of creditors, or shall fail
      generally to pay, or shall admit in writing its inability to pay, its debts
      as
      they become due, or shall take any corporate action to authorize any of the
      foregoing; or

    (i)  an
      involuntary case or other proceeding shall be commenced against the Borrower
      seeking liquidation, reorganization or other relief with respect to it or its
      debts under any bankruptcy, insolvency or other similar law now or hereafter
      in
      effect or seeking the appointment of a trustee, receiver, liquidator, custodian
      or other similar official of it or any substantial part of its property, and
      such involuntary case or other proceeding shall remain undismissed and unstayed
      for a period of 60 days; or an order for relief shall be entered against the
      Borrower under the Bankruptcy Code; or

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

    (k)  the
      Borrower shall fail within sixty (60) days to pay, bond or otherwise discharge
      any judgment or order for the payment of money in excess of $20,000,000, entered
      against the Borrower that is not stayed on appeal or otherwise being
      appropriately contested in good faith; or

    (l)  a
      Change
      of Control shall have occurred;

    then,
      and
      in every such event, while such event is continuing, the Administrative Agent
      may (A) if requested by the Required Lenders, by notice to the Borrower
      terminate the Commitments, and the Commitments shall thereupon terminate, and
      (B) if requested by the Lenders holding more than 50% of the sum of the
      aggregate outstanding principal amount of the Loans and Letter of Credit
      Liabilities at such time, by notice to the Borrower declare the Loans (together
      with accrued interest and accrued and unpaid fees thereon) to be, and the Loans
      shall thereupon become, immediately due and payable without presentment, demand,
      protest or other notice of any kind (except as set forth in clause (A) above),
      all of which are hereby waived by the Borrower; provided,
      that,
      in the case of any Default or any Event of Default specified in clause 7.01(h)
      or 7.01(i) above with respect to the Borrower, without any notice to the
      Borrower or any other act by the Administrative Agent or any Lender, the
      Commitments shall thereupon terminate and the Loans (together with accrued
      interest and accrued and unpaid fees thereon) shall become immediately due
      and
      payable without presentment, demand, protest or other notice of any kind, all
      of
      which are hereby waived by the Borrower.

     

    ARTICLE
      VIII

     

    THE
      AGENTS

     

    Section
      8.01  Appointment
      and Authorization.
      Each
      Lender hereby irrevocably designates and appoints the Administrative Agent
      of to
      act as specified herein and in the other Loan Documents and to take such actions
      on its behalf under the provisions of this Agreement and the other Loan
      Documents and perform such duties as are expressly delegated to the
      Administrative Agent by the terms of this Agreement and the other Loan
      Documents, together with such other powers as are reasonably incidental thereto.
      The Administrative Agent agrees to act as such upon the express conditions
      contained in this Article VIII. Notwithstanding any provision to the contrary
      elsewhere in this Agreement or in any other Loan Document, the Administrative
      Agent shall not have any duties or responsibilities, except those expressly
      set
      forth herein or in the other Loan Documents, or any fiduciary relationship
      with
      any Lender, and no implied covenants, functions, responsibilities, duties,
      obligations or liabilities shall be read into this Agreement or otherwise exist
      against the Administrative Agent. The provisions of this Article VIII are solely
      for the benefit of the Administrative Agent and Lenders, and no other Person
      shall have any rights as a third party beneficiary of any of the provisions
      hereof. For the sake of clarity, the Lenders hereby agree that neither the
      Syndication Agents, the Joint Lead Arrangers nor the Documentation Agents shall
      have any duties or powers with respect to this Agreement or the other Loan
      Documents.

     

    Section
      8.02  Individual
      Capacity.
      The
      Administrative Agent and its Affiliates may make loans to, accept deposits
      from
      and generally engage in any kind of business with the Borrower and its
      Affiliates as though the Administrative Agent were not an Agent. With respect
      to
      the Loans made by it and all obligations owing to it, the Administrative Agent
      shall have the same rights and powers under this Agreement as any Lender and
      may
      exercise the same as though it were not an Agent, and the terms “Required
      Lenders”, “Lender” and “Lenders” shall include the Administrative Agent in its
      individual capacity.

     

    Section
      8.03  Delegation
      of Duties.
      The
      Administrative Agent may execute any of its duties under this Agreement or
      any
      other Loan Document by or through agents or attorneys-in-fact. The
      Administrative Agent shall not be responsible for the negligence or misconduct
      of any agents or attorneys-in-fact selected by it with reasonable care except
      to
      the extent otherwise required by Section 8.07.

     

    Section
      8.04  Reliance
      by the Administrative Agent.
      The
      Administrative Agent shall be entitled to rely, and shall be fully protected
      in
      relying, upon any note, writing, resolution, notice, consent, certificate,
      affidavit, letter, telecopy or other electronic facsimile transmission, telex,
      telegram, cable, teletype, electronic transmission by modem, computer disk
      or
      any other message, statement, order or other writing or conversation believed
      by
      it to be genuine and correct and to have been signed, sent or made by the proper
      Person or Persons and upon advice and statements of legal counsel (including,
      without limitation, counsel to the Borrower), independent accountants and other
      experts selected by the Administrative Agent. The Administrative Agent shall
      be
      fully justified in failing or refusing to take any action under this Agreement
      or any other Loan Document unless it shall first receive such advice or
      concurrence of the Required Lenders, or all of the Lenders, if applicable,
      as it
      deems appropriate or it shall first be indemnified to its satisfaction by the
      Lenders against any and all liability and expense which may be incurred by
      it by
      reason of taking or continuing to take any such action. The Administrative
      Agent
      shall in all cases be fully protected in acting, or in refraining from acting,
      under this Agreement and the other Loan Documents in accordance with a request
      of the Required Lenders or all of the Lenders, if applicable, and such request
      and any action taken or failure to act pursuant thereto shall be binding upon
      all of the Lenders.

     

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

     

    Section
      8.06  Non-Reliance
      on the Agents and Other Lenders.
      Each
      Lender expressly acknowledges that no Agent or officer, director, employee,
      agent, attorney-in-fact or affiliate of any Agent has made any representations
      or warranties to it and that no act by any Agent hereafter taken, including
      any
      review of the affairs of the Borrower, shall be deemed to constitute any
      representation or warranty by such Agent to any Lender. Each Lender represents
      to the Agents that it has, independently and without reliance upon any Agent
      or
      any other Lender, and based on such documents and information as it has deemed
      appropriate, made its own appraisal of and investigation into the business,
      assets, operations, property, financial and other condition, prospects and
      creditworthiness of the Borrower and made its own decision to make its Loans
      hereunder and to enter into this Agreement. Each Lender also represents that
      it
      will, independently and without reliance upon any Agent or any other Lender,
      and
      based on such documents and information as it shall deem appropriate at the
      time, continue to make its own credit analysis, appraisals and decisions in
      taking or not taking action under this Agreement, and to make such investigation
      as it deems necessary to inform itself as to the business, assets, operations,
      property, financial and other condition, prospects and creditworthiness of
      the
      Borrower. No Agent shall have any duty or responsibility to provide any Lender
      with any credit or other information concerning the business, operations,
      assets, property, financial and other condition, prospects or creditworthiness
      of the Borrower which may come into the possession of such Agent or any of
      its
      officers, directors, employees, agents, attorneys-in-fact or
      affiliates.

     

    Section
      8.07  Exculpatory
      Provisions.
      The
      Administrative Agent shall not, and no officers, directors, employees, agents,
      attorneys-in-fact or affiliates of the Administrative Agent, shall (i) be liable
      for any action lawfully taken or omitted to be taken by it under or in
      connection with this Agreement or any other Loan Document (except for its own
      gross negligence, willful misconduct or bad faith) or (ii) be responsible in
      any
      manner to any of the Lenders for any recitals, statements, representations
      or
      warranties made by the Borrower or any of its officers contained in this
      Agreement, in any other Loan Document or in any certificate, report, statement
      or other document referred to or provided for in, or received by the
      Administrative Agent under or in connection with, this Agreement or any other
      Loan Document or for any failure of the Borrower or any of its officers to
      perform its obligations hereunder or thereunder. The Administrative Agent shall
      not be under any obligation to any Lender to ascertain or to inquire as to
      the
      observance or performance of any of the agreements contained in, or conditions
      of, this Agreement or any other Loan Document, or to inspect the properties,
      books or records of the Borrower. The Administrative Agent shall not be
      responsible to any Lender for the effectiveness, genuineness, validity,
      enforceability, collectibility or sufficiency of this Agreement or any other
      Loan Document or for any representations, warranties, recitals or statements
      made by any other Person herein or therein or made by any other Person in any
      written or oral statement or in any financial or other statements, instruments,
      reports, certificates or any other documents in connection herewith or therewith
      furnished or made by the Administrative Agent to the Lenders or by or on behalf
      of the Borrower to the Administrative Agent or any Lender or be required to
      ascertain or inquire as to the performance or observance of any of the terms,
      conditions, provisions, covenants or agreements contained herein or therein
      or
      as to the use of the proceeds of the Loans or of the existence or possible
      existence of any Default or Event of Default.

     

    Section
      8.08  Indemnification.
      The
      Lenders agree to indemnify the Administrative Agent, in its capacity as such,
      and hold the Administrative Agent, in its capacity as such, harmless ratably
      according to their respective Commitments from and against any and all
      liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
      costs and reasonable expenses or disbursements of any kind whatsoever which
      may
      at any time (including, without limitation, at any time following the full
      payment of the obligations of the Borrower hereunder) be imposed on, incurred
      by
      or asserted against the Administrative Agent, in its capacity as such, in any
      way relating to or arising out of this Agreement or any other Loan Document,
      or
      any documents contemplated hereby or referred to herein or the transactions
      contemplated hereby or any action taken or omitted to be taken by the
      Administrative Agent under or in connection with any of the foregoing, but
      only
      to the extent that any of the foregoing is not paid by the Borrower;
provided,
      that no
      Lender shall be liable to the Administrative Agent for the payment of any
      portion of such liabilities, obligations, losses, damages, penalties, actions,
      judgments, suits, costs or expenses or disbursements resulting from the gross
      negligence, willful misconduct or bad faith of the Administrative Agent. If
      any
      indemnity furnished to the Administrative Agent for any purpose shall, in the
      reasonable opinion of the Administrative Agent, be insufficient or become
      impaired, the Administrative Agent may call for additional indemnity and cease,
      or not commence, to do the acts indemnified against until such additional
      indemnity is furnished. The agreement in this Section 8.08 shall survive the
      payment of all Loans, Letter of Credit Liabilities, fees and other obligations
      of the Borrower arising hereunder.

     

    Section
      8.09  Resignation;
      Successors.
      The
      Administrative Agent may resign as Administrative Agent upon twenty (20) days’
notice to the Lenders. Upon the resignation of the Administrative Agent, the
      Required Lenders shall appoint from among the Lenders a successor to the
      Administrative Agent, subject to prior approval by the Borrower (so long as
      no
      Event of Default exists) and the consent of the Required Lenders (such approval
      or consent, as the case may be, not to be unreasonably withheld), whereupon
      such
      successor Administrative Agent shall succeed to the rights, powers and duties
      of
      the retiring Administrative Agent, and the term “Administrative Agent” shall
      include such successor Administrative Agent effective upon its appointment,
      and
      the retiring Administrative Agent’s rights, powers and duties as Administrative
      Agent shall be terminated, without any other or further act or deed on the
      part
      of such former Administrative Agent or any of the parties to this Agreement
      or
      any other Loan Document. After the retiring Administrative Agent’s resignation
      hereunder as Administrative Agent, the provisions of this Article VIII shall
      inure to its benefit as to any actions taken or omitted to be taken by it while
      it was Administrative Agent under this Agreement or any other Loan
      Document.

     

    Section
      8.10  Administrative
      Agent’s Fees.
      The
      Borrower shall pay to the Administrative Agent for its own account fees in
      the
      amount and at the times agreed upon between the Borrower, the Administrative
      Agent and Wachovia Securities pursuant to the Fee Letter.

     

    ARTICLE
      IX

     

    MISCELLANEOUS

     

    Section
      9.01  Notices.
      Except
      as otherwise expressly provided herein, all notices and other communications
      hereunder shall be in writing (for purposes hereof, the term “writing” shall
      include information in electronic format such as electronic mail and internet
      web pages) or by telephone subsequently confirmed in writing; provided
      that the
      foregoing shall not apply to notices to any Lender or Issuing Lender pursuant
      to
      Article II or Article III, as applicable, if such Lender or Issuing Lender,
      as
      applicable, has notified the Administrative Agent that it is incapable of
      receiving notices under such Article in electronic format. Any notice shall
      have
      been duly given and shall be effective if delivered by hand delivery or sent
      via
      electronic mail, telecopy, recognized overnight courier service or certified
      or
      registered mail, return receipt requested, or posting on an internet web page,
      and shall be presumed to be received by a party hereto (i) on the date of
      delivery if delivered by hand or sent by electronic mail, posting on an internet
      web page, or telecopy, (ii) on the Business Day following the day on which
      the
      same has been delivered prepaid (or on an invoice basis) to a reputable national
      overnight air courier service or (iii) on the third Business Day following
      the
      day on which the same is sent by certified or registered mail, postage prepaid,
      in each case to the respective parties at the address or telecopy numbers,
      in
      the case of the Borrower and the Administrative Agent, set forth below, and,
      in
      the case of the Lenders, set forth on signature pages hereto, or at such other
      address as such party may specify by written notice to the other parties
      hereto:

     

    if
      to the
      Borrower:

    PPL
      Electric Utilities Corporation

    Two
      North
      Ninth Street (GENTW14)

    Allentown,
      PA 18101-1179

    Attention:
      Russell R. Clelland

    Telephone:
      610-774-5151

    Facsimile:
      610-774-5235

     

    with
      a
      copy to:

     

    PPL
      Electric Utilities Corporation

    Two
      North
      Ninth Street (GENTW3)

    Allentown,
      PA 18101-1179

    Attention:
      Michael A. McGrail, Esq.

    Telephone:
      610-774-5644

    Facsimile:
      610-774-6726

     

    if
      to the
      Administrative Agent:

     

    Wachovia
      Bank, National Association

    One
      Wachovia Center

    301
      South
      College Street - NC0760

    Charlotte,
      North Carolina 28288

    Attention:
      Rick Price

    Telephone:
      704-374-4062

    Facsimile:
      704-383-6647

     

    with
      a
      copy to:

     

    Wachovia
      Bank, National Association

    201
      South
      College Street, 23rd Floor

    Charlotte,
      North Carolina 28288

    Attention:
      Syndications Agency Services

    Telephone:
      704-383-3721

    Facsimile:
      704-383-0288

     

    with
      a
      copy to:

     

    Kennedy
      Covington Lobdell & Hickman, L.L.P.

    214
      North
      Tryon Street, Suite 4700

    Charlotte,
      North Carolina 28202

    Attention:
      Raymond S. Koloski, Esq.

    Telephone
      : 704-331-7487

    Facsimile:
      704-353-3487

     

    Section
      9.02  No
      Waivers; Non-Exclusive Remedies.
      No
      failure by any Agent or any Lender to exercise, no course of dealing with
      respect to, and no delay in exercising any right, power or privilege hereunder
      or under any Revolving Note or other Loan Document shall operate as a waiver
      thereof nor shall any single or partial exercise thereof preclude any other
      or
      further exercise thereof or the exercise of any other right, power or privilege.
      The rights and remedies provided herein and in the other Loan Documents shall
      be
      cumulative and not exclusive of any rights or remedies provided by
      law.

     

    Section
      9.03  Expenses;
      Indemnification.

     

    (a)  Expenses.
      The
      Borrower shall pay (i) all out-of-pocket expenses of the Agents, including
      legal
      fees and disbursements of Kennedy Covington Lobdell & Hickman, L.L.P. and
      any other local counsel retained by the Administrative Agent, in its reasonable
      discretion, in connection with the preparation, execution, delivery and
      administration of the Loan Documents, the syndication efforts of the Agents
      with
      respect thereto, any waiver or consent thereunder or any amendment thereof
      or
      any Default or alleged Default thereunder and (ii) if an Event of Default
      occurs, all reasonable out-of-pocket expenses incurred by the Agents and each
      Lender, including (without duplication) the fees and disbursements of outside
      counsel, in connection with such Event of Default and restructuring, workout,
      collection, bankruptcy, insolvency and other enforcement proceedings resulting
      therefrom; provided, that the Borrower shall not be liable for any legal fees
      or
      disbursements of any counsel for the Agents and the Lenders other than Kennedy
      Covington Lobdell & Hickman, L.L.P. associated with the preparation,
      execution and delivery of this Agreement and the closing documents contemplated
      hereby.

    (b)  Indemnity
      in Respect of Loan Documents.
      The
      Borrower agrees to indemnify the Agents and each Lender, their respective
      Affiliates and the respective directors, officers, trustees, agents and
      employees of the foregoing (each an “Indemnitee”) and hold each Indemnitee
      harmless from and against any and all liabilities, obligations, losses, damages,
      penalties, actions, judgments, suits, costs and expenses or disbursements of
      any
      kind whatsoever, (including, without limitation, the reasonable fees and
      disbursements of counsel, and any civil penalties or fines assessed by OFAC)
      which may at any time (including, without limitation, at any time following
      the
      payment of the obligations of the Borrower hereunder) be imposed on, incurred
      by
      or asserted against such Indemnitee in connection with any investigative,
      administrative or judicial proceeding (whether or not such Indemnitee shall
      be
      designated a party thereto) brought or threatened relating to or arising out
      of
      the Loan Documents or any actual or proposed use of proceeds of Loans hereunder;
      provided, that no Indemnitee shall have the right to be indemnified hereunder
      for such Indemnitee’s own gross negligence or willful misconduct as determined
      by a court of competent jurisdiction in a final, non-appealable judgment or
      order.

    (c)  Indemnity
      in Respect of Environmental Liabilities.
      The
      Borrower agrees to indemnify each Lender and hold each Lender harmless from
      and
      against any and all liabilities, obligations, losses, damages, penalties,
      actions, judgments, suits, costs and expenses or disbursements of any kind
      whatsoever (including, without limitation, reasonable expenses of investigation
      by engineers, environmental consultants and similar technical personnel and
      reasonable fees and disbursements of counsel) which may at any time (including,
      without limitation, at any time following the payment of the obligations of
      the
      Borrower hereunder) be imposed on, incurred by or asserted against such Lender
      in respect of or in connection with any and all Environmental Liabilities.
      Without limiting the generality of the foregoing, the Borrower hereby waives
      all
      rights of contribution or any other rights of recovery with respect to
      liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
      costs and expenses and disbursements in respect of or in connection with
      Environmental Liabilities that it might have by statute or otherwise against
      any
      Lender.

     

    Section
      9.04  Sharing
      of Set-Offs.
      Each
      Lender agrees that if it shall, by exercising any right of set-off or
      counterclaim or otherwise, receive payment of a proportion of the aggregate
      amount of principal and interest due with respect to any Loan made or Revolving
      Note held by it and any Letter of Credit Liabilities which is greater than
      the
      proportion received by any other Lender in respect of the aggregate amount
      of
      principal and interest due with respect to any Loan, Revolving Note and Letter
      of Credit Liabilities made or held by such other Lender, the Lender receiving
      such proportionately greater payment shall purchase such participations in
      the
      Loan made or Revolving Notes and Letter of Credit Liabilities held by the other
      Lenders, and such other adjustments shall be made, in each case as may be
      required so that all such payments of principal and interest with respect to
      the
      Loan made or Revolving Notes and Letter of Credit Liabilities made or held
      by
      the Lenders shall be shared by the Lenders pro rata; provided,
      that
      nothing in this Section shall impair the right of any Lender to exercise any
      right of set-off or counterclaim it may have for payment of indebtedness of
      the
      Borrower other than its indebtedness hereunder.

     

    Section
      9.05  Amendments
      and Waivers.
      Any
      provision of this Agreement or the Revolving Notes may be amended or waived
      if,
      but only if, such amendment or waiver is in writing and is signed by the
      Borrower and the Required Lenders (and, if the rights or duties of the
      Administrative Agent or any Issuing Lenders are affected thereby, by the
      Administrative Agent or such Issuing Lender, as relevant); provided,
      that no
      such amendment or waiver shall, unless signed by all of the Lenders, (i)
      increase or decrease the Commitment of any Lender (except for a ratable decrease
      in the Commitments of all of the Lenders) or subject any Lender to any
      additional obligation (it being understood that waivers or modifications of
      conditions precedent, covenants, Defaults or of mandatory reductions in the
      Commitments shall not constitute an increase of the Commitment of any Lender,
      and that an increase in the available portion of any Commitment of any Lender
      as
      in effect at any time shall not constitute an increase in such Commitment),
      (ii)
      reduce the principal of or rate of interest on any Loan (except in connection
      with a waiver of applicability of any post-default increase in interest rates)
      or the amount to be reimbursed in respect of any Letter of Credit or any
      interest thereon or any fees hereunder, (iii) postpone the date fixed for any
      payment of interest on any Loan or the amount to be reimbursed in respect of
      any
      Letter of Credit or any interest thereon or any fees hereunder or for any
      scheduled reduction or termination of any Commitment or (except as expressly
      provided in Article III) expiration date of any Letter of Credit, (iv) postpone
      or change the date fixed for any scheduled payment of principal of any Loan
      or
      (v) change the percentage of the Commitments or of the aggregate unpaid
      principal amount of the Revolving Notes and Letter of Credit Liabilities, or
      the
      number of Lenders, which shall be required for the Lenders or any of them to
      take any action under this Section or any other provision of this
      Agreement.

     

    Section
      9.06  Successors
      and Assigns.

     

    (a)  Successors
      and Assigns.
      The
      provisions of this Agreement shall be binding upon and inure to the benefit
      of
      the parties hereto and their respective successors and assigns, except that
      the
      Borrower may not assign or otherwise transfer any of its rights under this
      Agreement without the prior written consent of all of the Lenders, except to
      the
      extent any such assignment results from the consummation of a merger or
      consolidation permitted pursuant to Section 6.07 of this Agreement.

    (b)  Participations.
      Any
      Lender may at any time grant to one or more banks or other financial
      institutions or special purpose funding vehicle (each a “Participant”)
      participating interests in its Commitments and/or any or all of its Loans and
      Letter of Credit Liabilities. In the event of any such grant by a Lender of
      a
      participating interest to a Participant, whether or not upon notice to the
      Borrower and the Administrative Agent, such Lender shall remain responsible
      for
      the performance of its obligations hereunder, and the Borrower, the Issuing
      Lenders and the Administrative Agent shall continue to deal solely and directly
      with such Lender in connection with such Lender’s rights and obligations under
      this Agreement. Any agreement pursuant to which any Lender may grant such a
      participating interest shall provide that such Lender shall retain the sole
      right and responsibility to enforce the obligations of the Borrower hereunder
      including, without limitation, the right to approve any amendment, modification
      or waiver of any provision of this Agreement; provided, that such participation
      agreement may provide that such Lender will not agree to any modification,
      amendment or waiver of this Agreement which would (i) extend the Revolving
      Termination Date, reduce the rate or extend the time of payment of principal,
      interest or fees on any Loan or Letter of Credit Liability in which such
      Participant is participating (except in connection with a waiver of
      applicability of any post-default increase in interest rates) or reduce the
      principal amount thereof, or increase the amount of the Participant’s
      participation over the amount thereof then in effect (it being understood that
      a
      waiver of any Default or Event of Default or of a mandatory reduction in the
      Commitments shall not constitute a change in the terms of such participation,
      and that an increase in any Commitment or Loan or Letter of Credit Liability
      shall be permitted without the consent of any Participant if the Participant’s
      participation is not increased as a result thereof) or (ii) allow the assignment
      or transfer by the Borrower of any of its rights and obligations under this
      Agreement, without the consent of the Participant, except to the extent any
      such
      assignment results from the consummation of a merger or consolidation permitted
      pursuant to Section 6.07 of this Agreement. The Borrower agrees that each
      Participant shall, to the extent provided in its participation agreement, be
      entitled to the benefits of Article II with respect to its participating
      interest to the same extent as if it were a Lender, subject to the same
      limitations, and in no case shall any Participant be entitled to receive any
      amount payable pursuant to Article II that is greater that the amount the Lender
      granting such Participant’s participating interest would have been entitled to
      receive had such Lender not sold such participating interest. An assignment
      or
      other transfer which is not permitted by subsection (c) or (d) below shall
      be
      given effect for purposes of this Agreement only to the extent of a
      participating interest granted in accordance with this subsection
      (b).

    (c)  Assignments
      Generally.
      Any
      Lender may at any time assign to one or more Eligible Assignees (each, an
“Assignee”) all, or a proportionate part (equivalent to an initial Commitment of
      not less than $5,000,000 or any larger multiple of $1,000,000), of its rights
      and obligations under this Agreement and the Revolving Notes with respect to
      its
      Revolving Loans and, if still in existence, its Revolving Commitment, and such
      Assignee shall assume such rights and obligations, pursuant to an Assignment
      and
      Assumption Agreement in substantially the form of Exhibit C attached hereto
      executed by such Assignee and such transferor, with (and subject to) the consent
      of the Borrower, which shall not be unreasonably withheld, the Administrative
      Agent and the Issuing Lenders, which consent shall not be unreasonably withheld;
      provided, that if an Assignee is an Affiliate of such transferor Lender or
      was a
      Lender immediately prior to such assignment, no such consent of the Borrower
      shall be required; provided, further, that if at the time of such assignment
      a
      Default or an Event of Default has occurred and is continuing, no such consent
      of the Borrower shall be required. Upon execution and delivery of such
      instrument and payment by such Assignee to such transferor of an amount equal
      to
      the purchase price agreed between such transferor and such Assignee, such
      Assignee shall be a Lender party to this Agreement and shall have all the rights
      and obligations of a Lender with a Commitment as set forth in such instrument
      of
      assumption, and the transferor shall be released from its obligations hereunder
      to a corresponding extent, and no further consent or action by any party shall
      be required. Upon the consummation of any assignment pursuant to this subsection
      (c), the transferor, the Administrative Agent and the Borrower shall make
      appropriate arrangements so that, if required, a new Revolving Note is issued
      to
      the Assignee. In connection with any such assignment, the transferor shall
      pay
      to the Administrative Agent an administrative fee for processing such assignment
      in the amount of $3,500. If the Assignee is not incorporated under the laws
      of
      the United States or any state thereof, it shall deliver to the Borrower and
      the
      Administrative Agent certification as to exemption from deduction or withholding
      of any United States Taxes in accordance with Section 2.16.

    (d)  Assignments
      to Federal Reserve Banks.
      Any
      Lender may at any time assign all or any portion of its rights under this
      Agreement and its Revolving Note to a Federal Reserve Bank. No such assignment
      shall release the transferor Lender from its obligations hereunder.

    (e)  Register.
      The
      Borrower hereby designates the Administrative Agent to serve as the Borrower’s
      agent, solely for purposes of this subsection 9.06(e), to (i) maintain a
      register (the “Register”) on which the Administrative Agent will record the
      Commitments from time to time of each Lender, the Loans made by each Lender
      and
      each repayment in respect of the principal amount of the Loans of each Lender
      and to (ii) retain a copy of each Assignment and Assumption Agreement delivered
      to the Administrative Agent pursuant to this Section. Failure to make any such
      recordation, or any error in such recordation, shall not affect the Borrower’s
      obligation in respect of such Loans. The entries in the Register shall be
      conclusive, in the absence of manifest error, and the Borrower, the
      Administrative Agent, the Issuing Lenders and the Lenders shall treat each
      Person in whose name a Loan and the Revolving Note evidencing the same is
      registered as the owner thereof for all purposes of this Agreement,
      notwithstanding notice or any provision herein to the contrary. With respect
      to
      any Lender, the assignment or other transfer of the Commitments of such Lender
      and the rights to the principal of, and interest on, any Loan made and any
      Revolving Note issued pursuant to this Agreement shall not be effective until
      such assignment or other transfer is recorded on the Register and, except to
      the
      extent provided in this subsection 9.06(e), otherwise complies with Section
      9.06, and prior to such recordation all amounts owing to the transferring Lender
      with respect to such Commitments, Loans and Revolving Notes shall remain owing
      to the transferring Lender. The registration of assignment or other transfer
      of
      all or part of any Commitments, Loans and Revolving Notes for a Lender shall
      be
      recorded by the Administrative Agent on the Register only upon the acceptance
      by
      the Administrative Agent of a properly executed and delivered Assignment and
      Assumption Agreement and payment of the administrative fee referred to in
      Section 9.06(c). The Register shall be available for inspection by each of
      the
      Borrower and each Issuing Lender at any reasonable time and from time to time
      upon reasonable prior notice. In addition, at any time that a request for a
      consent for a material or substantive change to the Loan Documents is pending,
      any Lender wishing to consult with other Lenders in connection therewith may
      request and receive from the Administrative Agent a copy of the Register. The
      Borrower may not replace any Lender pursuant to Section 2.07(b), unless, with
      respect to any Revolving Notes held by such Lender, the requirements of
      subsection 9.06(c) and this subsection 9.06(e) have been satisfied.

     

    Section
      9.07  Governing
      Law; Submission to Jurisdiction.
      This
      Agreement and each Revolving Note shall be governed by and construed in
      accordance with the internal laws of the State of New York. The Borrower hereby
      submits to the nonexclusive jurisdiction of the United States District Court
      for
      the Southern District of New York and of any New York State court sitting in
      New
      York City for purposes of all legal proceedings arising out of or relating
      to
      this Agreement or the transactions contemplated hereby. The Borrower irrevocably
      waives, to the fullest extent permitted by law, any objection which it may
      now
      or hereafter have to the laying of the venue of any such proceeding brought
      in
      such court and any claim that any such proceeding brought in any such court
      has
      been brought in an inconvenient forum.

     

    Section
      9.08  Counterparts;
      Integration; Effectiveness.
      This
      Agreement may be signed in any number of counterparts, each of which shall
      be an
      original, with the same effect as if the signatures thereto and hereto were
      upon
      the same instrument. This Agreement, the other Loan Documents and the Fee Letter
      constitute the entire agreement and understanding among the parties hereto
      and
      supersede any and all prior agreements and understandings, oral or written,
      relating to the subject matter hereof and thereof. This Agreement shall become
      effective upon receipt by the Administrative Agent of counterparts hereof signed
      by each of the parties hereto (or, in the case of any party as to which an
      executed counterpart shall not have been received, receipt by the Administrative
      Agent in form satisfactory to it of telegraphic, telex, facsimile or other
      written confirmation from such party of execution of a counterpart hereof by
      such party).

     

    Section
      9.09  Generally
      Accepted Accounting Principles.
      Unless
      otherwise specified herein, all accounting terms used herein shall be
      interpreted, all accounting determinations hereunder shall be made and all
      financial statements required to be delivered hereunder shall be prepared in
      accordance with GAAP as in effect from time to time, applied on a basis
      consistent (except for changes concurred in by the Borrower’s independent public
      accountants) with the audited consolidated financial statements of the Borrower
      and its Consolidated Subsidiaries most recently delivered to the Lenders;
provided,
      that,
      if the Borrower notifies the Administrative Agent that the Borrower wishes
      to
      amend any covenant in Article VI to eliminate the effect of any change in GAAP
      on the operation of such covenant (or if the Administrative Agent notifies
      the
      Borrower that the Required Lenders wish to amend Article VI for such purpose),
      then the Borrower’s compliance with such covenant shall be determined on the
      basis of GAAP in effect immediately before the relevant change in GAAP became
      effective, until either such notice is withdrawn or such covenant is amended
      in
      a manner satisfactory to the Borrower and the Required Lenders.

     

    Section
      9.10  Usage.
      The
      following rules of construction and usage shall be applicable to this Agreement
      and to any instrument or agreement that is governed by or referred to in this
      Agreement.

    (a)  All
      terms
      defined in this Agreement shall have the defined meanings when used in any
      instrument governed hereby or referred to herein and in any certificate or
      other
      document made or delivered pursuant hereto or thereto unless otherwise defined
      therein.

    (b)  The
      words
“hereof”, “herein”, “hereunder” and words of similar import when used in this
      Agreement or in any instrument or agreement governed here shall be construed
      to
      refer to this Agreement or such instrument or agreement, as applicable, in
      its
      entirety and not to any particular provision or subdivision hereof or
      thereof.

    (c)  References
      in this Agreement to “Article”, “Section”, “Exhibit”, “Schedule” or another
      subdivision or attachment shall be construed to refer to an article, section
      or
      other subdivision of, or an exhibit, schedule or other attachment to, this
      Agreement unless the context otherwise requires; references in any instrument
      or
      agreement governed by or referred to in this Agreement to “Article”, “Section”,
“Exhibit”, “Schedule” or another subdivision or attachment shall be construed to
      refer to an article, section or other subdivision of, or an exhibit, schedule
      or
      other attachment to, such instrument or agreement unless the context otherwise
      requires.

    (d)  The
      definitions contained in this Agreement shall apply equally to the singular
      and
      plural forms of such terms. Whenever the context may require, any pronoun shall
      include the corresponding masculine, feminine and neuter forms. The word “will”
shall be construed to have the same meaning as the word “shall”. The term
“including” shall be construed to have the same meaning as the phrase “including
      without limitation”.

    (e)  Unless
      the context otherwise requires, any definition of or reference to any agreement,
      instrument, statute or document contained in this Agreement or in any agreement
      or instrument that is governed by or referred to in this Agreement shall be
      construed (i) as referring to such agreement, instrument, statute or document
      as
      the same may be amended, supplemented or otherwise modified from time to time
      (subject to any restrictions on such amendments, supplements or modifications
      set forth in this Agreement or in any agreement or instrument governed by or
      referred to in this Agreement), including (in the case of agreements or
      instruments) by waiver or consent and (in the case of statutes) by succession
      of
      comparable successor statutes and (ii) to include (in the case of agreements
      or
      instruments) references to all attachments thereto and instruments incorporated
      therein. Any reference to any Person shall be construed to include such Person’s
      successors and permitted assigns.

    (f)  Unless
      the context otherwise requires, whenever any statement is qualified by “to the
      best knowledge of” or “known to” (or a similar phrase) any Person that is not a
      natural person, it is intended to indicate that the senior management of such
      Person has conducted a commercially reasonable inquiry and investigation prior
      to making such statement and no member of the senior management of such Person
      (including managers, in the case of limited liability companies, and general
      partners, in the case of partnerships) has current actual knowledge of the
      inaccuracy of such statement.

     

    Section
      9.11  WAIVER
      OF JURY TRIAL.
      THE
      BORROWER HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY
      LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
      TRANSACTIONS CONTEMPLATED HEREBY.

     

    Section
      9.12  Confidentiality.
      Each
      Lender agrees to hold all non-public information obtained pursuant to the
      requirements of this Agreement in accordance with its customary procedure for
      handling confidential information of this nature and in accordance with safe
      and
      sound banking practices; provided,
      that
      nothing herein shall prevent any Lender from disclosing such information (i)
      to
      any other Lender or to any Agent, (ii) to any other Person if reasonably
      incidental to the administration of the Loans and Letter of Credit Liabilities,
      (iii) upon the order of any court or administrative agency, (iv) to the extent
      requested by, or required to be disclosed to, any rating agency or regulatory
      agency or similar authority (including any self-regulatory authority, such
      as
      the National Association of Insurance Commissioners), (v) which had been
      publicly disclosed other than as a result of a disclosure by any Agent or any
      Lender prohibited by this Agreement, (vi) in connection with any litigation
      to
      which any Agent, any Lender or any of their respective Subsidiaries or
      Affiliates may be party, (vii) to the extent necessary in connection with the
      exercise of any remedy hereunder, (viii) to such Lender’s or Agent’s Affiliates
      and their respective directors, officers, employees and agents including legal
      counsel and independent auditors (it being understood that the Persons to whom
      such disclosure is made will be informed of the confidential nature of such
      information and instructed to keep such information confidential), (ix) with
      the
      consent of the Borrower, (x) to Gold Sheets and other similar bank trade
      publications, such information to consist solely of deal terms and other
      information customarily found in such publications and (xi) subject to
      provisions substantially similar to those contained in this Section, to any
      actual or proposed Participant or Assignee or to any actual or prospective
      counterparty (or its advisors) to any securitization, swap or derivative
      transaction relating to the Borrower's Obligations hereunder. Notwithstanding
      the foregoing, any Agent, any Lender or Kennedy Covington Lobdell & Hickman,
      L.L.P. may circulate promotional materials and place advertisements in financial
      and other newspapers and periodicals or on a home page or similar place for
      dissemination of information on the Internet or worldwide web, in each case,
      after the closing of the transactions contemplated by this Agreement in the
      form
      of a “tombstone” or other release limited to describing the names of the
      Borrower or its Affiliates, or any of them, and the amount, type and closing
      date of such transactions, all at their sole expense.

     

    Section
      9.13  USA
      PATRIOT Act Notice.
      Each
      Lender that is subject to the Patriot Act (as hereinafter defined) and the
      Administrative Agent (for itself and not on behalf of any Lender) hereby
      notifies the Borrower that pursuant to the requirements of the USA PATRIOT
      Act
      (Title III of Pub.L. 107-56 (signed into law October 26, 2001)) (the
“Patriot
      Act”),
      it is
      required to obtain, verify and record information that identifies the Borrower,
      which information includes the name and address of the Borrower and other
      information that will allow such Lender or the Administrative Agent, as
      applicable, to identify the Borrower in accordance with the Patriot
      Act.

     

    Section
      9.14  Effect
      of Agreement.
      The
      parties hereto agree that this Agreement is given as a continuation,
      modification, extension and amendment and restatement of the Existing Credit
      Agreement and shall not constitute a novation of the Existing Credit
      Agreement.

    

    [Signature
      Pages to Follow]

    

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

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

     

    PPL
      ELECTRIC UTILITIES CORPORATION

     

     

    By:_____________________________
Name:

    Title:

    

    

    

    

    Signature
      Page to the $200,000,000 

    Second
      Amended and Restated Five-Year Credit Agreement for

    PPL
      Electric Utilities Corporation

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    WACHOVIA
      BANK, NATIONAL ASSOCIATION,

    as
      Administrative Agent

    

    

    By:____________________________________

    Name:

    Title:

    

    

    WACHOVIA
      BANK, NATIONAL ASSOCIATION,

    as
      Issuing Lender

    

    

    By:____________________________________

    Name:

    Title:

    

    

    WACHOVIA
      BANK, NATIONAL ASSOCIATION, as a Lender

    By:____________________________________

    Name:

    Title:

    

    

    

    Signature
      Page to the $200,000,000 

    Second
      Amended and Restated Five-Year Credit Agreement for

    PPL
      Electric Utilities Corporation

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ______________________________,
      as a Lender

    (insert
      name of Lender)

    

    

    By:_____________________________________

    Name:

    Title

    

     

    

    

    Second
      signature block, if required

    

    ______________________________,
      as a Lender

    (insert
      name of Lender)

    

    

    By:_____________________________________

    Name:

    Title

    

    

    Signature
      Page to the $200,000,000 

    Second
      Amended and Restated Five-Year Credit Agreement for

    PPL
      Electric Utilities CorporationEXHIBIT 4.1

                             MED GEN, INC.
                    NONQUALIFIED STOCK OPTION PLAN

The purpose of the Med Gen, Inc. Non-Qualified Stock Option Plan (the
"Plan") is to provide  (i) certain Key Advisors (as defined in Section
4(a)) who perform services for Med Gen, Inc. (the "Company") or its
subsidiaries and (ii) non-employee members of the Board of Directors
of the Company (the "Board") with the opportunity to receive grants of
nonqualified stock options.  The Company believes that the Plan will
encourage the participants to contribute materially to the growth of
the Company, thereby benefiting the Company's shareholders, and will
align the economic interests of the participants with those of the
shareholders.

1.	Administration

(a)	Committee.  The Plan shall be administered and interpreted by the
        ----------
Board of Directors or a committee appointed by the Board (the Board of
Directors in such capacity or any committee appointed by the Board of
Directors is referred to hereafter as the "Committee").  The Committee
as appointed by the Board shall consist of two or more persons
appointed by the Board, all of whom may or may not be "outside
directors" as defined under section 162(m) of the Internal Revenue
Code of 1986, as amended (the "Code") and related Treasury regulations
and may be "non-employee directors" as defined under Rule 16b-3 under
the Securities Exchange Act of 1934, as amended (the "Exchange Act").

(b)	Committee Authority.  The Committee shall have the sole authority
        --------------------
to (i) determine the individuals to whom grants shall be made under
the Plan, (ii) determine the type, size and terms of the grants to be
made to each such individual, (iii) determine the time when the grants
will be made and the duration of any applicable exercise or
restriction period, including the criteria for exercisability and the
acceleration of exercisability, (iv) amend the terms of an Outstanding
Grant at any time and (v) deal with any other matters arising under
the Plan.

(c)	Committee Determinations. The Committee shall have full power and
        -------------------------
authority to administer and interpret the Plan, to make factual
determinations and to adopt or amend such rules, regulations,
agreements and instruments for implementing the Plan and for the
conduct of its business as it deems necessary or advisable, in its
sole discretion. The Committee's interpretations of the Plan and all
determinations made by the Committee pursuant to the powers vested in
it hereunder shall be conclusive and binding on all persons having any
interest in the Plan or in any awards granted hereunder. All powers of
the Committee shall be executed in its sole discretion, in the best
interest of the Company, not as a fiduciary, and in keeping with the
objectives of the Plan and need not be uniform as to similarly
situated individuals.

2.	Grants

Awards under the Plan  will consist of grants of nonqualified stock
options as described in Section 5 ("Nonqualified Stock Options,"
"Options" or "Grants.")  All Grants shall be subject to the terms and
conditions set forth herein and to such other terms and conditions
consistent with this Plan as the Committee deems appropriate and as
are specified in writing by the Committee to the individual in a grant
instrument (the "Grant Instrument") or an amendment to the Grant
Instrument.  In the event there is an inconsistency between the terms
of the Grant Instrument and the terms of the Plan, the terms of the
Plan shall govern.  The Committee shall approve the form and
provisions of each Grant Instrument. Grants under a particular Section
of the Plan need not be uniform as among the grantees.

3.	Shares Subject to the Plan

(a)	Shares Authorized. The aggregate number of shares of common stock
        ------------------
of the Company ("Company Stock") that may be issued or transferred
under the Plan is 150,000,000 shares. The maximum aggregate number of
shares of Company Stock that shall be subject to Grants made under the
Plan to any individual during any calendar year shall be as determined
by the Committee ("Award Limit"). The shares may be authorized but

<PAGE>

unissued shares of Company Stock or reacquired shares of Company
Stock, including shares purchased by the Company on the open market
for purposes of the Plan. If and to the extent Options granted under
the Plan terminate, expire, or are canceled, forfeited, exchanged or
surrendered without having been exercised, the shares subject to such
Grants shall again be available for purposes of the Plan. However, to
the extent Section 162(m) of the Code requires, such shares continue
to be counted against the Award Limit.

Adjustments.  There shall be no adjustment in the number of shares
issued under the Plan in the event that there is any change in the
number or kind of shares of Company Stock outstanding (i) by reason of
a stock dividend, spinoff, recapitalization, stock split or
combination or exchange of shares, (ii) by reason of a merger,
reorganization or consolidation in which the Company is the surviving
corporation, (iii) by reason of a reclassification or change in par
value, or (iv) by reason of any other extraordinary or unusual event
affecting the outstanding Company Stock as a class without the
Company's receipt of consideration.

4.	Eligibility for Participation

(a)	Eligible Persons.  Key advisors and consultants who perform
        -----------------
services to the Company or any of its subsidiaries ("Key Advisors")
shall be eligible to participate in the Plan if the Key Advisors
render bona fide services and such services are not in connection with
the offer or sale of securities in a capital-raising transaction.

(b)	Selection of Grantees. The Committee shall select the Non-
        ----------------------
Employee Directors and Key Advisors to receive Grants and shall
determine the number of shares of Company Stock subject to a
particular Grant in such manner as the Committee determines. Key
Advisors and Non-Employee Directors who receive Grants under this Plan
shall hereinafter be referred to as "Grantees."

5.	Granting of Options

(a)	Number of Shares. The Committee shall determine the number of
        -----------------
shares of Company Stock that will be subject to each Grant of Options
to Non-Employee Directors and Key Advisors.

(b)	Type of Option.  All Options granted under this Plan will be
        ---------------
Non-Qualified Stock Options.

(c)	Option Term. The Committee shall determine the term of each
        ------------
Option.  The term of any Option shall not exceed ten years from the
date of grant.

(d)	Vesting and Exercisability of Options.  Options shall vest
        --------------------------------------
and become exercisable in accordance with such terms and conditions,
consistent with the Plan, as may be determined by the Committee and
specified in the Grant Instrument or an amendment to the Grant
Instrument. The Committee may accelerate the vesting and/or
exercisability of any or all outstanding Options at any time for any
reason. Options may, at the discretion of the Committee, be exercised
prior to vesting, provided that the optionee grants the Company a
right to repurchase any unvested shares at the exercise price upon
termination of the optionee's service to the Company.

(e)	Termination of Employment, Disability or Death.
        -----------------------------------------------
        (i)       Except as provided below, an Option may only be
exercised while the Grantee is employed by or otherwise providing
service to the Company as a Key Advisor or member of the Board. In the
event that a Grantee ceases to be employed by the Company for any
reason other than a "disability", or "termination for cause", any
Option which is otherwise exercisable by the Grantee shall terminate
unless exercised within one hundred eighty days after the date on
which the Grantee ceases to be employed by the Company (or within such
other period of time as may be specified in a Grant Instrument), but
in any event no later than the date of expiration of the Option term.
Any of the Grantee's Options that are not otherwise exercisable as of
the date on which the Grantee ceases to be employed by the Company
shall terminate as of such date (unless specified to the contrary in a
Grant Instrument).

<PAGE>

        (ii)      In the event the Grantee ceases to be employed by
the Company on account of a "termination for cause" by the Company,
the unvested portion of  any Option held by the Grantee shall
terminate on the date on which the Grantee ceases to be employed by
the Company. Any of the Grantee's Options which are not otherwise
exercisable as of the date on which the Grantee ceases to be employed
by the Company shall terminate as of such date.

        (iii)     In the event the Grantee ceases to be employed by
the Company because the Grantee is "disabled", any Option which is
otherwise exercisable by the Grantee shall terminate unless exercised
within one year after the date on which the Grantee ceases to be
employed by the Company (or within such other period of time as may be
specified in a Grant Instrument), but in any event no later than the
date of expiration of the Option term. Any of the Grantee's Options
which are not otherwise exercisable as of the date on which the
Grantee ceases to be employed by the Company shall terminate as of
such date (unless specified to the contrary in a Grant Instrument).

        (iv)      If the Grantee dies while employed by the Company
or within 90 days after the date on which the Grantee ceases to be
employed on account of a termination of employment specified in
Section 5(e)(i) above (or within such other period of time as may be
specified in a Grant Instrument), any Option that is otherwise
exercisable by the Grantee shall terminate unless exercised within one
year after the date on which the Grantee ceases to be employed by the
Company (or within such other period of time as may be specified in a
Grant Instrument), but in any event no later than the date of
expiration of the Option term. Any of the Grantee's Options that are
not otherwise exercisable as of the date on which the Grantee ceases
to be employed by the Company shall terminate as of such date (unless
specified to the contrary in a Grant Instrument).

        (v)       For purposes of Sections 5(e) and 6:

                  (A)   "Company," when used in the phrase "employed
        by the Company," shall mean the Company and its parent and
        subsidiary corporations.

                  (B)     "Employed by the Company" shall mean employment
        or service as a Key Advisor or member of the Board (so that, for
        purposes of exercising Options and satisfying conditions with
        respect to Restricted Stock, a Grantee shall not be considered to
        have terminated employment or service until the Grantee ceases to
        be a Key Advisor and member of the Board), unless the Committee
        determines otherwise.

                  (C)     "Disability" shall mean a Grantee's becoming
        disabled within the meaning of section 22(e)(3) of the Code or
        otherwise as defined in an employment consultant or other
        agreement between the Company and the Grantee.

                  (D)     "Termination for cause" shall mean, except to
        the extent specified otherwise by the Committee or otherwise as
        defined in a consultant or other agreement between the Company
        and the Grantee, a finding by the Committee that the Grantee has
        breached his or her employment, service, noncompetition,
        nonsolicitation or other similar contract with the Company, or
        has been engaged in disloyalty to the Company, including, without
        limitation, fraud, embezzlement, theft, commission of a felony or
        dishonesty in the course of his or her employment or service, or
        has disclosed trade secrets or confidential information of the
        Company to persons not entitled to receive such information. A
        Grant Instrument may provide that in the event a Grantee's
        employment is terminated for cause, in addition to the immediate
        termination of all Grants, the Grantee shall automatically
        forfeit all shares underlying any exercised portion of an Option,
        upon refund by the Company of the Exercise Price paid by the
        Grantee for such shares, and any option gain realized by the
        Grantee from exercising all or a portion of an Option within the
        two-year period prior to the event shall be paid by the Grantee
        to the Company.

                  (E)     Exercise of Options. A Grantee may exercise an
        Option that has become exercisable, in whole or in part, by
        delivering a notice of exercise to the Company with payment of the
        Exercise Price. The Grantee shall pay the Exercise Price for an

<PAGE>

        Option as specified by the Committee (x) in cash, (y) with the
        approval of the Committee, by delivering shares of Company Stock
        owned by the Grantee for the period necessary to avoid a charge to
        the Company's earnings for financial reporting purposes (including
        Company Stock acquired in connection with the exercise of an
        Option, subject to such restrictions as the Committee deems
        appropriate) and having a Fair Market Value on the date of
        exercise equal to the Exercise Price or (z) by such other method
        as the Committee may approve, including payment through a broker
        in accordance with procedures permitted by Regulation T of the
        Federal Reserve Board. Shares of Company Stock used to exercise
        an Option shall have been held by the Grantee for the requisite
        period of time to avoid adverse accounting consequences to the
        Company with respect to the Option. The Grantee shall pay the
        Exercise Price and the amount of any withholding tax due
        (pursuant to Section 7) at the time of exercise.

7.	Withholding of Taxes

(a)	Required Withholding.  All Grants under the Plan shall be subject
        ---------------------
to applicable federal (including FICA), state and local tax
withholding requirements. The Company shall have the right to deduct
from all Grants paid in cash, or from other wages paid to the Grantee,
any federal, state or local taxes required by law to be withheld with
respect to such Grants. In the case of Options and other Grants paid
in Company Stock, the Company may require the Grantee or other person
receiving such shares to pay to the Company the amount of any such
taxes that the Company is required to withhold with respect to such
Grants, or the Company may deduct from other wages paid by the Company
the amount of any withholding taxes due with respect to such Grants.

(b)	Election to Withhold Shares.  If the Committee so permits, a
        ----------------------------
Grantee may elect to satisfy the Company's income tax withholding
obligation with respect to an Option or Restricted Stock paid in
Company Stock by having shares withheld up to an amount that does not
exceed the Grantee's maximum marginal tax rate for federal (including
FICA), state and local tax liabilities. The election must be in a form
and manner prescribed by the Committee and shall be subject to the
prior approval of the Committee.

8.	Transferability of Grants

(a)	Nontransferability of Grants. Except as provided below, only the
        -----------------------------
Grantee may exercise rights under a Grant during the Grantee's
lifetime. A Grantee may not transfer those rights except by will or by
the laws of descent and distribution, and then only if and to the
extent permitted in any specific case by the Committee, pursuant to a
domestic relations order (as defined under the Code or Title I of the
Employee Retirement Income Security Act of 1974, as amended, or the
regulations there under). When a Grantee dies, the personal
representative or other person entitled to succeed to the rights of
the Grantee ("Successor Grantee") may exercise such rights. A
Successor Grantee must furnish proof satisfactory to the Company of
his or her right to receive the Grant under the Grantee's will or
under the applicable laws of descent and distribution.

(b)	Transfer of Nonqualified Stock Options. Notwithstanding the
        ---------------------------------------
foregoing, the Committee may provide, in a Grant Instrument, that a
Grantee may transfer Nonqualified Stock Options to family members or
other persons or entities according to such terms as the Committee may
determine; provided that (1) the Grantee receives no consideration for
the transfer of an Option, (2) such transfers complies with all
applicable laws (including, but not limited to federal securities laws
requirements, specifically any requirements for options registered on
Form S-8 registration statements, state securities laws, Florida
corporate law, etc and (3) the transferred Option shall continue to be
subject to the same terms and conditions as were applicable to the
Option immediately before the transfer.

9.	Reorganization of the Company.

(a)	Reorganization.  As used herein, a "Change of Control" shall be
        ---------------
deemed to have occurred upon the consummation of any of the following
transactions: (i) any merger or consolidation of the Company or other
transaction (other than sales of equity by the Company for the purpose
of raising cash for its own account) where the shareholders of the
Company immediately prior to such transaction will not beneficially

<PAGE>

own immediately after such transaction shares entitling such
shareholders to more than 50% of all votes to which all shareholders
of the surviving corporation would be entitled in the election of
directors (without consideration of the rights of any class of stock
to elect directors by a separate class vote); or (ii) the sale or
other disposition of all or substantially all of the assets of the
Company.

(b)	Assumption of Grants. Upon a Change of Control where the Company
        ---------------------
is not the surviving corporation (or survives only as a subsidiary of
another corporation), the Company shall provide that either (i) all
outstanding Options that are not exercised shall be assumed by, or
replaced with comparable options or rights by, the surviving
corporation, (ii) the Company or the surviving company shall pay to
each Grantee an amount equal to the product of (x) the number of
Options then vested and exercisable, multiplied by (ii) the Fair
Market Value per share less the Exercise Price per Option, or (iii)
the Committee may, in its sole discretion, accelerate the vesting of
some or all of the Grants.

(c)	Notice and Acceleration. Upon a Change of Control, the Company
        ------------------------
shall provide each Grantee who has outstanding Grants with written
notice of such Change of Control.  The Committee may, in its sole
discretion, provide in a Grant Instrument that upon a Change of
Control (i) all outstanding Options shall automatically accelerate and
become fully exercisable, and (ii) the restrictions and conditions on
all outstanding Restricted Stock shall immediately lapse.  If the
Committee does not provide such terms in the Grant Instrument, a
Change of Control will not impact a Grant.

10.	Limitations on Issuance or Transfer of Shares.

No Company Stock shall be issued or transferred in connection with any
Grant hereunder unless and until all legal requirements applicable to
the issuance or transfer of such Company Stock have been complied with
to the satisfaction of the Committee. The Committee shall have the
right to condition any Grant made to any Grantee hereunder on such
Grantee's undertaking in writing to comply with such restrictions on
his or her subsequent disposition of such shares of Company Stock as
the Committee shall deem necessary or advisable as a result of any
applicable law, regulation or official interpretation thereof, and
certificates representing such shares may be legended to reflect any
such restrictions. Certificates representing shares of Company Stock
issued or transferred under the Plan will be subject to such stop-
transfer orders and other restrictions as may be required by
applicable laws, regulations and interpretations, including any
requirement that a legend be placed thereon.

11.	Amendment and Termination of the Plan

(a)	Amendment.  The Board may amend or terminate the Plan at any
        ----------
time; provided, however, that the Board shall not amend the Plan
without shareholder approval if such approval is required by Section
l62(m) of the Code.

(b)	Termination of Plan.  The Plan shall terminate on ____________,
        --------------------
20__, the day immediately preceding the tenth anniversary of its
effective date, unless the Plan is terminated earlier by the Board or
is extended by the Board with the approval of the shareholders.

(c)	Termination and Amendment of Outstanding Grants.  The terms of an
        ------------------------------------------------
Outstanding Grant may be amended at any time. The term within which
the option may be exercised may be increased or decreased and the
exercise price may be increased or decreased. The termination of the
Plan shall not impair the power and authority of the Committee with
respect to an outstanding Grant.  Whether or not the Plan has
terminated, an outstanding Grant may be terminated or amended in
accordance with the Plan or, may be amended by agreement of the
Company and the Grantee consistent with the Plan.

(d)	Governing Document. The Plan shall be the controlling document.
        -------------------
No other statements, representations, explanatory materials or
examples, oral or written, may amend the Plan in any manner. The Plan
shall be binding upon and enforceable against the Company and its
successors and assigns.

12.	Funding of the Plan

<PAGE>

This Plan shall be unfunded. The Company shall not be required to
establish any special or separate fund or to make any other
segregation of assets to assure the payment of any Grants under this
Plan. In no event shall interest be paid or accrued on any Grant,
including unpaid installments of Grants.

13.	Rights of Participants

Nothing in this Plan shall entitle any Key Advisor or other person to
any claim or right to be granted a Grant under this Plan. Neither this
Plan nor any action taken hereunder shall be construed as giving any
individual any rights to be retained by or in the employ of the
Company or any other employment rights.

14.	No Fractional Shares.

No fractional shares of Company Stock shall be issued or delivered
pursuant to the Plan or any Grant. The Committee shall determine
whether cash, other awards or other property shall be issued or paid
in lieu of such fractional shares or whether such fractional shares or
any rights thereto shall be forfeited or otherwise eliminated.

15.	Headings.

Section headings are for reference only. In the event of a conflict
between a title and the content of a Section, the content of the
Section shall control.

16.	Effective Date of the Plan

(a)     Effective Date.  The Plan shall be effective as of  _______, 2006.
        ---------------

(b)	Public Offering.  The provisions of the Plan that refer to a
        ----------------
Public Offering, or that refer to, or are applicable to persons
subject to, Section 16 of the Exchange Act or section 162(m) of the
Code, shall be effective for so long as such stock is so registered.

17.	Miscellaneous

(a)	Grants in Connection with Corporate Transactions and Otherwise.
        ---------------------------------------------------------------
Nothing contained in this Plan shall be construed to (i) limit the
right of the Committee to make Grants under this Plan in connection
with the acquisition, by purchase, lease, merger, consolidation or
otherwise, of the business or assets of any corporation, firm or
association, or for other proper corporate purposes, or (ii) limit the
right of the Company to grant stock options or make other awards
outside of this Plan. The terms and conditions of the substitute
grants may vary from the terms and conditions required by the Plan and
from those of the substituted stock incentives. The Committee shall
prescribe the provisions of the substitute grants.

(b)	Loans.  The Committee may, in its discretion, extend a loan in
        ------
connection with the exercise or receipt of a grant under this Plan.
The terms and conditions of any such loan shall be set by the
Committee.

(c)	Compliance with Law.  The Plan, the exercise of Options and the
        --------------------
obligations of the Company to issue or transfer shares of Company
Stock under Grants shall be subject to all applicable laws and to
approvals by any governmental or regulatory agency as may be required.
With respect to persons subject to section 16 of the Exchange Act, it
is the intent of the Company that the Plan and all transactions under
the Plan comply with all applicable provisions of Rule 16b-3 or its
successors under the Exchange Act. The Committee may revoke any Grant
if it is contrary to law or modify a Grant to bring it into compliance
with any valid and mandatory government regulation. The Committee may
also adopt rules regarding the withholding of taxes on payments to
Grantees. The Committee may, in its sole discretion, agree to limit
its authority under this Section.

(d)	Governing Law. The validity, construction, interpretation and
        --------------
effect of the Plan and Grant Instruments issued under the Plan shall
exclusively be governed by and determined in accordance with the law
of the State of Florida, without regard to conflicts of laws
principles.

<PAGE>

Dated as of _______________, 2006.

Med Gen, Inc.

By: ________________________________
	Paul S. Mitchell
	President

<PAGE>

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