Document:

exhibit101-051208.htm

    
      

    

    EXHIBIT 10.1

    
      
        

      

    

    

      LOAN
AGREEMENT

       

      BETWEEN

       

      PENNSYLVANIA
ECONOMIC DEVELOPMENT FINANCING AUTHORITY

      (the
"ISSUER")

       

      AND

       

      THE
YORK WATER COMPANY

      (the
"COMPANY")

       

      DATED
AS OF MAY 1, 2008

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      TABLE OF
CONTENTS

      

      ARTICLE I
DEFINITIONS AND CERTAIN RULES OF INTERPRETATION 

      SECTION
1.1. Definitions. 

      SECTION
1.2. Certain Rules of Interpretation. 

       

      ARTICLE
II REPRESENTATIONS 

      SECTION
2.1. Representations and Findings of Issuer. 

      SECTION
2.2. Representations by the Company. 

       

      ARTICLE
III LOAN AND REPAYMENT; OPERATION OF PROJECT FACILITIES 

      SECTION
3.1. Loan of Bond Proceeds. 

      SECTION
3.2. Repayment of Loan. 

      SECTION
3.3. Operation. 

      SECTION
3.4. Insurance. 

      SECTION
3.5. Maintenance and Repair. 

      SECTION
3.6. Right to Discontinue Operation of Project Facilities.

      SECTION
3.7. Insurance and Condemnation Awards. 

      SECTION
3.8. Workers' Compensation Coverage. 

      SECTION
3.9. Taxes, Claims for Labor and Materials, Compliance with
Laws. 

      SECTION
3.10. Issuer's Limited Liability. 

      SECTION
3.11. Right of Inspection. 

       

      ARTICLE
IV ISSUANCE OF 2008A BONDS; SECURITY; INVESTMENTS 

      SECTION
4.1. Issuance of 2008A Bonds.

      SECTION
4.2. Security for the 2008A Bonds. 

      SECTION
4.3. Reserved. 

      SECTION
4.4. Investment of Funds. 

       

      ARTICLE V
COMPANY OBLIGATIONS; PROVISIONS FOR PAYMENT; COVENANTS 

      SECTION
5.1. Company Approval of Issuance of 2008A Bonds.

      SECTION
5.2. Refunding of 2008A Bonds. 

      SECTION
5.3. Redemption of 2008A Bonds. 

      SECTION
5.4. Installment Loan Payments. 

      SECTION
5.5. Administrative Expenses. 

      SECTION
5.6. Payments to Issuer and Local IDA. 

      SECTION
5.7. Obligations of the Company Absolute and Unconditional. 

      SECTION
5.8. Option to Prepay Amounts Under Loan Agreement in Certain
Events. 

      SECTION
5.9. Company's Performance Under Indenture. 

      SECTION
5.10. Covenants Regarding Tax Exemption. 

      SECTION
5.11. Company's Option to Remarket 2008A Bonds Purchased in Lieu of
Redemption.

      SECTION
5.12. Nondiscrimination – Sexual Harassment. 

      SECTION
5.13. Rate Mode Conversion. 

      SECTION
5.14. Letter of Credit Facility. 

       

      ARTICLE
VI PARTICULAR AGREEMENTS 

      SECTION
6.1. Indemnified Party's Release and Indemnification Provisions.

      SECTION
6.2. Maintenance of Corporate Existence. 

      SECTION
6.3. Financial Information. 

      SECTION
6.4. Agreement of Issuer Not to Assign or Pledge. 

      SECTION
6.5. Reference to 2008A Bonds Ineffective after 2008A Bonds
Paid. 

      SECTION
6.6. Assignment, Sale or Lease of Project Facilities. 

      SECTION
6.7. Amendment of Loan Agreement or Indenture. 

      SECTION
6.8. Waiver of Vendor’s Lien. 

      SECTION
6.9. Limitations on Indebtedness. 

      SECTION
6.10. Limitation on Liens. 

      SECTION
6.11. Dividends, Stock Purchases. 

      SECTION
6.12. Termination of Pension Plans. 

       

      ARTICLE
VII EVENTS OF DEFAULT AND REMEDIES 

      SECTION
7.1. Defaults and Remedies. 

      SECTION
7.2. Annulment of Acceleration.

      SECTION
7.3. Agreement to Pay Attorneys’ Fees and Expenses.

      SECTION
7.4. General Enforcement Provisions. 

      SECTION
7.5. Notice of Default. 

      SECTION
7.6. Unassigned Issuer’s Rights. 

       

      ARTICLE
VIII MISCELLANEOUS 

      SECTION
8.1. Term of Loan Agreement. 

      SECTION
8.2. Notices. 

      SECTION
8.3. Benefit of Parties. 

      SECTION
8.4. Severability. 

      SECTION
8.5. Counterparts. 

      SECTION
8.6. Captions.

      SECTION
8.7. Law Governing Construction of Loan Agreement.

      SECTION
8.8. Payments on Non-Business Days.

      SECTION
8.9. Payments to be Sufficient to Meet DTC Requirements. 

      SECTION
8.10. Reserved. 

      SECTION
8.11. Limitation of Liability; No Personal Liability.

      

      EXHIBIT A
– NONDISCRIMINATION/SEXUAL HARASSMENT CLAUSE

      

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      LOAN
AGREEMENT

      This Loan Agreement dated as of May 1,
2008, between the Pennsylvania Economic Development Financing Authority (the
"Issuer"), a public instrumentality of the Commonwealth of Pennsylvania (the
"Commonwealth") and a public body corporate and politic organized and existing
under the Pennsylvania Economic Development Financing Law, as amended (the
"Act"), and The York Water Company, a Pennsylvania corporation (the
"Company"),

      

      WITNESSETH:

      WHEREAS, the Issuer is empowered by the
provisions of the Act to enter into agreements providing for the financing of
the acquisition, construction and equipping of industrial, commercial and
specialized enterprises for the public for purposes of alleviating unemployment,
maintaining employment at a high level and encouraging economic development in
the Commonwealth of Pennsylvania and promoting the health, safety and general
welfare of the people of the Commonwealth of Pennsylvania within the meaning of
the Act, including water utility facilities; and

      

      WHEREAS,
the Issuer has previously determined to issue several series of its Exempt
Facilities Revenue Bonds (The York Water Company Project) (collectively, the
"2004 Bonds") to provide funds to loan to The York Water Company (the "Company")
for the financing of costs associated with the construction of a water intake
pumping station adjacent to the Susquehanna River and a water main pipeline,
together with related pumps, fittings, valves and other water infrastructure
system improvements, all for the purpose of providing an additional source of
surface water supply to meet the needs of the Company’s residential, commercial
and industrial customers (the "Project Facilities") and paying some or all of
the costs of issuance of the 2004 Bonds; and

       

      WHEREAS,
on April 7, 2004, the Issuer issued $7,300,000 aggregate principal amount of the
2004 Bonds designated "Series A of 2004" (the "Series 2004A Bonds") which funded
a portion of the costs of the Project Facilities; and

       

      WHEREAS,
on December 9, 2004, the Issuer issued $12,000,000 aggregate principal amount of
the 2004 Bonds designated "Series B of 2004" (the "Series 2004B Bonds") which
also funded a portion of the costs of the Project Facilities; and

       

      WHEREAS,
the Series 2004B Bonds are insured by a financial guaranty insurance policy
issued by XL Capital Assurance, Inc.(the "Insurer"); and

       

      WHEREAS,
due to the recent disruption in the municipal bond market, the Issuer, at the
request of the Company, has determined to replace the Insurer through the
issuance of its refunding bonds, and therefore has authorized the issuance of
$12,000,000 Exempt Facilities Revenue Refunding Bonds, Series A of 2008 (The
York Water Company Project) (the "2008A Bonds"), the proceeds of which will be
used, together with certain other available funds, to redeem $12,000,000
principal amount of the Series 2004B Bonds (the "Project"); and

       

      WHEREAS, the Issuer will enter into
this Loan Agreement with the Company, providing for the loan by the Issuer to
the Company of the proceeds of the 2008A Bonds for such purpose and the
repayment of such loan by the Company; and

      

      WHEREAS, the 2008A Bonds are to be
issued under a Trust Indenture dated as of May 1, 2008 (the "Indenture") between
the Issuer and Manufacturers and Traders Trust Company, as Trustee (the
"Trustee"); and

      

      WHEREAS,
the 2008A Bonds and the interest thereon are and shall be payable from funds
drawn under an irrevocable, direct-pay Letter of Credit (the "Letter of Credit")
to be issued by PNC Bank, National Association (the
"Bank").  Concurrently with the issuance of the 2008A Bonds and the
Letter of Credit by the Bank, the Company will enter into a Reimbursement,
Credit and Security Agreement, dated as of May 1, 2008 (the "Reimbursement
Agreement") with the Bank; and

       

      WHEREAS,
the Trustee has agreed under the Indenture to draw on the Letter of Credit at
such times and in such amounts as shall be sufficient to pay when due the
principal and interest on the 2008A Bonds and to credit all amounts paid under
the Letter of Credit against the Company’s obligation to make payments under
this Loan Agreement for such items; and

       

      WHEREAS, this Loan Agreement (and the
loan payments payable hereunder) is being assigned by the Issuer to the Trustee
as security for the 2008A Bonds; and

      

      NOW THEREFORE, in consideration of the
covenants and agreements herein made, and subject to the conditions herein set
forth, the Issuer and the Company, intending to be legally bound, covenant and
agree as follows:

      

      ARTICLE
I

       

      DEFINITIONS
AND CERTAIN RULES OF INTERPRETATION

       

      SECTION
1.1. Definitions.

       

      All words and terms as used in this
Loan Agreement shall have the same meanings given such words and terms in the
Indenture, unless the context or use clearly indicates another or different
meaning or intent.  In addition, the terms defined in the recitals to
this Loan Agreement shall have the meanings set forth therein and the following
words and terms as used in this Loan Agreement shall have the following
meanings, unless the context or use clearly indicates another or different
meaning or intent:

      

      "Capitalized Lease" shall mean any
lease, the obligation for Rentals with respect to which is required to be
capitalized on a balance sheet of the lessee in accordance with generally
accepted accounting principles.

      

      "Capitalized Rentals" shall mean as of
the date of any determination the amount at which the aggregate Rentals due and
to become due under all Capitalized Leases under which the Company is a lessee
would be reflected as a liability on a balance sheet of the
Company.

      

      "Consolidated Current Assets" and
"Consolidated Current Liabilities" shall mean such assets and liabilities of the
Company and its subsidiaries on a consolidated basis as shall be determined in
accordance with generally accepted accounting principles to constitute current
assets and current liabilities, respectively.

      

      "Costs of Issuance" means all costs and
expenses incurred by the Issuer, the Local IDA or the Company in connection with
the issuance and sale of the 2008A Bonds, including without limitation
(i) fees and expenses of accountants, attorneys, engineers, credit
enhancers and financial advisors, (ii) materials, supplies, and printing
and engraving costs, (iii) recording and filing fees, (iv) rating
agency fees, (v) the initial and first year's annual fees and expenses
(including, without limitation, counsel fees and expenses) of the Trustee, the
Paying Agent and the Remarketing Agent, (vi) any underwriters' discount or
fee and expenses, (vii) the Issuer's issuance fee and administrative and
overhead expenses as provided in Section 6.6 of this Loan Agreement, and
(viii) fees and expenses relating to the provision of any liquidity
facility.

      

      "County" means the County of York, a
political subdivision of the Commonwealth.

      

      "Department" means the Department of
Community and Economic Development of the Commonwealth.

      

      "Default" shall mean any event or
condition, the occurrence of which would, with the lapse of time or the giving
of notice, or both, constitute an Event of Default as defined in
Section 8.1 hereof.

      

      "Environmental Legal Requirement" shall
mean any applicable law relating to public health, safety or the environment,
including, without limitation, relating to releases, discharges or emissions to
air, water, land or groundwater, to the withdrawal or use of groundwater, to the
use and handling of polychlorinated biphenyls or asbestos, to the disposal,
treatment, storage or management of solid or hazardous wastes or to exposure to
toxic or hazardous materials, to the handling, transportation, discharge or
release of gaseous or liquid substances and any regulation, order, notice or
demand issued pursuant to such statute or ordinance, in each case applicable to
the Property of the Company or the operation, construction or modification of
any thereof, including without limitation the following: the Clean Air Act, the
Federal Water Pollution Control Act, the Safe Drinking Water Act, the Toxic
Substances Control Act, the Comprehensive Environmental Response Compensation
and Liability Act as amended by the Superfund Amendments and Reauthorization Act
of 1986, the Resource Conservation and Recovery Act as amended by the Solid and
Hazardous Waste Amendments of 1984, the Occupational Safety and Health Act, the
Emergency Planning and Community Right-to-Know Act of 1986, the Solid Waste
Disposal Act, the Pennsylvania Safe Drinking Water Act and any other state
statutes addressing similar matters, and any state statute providing for
financial responsibility for cleanup or other actions with respect to the
release or threatened release of hazardous substances and any state nuisance
statute.

      

      "Excepted Encumbrances" shall mean any
of the following:

      

      (a) liens for
taxes, assessments or governmental charges not delinquent and liens for workers'
compensation awards and similar obligations not delinquent and undetermined
liens or charges incidental to construction;

       

      (b) any liens
securing Indebtedness neither assumed nor guaranteed by the Company on which it
customarily pays interest, existing in or relating to real estate acquired by
the Company for transmission, distribution or right-of-way
purposes;

       

      (c) easements
or reservations in any Property of the Company created for the purpose of roads,
railroads, railroad side tracks, water and gas transmission and distribution
mains, conduits, water power rights of the Commonwealth of Pennsylvania or
others, building and use restrictions and defects of title to, or leases of, any
parts of the Property of the Company which do not in the opinion of the
Company's counsel materiality impair the use of the Property as an entirety in
the operation of the business of the Company;

       

      (d) undetermined
liens and charges incidental to current construction, including mechanics',
laborers', materialmen's and similar liens not delinquent;

       

      (e) any
obligations or duties affecting the Property of the Company to any municipality
or public authority with respect to any franchise, grant, license, permit or
certificate;

       

      (f) rights
reserved to or vested in any municipality or public authority to control or
regulate any Property of the Company or to use such Property in a manner which
does not materially impair the use of such Property for the purposes for which
it is held by the Company; or

       

      (g) judgments
in course of appeal or otherwise in contest and secured by sufficient bond or
security.

       

      "Excepted Property" shall mean (a)
cash, bonds, stocks, obligations and other Securities; (b) choses in action,
accounts and bills receivable, judgments and other evidences of Indebtedness and
contracts, leases and operating agreements; (c) stock in trade, merchandise,
equipment, apparatus, materials or supplies manufactured or acquired for the
purpose of sale and/or resale in the usual course of business or consumable in
the operation of any of the Properties of the Company or held for the purpose of
repairing or replacing (in whole or in part) any rolling stock, business, motor
coaches, trucks, automobiles or other vehicles or aircraft; (d) timber, gas,
oil, minerals (including developed and undeveloped natural gas reserves and
natural gas in underground storage or otherwise), mineral rights and royalties;
(e) materials or products generated, manufactured, produced or purchased by the
Company for sale, distribution or use in the ordinary course of its business;
(f) rolling stock, buses, motor coaches, trucks, automobiles and other vehicles
and all aircraft; and (g) the Company's franchise to be a
corporation.

      

      "Funded Debt" of any Person shall mean
(a) all Indebtedness for borrowed money or which has been incurred in connection
with the acquisition of assets in each case having a final maturity of one or
more than one year from the date of origin thereof (or which is renewable or
extendible at the option of the obligor for a period or periods more than one
year from the date of origin), including all payments in respect thereof that
are required to be made within one year from the date of any determination of
Funded Debt, whether or not included in Consolidated Current Liabilities, (b)
all Capitalized Rentals, and (c) all Guaranties of Indebtedness of
others.

      

      "Guaranties" by any Person shall mean
all obligations (other than endorsements in the ordinary course of business of
negotiable instruments for deposit or collection) of such Person guaranteeing or
in effect, guaranteeing any Indebtedness, dividend or other obligation, of any
other Person (the "primary obligor") in any manner, whether directly or
indirectly, including, without limitation, all obligations incurred through an
agreement, contingent or otherwise, by such Person: (a) to purchase such
Indebtedness or obligation or any Property or assets constituting security
therefor, (b) to advance or supply funds (1) for the purchase or payment of such
Indebtedness or obligation, (2) to maintain working capital or other balance
sheet condition or, otherwise to advance or make available funds for the
purchase or payment of such Indebtedness or obligation, or (c) to lease Property
or to purchase Securities or other Property or services primarily for the
purpose of assuring the owner of such Indebtedness or obligation of the ability
of the primary obligor to make payment of the Indebtedness or obligation, or (d)
otherwise to assure the owner of the Indebtedness or obligation of the primary
obligor against loss in respect thereof.  For the purposes of all
computations made under this Agreement, a Guaranty in respect of any
Indebtedness for borrowed money shall be deemed to be Indebtedness equal to the
principal amount of such Indebtedness for borrowed money which has been
guaranteed, and a Guaranty in respect of any other obligation or liability or
any dividend shall be deemed to be Indebtedness equal to the maximum aggregate
amount of such obligation, liability or dividend.

      

      "Indebtedness" of any Person shall mean
and include all obligations of such Person which in accordance with generally
accepted accounting principles shall be classified upon a balance sheet of such
Person as liabilities of such Person, and in any event shall include all (a)
obligations of such Person for borrowed money or which has been incurred in
connection with the acquisition of Property or assets, (b) obligations secured
by any lien or other charge upon Property or assets owned by such Person, even
though such Person has not assumed or become liable for the payment of such
obligations, (c) obligations created or arising under any conditional sale or
other title retention agreement with respect to Property acquired by such
Person, notwithstanding the fact that the rights and remedies of the seller,
lender or lessor under such agreement in the event of default are limited to
repossession or sale of Property, and (d) Capitalized Rentals under any
Capitalized Lease.  For the purpose of computing the "Indebtedness" of
any Person, there shall be excluded any particular Indebtedness to the extent
that, upon or prior to the maturity thereof, there shall have been deposited
with the proper depositary in trust the necessary funds (or evidences of such
Indebtedness, if permitted by the instrument creating such Indebtedness) for the
payment, redemption or satisfaction of such Indebtedness; and thereafter such
funds and evidences of Indebtedness so deposited shall not be included in any
computation of the assets of such Person.

      

      "Indemnified Parties" means the Issuer,
the Trustee, the Paying Agent and any of their respective officers, directors,
members, commissioners, employees, agents, servants and any other person acting
for or on behalf of the Issuer, the Trustee or the Paying Agent.

      

      "Installment Loan Payment(s)" means
payments required to be made by the Company to pay (i) the Debt Service on the
2008A Bonds, as provided for in Section 6.4(b)(1), (c), (d) and (f) of this
Loan Agreement, including the principal of, premium, if any (whether at stated
maturity, upon redemption prior to stated maturity, or upon acceleration of
stated maturity), and interest on the 2008A Bonds when due and (ii) the Purchase
Price on the 2008A Bonds, as defined and provided for in Section 6.4(b)(2) of
this Loan Agreement.

      

      "Loan Agreement" means this Loan
Agreement, and all amendments and supplements hereto.

      

      "Local IDA" means the York County
Industrial Development Authority, a governmental entity of the Commonwealth in
its capacity as an applicant sponsor for the Project.

      

      "Plant Account" shall mean the plant
account under the Pennsylvania Public Utilities Commission Uniform System of
Accounts for Water Utilities dated November 21, 1946, as the same may be amended
from time to time.

      

      "Project Facilities" means the
facilities described in the recitals hereto financed by the 2004
Bonds.

      

      "Property" shall mean any interest in
any kind of property or asset, whether real, personal or mixed, or tangible or
intangible.

      

      "Rentals" shall mean and include all
fixed rents (including as such all payments which the lessee is obligated to
make to the lessor on termination of the lease or surrender of the Property)
payable by the Company, as lessee or sublessee under a lease of real or personal
property, but shall be exclusive of any amounts required to be paid by the
Company (whether or not designated as rents or additional rents) on account of
maintenance, repairs, insurance, taxes and similar charges.  Fixed
rents under any so-called "percentage leases" shall be computed solely on the
basis of the minimum rents, if any, required to be paid by the lessee regardless
of sales volume or gross revenues.

      

      "Seasonal Indebtedness" as of the date
of any determination thereof shall mean (a) all Indebtedness for money borrowed
other than Funded Debt and (b) Guaranties of Seasonal Indebtedness of
others.

      

      "Security" or "Securities" shall have
the same meaning as in Section 2(1) of the Securities Act of 1933, as
amended.

      

      "Unassigned
Issuer's Rights" means all of the rights of the Issuer to receive insurance
under Section 4.4 hereof, to inspect the Project Facilities under Section 4.11
hereof, to receive payments and to be reimbursed for attorney's and other fees
and expenses under Sections 6.6 and 8.3 hereof, to be held harmless and
indemnified under Section 7.1 hereof, to receive information under Section 7.3,
and, to the extent provided in this Agreement, to give or withhold consent to or
approval of amendments, modifications, and terminations of this
Agreement.

      

      "Voting Stock" shall mean Securities of
any class or classes, the holders of which are ordinarily, in the absence of
contingencies, entitled to elect a majority of the corporate directors (or
Persons performing similar functions).

      

      SECTION
1.2. Certain Rules of
Interpretation.

       

      (a) The
definitions set forth in Article I and in the Indenture shall be equally
applicable to both the singular and plural forms of the terms therein defined
and shall cover all genders.

       

      (b) "Herein,"
"hereby," "hereunder," "hereof," "hereinbefore," "hereinafter" and other
equivalent words refer to this Loan Agreement and not solely to the particular
Article, Section or Subdivision hereof in which such word is used.

       

      (c) Reference
herein to an article number (e.g.,
Article IV) or a section number (e.g.,
Section 6.2) shall be construed to be a reference to the designated article
number or section number hereof unless the context or use clearly indicates
another or different meaning or intent.

       

      (d) Words of
the masculine gender shall mean and include correlative words of the feminine
and neuter genders and words importing the singular number shall mean and
include the plural number and vice versa.

       

      (e) Words
importing persons shall include firms, associations, partnerships (including
limited partnerships), trusts, corporations and other legal entities, including
public bodies, as well as natural persons.

       

      (f) Any
headings preceding the text of the several Articles and Sections of this Loan
Agreement, and any table of contents appended to copies hereof, shall be solely
for convenience of reference and shall not constitute a part of this Loan
Agreement, nor shall they affect its meaning, construction or
effect.

       

      (g) References
to statutes or regulations are to be construed as including all statutory or
regulatory provisions consolidating, amending or replacing the statute or
regulation referred to; and references to agreements and other contractual
instruments shall be deemed to include any exhibits and appendices attached
thereto and all amendments, supplements and other modifications to such
instruments, but only to the extent such amendments, supplements and other
modifications are not prohibited by the terms of this Loan
Agreement.

       

      (h) Whenever
in this Loan Agreement, the Issuer, the Company, the Bank, the Paying Agent or
the Trustee is named or referred to, it shall include, and shall be deemed to
include, its respective successors and assigns whether so expressed or
not.  All of the covenants, stipulations, obligations and agreements
by or on behalf of, and other provisions for the benefit of, the Issuer, the
Company, the Bank, the Paying Agent and the Trustee contained in this Loan
Agreement shall inure to the benefit of such respective successors and assigns,
bind and shall, inure to the benefit of any officer, board, commission,
authority, agency or instrumentality to whom or to which there shall be
transferred by or in accordance with law any right, power or duty of the Issuer
or of its successors or assigns, the possession of which is necessary or
appropriate in order to comply with any such covenants, stipulations,
obligations, agreements or other provisions of this Loan Agreement.

       

      (i) Every
"request," "order," "demand," "application," "appointment," "notice,"
"statement," "certificate," "consent," "direction" or similar action hereunder
by persons referred to herein shall, unless the form thereof is specifically
provided, be in writing and signed by an Authorized Representative of the person
giving it.

       

      ARTICLE
II

       

      REPRESENTATIONS

       

      SECTION
2.1. Representations and Findings
of Issuer.

       

      The Issuer hereby confirms its findings
and represents that:

      

      (a) Organization.  The
Issuer is a public body corporate and politic established in the Commonwealth
pursuant to the laws of the Commonwealth including the Act.  Under the
Act, the Issuer has the power to enter into the Indenture, this Loan Agreement
and the Underwriting Agreement and to carry out its obligations thereunder and
hereunder and to issue the 2008A Bonds to redeem and refinance the Series 2004 B
Bonds.

       

      (b) Pending
Litigation.  To the knowledge of the Issuer, there are no
actions, suits, proceedings, inquiries or investigations pending or threatened
against or affecting the Issuer in any court or before any governmental
authority or arbitration board or tribunal, which involve the possibility of
materially and adversely affecting the transactions contemplated by the
Financing Documents or which, in any way, would adversely affect the validity or
enforceability of the Financing Documents or the ability of the Issuer to
perform its obligations under the Financing Documents.

       

      (c) [Reserved.]

       

      (d) [Reserved.]

       

      (e) [Reserved.]

       

      (f) [Reserved.]

       

      (g) No Other
Pledges.  The Issuer has not and will not pledge the income and
Revenues derived from this Loan Agreement or its other interests in this Loan
Agreement or the Indenture other than pursuant to and as set forth in the
Indenture.

       

      (h) No
Conflicts.  The execution, delivery and performance by the
Issuer of this Loan Agreement and the Indenture and the issuance of the 2008A
Bonds will not conflict with or create a breach of or default under the Act or
other applicable law or any agreement or instrument to which the Issuer is a
party or by which it is bound.

       

      (i) Agreements Are Legal and
Authorized.  The adoption of the Bond Resolution, the issuance
and sale of the 2008A Bonds and the execution and delivery by the Issuer of the
Financing Documents, and the compliance by the Issuer with all of the provisions
of each thereof and of the 2008A Bonds, (i) are within the powers and
authority of the Issuer, (ii) have been done in full compliance with the
provisions of the Act, are legal and will not conflict with or constitute on the
part of the Issuer a violation of or a breach of or default under, or result in
the creation of any lien, charge or encumbrance upon any property of the Issuer
(other than as contemplated by this Loan Agreement and the Indenture) under the
provisions of, any by-law or other agreement or instrument to which the Issuer
is a party or by which the Issuer is bound, or any license, judgment, decree,
law, statute, order, rule or regulation of any court or governmental agency or
body having jurisdiction over the Issuer or any of its activities or properties
and (iii) have been duly authorized by all necessary action on the part of
the Issuer.

       

      (j) Governmental
Consents.  Neither the nature of the Issuer nor any of its
activities or properties, nor any relationship between the Issuer and any other
Person, nor any circumstance in connection with the offer, issue, sale or
delivery of any of the 2008A Bonds is such as to require the consent, approval
or authorization of, or the filing, registration or qualification with, any
governmental authority on the part of the Issuer in connection with the
execution, delivery and performance of the Financing Documents or the offer,
issue, sale or delivery of the 2008A Bonds, other than those already obtained as
of the Issue Date; provided, however, no representation is made herein as to
compliance with the securities or "blue sky" laws of any
jurisdiction.

       

      (k) No
Defaults.  No event has occurred and no condition exists with
respect to the Issuer which would constitute an "Event of Default" as defined in
the Indenture or which, with the lapse of time or with the giving of notice or
both, would become an "Event of Default" under the Indenture.

       

      (l) Limited
Obligations.  The 2008A Bonds shall be limited obligations of
the Issuer and shall be payable only from Revenues.  Neither the faith
and credit nor the taxing power of the Commonwealth, the Issuer, or any other
political corporation, subdivision or agency thereof is pledged to the payment
of the principal of and premium, if any, or interest on such 2008A
Bonds.

       

      (m) Requirements
Satisfied.  All requirements and conditions specified in the
Act and all other laws and regulations applicable to the adoption of the Bond
Resolution, the execution and delivery of this Loan Agreement and the Indenture,
and the issuance and delivery of the 2008A Bonds will be fulfilled prior to the
initial delivery of the 2008A Bonds to the purchasers thereof.

       

      SECTION
2.2. Representations by the
Company.

       

      The Company makes the following
representations as the basis for the undertakings on its part herein
contained:

      

      (a) Corporate Organization and
Power.  The Company (i) is a corporation duly organized,
validly existing and in good standing under the laws of the Commonwealth, and
(ii) has all requisite power and authority and all necessary licenses and
permits to own and operate its properties and to carry on its business as now
being conducted and as presently proposed to be conducted.

       

      (b) Pending
Litigation.  Except as set forth in the Company's Annual Report
on Form 10-K for the year ended December 31, 2007, there are no actions,
suits, proceedings, inquiries or investigations pending, or to the knowledge of
the Company threatened, against or affecting the Company in any court or before
any governmental authority or arbitration board or tribunal which involve the
possibility of materially and adversely affecting the transactions contemplated
by the Financing Documents or which, in any way, would adversely affect the
validity or enforceability of the 2008A Bonds or the Financing Documents or the
legal ability of the Company to perform its obligations under this Loan
Agreement.

       

      (c) Agreements Are Valid and
Authorized.  The execution and delivery by the Company of this
Loan Agreement and the compliance by the Company with all of the provisions
hereof (i) are within the corporate power of the Company, (ii) will
not conflict with or result in any breach of any of the provisions of, or
constitute a default under, any material agreement, charter document, by-law or
other material instrument to which the Company is a party or by which it may be
bound, or any license, judgment, decree, law, statute, order, rule or regulation
of any court or governmental agency or body having jurisdiction over the Company
or any of its activities or properties, and (iii) have been duly authorized
by all necessary action on the part of the Company.  This Agreement,
upon the due execution and delivery thereof by the Company and the Issuer, will
be a valid and binding obligation of the Company enforceable in accordance with
its terms, except as limited by bankruptcy, insolvency, reorganization,
moratorium or other laws or equitable principles of general application relating
to or affecting the enforcement of creditors' rights generally.

       

      (d) Governmental
Consents.  No actions by the Company in connection with the
execution, delivery and performance by the Company of this Loan Agreement are
such as to require the consent, approval or authorization of, or the filing,
registration or qualification with, any governmental authority on the part of
the Company, other than those already obtained as of the Issue Date; provided,
however, no representation is made herein as to compliance with the securities
or "blue sky" laws of any jurisdiction.

       

      (e) No
Defaults.  No event has occurred and no condition exists with
respect to the Company  that would constitute an "Event of Default"
under the Indenture or which, with the lapse of time or with the giving of
notice or both, would become an "Event of Default" under the
Indenture.

       

      (f) Tax
Documents.  The representations and statements made by the
Company in the Tax Documents are true and correct.

       

      (g) Tax
Information.  The information furnished by the Company and used
by the Issuer in preparing the tax certificate and information return pursuant
to the Code is accurate and complete in all material respects as of the date of
original issuance and delivery of the 2008A Bonds.  The proceeds of
the 2008A Bonds will not exceed the Project Costs.  None of
the  Costs of Issuance will be financed with proceeds of the 2008A
Bonds, including any underwriter’s discount on the sale of the 2008A
Bonds.

       

      (h) Disqualified
Contractors.  The Company is not a Disqualified
Contractor.

       

      ARTICLE
III

       

      LOAN
AND REPAYMENT; OPERATION OF PROJECT FACILITIES

       

      SECTION
3.1. Loan of Bond
Proceeds.

       

      To provide funds for the redemption and
refinancing of the Series 2004 B Bonds, the Issuer will issue the 2008A Bonds
upon the terms and conditions contained in this Loan Agreement and the Indenture
and will loan the proceeds thereof to the Company by causing the Bond proceeds
to be applied as provided in Article V hereof.

      

      SECTION
3.2. Repayment of
Loan.

       

      The Company will repay the loan of the
Bond proceeds by making the payments required by Article VI
hereof.

      

      SECTION
3.3. Operation.

       

      The Company shall operate and maintain
the Project Facilities in such manner as to comply in all material respects with
the Act and all applicable requirements of federal, state and local laws and the
regulations, rules and orders of any federal, state or local agency, board,
commission or court having jurisdiction over the Project Facilities or the
operation thereof, including without limitation applicable zoning, planning,
building and environmental laws, regulations, rules and orders; provided that
the Company shall be deemed in compliance with this Section so long as it is
acting with due diligence to correct any violations of any of the foregoing or
contesting in good faith any such requirement by appropriate legal
proceedings.  The Company shall pay all costs and expenses of
operation and maintenance of the Project Facilities, including all applicable
taxes.  During such period as the Project Facilities is operated in
accordance with the provisions of this Loan Agreement, the Company will, within
the design capabilities thereof, cause the Project Facilities to be operated and
maintained in accordance with all applicable, valid and enforceable rules and
regulations; provided, that the Company reserves the right to contest in good
faith any such rules or regulations or the application thereof to the
Project.  It is understood and agreed that the Issuer shall have no
duties or responsibilities whatsoever with respect to the operation or
maintenance of the Project Facilities, or the performance of the Project
Facilities for its designed purposes.

      

      SECTION
3.4. Insurance.

       

      Subject to the provisions of
Section 4.6 hereof, the Company agrees to maintain, or cause to be
maintained, all necessary insurance with respect to the Project Facilities in
accordance with its customary insurance practices and the practices of Persons
operating similar facilities, which may include self-insurance.  All
costs of maintaining insurance with respect to the Project Facilities shall be
paid by the Company, and the Issuer and the Trustee shall have no obligation or
liability in this regard.  All general liability insurance policies
relating to the site of the Project Facilities or facilities shall name the
Issuer and the Trustee as additional insureds as their interests may
appear.

      

      SECTION
3.5. Maintenance and
Repair.

       

      Subject to the provisions of
Section 4.6 hereof, the Company agrees that it will (i) maintain, or
cause to be maintained, the Project Facilities and all of its other properties
in as reasonably safe condition as its operations shall permit and
(ii) maintain, or cause to be maintained, the Project Facilities and all of
its other properties in good repair and in good operating condition, ordinary
wear and tear excepted, making from time to time all necessary repairs thereto
and renewals and replacements thereof material to the integrity of the water
system or to the provision of adequate service to the Company's
customers.  All costs of operating and maintaining the Project
Facilities and all of its other properties shall be paid by the Company, and the
Issuer shall have no obligation or liability in this regard.

      

      SECTION
3.6. Right to Discontinue
Operation of Project Facilities.

       

      Although the Company intends to
operate, or cause to be operated, the Project Facilities for its designed
purposes until the date on which no 2008A Bonds are Outstanding, subject to the
provisions of Section 6.10 hereof, the Company is not required by this Loan
Agreement to operate, or cause to be operated, any portion of the Project
Facilities after the Company shall deem in its sole discretion that such
continued operation is not advisable and in such event it is not prohibited by
this Loan Agreement from selling, leasing or retiring all or any such portion of
the Project Facilities.  Subject to the provisions of
Section 6.10 hereof, the net proceeds from such sale, lease or other
disposition, if any, shall belong to, and may be used for any lawful purpose by,
the Company.  Upon discontinuance of operation of the Project
Facilities in accordance with this Section 4.6, the Company shall be
discharged from its obligations to insure, maintain and repair the Project
Facilities or to cause the Project Facilities to be insured, maintained and
repaired as set forth in Sections 4.4 and 4.5 hereof.

      

      SECTION
3.7. Insurance and Condemnation
Awards.

       

      Subject to the provisions of
Sections 4.4 and 6.10 hereof, the net proceeds of any insurance or
condemnation award as a result of the destruction or condemnation of the Project
Facilities or any portion thereof shall belong to, and may be used for any
lawful purpose by, the Company.

      

      SECTION
3.8. Workers' Compensation
Coverage.

       

      Throughout the term of this Loan
Agreement, the Company shall comply, or cause compliance, with applicable
workers' compensation laws of the Commonwealth.

      

      SECTION
3.9. Taxes, Claims for Labor and
Materials, Compliance with Laws.

       

      (a) The
Company will promptly pay and discharge all lawful taxes, assessments and
governmental charges or levies imposed upon the Company or upon or in respect of
all or any part of the Property or business of the Company, all trade accounts
payable in accordance with usual and customary business terms, and all claims
for work, labor or materials, which if unpaid might become a lien or charge upon
any Property of the Company including the Installment Loan Payments; provided
the Company shall not be required to pay any such tax, assessment, charge, levy,
account payable or claim if (1) the validity, applicability or amount thereof is
being contested in good faith by appropriate actions or proceedings which will
prevent the forfeiture or sale of any Property of the Company or any material
interference with the use thereof by the Company, and (2) the Company shall set
aside on its books, reserves deemed by it to be adequate with respect
thereto.

       

      (b) The
Company will promptly comply with all laws, ordinances or governmental rules and
regulations to which it is subject, including without limitation, the
Occupational Safety and Health Act of 1970, the Employees Retirement Income
Security Act of 1974, as amended, and all Environmental Legal Requirements, the
violation of which would materially and adversely affect the Properties,
business, prospects, profits or condition (financial or otherwise) of the
Company or would result in any lien or charge upon any Property of the Company,
subject, however, to the Company's right to contest in good faith the
application of any such laws, rules or regulations to the Company or its
operations so long as such contest does not result in a material threat to the
operation of the Company's water system or its ability to make the payments due
hereunder.

       

      SECTION
3.10. Issuer's Limited
Liability.

       

      It is recognized that the Issuer's only
source of funds with which to carry out its commitments under the 2008A Bonds or
this Loan Agreement will be from the proceeds from the sale of the 2008A Bonds,
drawings under the Letter of Credit, the Installment Loan Payments, or from any
available income or earnings derived therefrom, or from any funds which
otherwise might be made available by the Company; and it is expressly agreed
that the Issuer shall have no liability, obligation, or responsibility with
respect to this Loan Agreement, the Project Facilities or the Project except to
the extent of funds available from such sources.

      

      SECTION
3.11. Right of
Inspection.

       

      Subject to reasonable security and
safety regulations and upon reasonable notice, the Issuer and the Trustee, and
their respective agents and representatives, shall have the right during normal
business hours to inspect the Project Facilities and the books and records of
the Company pertaining to the Project and the Project Facilities; provided,
however, that this right is subject to federal, state and local laws and
regulations applicable to the site of the Project Facilities.  The
right of access hereby reserved to the Issuer and the Trustee may be exercised
only after such agent or representative shall have executed release of liability
and secrecy agreements (to the extent permitted by law, in the case of an Issuer
representative) if requested by the Company in the form then currently used by
the Company, and nothing contained in this Section or in any other provision of
this Loan Agreement shall be construed to entitle the Issuer or the Trustee to
any information or inspection involving the confidential expertise of the
Company.

      

      ARTICLE
IV

       

      ISSUANCE
OF 2008A BONDS; SECURITY; INVESTMENTS

       

      SECTION
4.1. Issuance of 2008A
Bonds.

       

      In order to provide funds to redeem and
refinance the Series 2004B Bonds, the Issuer, concurrently with the execution of
this Loan Agreement, will sell, issue and deliver to the initial purchasers
thereof the 2008A Bonds, all in accordance with the Indenture.

      

      SECTION
4.2. Security for the 2008A
Bonds.

       

      (a) The
obligations of the Company under this Loan Agreement, including specifically the
obligation to pay Installment Loan Payments and Administrative Expenses and its
obligations under Article VI hereof shall be direct general obligations of
the Company.  Prior to or simultaneously with the issuance of the
2008A Bonds, the Issuer will assign to the Trustee under the terms of the
Indenture all of the Issuer's right, title, and interest in and to this Loan
Agreement including specifically the Installment Loan Payments but excepting all
Unassigned Issuer's Rights.

       

      The Company hereby pledges to the
Issuer and grants to the Issuer a lien upon and a security interest in all
moneys and funds held under the Indenture to secure the Company's obligations
under this Agreement.

      

      (b) The
Company shall join with the Issuer and the Trustee to prepare and file such
financing statements, continuation statements and other documents under the
Pennsylvania Uniform Commercial Code or other applicable law as the Issuer or
the Trustee may reasonably require for the perfection and maintenance of any
security interests granted hereby and shall file or arrange for the Trustee to
file, and pay the costs of filing the same in such public offices as the Issuer
or the Trustee shall designate.  This Agreement shall constitute a
security agreement within the meaning of the Delaware Uniform Commercial
Code.

       

      (c) The
Trustee, as assignee of the foregoing security interest, shall hold the security
interest in all moneys and funds held under the Indenture together with any
other security granted hereunder, or under any other document securing the 2008A
Bonds, first,
for the equal and ratable benefit of the holders of all 2008A Bonds, and second, for the
benefit of the Bank, and shall exercise the remedies provided herein and by law
for the equal and ratable benefit of the Holders of all Bonds and the Bank, as
the case may be.  Notwithstanding the foregoing, all moneys and funds
held in the Rebate Fund under the Indenture shall be held solely for the benefit
of the United States Treasury in order to pay the Rebate Requirement, if
any.

       

      SECTION
4.3. Reserved.

       

      SECTION
4.4. Investment of
Funds.

       

      The Issuer hereby gives its express
written authority to the Company as provided in the Indenture to direct the
investment of the Debt Service Fund or any other Fund held by the Trustee
pursuant to the Indenture.

      

      ARTICLE
V

       

      COMPANY
OBLIGATIONS; PROVISIONS FOR PAYMENT; COVENANTS

       

      SECTION
5.1. Company Approval of Issuance
of 2008A Bonds.

       

      The governing body of the Issuer has
adopted the Bond Resolution authorizing the execution of this Loan Agreement and
the Indenture and the issuance of the 2008A Bonds.  The Company hereby
approves the Bond Resolution and the Indenture.  It is hereby agreed
that the foregoing approval of the Bond Resolution and the Indenture constitutes
the acknowledgment and agreement of the Company that the 2008A Bonds, when
issued, sold and delivered as provided in the Bond Resolution and the Indenture,
will be issued in accordance with and in compliance with this Loan Agreement,
notwithstanding any other provisions of this Loan Agreement or any other
contract or agreement to the contrary.  Any Registered Owner is
entitled to rely fully and unconditionally on the foregoing
approval.  Notwithstanding any provisions of this Loan Agreement or
any other contract or agreement to the contrary, the Company's approval of the
Bond Resolution and the Indenture shall be the Company's agreement that all
covenants and provisions in this Loan Agreement and the Indenture affecting the
Company shall, upon the delivery of the 2008A Bonds and the Indenture, become
valid and binding covenants and obligations of the Company so long as the 2008A
Bonds, premium, if any, and the interest thereon are outstanding and
unpaid.  Particularly, the obligation of the Company to pay, promptly
when due, all Installment Loan Payments specified in this Loan Agreement and the
Indenture shall be absolute and unconditional, and said obligation may be
enforced as provided in this Loan Agreement and the Indenture.

      

      SECTION
5.2. Refunding of 2008A
Bonds.

       

      After the issuance of any 2008A Bonds,
the Issuer shall not refund any of the 2008A Bonds or change or modify the 2008A
Bonds in any way, except as provided for in the Indenture, without the prior
written approval of an Authorized Company Representative; nor shall the Issuer
redeem any 2008A Bonds prior to the maturity date except upon the written
request of an Authorized Company Representative, unless such redemption is
required or permitted by the Indenture without such request.

      

      SECTION
5.3. Redemption of 2008A
Bonds.

       

      The Issuer, upon the written request of
the Company (and provided that the affected 2008A Bonds are subject to
redemption prior to maturity at the option of the Issuer or the Company, and
provided that such request is received in sufficient time prior to the date upon
which such redemption is proposed), shall promptly take or cause to be taken all
action that may be necessary under the applicable redemption provisions to
effect such redemption prior to maturity, to the full extent of funds either
made available for such purpose by the Company or already on deposit in the Debt
Service Fund and available for such purpose.  The redemption of any
Outstanding 2008A Bonds prior to maturity at any time shall not relieve the
Company of its absolute and unconditional obligation to pay each remaining
Installment Loan Payment with respect to any Outstanding 2008A Bonds, as
specified in the Indenture.  If a redemption of 2008A Bonds is
required pursuant to the provisions of the Indenture, the Company agrees as
provided herein to promptly make Installment Loan Payments sufficient to pay the
principal of, premium, if any, and interest on the 2008A Bonds due on such
redemption date.

      

      SECTION
5.4. Installment Loan
Payments.

       

      (a) The
Company hereby covenants and agrees to make the Installment Loan Payments, as
hereinafter provided in subsections (b), (c), (d) and (f) of this Section,
to the Trustee, on behalf of the Issuer, in accordance with this Loan
Agreement..

       

      (b) The
Company shall make Installment Loan Payments, subject to the limitations of
subsection (e) below of this Loan Agreement, in immediately available funds
directly to the Trustee for deposit in the Debt Service Fund no later than each
day on which any payment of Debt Service shall become due (whether at maturity
or upon redemption or acceleration or otherwise) in an amount which, together
with other money held by the Trustee under the Indenture and available therefor,
will enable the Trustee to make such payment in full when due.

       

      (c) In the
event the Company should fail to make any of the payments required in this
Section, the item or installment so in default shall continue as an obligation
of the Company until the amount in default shall have been fully paid, and the
Company agrees to pay the same with interest thereon, to the extent permitted by
law, from the date when such payment was due as provided in the
Indenture.

       

      (d) If,
subsequent to a date on which the Company is obligated to pay the Installment
Loan Payments (subject to the provisions of Article X of the Indenture),
losses (net of gains) shall be incurred in respect of any investments, or any
other event has occurred causing the money in the Debt Service Fund, together
with any other money then held by the Trustee and available for the purpose, to
be less than the amount sufficient at the time of such occurrence or other event
to pay, in accordance with the provisions of the Indenture, all Debt Service due
and payable or to become due and payable, the Trustee shall notify the Company
of such fact and thereafter the Company, as and when required for purposes of
such Debt Service Fund, shall pay in immediately available funds to the Trustee
for deposit in the Debt Service Fund the amount of any such
deficiency.

       

      (e) Notwithstanding
the foregoing, it is the intention of the parties hereto to conform strictly to
the usury laws now in force in the Commonwealth, and any provision for any
payment contained herein and in the 2008A Bonds shall be held to be subject to
reduction to the amount allowed under said usury laws as now or hereafter
construed by the courts having jurisdiction.

       

      (f) The
Company further agrees that in the event payment of the principal of and the
interest on the 2008A Bonds is accelerated upon the occurrence of an Event of
Default under the Indenture, all amounts payable under Section 5.4(b) for
the remainder of the term hereof (other than interest not yet due) shall be
immediately due and payable.

       

      (g) Any
amount held in the Debt Service Fund on any payment date specified in
subsection (b) above and not previously credited against Installment Loan
Payments or designated for payments due on particular 2008A Bonds, shall be
credited against the Installment Loan Payments required to be made by the
Company on such date.

       

      (h)           The
Company shall receive a credit against its payment obligations under Section
5.4(b) to the extent of payments made to the Trustee by the Bank pursuant to
drawings under the Letter of Credit, but only to the extent that the Company has
reimbursed the Bank for such drawings pursuant to the Reimbursement
Agreement.

      

      SECTION
5.5. Administrative
Expenses.

       

      The Company shall pay, or cause to be
paid, an amount equal to the reasonable fees and charges of the Trustee, the
Paying Agent and the Remarketing Agent for services rendered by each as Trustee,
Paying Agent and Remarketing Agent, respectively, under the Indenture and the
reasonable expenses incurred as Trustee and Paying Agent under the Indenture,
and the Remarketing Agent under the Remarketing Agreement, including reasonable
fees and expenses of their counsel.  The Trustee's right to receive
its reasonable fees, charges and expenses hereunder shall be secured by a lien
on moneys held by it in the Debt Service Fund and, upon an Event of Default
hereunder, the Trustee shall have a right of payment prior to the payment of the
owners of the 2008A Bonds as provided in Section 8.11 of the
Indenture.

      

      SECTION
5.6. Payments to Issuer and Local
IDA.

       

      The Company shall pay or cause to be
paid all of the Issuer's and Local IDA's reasonable, actual out-of-pocket
expenses and costs in connection with the issuance of the 2008A Bonds,
including, without limitation, all financing, legal, printing, and other
expenses and all Costs of Issuance incurred in issuing the 2008A Bonds
(including the fees and expenses of bond counsel and the Issuer's financial
advisor) and the Issuer's fee of .20% of the principal amount of the 2008A Bonds
for issuing the 2008A Bonds.  Also, in the future the Company shall
pay to the Issuer upon receipt of statements therefor from time to time, such
amounts as are necessary to pay or reimburse the Issuer and the Local IDA for
their reasonable and necessary expenses and costs attributable to the 2008A
Bonds and the Project.

      

      SECTION
5.7. Obligations of the Company
Absolute and Unconditional.

       

      The obligations of the Company to make
the payments required and to perform the covenants contained in
Sections 5.4, 5.5, 5.6, 5.10, 6.1 and 7.3 and to perform and observe the
other agreements on its part contained herein shall be absolute and
unconditional and shall not be subject to diminution by set-off, counterclaim,
abatement or otherwise.  Until (i) payment of all Debt Service
relating to the 2008A Bonds shall have been made, (ii) the Company shall have
satisfied all of its obligations to the Bank pursuant to the Indenture, this
Agreement, the Letter of Credit and the Reimbursement Agreement, and (iii) all
fees, indemnities, expenses and charges of the Issuer, Local IDA, the Trustee,
the Paying Agent and the Remarketing Agent have been fully paid or provision
satisfactory to such parties has been made for such payment, the Company
(a) will not suspend or discontinue any payments provided for in this Loan
Agreement, except to the extent the same have been prepaid, (b) will
perform and observe all its other agreements contained herein, and
(c) except as provided in Section 8.1, will not terminate this Loan
Agreement for any cause, including, without limiting the generality of the
foregoing, any acts or circumstances that may constitute failure of
consideration, sale, loss, eviction or constructive eviction, destruction of or
damage to the Project Facilities, commercial frustration of purpose, any change
in the tax or other laws of the United States of America or of the Commonwealth
or any political subdivision of either, or any failure of the Issuer to perform
and observe any agreement, whether express or implied, or any duty, liability or
obligation arising out of or in connection herewith or with the
Indenture.  Nothing contained in this Section shall be construed to
release the Issuer from the performance of any of the agreements on its part
herein contained and in the event the Issuer shall fail to perform any such
agreement on its part, the Company may take such action as the Company may deem
necessary to perform or compel performance, provided that no such action shall
violate the agreements on the part of the Company contained in this Loan
Agreement or postpone or diminish the amounts required to be paid by the Company
pursuant to this Loan Agreement.  Upon the issuance and delivery of
the 2008A Bonds to the initial purchasers thereof, the Company shall have
received, and the Issuer shall have given, full and complete consideration for
the Company's obligation hereunder to make Installment Loan
Payments.

      

      SECTION
5.8. Option to Prepay Amounts
Under Loan Agreement in Certain Events.

       

      The Company shall have, and is hereby
granted, the option to prepay the amounts required to be paid by the Company
under Section 5.4(b) in whole or in part and to direct the Trustee to
redeem the 2008A Bonds in whole or in part, as the case may be, if the Company
determines to exercise any optional redemption rights under the terms of the
2008A Bonds or if any of the events described in Article V of the Indenture
requiring the redemption of 2008A Bonds shall have occurred.  The
Company may at any time deliver money, and/or Government Obligations, to the
Trustee with instructions to the Trustee to hold such money, and/or Government
Obligations, pursuant to Article X of the Indenture in connection with a
discharge of the Indenture.  The Issuer agrees that, at the request at
any time of the Company, it will cooperate with the Company to cause the 2008A
Bonds or any portion thereof to be redeemed, or to cause the Indenture to be
discharged, to the extent permitted by the Indenture.

      

      SECTION
5.9. Company's Performance Under
Indenture.

       

      The Company agrees, for the benefit of
the Owners, to do and perform all acts and things contemplated in the Indenture
to be done or performed by it and to not interfere with the exercise of the
power and authority granted to the Trustee in the Indenture.  The
Company further agrees to aid in furnishing any documents, certificates or
opinions that may be required under the Indenture.

      

      SECTION
5.10. Covenants Regarding Tax
Exemption.

       

      It is the intention of the Company and
the Issuer that the interest on the 2008A Bonds be excludable from the gross
income of the holders thereof for federal income tax purposes by reason of
Section 103(a) of the Code, except for any Bond for any period that such
Bond is owned by a person who is a "substantial user" of the Project Facilities
or a "related person" within the meaning of Section 147(a) of the Code, and
that substantially all of the proceeds of the 2008A Bonds will be used to
refinance the 2004B Bonds the proceeds of which were used to provide facilities
for the furnishing of water within the meaning of Section 142(a)(4) of the
Code and any Regulations promulgated with respect thereto.  To that
end, the Company and the Issuer (to the extent reasonably within the control of
the Issuer) covenant with each other to refrain from any action which would
adversely affect, or to take such action to assure, the treatment of the 2008A
Bonds as obligations described in Section 103(a) of the Code, the interest
on which is not includable in the gross income of the holders thereof (other
than the income of a "substantial user" of the Project or a "related person"
within the meaning of Section 147(a) of the Code) for purposes of federal
income taxation. None of the covenants and agreements herein contained shall
require either the Company or the Issuer to enter an appearance or intervene in
any administrative, legislative or judicial proceeding in connection with any
changes in applicable laws, rules or regulations or in connection with any
decisions of any court or administrative agency or other governmental body
affecting the taxation of interest on the 2008A Bonds.

      

      SECTION
5.11. Company's Option to Remarket
2008A Bonds Purchased in Lieu of Redemption.

       

      Pursuant to Section 5.4 of the
Indenture, the Company is given the right to purchase 2008A Bonds in lieu of
redemption.  In the event the Company exercises such option with
respect to 2008A Bonds which have been called for redemption under
Section 5.7 of the Indenture, the Company (or any Person acting on its
behalf) (i) will not remarket such 2008A Bonds as tax exempt 2008A Bonds
without first obtaining an opinion of Bond Counsel that the interest on the
2008A Bonds to be remarketed is not includable in the gross income of the owners
thereof for federal income tax purposes except for interest on any Bond for any
period during which such Bond is owned by a person who is a "substantial user"
of the Project or any person considered to be related to such person within the
meaning of Section 147(a) of the Code, and (ii) will not remarket such
2008A Bonds until the Company delivers to the Issuer and the Trustee an opinion
of counsel, not unsatisfactory to the Issuer and Trustee in their reasonable
judgment, that none of the 2008A Bonds or this Loan Agreement are subject to
registration under the Securities Act of 1933, as amended.

      

      SECTION
5.12. Nondiscrimination – Sexual
Harassment.

       

      The
Company hereby accepts and agrees to be bound by the Nondiscrimination – Sexual
Harassment clause set forth in Exhibit A attached hereto.

      

      SECTION
5.13. Rate Mode
Conversion.

       

      Subject to and upon compliance with the
applicable provisions of the Indenture, the Rate Mode on the 2008A Bonds may be
converted to a new Rate Mode at the direction of the Company.  Any and
all fees and expenses in connection with any such conversion shall be paid by
the Company.  Upon any such conversion, the Company will comply with
any applicable provisions of SEC Rule 15c2-12.

      

      SECTION
5.14. Letter of Credit
Facility.

       

      On the date of issuance of the 2008A
Bonds, the Letter of Credit Facility will be in effect.  The Company
at its option may from time to time with notice to the Issuer cause a Letter of
Credit Facility to be extended or an Alternate Credit Facility to be delivered
in replacement therefor, or to terminate a Letter of Credit Facility, in each
case to the extent permitted by the terms of the Indenture.  It is
anticipated that so long as a Letter of Credit Facility is held by the Paying
Agent, all payments of principal of and interest on the 2008A Bonds payable in
connection with an optional or mandatory tender and purchase of 2008A Bonds will
be funded, to the extent remarketing proceeds are not available to fund such
payments, from draws on such Letter of Credit Facility and that moneys paid by
the Company pursuant to Section 5.4(b) hereof representing Installment Loan
Payments hereunder will be applied to reimburse the Bank for such
draws.

      

      ARTICLE
VI

       

      PARTICULAR
AGREEMENTS

       

      SECTION
6.1. Indemnified Party's Release
and Indemnification Provisions.

       

      The Company agrees, whether or not the
transactions contemplated by this Loan Agreement and the Indenture shall be
consummated:

      

      (a) to pay,
and save the Indemnified Parties harmless against liability for the payment of,
all reasonable out-of-pocket expenses arising in connection with said
contemplated transactions, including the reasonable fees and expenses of counsel
to the Indemnified Parties; and

       

      (b) to
defend, protect, indemnify and save the Indemnified Parties harmless from and
against all liability, losses, damages, costs, reasonable expenses (including
reasonable counsel fees), taxes, causes of action, suits, claims, demands and
judgments of any nature or form, by or on behalf of any Person arising in any
manner from the transactions of which this Loan Agreement or the Indenture is a
part or arising in any manner in connection with the Project, the Project
Facilities or the financing or refinancing of the Project or the Project
Facilities, and, without limiting the generality of the foregoing, arising from
(i) the issuance, offering, sale, or delivery of the 2008A Bonds, the
Indenture, the Underwriting Agreement and this Loan Agreement and the
obligations imposed on the Issuer hereby and thereby and the Trustee's
performance of its obligations under the Indenture; or the design, construction,
installation, operation, use, occupancy, maintenance, or ownership of the
Project and the Project Facilities; (ii) any written statements or
representations made or given by the Company or any of its officers or employees
to the Indemnified Parties or any underwriters or purchasers of any of the 2008A
Bonds, with respect to the Issuer, the Company, the Project, the 2008A Bonds or
the Underwriting Agreement, including, but not limited to, statements or
representations of facts, financial information, or corporate affairs;
(iii) damage to property or any injury to or death of any person that may
be occasioned by any cause whatsoever pertaining to the Project or the Project
Facilities; (iv) any breach or default on the part of the Company in the
performance of any of its obligations under this Loan Agreement; (v) any
violation of contract, agreement or restriction by the Company relating to the
Project or Project Facilities; or (vi) any violation of law, ordinance or
regulation by or permitted by the Company affecting the Project or Project
Facilities or any part thereof or the ownership or occupancy or use
thereof.

       

      In the event that any action or
proceeding is brought against any Indemnified Party by reason of any such claim,
such action or proceeding shall be defended against by counsel to the Company,
unless the Indemnified Party shall determine, upon advice of counsel to the
Indemnified Party, that the Indemnified Party's interests conflict with the
interests of Company, in which event the Indemnified Party may select its own
counsel.  In the event such defense is by counsel to the Indemnified
Party on behalf of the Indemnified Party, the Company shall indemnify the
Indemnified Party for reasonable costs of counsel to the Indemnified Party
allocated to such defense and charged to the Indemnified Party.  The
Company, upon notice from the Indemnified Party, shall resist and defend such an
action or proceeding on behalf of the Indemnified Party.  The
Indemnified Party shall provide the Company prompt written notice of any claim
or suit with respect to which it has a right of indemnity hereunder, but the
failure to provide such notice shall not limit or impair the rights of any
Indemnified Party hereunder except to the extent that such failure causes actual
damage or loss to the Company.  The Indemnified Party shall, at the
Company's expense, provide all reasonable assistance requested by the Company in
its defense and/or settlement of any such claim or suit.  Neither
party shall settle or pay any such claim or suit without the prior written
consent of the other party, which shall not be unreasonably
withheld.

      

      The provisions of this Section shall
not apply to any claim or liability to the extent resulting from the Indemnified
Party's acts of gross negligence, bad faith, fraud or deceit or for any claim or
liability which the Company was not given the opportunity to contest (except as
set forth in the preceding paragraph), due to the gross negligence of the
Indemnified Party.

      

      The Company also agrees to pay the
expenses (including reasonable attorneys' fees) of any Indemnified Party in
enforcing this Section 6.1.  The provisions of this Section shall
survive the payment of the 2008A Bonds, the termination of this Loan Agreement,
the termination of the Indenture, and, as to the Trustee, the removal or
resignation of the Trustee.

      

      SECTION
6.2. Maintenance of Corporate
Existence.

       

      The Company agrees that during the term
of this Loan Agreement it will maintain its corporate existence, will not
dissolve or otherwise dispose of all or substantially all of its assets and will
not consolidate with or merge into another corporation; provided, however, that
the Company may, without violating the agreement contained in this Section,
consolidate with or merge into another corporation, or sell or otherwise
transfer to another corporation all or substantially all of its assets as an
entirety and thereafter dissolve, if (a) the Issuer consents in writing,
(b) the surviving, resulting or transferee corporation, as the case may be,
assumes in a writing delivered to the Trustee all of the obligations of the
Company herein and under the Tax Documents, is duly qualified to do business in
the Commonwealth and is not a Disqualified Contractor, (c) at the time of
such consolidation or merger and after giving effect thereto, no Default or
Event of Default shall have occurred and be continuing, (d) after giving
effect to such consolidation or merger the surviving corporation would be
permitted to incur at least $1.00 of additional Funded Debt under the provisions
of Section 6.9 hereof, and (e) the provisions of Section 6.6 are
satisfied.

      

      SECTION
6.3. Financial
Information.

       

      The Company will keep proper books of
record and account in which full and correct entries will be made of all
dealings or transactions of or in relation to the business and affairs of the
Company, in accordance with generally accepted accounting principles
consistently maintained (except for changes disclosed in the financial
statements furnished pursuant to this Section 6.3 and concurred in by the
independent public accountants referred to herein), and will furnish to the
Trustee and upon request, to the Issuer:

      

      (a) Quarterly
Statements.  As soon as available and in any event within 45
days after the end of each quarterly fiscal period (except the last) of each
fiscal year, duplicate copies of:

       

      (1) a
consolidated balance sheet of the Company as of the close of such quarter
setting forth in comparative form the consolidated figures for the corresponding
period of the preceding fiscal year,

       

      (2) consolidated
statements of income and shareholders' investment of the Company for such
quarterly period, setting forth in comparative form the consolidated figures for
the corresponding period of the preceding fiscal year, and

       

      (3) consolidated
statements of cash flows of the Company for the portion of the fiscal year
ending with such quarter, setting forth in comparative form the consolidated
figures for the corresponding period of the preceding fiscal year,

       

      all in
reasonable detail and certified as complete and correct, by an authorized
financial officer of the Company;

      

      (b) Annual
Statements.  As soon as available and in any event within 120
days after the close of each fiscal year of the Company, duplicate copies
of:

       

      (1) a
consolidated balance sheet of the Company as of the close of such fiscal
year,

       

      (2) consolidated
statements of income and shareholders' investment and cash flows of the Company
for such fiscal year,

       

      in each
case setting forth in comparative form the consolidated figures for the
preceding fiscal year, all in reasonable detail and accompanied by an opinion
thereon of a firm of independent public accountants of recognized national
standing selected by the Company to the effect that the consolidated financial
statements have been prepared in accordance with generally accepted accounting
principles consistently applied (except for changes in application in which such
accountants concur) and present fairly, in all material respects, the financial
condition of the Company and that the examination of such accountants in
connection with such financial statements has been made in accordance with
generally accepted auditing standards and accordingly, includes such tests of
the accounting records and such other auditing procedures as were considered
necessary in the circumstances;

      

      (c) Audit
Reports.  Promptly upon receipt thereof, one copy of each
interim or special audit made by independent accountants of the books of the
Company;

       

      (d) SEC and Other
Reports.  Promptly upon their becoming available, one copy of
each financial statement, report, notice or proxy statement sent by the Company
to stockholders generally and of each regular or periodic report, and any
registration statement or prospectus filed by the Company with any securities
exchange or the Securities and Exchange Commission or any successor agency, and
copies of any orders in any proceedings substantially affecting the financial
condition of the Company to which the Company is a party, issued by any
governmental agency, Federal or state, having jurisdiction over the
Company;

       

      (e) Officers'
Certificates.  Within the periods provided in paragraphs (a)
and (b) above, a certificate of an authorized financial officer of the Company
stating that he has reviewed the provisions of this Agreement and setting forth:
(1) the information and computations (in sufficient detail) required in order to
establish whether the Company was in compliance with the requirements of
Sections 6.9 through 6.12, inclusive, at the end of the period covered by the
financial statements then being furnished, and (2) whether there existed as of
the date of such financial statements and whether, to the best of his knowledge,
there exists on the date of the certificate or existed at any time during the
period covered by such financial statements any Default or Event of Default and,
if any such condition or event exists on the date of the certificate, specifying
the nature and period of existence thereof and the action the Company is taking
and proposes to take with respect thereto.

       

      To the extent not furnished pursuant to
the foregoing provisions of this Section 6.3, the Company agrees to furnish
to the Issuer and Trustee, copies of the annual financial statements and other
information filed with Nationally Recognized Municipal Securities Information
Repositories pursuant to the Company's continuing disclosure undertaking
referred to in the Underwriting Agreement.  Such statements and other
information shall be filed with the Issuer and the Trustee within ten (10) days
of the filings made pursuant to such continuing disclosure
undertaking.

      

      SECTION
6.4. Agreement of Issuer Not to
Assign or Pledge.

       

      Except for the assignment and pledge
described in the Indenture, the Issuer agrees that it will not attempt to
further assign, pledge, transfer or convey its interest in or create any
assignment, pledge, lien, charge or encumbrance of any form or nature with
respect to the rights and interests herein described.

      

      SECTION
6.5. Reference to 2008A Bonds
Ineffective after 2008A Bonds Paid.

       

      Upon payment of all Debt Service due
relating to the 2008A Bonds, and payment of all fees and charges of the Issuer
and the Trustee, all as provided in Article X of the Indenture, all references
herein to the 2008A Bonds and the Trustee shall be ineffective and neither the
Issuer, the Trustee nor the holders of any of the 2008A Bonds shall thereafter
have any rights hereunder and the Company shall have no further obligation
hereunder, saving and excepting those that shall have theretofore vested and
remain unsatisfied and any right of the Issuer or the Trustee to indemnification
under Section 6.1 and payment of fees under Section 7.3, which rights
shall survive the payment of all Debt Service due relating to the 2008A Bonds
and the termination of this Loan Agreement and the Indenture.

      

      SECTION
6.6. Assignment, Sale or Lease of
Project Facilities.

       

      (a) The
Company shall not assign this Loan Agreement or any interest of the Company
herein, either in whole or in part, without the prior written consent of the
Trustee, which consent shall be given if the following conditions are
fulfilled:

       

      (i) The
assignee assumes in writing all of the obligations of the Company
hereunder;

       

      (ii) The
assignee provides the Trustee with an opinion of counsel satisfactory to the
Trustee to the effect that neither the validity nor the enforceability of this
Loan Agreement shall be adversely affected by such assignment;

       

      (iii) The
Project and the Project Facilities shall continue in the opinion of Bond Counsel
to be a "project" as such term is defined in the Act after such
assignment;

       

      (iv) Such
assignment shall not, in the opinion of Bond Counsel, have an adverse effect on
the exclusion from gross income for federal income tax purposes of interest on
the 2008A Bonds;

       

      (v) The
assignee shall not be a Disqualified Contractor; and

       

      (vi) Consent
by the Issuer, which consent shall not be unreasonably withheld.

       

      (b) The
Company may, subject to the provisions of Section 5.10, lease the Project
Facilities, in whole or in part, to one or more other Persons, provided
that:

       

      (i) No such
lease shall relieve the Company from its obligations under this Loan
Agreement;

       

      (ii) In
connection with any such lease the Company shall retain such rights of interests
as will permit it to comply with its obligations under this Loan
Agreement;

       

      (iii) No such
lease shall impair materially the accomplishment of the purposes of the Act to
be accomplished by operation of the Project Facilities as herein
provided;

       

      (iv) Any such
lease shall require the lessee to operate the Project Facilities as a "project"
under the Act as long as the 2008A Bonds are outstanding;

       

      (v) In the
case of a lease to a new lessee or an assignment of an existing lease to a new
lessee of substantially all of the Project Facilities, such new lessee: (A)
shall not be a Disqualified Contractor; and (B) shall have been approved by the
Issuer (such approval not to be unreasonably withheld); and

       

      (vi) The
lessees under any such leases, shall be subject to the applicable terms and
conditions of Section 5.10.

       

      (c) The
Company shall not sell, assign or otherwise dispose of (whether in one
transaction or in a series of transactions) its interest in the Project, the
Project Facilities or any material portion thereof, other than is permitted by
Section 6.6(a) and other than leases permitted under Section 6.6(b) or
undertake or permit the demolition or removal of the Project Facilities or any
material portion thereof without the prior written consent of the Issuer;
provided that the Company shall be permitted to sell, transfer, assign or
otherwise dispose of or remove any portion of the Project Facilities which is
retired or replaced in the ordinary course of business.

       

      SECTION
6.7. Amendment of Loan Agreement
or Indenture.

       

      No amendment, change, addition to, or
waiver of any of the provisions of this Loan Agreement or the Indenture shall be
made except pursuant to Article IX of the Indenture.

      

      SECTION
6.8. Waiver of Vendor’s
Lien.

       

      Notwithstanding anything in this Loan
Agreement to the contrary, it is the intention of the parties hereto that no
vendor’s lien and/or privilege, mortgage, resolutory condition, right of
rescission or stipulation for the benefit of a third party shall be created by
execution of this Loan Agreement, and if any such lien, privilege, condition, or
benefit should be deemed to have been created by execution of this Loan
Agreement, they are expressly released, renounced, waived and abandoned by the
parties hereto.

      

      SECTION
6.9. Limitations on
Indebtedness.

       

      (a) The
Company will not have outstanding, or in any manner be liable in respect of, any
Indebtedness, except the following:

       

      (1) current
operating liabilities and current or other obligations (other than for borrowed
money) incurred in the ordinary course of business;

       

      (2) Seasonal
Indebtedness, provided that such Seasonal Indebtedness has not existed for a
period of at least 30 consecutive days in the twelve preceding months;
and

       

      (3) Funded
Debt (including, without limitation, the 2008A Bonds and the Issuer’s $7,300,000
Exempt Facilities Revenue Bonds, Series A of 2004 (The York Water Company
Project)) in an amount not in excess of 60% of the Plant Account on the books of
the Company at any one time outstanding.

       

      (b) The
renewal, extension or refunding of any Funded Debt issued or incurred in
accordance with the limitations of this Section 6.9 shall constitute the
issuance of additional Funded Debt, which is, in turn, subject to the
limitations of the applicable provisions of this Section 6.9, but any
Indebtedness paid or defeased from the proceeds of additional Funded Debt may be
excluded from outstanding Indebtedness for purposes of this
Section 6.9.

       

      (c) Subject
to compliance with this Section 6.9, nothing contained in this Agreement shall
prohibit the Company from having the Issuer issue in the future additional
series of bonds or incurring other types of Funded Debt.

       

      SECTION
6.10. Limitation on
Liens.

       

      (a) The
Company will not create or incur, or suffer to be incurred or to exist, any
mortgage, pledge, security interest, encumbrance, lien or charge of any kind on
its Property or assets, whether now owned or hereafter acquired, or upon any
income or profits therefrom, or transfer any Property for the purpose of
subjecting the same to the payment of obligations in priority to the payment of
its or their general creditors, or acquire or agree to acquire any Property or
assets upon conditional sales agreements or other title retention devices,
except Excepted Encumbrances; provided, however, that this requirement shall not
be applicable to, nor prevent:

       

      (1) the
pledging by the Company of its assets as security for the payment of any tax,
assessment or other similar charge demanded of the Company by any governmental
authority or public body as long as the Company in good faith contests its
liability to pay the same, or as security to be deposited with any governmental
authority or public body for any purpose at any time required by law or,
governmental regulation as a condition to the transaction of any business or the
exercise of any privilege, license or right; or

       

      (2) the
pledging by the Company of any assets for the purpose of securing a stay or
discharge or for any other purpose in the course of any legal proceeding in
which the Company is a party; or

       

      (3) making
good faith deposits in connection with tenders, contracts or leases to which the
Company is a party; or

       

      (4) the
pledging by the Company of its revenues to the Pennsylvania Infrastructure
Investment Authority pursuant to that certain Loan Agreement dated as of
August 24, 1999 in order to secure a loan in the original aggregate
principal amount of $800,000 made by such Authority to the Company, such loan
having an outstanding principal balance of approximately $616,680 as of November
1, 2004.

       

      (b) In the
event any Property or assets of the Company are subject to a lien or charge not
otherwise permitted by Section 7.10(a) above, the Company will make effective
provision whereby the 2008A Bonds shall (so long as any other Indebtedness shall
be so secured) be secured (along with any other Indebtedness similarly entitled
to be equally and ratably secured) by a direct lien (on all the Property, other
than Excepted Property, owned by the Company just prior to the time such other
lien shall have become a lien on any of the Property of the Company) prior to
the lien or liens securing any and all such other
Indebtedness.  Compliance with the provisions of this paragraph shall
not be deemed to constitute a waiver of, or consent to, any violation of Section
6.10(a).

       

      (c) The
Company covenants that, so long as any 2008A Bonds shall be outstanding under
the Indenture, if, upon any consolidation or merger of the Company with or into
any other corporation, or upon any sale or conveyance of all or substantially
all of the Property of the Company as an entirety, or upon any acquisition by
the Company of the Property of another corporation substantially as an entirety
or upon any merger of any other corporation into the Company, any of the
Property (other than Excepted Property) owned by the Company just prior thereto,
would thereupon become subject to any lien (other than Excepted Encumbrances),
the Company, prior to such consolidation, merger, sale, conveyance or
acquisition, will take appropriate action whereby the 2008A Bonds shall (so long
as such Property shall be subject to such lien) be secured (along with any other
Indebtedness similarly entitled to be equally and ratably secured) by a direct
lien on such portion of the Property of the Company prior to all other liens,
other than Excepted Encumbrances and other than any liens existing thereon just
prior to such consolidation, merger, sale, conveyance or
acquisition.

       

      (d) Any
mortgage created pursuant to the requirements of paragraphs (b) or (c) above
shall contain reasonable and customary provisions for the enforcement of the
lien thereby created and for the release of, or substitution for, the Property
so mortgaged.  Such direct lien shall be evidenced by an appropriate
instrument or instruments executed and delivered to the Trustee.

       

      SECTION
6.11. Dividends, Stock
Purchases.

       

      The Company will not, except as
hereinafter provided:

      

      (a) Declare
or pay any dividends, either in cash or Property, on any shares of its capital
stock of any class (except dividends or other distributions payable solely in
shares of capital stock of the Company, including the portion of dividends
reinvested in shares of the Company’s common capital stock under the Company’s
Optional Dividend Reinvestment Plan); or

       

      (b) Directly
or indirectly, purchase, redeem or retire any shares of its capital stock of any
class or any warrants, rights or options to purchase or acquire any shares of
its capital stock (other than in exchange for or out of the net proceeds to the
Company from the substantially concurrent issue or sale of other shares of
capital stock of the Company or warrants, rights or options to purchase or
acquire any shares of its capital stock); or

       

      (c) Make any
other payment or distribution, either directly or indirectly, in respect of its
capital stock; or

       

      (d) Make any
payment, distribution, conveyance or transfer of any Property to any subsidiary
or affiliate;

       

      (such
declarations or payments of dividends, purchases, redemptions or retirements of
capital stock and warrants, rights or options, and all such other distributions,
conveyances and transfers being herein collectively called "Restricted
Payments"), if after giving effect thereto the aggregate amount of Restricted
Payments made during the period from and after December 31, 1982 to and
including the date of the making of the Restricted Payment in question, would
exceed the sum of (1) $1,500,000 plus (2) earned surplus of the Company, on a
non-consolidated basis, accumulated after December 31, 1982, determined without
any deduction on account of such Restricted Payments, provided, however, that
notwithstanding the foregoing, in no event shall the Company make any
distribution, conveyance or transfer to any subsidiary or affiliate of any
Property constituting the Plant Account.

      

      The Company will not declare any
dividend which constitutes a Restricted Payment payable more than 60 days after
the date of declaration thereof.

      

      For the purposes of this Section 6.11,
the amount of any Restricted Payment declared, paid or distributed in Property
of the Company shall be deemed to be the greater of the book value or fair
market value (as determined in good faith by the Board of Directors of the
Company) of such Property at the time of the making of the Restricted Payment in
question.

      

      SECTION
6.12. Termination of Pension
Plans.

       

      The Company will not permit any
employee benefit plan maintained by it to be terminated in a manner which could
result in the imposition of a lien on any Property of the Company pursuant to
Section 4068 of the Employee Retirement Income Security Act of 1974, as
amended.

      

      ARTICLE
VII

       

      EVENTS
OF DEFAULT AND REMEDIES

       

      SECTION
7.1. Defaults and
Remedies.

       

      (a) The
Company is advised and recognizes that the Issuer will assign all of its right,
title, and interest in and to all of the Installment Loan Payments required to
be made pursuant to this Loan Agreement, and the right to receive and collect
same, to the Trustee under the Indenture.  All rights of the Issuer
(other than Unassigned Issuer’s Rights) against the Company arising under this
Loan Agreement or the Indenture may be enforced by the Trustee, or the
Registered Owners of the 2008A Bonds, to the extent provided in the Indenture,
without making the Issuer a party.

       

      (b) The
following shall constitute an "Event of Default" hereunder:

       

      (i) Payment
of any Installment Loan Payment is not made when due and payable and such
failure shall continue for one Business Day; or

       

      (ii) Payment
of any amount due under this Loan Agreement other than Installment Loan Payments
is not made when due and payable and such failure shall continue for fifteen
(15) Business Days after the Trustee shall have given written notice to the
Company specifying such default; or

       

      (iii) Failure
to pay the principal of or interest on any Indebtedness of the Company for
borrowed money, as and when the same shall become due and payable by the lapse
of time, by declaration, by call for redemption or otherwise, and such default
shall continue beyond the period of grace, if any, allowed with respect thereto;
or

       

      (iv) Default
or the happening of any event shall occur under any indenture, agreement, or
other instrument under which any Indebtedness of the Company for borrowed money
may be issued and such default or event shall continue for a period of time
sufficient to permit the acceleration of the maturity of any Indebtedness of the
Company outstanding thereunder; or

       

      (v) Default
shall occur in the observance or performance of any covenant or agreement
contained in Sections 6.9 through 6.12 hereof;

       

      (vi) Subject
to Section 6.1(c) of the Indenture relating to force majeure, failure by the
Company to observe or perform any other covenant, condition or agreement on its
part to be observed or performed under the Indenture or the Loan Agreement,
other than as referred to in subsections (i) through (v) inclusive above, for a
period of 60 days after written notice, specifying such failure and requesting
that it be remedied, is given to the Company by the Issuer or the Trustee;
provided, however, that if the failure stated in the notice is such that is can
be remedied but not within such 60-day period, it shall not constitute an Event
of Default if the default, in the judgment of the Trustee in reliance upon
advice of counsel, is correctable without material adverse effect on the
Bondholders and if corrective action is instituted by the Company, within such
period and is diligently pursued until the default is remedied; or

       

      (vii) Final
judgment or judgments for the payment of money aggregating in excess of $250,000
is or are outstanding against the Company or against any Property or assets of
the Company and any one of such judgments has remained unpaid, unvacated,
unbonded or unstayed by appeal or otherwise for a period of 60 days from the
date of its entry; or

       

      (viii) The
occurrence of an Event of Default under the Indenture.

       

      (c) Upon the
occurrence of an Event of Default, the Trustee (or in the case of an Event of
Default arising out of Unassigned Issuer’s Rights, the Issuer) shall have the
power to proceed with any right or remedy granted by the Constitution and laws
of the Commonwealth, as it may deem best, including without limitation any suit,
action or special proceeding in equity or at law, including mandamus
proceedings, for the specific performance of any agreement, obligation or
covenant contained herein or for the enforcement of any proper legal or
equitable remedy as the Trustee shall deem most effectual to protect the rights
of the Registered Owners, including without limitation, acceleration of all
amounts payable hereunder; provided, however, any such proceedings shall be
subject to the provisions of Section 6.1(c) of the Indenture relating to force
majeure.  Upon the occurrence of an Event of Default under Section
61(a)(i) or 7.1(a)(ii) of the Indenture and upon the occurrence of any other
Event of Default under the Indenture pursuant to the terms of which the Trustee
shall have declared the 2008A Bonds immediately due and payable, then all
payments required to be made by the Company under Section 5.4(b) (other
than interest not yet accrued) shall become immediately due and
payable.

       

      (d) Any
amounts collected for non-payment of amounts described in Section 5.4
hereof pursuant to actions taken under this Section shall be paid into the Debt
Service Fund and applied in accordance with the provisions of the
Indenture.

       

      SECTION
7.2. Annulment of
Acceleration.

       

      If, in compliance with the requirements
of Section 7.2 of the Indenture, the Trustee shall annul an acceleration
declared due to any Event of Default under the Indenture, such annulment shall
be deemed to also rescind any acceleration of all payments required under
Section 5.4.  In case of any such annulment, or in case any
proceeding taken by the Trustee on account of any such Event of Default shall
have been discontinued or abandoned or determined adversely, then and in every
such case the Issuer, the Company, the Trustee and the Registered Owners shall
be restored to their former positions and rights hereunder, but no such
annulment shall extend to any subsequent or other Event of Default or impair any
right consequent thereon.

      

      SECTION
7.3. Agreement to Pay Attorneys’
Fees and Expenses.

       

      In the event the Company should default
under any of the provisions of this Loan Agreement and the Issuer or the Trustee
should employ attorneys or incur other expenses for the collection of payments
required hereunder or the enforcement of performance or observance of any
obligation or agreement on the part of the Company herein contained, the Company
agrees that it will upon demand therefore pay to the Issuer or the Trustee the
reasonable fees and expenses of such attorneys and such other expenses so
incurred by the Issuer or the Trustee.

      

      SECTION
7.4. General Enforcement
Provisions.

       

      (a) The terms
of this Loan Agreement may be enforced as to one or more breaches either
separately or cumulatively.

       

      (b) No remedy
conferred upon or reserved to the Issuer, the Trustee, or the Registered Owners
of the 2008A Bonds in this Loan Agreement is intended to be exclusive of any
other available remedy or remedies, but each and every such remedy shall be
cumulative and shall be in addition to every other remedy now or hereafter
existing at law or in equity or by statute.  No delay or omission to
exercise any right or power accruing upon any default, omission, or failure of
performance hereunder shall impair any such right or power or shall be construed
to be a waiver thereof, but any such right and power may be exercised from time
to time and as often as may be deemed expedient.  In the event any
provision contained in this Loan Agreement should be breached by the Company and
thereafter duly waived, such waiver shall be limited to the particular breach so
waived and shall not be deemed to waive any other breach of this Loan
Agreement.  No waiver by any party of any breach by any other party of
any of the provisions of this Loan Agreement shall be construed as a waiver of
any subsequent breach, whether of the same or of a different provision of this
Loan Agreement.

       

      SECTION
7.5. Notice of
Default.

       

      The Company shall notify the Trustee
and the Issuer in writing immediately if it becomes aware of the occurrence of
any Event of Default hereunder or of any fact, condition or event which, with
the giving of notice or passage of time or both, would become an Event of
Default.

      

      SECTION
7.6. Unassigned Issuer’s
Rights.

       

                            Notwithstanding
any other provision hereof, upon the occurrence of an Event of Default arising
out of Unassigned Issuer’s Rights, the Issuer reserves the right to exercise or
refrain from exercising remedies under the Loan Agreement with respect to such
Event of Default and such Event of Default may not be waived or annulled without
the prior written consent of the Issuer.

      

      ARTICLE
VIII

       

      MISCELLANEOUS

       

      SECTION
8.1. Term of Loan
Agreement.

       

      Subject to all provisions hereof which
expressly state that the same shall survive termination hereof, this Loan
Agreement shall terminate when (i) payment of all Debt Service relating to the
2008A Bonds shall have been made, (ii) the Company shall have satisfied all of
its obligations to the Bank pursuant to the Indenture, this Agreement, the
Letter of Credit and the Reimbursement Agreement, and (iii) all fees,
indemnities, expenses and charges of the Issuer, Local IDA and the Trustee have
been fully paid or provision satisfactory to such parties made for such
payment.

      

      SECTION
8.2. Notices.

       

      All notices, approvals, consents,
requests and other communications hereunder shall be in writing and shall be
deemed to have been given when delivered by hand or overnight courier service or
mailed by first class registered or certified mail, return receipt requested,
postage prepaid, or sent by telecopy and addressed as follows:

      

      (a) to the
Company, to:

       

      The York Water Company

      130 East Market Street

      York, PA  17401

      Attention:  President

      Telecopy No. (717)
852-0058

      

      (b) to the
Issuer, to:

       

      Pennsylvania Economic Development
Financing Authority

      Department of Community and Economic
Development

      Commonwealth Keystone
Building

      400 North Street, 4th
Floor

      Harrisburg,
PA  17120

      Attention:  Program
Manager

      Telecopy No. (717)
787-0879

      

      (c) to the
Trustee, to:

       

      Manufacturers and Traders Trust
Company

      213 Market Street

      Harrisburg,
PA  17101

      Attn:  Corporate Trust
Department

      Telecopy No. (717)
231-2615

      

      A
duplicate copy of each notice, approval, consent, request or other communication
given hereunder by the Issuer, the Company or the Trustee to any one of the
others shall also be given to all of the others at the address furnished from
time to time.  The Issuer, the Company and the Trustee may, by notice
given hereunder, designate any further or different addresses to which
subsequent notices, approvals, consents, requests or other communications shall
be sent or persons to whose attention the same shall be directed.

      

      SECTION
8.3. Benefit of
Parties.

       

      This Loan Agreement is made for the
exclusive benefit of the Issuer, the Trustee, the Registered Owners, the
Beneficial Owners, the Company and their respective successors and assigns
herein permitted, and not for any other third party or parties; and nothing in
this Loan Agreement, expressed or implied, is intended to confer upon any party
or parties other than the Issuer, the Trustee, the Registered Owners, the
Beneficial Owners, the Company and their respective successors and assigns
herein permitted, any rights or remedies under or by reason of this Loan
Agreement.

      

      SECTION
8.4. Severability.

       

      If any provision hereof shall be held
invalid or unenforceable by any court of competent jurisdiction, such holding
shall not invalidate or render unenforceable any other provision
hereof.

      

      SECTION
8.5. Counterparts.

       

      This Loan Agreement may be executed in
any number of counterparts, each of which shall be deemed to be an original, but
all of which together shall constitute one and the same instrument.

      

      SECTION
8.6. Captions.

       

      The captions and headings herein are
for convenience only and in no way define, limit or describe the scope or intent
of any provisions hereof.

      

      SECTION
8.7. Law Governing Construction
of Loan Agreement.

       

      This Loan Agreement shall be governed
by, and construed in accordance with, the laws of the Commonwealth.

      

      SECTION
8.8. Payments on Non-Business
Days.

       

      If any payment required hereunder is
due on a date that is not a Business Day, payment shall be made on the next
succeeding Business Day with the same force and effect as if made on the date
fixed for such payment, and no interest shall accrue on such amount for the
period after such date.

      

      SECTION
8.9. Payments to be Sufficient to
Meet DTC Requirements.

       

      The Company hereby acknowledges that
the 2008A Bonds are intended to be issued in book-entry form through DTC and
that DTC has certain timing requirements and notice requirements.  The
Company hereby agrees to make payments and give notices in a manner sufficient
to comply from time to time with the DTC requirements, for so long as the 2008A
Bonds are in book-entry form at DTC.

      

      SECTION
8.10. Reserved.

       

      SECTION
8.11. Limitation of Liability; No
Personal Liability.

       

      (a) In the
exercise of the powers of the Issuer or the Trustee hereunder or under the
Indenture, including without limitation the application of moneys and the
investment of funds, neither the Issuer or the Trustee nor their members,
directors, officers, employees, attorneys or agents shall be accountable to the
Company for any action taken or omitted by any of them in good faith and without
gross negligence and with the belief that it is authorized or within the
discretion or rights or powers conferred.  The Issuer and the Trustee
and their members, directors, officers, employees, attorneys and agents shall be
protected in acting upon any paper or document believed to be genuine, and any
of them may conclusively rely upon the advice of counsel and may (but need not)
require further evidence of any fact or matter before taking any
action.  In the event of any default by the Issuer hereunder, the
liability of the Issuer to the Company shall be enforceable only out of the
Issuer’s interest under this Loan Agreement and there shall be no other recourse
for damages by the Company against the Issuer, its members, directors, officers,
employees, attorneys and agents, or any of the property now or hereafter owned
by it or them.  All covenants, obligations and agreements of the
Issuer contained in this Loan Agreement or the Indenture shall be effective to
the extent authorized and permitted by applicable law.  No such
covenant, obligation or agreement shall be deemed to be a covenant, obligation
or agreement of any present or future member, director, officer, employee,
attorney or agent of the Issuer, and no official executing the 2008A Bonds shall
be liable personally on the 2008A Bonds or be subject to any personal liability
or accountability by reason of the issuance thereof or by reason of the
covenants, obligations or agreements of the Issuer contained in this Loan
Agreement or the Indenture.

       

      (b) No claim
shall be made by the Company or any of the Company’s affiliates against the
Issuer or the Trustee or any of their affiliates, directors, employees,
attorneys or agents for any special, indirect, consequential or punitive damages
in respect of any breach or wrongful conduct (whether or not the claim therefore
is based on contract, tort or duty imposed by law), in connection with, arising
out of or in any way related to the transactions contemplated by this Loan
Agreement, the Indenture or the other financing arrangements entered into in
connection with the Project or Project Facilities, or any act or omission or
event occurring in connection therewith; and the Company hereby waives, releases
and agrees not to sue upon any such claim for any such damages, whether or not
accrued and whether or not known or suspected to exist in its
favor.

       

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      IN WITNESS WHEREOF, the Issuer and the
Company have caused this Loan Agreement to be executed in their respective names
by their authorized officers or representatives and their respective seals to be
affixed hereto and have caused its execution hereof to be attested by its
authorized officer, all as of the date first above written.

      

       

      
        
          	 	
                  PENNSYLVANIA
      ECONOMIC DEVELOPMENT

                  FINANCING
      AUTHORITY

                	 
	Attest:	 	 	 
	
                  By:/s/Craig S.
    Petrasic

                	
                  By:
      

                	/s/Stephen
      M. Drizos	 
	Craig
      S. Petrasic 	 	Stephen
      M. Drizos	 
	Assistant
      Secretary 	 	Executive
      Director	 
	 	 	 	 
	 	 	 	 

        

      
        
          	 	
                  THE
      YORK WATER COMPANY

                	 
	Attest:	 	 	 
	
                  By:/s/Bruce C.
    McIntosh

                	
                  By: 

                	/s/Jeffrey
      R. Hines	 
	Bruce
      C. McIntosh	 	Jeffrey
      R. Hines	 
	Secretary	 	President
      and Chief Executive Officer	 
	 	 	 	 
	 	 	 	 

        

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
A

      

      NONDISCRIMINATION/SEXUAL
HARASSMENT CLAUSE

      

      During the term of the contract,
Contractor agrees as follows:

      

      1. In the
hiring of any employee(s) for the manufacture of supplies, performance of work,
or any other activity required under the contract or any subcontract, the
Contractor, subcontractor, or any person acting on behalf of the Contractor or
subcontractor shall not, by reason of gender, race, creed, or color,
discriminate against any citizen of this Commonwealth who is qualified and
available to perform the work to which the employment relates.

       

      2. Neither
the contractor nor any subcontractor nor any person on their behalf shall in any
manner discriminate against or intimidate any employee involved in the
manufacture or supplies, the performance of work, or any other activity required
under the contract on account of gender, race, creed, or color.

       

      3. Contractors
and subcontractors shall establish and maintain a written sexual harassment
policy and shall inform their employees of this policy.  The policy
must contain a notice that sexual harassment will not be tolerated and employees
who practice it will be disciplined.

       

      4. Contractors
shall not discriminate by reason of gender, race, creed, or color against any
subcontractor or supplier who is qualified to perform the work to which the
contracts relate.

       

      5. The
Contractor of each subcontractor shall furnish all necessary employment
documents and records to and permit access to their books, records, and accounts
by the contracting agency and the Bureau of Contract Administration and Business
Development, for purposes of investigation, to ascertain compliance with
provisions of this Nondiscrimination/Sexual Harassment Clause.  If the
Contractor or any subcontractor does not possess documents or records reflecting
the necessary information requested, the Contractor or subcontractor shall
furnish such information on reports forms supplied by the contracting agency or
the Bureau of Contract Administration and Business Development.

       

      6. The
Contractor shall include the provisions of this Nondiscrimination/Sexual
Harassment Clause in every subcontract so that such provisions will be binding
upon each subcontractor.

       

      7. The
Commonwealth may cancel or terminate the contract, and all money due or to
become due under the contract may be forfeited for a violation of the terms and
conditions of this Nondiscrimination/Sexual Harassment Clause.  In
addition, the agency may proceed with debarment or suspension and may place the
Contractor in the Contractor Responsibility file.exhibit102-051208.htm

    
      
        

      
EXHIBIT 10.2

      
        

      

    

     

    TRUST
INDENTURE

    
       

      between

       

      PENNSYLVANIA
ECONOMIC DEVELOPMENT FINANCING AUTHORITY,

      as
Issuer

       

      and

       

      MANUFACTURERS
AND TRADERS TRUST COMPANY,

      as
Trustee

       

       

      Dated
as of May 1, 2008

       

      $12,000,000

      PENNSYLVANIA
ECONOMIC DEVELOPMENT FINANCING AUTHORITY

      Exempt
Facilities Revenue Refunding Bonds

      Series
A of 2008

      (The
York Water Company Project)

      

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      TABLE OF
CONTENTS

       

      
 

      ARTICLE I
DEFINITIONS 

      Section
1.1. Definitions. 

      Section
1.2. Certain Rules of Interpretation. 

       

      ARTICLE
II THE 2008A BONDS 

      Section
2.1. Authorized Amount and Issuance of 2008A Bonds; Disposition of
2008A

      Bond Proceeds. 

      Section
2.2. Terms of the 2008A Bonds. 

      Section
2.3. [Reserved.] 

      Section
2.4. [Reserved.] 

      Section
2.5. Form of 2008A Bonds; Execution; 2008A Bonds Equally and Ratably
Secured;

       Limited Obligation of the
Issuer. 

      Section
2.6. Authentication. 

      Section
2.7. Registration, Transfer and Exchange. 

      Section
2.8. Mutilated, Destroyed, Lost or Stolen 2008A Bonds.

      Section
2.9. Payments of Principal, Redemption Price, Purchase Price and Interest;
Persons

      Entitled Thereto; Record
Dates. 

      Section
2.10. Temporary 2008A Bonds.

      Section
2.11. Cancellation of Surrendered 2008A Bonds.

      Section
2.12. Acts of Registered Owners; Evidence of Ownership. 

      Section
2.13. Book Entry System. 

      Section
2.14. Payments to Cede & Co.; Payments to Beneficial
Owners. 

       

      ARTICLE
IIA INTEREST RATE
ON 2008A BONDS 

      Section
2A.1.  Daily Rate. 

      Section
2A.2.  Weekly Rate. 

      Section
2A.3.  Monthly Rate. 

      Section
2A.4.  Term Rate. 

      Section
2A.5.  Conversion at Option of Company. 

      Section
2A.6.  Initial Interest Rates and Subsequent Conversion.

       

      ARTICLE
IIB  TENDER AND PURCHASE OF 2008A BONDS 

      Section
2B.1.  Optional Tender for Purchase of Weekly Rate and Monthly Rate
2008A

      Bonds. 

      Section
2B.2.  Mandatory Tender for Purchase on Each Conversion Date and at
End of Each

      Term Rate Period.

      Section
2B.3.  Mandatory Tender for Purchase Upon Liquidity Facility
Expiration,

      Replacement or Termination Due to
Non-Reimbursement or Default. 

      Section
2B.4.  Mandatory Tender and Purchase Upon Provision or Termination of
Liquidity

      Facility. 

      Section
2B.5.  Drawings on Liquidity Facility: 2008A Bonds Purchased with
Proceeds of

      Liquidity Facility. 

      Section
2B.6.  [Reserved]. 

      Section
2B.7.  No Tenders in Certain Circumstances. 

      Section
2B.8.  Inadequate Funds for Tenders. 

       

      LETTER OF
CREDIT AND LETTER OF CREDIT FACILITY 

      Section
2C.1.  Liquidity Facility. 

      Section
2C.2.  Drawings on Liquidity Facility. 

      Section
2C.3.  Reduction. 

      Section
2C.4.  Expiration. 

      Section
2C.5.   [Reserved.]

      Section
2C.6.   Extension. 

      Section
2C.7.  Replacement with Alternate Liquidity
Facility. 

      Section
2C.8.  Notices of Extension or Replacement. 

      Section
2C.9.  Other Credit or Liquidity Enhancement:  No Credit or
Liquidity Enhancement. 

       

      ARTICLE
IID  THE REMARKETING AGENT 

      Section
2D.1.  Appointment. 

      Section
2D.2  Duties. 

      Section
2D.3.  Qualification.

      Section
2D.4.  Resignation; Removal. 

      Section
2D.5.  Notices. 

      Section
2D.5.  Notices. 

       

      ARTICLE
III DEBT SERVICE FUND 

      Section
3.1. Establishment of Funds and Accounts. 

      Section
3.2. Debt Service Fund. 

      Section
3.3. [Reserved.] 

      Section
3.4. [Reserved.] 

      Section
3.5. Debt Service Fund Moneys to be Held for All Registered Owners, With
Certain

      Exceptions. 

      Section
3.6. Additional Accounts and Subaccounts.

       

      ARTICLE
IV INVESTMENTS, TAX COVENANTS 

      Section
4.1. Investment of Funds. 

      Section
4.2. Arbitrage Bond Covenant.

      Section
4.3. Covenants Regarding Tax Exemption. 

       

      ARTICLE V
REDEMPTION OF 2008A BONDS 

      Section
5.1. 2008A Bonds Subject to Redemption; Selection of 2008A Bonds
for

      Redemption.

      Section
5.2. Notice of Redemption.

      Section
5.3. Effect of Redemption. 

      Section
5.4. Purchase in Lieu of Redemption. 

      Section
5.5. Payment of Redemption Price; 2008A Bonds Redeemed in
Part. 

      Section
5.6. Optional Redemption. 

      Section
5.7. Special Mandatory Redemption. 

      Section
5.8. [Reserved.]

       

      ARTICLE
VI REPRESENTATIONS AND COVENANTS OF THE ISSUER 

      Section
6.1. General Limitation; Issuer’s Representation. 

      Section
6.2. Payment of 2008A Bonds and Performance of Covenants.

      Section
6.3. Enforcement of the Loan Agreement.

      Section
6.4. No Personal Liability. 

      Section
6.5. Exemption from Federal Income Taxation.

      Section
6.6. Corporate Existence; Compliance with Laws. 

      Section
6.7. Filings. 

      Section
6.8. Further Assurances. 

      Section
6.9. Inspection of Books. 

       

      ARTICLE
VII EVENTS OF DEFAULT AND REMEDIES 

      Section
7.1. Events of Default Defined. 

      Section
7.2. Acceleration and Annulment Thereof. 

      Section
7.3. Legal Proceedings by Trustee. 

      Section
7.4. Discontinuance of Proceedings by Trustee. 

      Section
7.5. Registered Owners May Direct Proceedings. 

      Section
7.6. Limitations on Actions by Registered Owners. 

      Section
7.7. Trustee May Enforce Rights Without Possession of 2008A
Bonds. 

      Section
7.8. Remedies Not Exclusive. 

      Section
7.9. Delays and Omissions Not to Impair Rights. 

      Section
7.10. Application of Moneys in Event of Default. 

      Section
7.11. Trustee’s Right to Receiver. 

      Section
7.12. Trustee and Registered Owners Entitled to All Remedies. 

      Section
7.13. Waiver of Past Defaults. 

       

      ARTICLE
VIII THE TRUSTEE AND THE PAYING AGENT 

      Section
8.1. Certain Duties and Responsibilities of Trustee. 

      Section
8.2. Notice if Event of Default Occurs or Notice if Taxability
Occurs. 

      Section
8.3. Certain Rights of Trustee. 

      Section
8.4. Trustee Not Responsible for Recitals or Issuance of 2008A
Bonds. 

      Section
8.5. Trustee May Hold 2008A Bonds. 

      Section
8.6. Money Held in Trust. 

      Section
8.7. Corporate Trustee Required; Eligibility. 

      Section
8.8. Resignation and Removal of Trustee; Appointment of
Successor. 

      Section
8.9. Acceptance of Appointment by Successor Trustee. 

      Section
8.10. Merger, Conversion, Consolidation or Succession to
Business. 

      Section
8.11. Fees, Charges and Expenses of Trustee. 

      Section
8.12. Appointment, Capacities and Duties of Paying Agent.

      Section
8.13. Paying Agent May Act Through Agents; Answerable Only for
Willful

      Misconduct or Gross
Negligence. 

      Section
8.14. Compensation and Indemnity. 

      Section
8.15. Reliance. 

      Section
8.16. Paying Agent May Deal in 2008A Bonds. 

      Section
8.17. Removal or Resignation of Paying Agent. 

      Section
8.18. Successor Paying Agents. 

      Section
8.19. Trustee and Paying Agent Obligations Survive Final Payment or
Defeasance. 

       

      ARTICLE
IX AMENDMENTS AND SUPPLEMENTS 

      Section
9.1. Amendments and Supplements Without Registered Owners’
Consent. 

      Section
9.2. Amendments With Company and Registered Owners’ Consent. 

      Section
9.3. Amendments to Loan Agreement. 

      Section
9.4. Right to Payment. 

      Section
9.5. Amendment of Letter of Credit Facility. 

      Section
9.6. Bank Consent. 

       

      ARTICLE X
DEFEASANCE 

      Section
10.1. Defeasance. 

      Section
10.2. Effect of Defeasance. 

       

      ARTICLE
XI MISCELLANEOUS PROVISIONS 

      Section
11.1. Limitations on Recourse; Immunity of Certain Persons.

      Section
11.2. Deposit of Funds for Payment of 2008A Bonds. 

      Section
11.3. No Rights Conferred on Others. 

      Section
11.4. Illegal, Etc. Provisions Disregarded.

      Section
11.5. Substitute Publication of Notice.

      Section
11.6. Mailed Notice. 

      Section
11.7. Governing Law. 

      Section
11.8. Successors and Assigns. 

      Section
11.9. Action by Company. 

      Section
11.10. Headings and Subheadings for Convenience Only. 

      Section
11.11. Counterparts. 

      Section
11.12. Additional Notices to Rating Agencies. 

       

      

      Exhibit
A                      —           Form
of 2008A Bond

      Exhibit
B                      —           Letter
of Representations to DTC

      Exhibit
C                      —           Form
of Notice of Tender

       

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

          
             

          

        

      

      This
Trust Indenture, dated as of May 1, 2008 (the "Indenture") between the
PENNSYLVANIA ECONOMIC DEVELOPMENT FINANCING AUTHORITY, (the "Issuer"), a public
instrumentality of the Commonwealth of Pennsylvania (the "Commonwealth") and a
public body corporate and politic organized and existing under the Pennsylvania
Economic Development Financing Law, as amended (as defined herein, the "Act")
and MANUFACTURERS AND TRADERS TRUST COMPANY, a New York state chartered bank
with trust powers duly organized and existing under the laws of the State of New
York with a corporate trust office in Harrisburg, Pennsylvania, as Trustee (the
"Trustee"),

       

      W
I T N E S S E T H :

       

      WHEREAS,
the Issuer is empowered by the provisions of the Act, to enter into agreements
providing for the financing of the acquisition, construction and equipping of
industrial, commercial and specialized enterprises for the public for purposes
of alleviating unemployment, maintaining employment at a high level and
encouraging economic development in the Commonwealth and promoting the health,
safety and general welfare of the people of the Commonwealth within the meaning
of the Act, including solid waste disposal and recycling facilities;
and

       

      WHEREAS,
the Issuer has previously issued on April 7, 2004 its $7,300,000 aggregate
principal amount Exempt Facilities Revenue Bonds (The York Water Company
Project) Series A of 2004 (the "2004A Bonds") and on December 9, 2004, the
Issuer issued its $12,000,000 aggregate principal amount Exempt Facilities
Revenue 2008A Bonds (The York Water Company Project) Series B of 2004 (the
"2004B Bonds," and together with the 2004A Bonds, the "2004 Bonds"), the
proceeds of which were loaned to The York Water Company (the "Company") for the
financing of costs associated with the construction of a water intake pumping
station adjacent to the Susquehanna River and a water main pipeline, together
with related pumps, fittings, valves and other water infrastructure system
improvements, all for the purpose of providing an additional source of surface
water supply to meet the needs of the Company’s residential, commercial and
industrial customers (the "Project Facilities") and paying some or all of the
costs of issuance of the 2004 Bonds; and

       

      WHEREAS,
the 2004A Bonds were issued as fixed rate bonds pursuant to a Trust Indenture
between the Issuer and the Trustee dated as of April 1, 2004; and

       

      WHEREAS,
the 2004B Bonds were issued as variable rate bonds pursuant to a Trust Indenture
between the Issuer and the Trustee dated as of December 1, 2004;
and

       

      WHEREAS,
the 2004B Bonds are insured by a financial guaranty insurance policy issued by
XL Capital Assurance, Inc. (the "Insurer"); and

       

      WHEREAS,
due to the recent disruption in the municipal bond market, the Issuer, at the
request of the Company, has determined to replace the Insurer through the
issuance of its refunding 2008A Bonds (the "Project"), and therefore has
authorized the issuance of $12,000,000 Exempt Facilities Revenue Refunding
Bonds, Series A of 2008 (The York Water Company Project) (the "2008A Bonds"),
the proceeds of which will be used, together with certain other available funds,
to redeem $12,000,000 principal amount of the 2004B Bonds; and

       

      WHEREAS,
the 2008A Bonds will be issued as multi-modal bonds pursuant to this Indenture;
and

       

      WHEREAS,
the Issuer has entered into a Loan Agreement dated as of May 1, 2008 (including
any supplements and amendments thereto, the "Loan Agreement") with the Company
providing for the loan by the Issuer to the Company of the proceeds of the 2008A
Bonds for such purpose and the repayment of such loan by the Company;
and

       

      WHEREAS,
the 2008A Bonds and the interest thereon are and shall be payable from funds
drawn under an irrevocable, direct-pay letter of credit (the "Initial Letter of
Credit") to be issued by PNC Bank, National Association (the "Initial LOC
Bank").  Concurrently with the issuance of the 2008A Bonds and the
Initial Letter of Credit by the Initial LOC Bank, the Company will enter into a
Reimbursement, Credit and Security Agreement, dated as of May 1, 2008 (the
"Reimbursement Agreement") with the Initial LOC Bank; and

       

      WHEREAS,
all things necessary to make the 2008A Bonds, when issued, executed and
delivered by the Issuer and authenticated by the Trustee pursuant to this
Indenture, the valid, legal and binding special obligations of the Issuer, and
to constitute this Indenture a valid pledge of certain income and hereinafter
defined Revenues of the Issuer for the payment of the principal of, premium, if
any, and interest on the 2008A Bonds authenticated and delivered under this
Indenture, have been performed and the creation, execution and delivery of this
Indenture, and the creation, execution and issuance of the 2008A Bonds, subject
to the terms hereof, have in all respects been duly authorized;

       

      NOW,
THEREFORE, THIS INDENTURE WITNESSETH:

       

      That the
Issuer in consideration of the premises, of the acceptance by the Trustee of the
trusts hereby created, of the mutual covenants herein contained and of the
purchase and acceptance of the 2008A Bonds by the Owners thereof, and for other
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, and in order to secure the payment of the principal or purchase
price of, premium, if any, and interest on the 2008A Bonds according to their
tenor and effect, and the performance and observance by the Issuer of all the
covenants and conditions herein and therein contained and the rights of the Bank
, (a) has executed and delivered this Indenture and (b) has agreed to
sell, assign, transfer, set over and pledge, and by these presents does hereby
sell, assign, transfer, set over and pledge unto Manufacturers and Traders Trust
Company, Harrisburg, Pennsylvania, as Trustee, and the Bank and to their
respective successors in trust and its assigns forever, to the extent provided
in this Indenture, all of the right, title and interest of the Issuer in and to
(i) the Loan Agreement (except for the Unassigned Issuer’s Rights as defined in
the Loan Agreement), (ii) all the Revenues of the Issuer, and (iii) all funds
(other than the Rebate Fund) and accounts established under this Indenture and
all moneys and investments now or hereafter held therein ((i), (ii) and (iii)
are collectively, the "Trust Estate"); provided, however, that nothing in the
2008A Bonds or in this Indenture shall be construed as pledging the faith or
credit or taxing power of the Commonwealth or any other political subdivision of
the Commonwealth, nor shall this Indenture or the 2008A Bonds constitute a
general obligation of the Issuer, or a debt of the Commonwealth or any political
subdivision thereof;

       

      TO HAVE
AND TO HOLD the same unto the Trustee and the Bank and their respective
successors in trust forever;

       

      IN TRUST
NEVERTHELESS, upon the terms and trusts herein set forth for the benefit and
security first,
of those who shall hold or own the 2008A Bonds issued hereunder, or any of them,
without preference of any of said 2008A Bonds over any others thereof by reason
of priority in the time of the issue or negotiation thereof or by reason of the
date or maturity thereof, or for any other reason whatsoever, and second, of a Bank in
consideration of the issuance by such Bank of a Letter of Credit, except as
otherwise provided herein;

       

      IT IS
HEREBY COVENANTED, declared and agreed by and between the parties hereto, that
all such 2008A Bonds are to be issued, authenticated as required by this
Indenture, and delivered and that all property subject or to become subject
hereto, including the Revenues, is to be held and applied upon and subject to
the further covenants, conditions, uses and trusts hereinafter set forth; and
the Issuer, for itself and its successors, does hereby covenant and agree to and
with the Trustee and its successors in trust, for the benefit of those who shall
hold all of the 2008A Bonds, or any of them, as follows:

       

      ARTICLE
I                                

       

      DEFINITIONS

       

      Section
1.1. Definitions.

       

      Terms
used in this Indenture with the initial letter capitalized shall have the
meanings specified in this Section 1.1 or if not defined in this
Section 1.1, shall have the meanings specified in the recitals or other
provisions of the Indenture as applicable.  All words and terms used
in this Indenture and not defined herein shall, if defined in the Loan
Agreement, have the meaning set forth therein.  The words "hereof,"
"herein," "hereto," "hereby," and "hereunder" (except in the Form of 2008A Bond)
refer to the entire Indenture.  All words and terms importing the
singular number shall, where the context requires, import the plural number and
vice versa.

       

      "Act"
means the Pennsylvania Economic Development Financing Law (Act of
August 23, 1967 P. L. 251, No. 102), as amended, including the amendments
made by Act of December 17, 1993, No. 74.  The Act is codified at 73
P.S. § 371 et
seq.

       

      "Act of
Bankruptcy" means any of the following events:

       

      (i) The
Company (or any Person obligated, as guarantor or otherwise, to make payments
under the Loan Agreement) shall (a) apply for or consent to the appointment
of, or the taking of possession by, a receiver, custodian, trustee, liquidator
or the like of the Company (or any such other Person obligated, as a guarantor
or otherwise, to make payments under the Loan Agreement) or of all or any
substantial part of its property, (b) commence a voluntary case under the
United States Bankruptcy Code, as now or hereafter in effect and including any
amendments thereto, or (c) file a petition seeking to take advantage of any
other law relating to bankruptcy, insolvency, reorganization, winding-up or
composition or adjustment of debts; or

       

      (ii) A
proceeding or case shall be commenced in any court of competent jurisdiction,
seeking (a) the liquidation, reorganization, dissolution, winding-up, or
composition or adjustment of debts, of the Company (or any Person obligated, as
guarantor or otherwise, to make payments under the Loan Agreement), (b) the
appointment of a trustee, receiver, custodian, liquidator or the like of the
Company (or any Person obligated, as a guarantor or otherwise, to make payments
under the Loan Agreement) or of all or any substantial part of its property, or
(c) similar relief in respect of the Company (or any such other Person
obligated, as a guarantor or otherwise, to make payments under the Loan
Agreement) under any law relating to bankruptcy, insolvency, reorganization,
winding-up or composition or adjustment of debts.

       

      "Administrative
Expenses" means fees and expenses of the Trustee, the Paying Agent, the
Remarketing Agent and the Issuer including, without limitation, the reasonable
fees and expenses of their counsel and other professional advisors.

       

      "Affiliate"
means any person or company directly or indirectly controlling, controlled by or
under common control with the Company.

       

      "Alternate
Credit Facility" means an irrevocable letter of credit, surety bond or other
liquidity device authorizing drawings thereon by the Trustee which shall have
the same material terms as the Initial Letter of Credit.

       

      "Authorized
Representative" means (i) in the case of the Issuer, each person at the time
designated to act on behalf of the Issuer by the most recent written certificate
furnished to the Company and the Trustee containing the specimen signature of
such person and signed on behalf of the Issuer by its Secretary or Assistant
Secretary; and (ii) with respect to each person at the time designated to act on
behalf of any other Person (e.g., the Company or the Trustee), by written
certificate furnished to the Trustee containing the specimen signature of such
other person and signed on behalf of such person, in case of a partnership by
each of its general partners (or any other person authorized to sign on behalf
of such Partnership) and in the case of a corporation by a person authorized by
such corporation to deliver such certificates.

       

      "Authorized
Denominations" means, while the 2008A Bonds are in a Daily Mode, a Weekly Mode,
or a Monthly Mode, $100,000 and integral multiples of $5,000 in excess thereof,
and while the 2008A Bonds are in a Term Mode, $5,000 or integral multiples
thereof.

       

      "Available
Moneys" means proceeds of a drawing under the Letter of Credit and proceeds of
any remarketing of 2008A Bonds delivered by the Remarketing Agent to the Paying
Agent hereunder (other than proceeds received from the Issuer, the Company or an
Affiliate of either or an affiliate of the Issuer).  "Available
Moneys" also means moneys paid to the Trustee by the Company with respect to
which the Trustee and the Rating Service has received an opinion acceptable to
it of nationally recognized counsel experienced in bankruptcy matters, to the
effect that use of such moneys to pay the principal or purchase price of,
premium on or interest on the 2008A Bonds will not constitute an avoidable
transfer under Section 547 of the United States Bankruptcy Code (Title 11 of the
United States Code) in the event of a bankruptcy case by the Issuer or by or
against the Company or any Affiliate, as debtor.

       

      "Bank"
means the Initial LOC Bank and any other institution providing an Alternate
Credit Facility.

       

      "Beneficial
Owners" means the owners of beneficial interests in the 2008A Bonds while 2008A
Bonds are held by a Securities Depository.

       

      "Bond
Counsel" means any firm of nationally recognized Bond Counsel selected by the
Issuer and not unsatisfactory to the Trustee or the Company.

       

      "Bond
Documents" means the Financing Documents and all other agreements, certificates,
documents and instruments delivered in connection with any of the Financing
Documents.

       

      "Bond
Obligations" means the Debt Service due and payable and to become due and
payable, and any other amounts which may be owed by the Company to, or on behalf
of, the Issuer or the Trustee under the Bond Documents.

       

      "Bond
Resolution" means the resolution of the governing body of the Issuer adopted on
April 29, 2008, authorizing the issuance of the 2008A Bonds.

       

      "Business
Day" means any day which is not (a) a Saturday, a Sunday or, in the State of New
York, the Commonwealth of Pennsylvania (or any other jurisdiction in which the
Letter of Credit is being administered) or the city in which the corporate trust
operations office of the Trustee or any duly appointed Paying Agent, the
Remarketing Agent, the Bank or the office of the Trustee at which this Indenture
is being administered is located, a legal holiday on which banks are authorized
or required by law or other governmental action to be closed, or (b) a day
on which the New York Stock Exchange is closed.

       

      "Code"
means the Internal Revenue Code of 1986, as amended.

       

      "Company
Debt Service Account" means that special account of that name established
pursuant to Section 3.1 hereof which shall also be an Eligible
Account.

       

      "Conversion
Date" means any Interest Payment Date on which the Rate Mode of the 2008A Bonds
is converted to another Rate Mode (including a conversion from one Term Mode to
another Term Mode) pursuant to Section 2A.5.

       

      "Daily
Mode" means, with respect to the 2008A Bonds, the mode of bearing interest
thereon at a Daily Rate.

       

      "Daily
Rate" means the rate of interest borne by the 2008A Bonds determined and
adjusted daily for each Daily Rate Period pursuant to Section 2A.1.

       

      "Daily
Rate Calculation Date" means each Business Day in each calendar
week.

       

      "Daily
Rate Period" means, while the 2008A Bonds bear interest at a Daily Rate, the
period commencing on a Business Day and extending to, but not including, the
next succeeding Business Day.

       

      "Dated
Date" means the date of delivery of the 2008A Bonds.

       

      "Debt
Service" means the principal of, premium, if any, and interest on the 2008A
Bonds.

       

      "Debt
Service Fund" means the special fund of that name created pursuant to
Section 3.1 hereof which shall also be an Eligible Account.

       

      "Department"
means the Department of Community and Economic Development of the
Commonwealth.

       

      "Determination
of Taxability" means a Final Determination by the Internal Revenue Service or by
a court of competent jurisdiction in the United States that, as a result of
failure by the Company to observe or perform any covenant, condition or
agreement on its part to be observed or performed under the Loan Agreement or as
a result of the inaccuracy of any representation or agreement made by the
Company under the Loan Agreement, the interest payable on any 2008A Bond is
includable in the gross income of the Registered Owner or Beneficial Owner of
such 2008A Bond (other than a Registered Owner or Beneficial Owner who is a
"substantial user" of the Project Facilities or a "related person" within the
meaning of Section 147(a) of the Code).

       

      "Disqualified
Contractor" means a Person which has been suspended or debarred by the
Commonwealth under its Contractor Responsibility Program, Management Directive
215.9, as amended or replaced by a successive directive rule, regulation or
statute from time to time or has been convicted by a court of competent
jurisdiction of a crime for which a term of imprisonment of one year or more
could have been imposed, and any Person controlled by a Person which has been so
suspended, debarred or convicted.

       

      "DTC"
means The Depository Trust Company, acting as Securities Depository, as set
forth in Section 2.13 hereof.

       

      "DTC
Participant" shall have the meaning assigned from time to time by DTC when used
by DTC in reference to a "DTC Participant."

       

      "Eligible
Account" means an account that is either (a) maintained with a federal or
state-chartered depository institution or trust company that has a Standard
& Poor’s short-term debt rating of at least ‘A-2’ (or, if no short-term debt
rating, a long-term debt rating of ‘BBB+’); or (b) maintained with the corporate
trust department of a federal depository institution or state-chartered
depository institution subject to regulations regarding fiduciary funds on
deposit, which, in either case, has corporate trust powers and is acting in its
fiduciary capacity.  In the event that a fund required hereby to be an
"Eligible Account" no longer is such, the Trustee shall promptly (and in any
case, within not more than 30 calendar days) move such account to another
financial institution such that the Eligible Account requirement will again be
satisfied.

       

      "Event of
Default" means any of the events described in Section 7.1
hereof.

       

      "Expiration
Date" means the stated expiration date of a Letter of Credit Facility, as such
date may be extended from time to time by the Bank.

       

      "Favorable
Opinion of Bond Counsel" means an opinion of Bond Counsel addressed to the
Issuer and the Trustee to the effect that the action proposed to be taken is
authorized or permitted by the laws of the Commonwealth and this Indenture and
will not, in and of itself, adversely affect any exclusion of interest on the
2008A Bonds from gross income of the owners thereof for federal income tax
purposes.

       

      "Final
Determination" means, with respect to a private letter ruling or a technical
advice memorandum of the Internal Revenue Service, written notice thereof in a
proceeding in which the Company had an opportunity to participate and,
otherwise, means written notice of a determination from which no further right
of appeal exists or from which no appeal is timely filed with the next level of
administrative or judicial review in a proceeding to which the Company was a
party or in which the Company had the opportunity to participate.

       

      "Financing
Documents" means this Indenture, the Loan Agreement, the Tax Documents, the
Letter of Credit and the 2008A Bonds.

       

      "Government
Obligations" means any one or more of the following:

       

      (i) Securities
that are direct obligations of the United States of America or securities the
timely payment of whose principal and interest is unconditionally guaranteed by
the full faith and credit of the United States of America, trust receipts or
other evidence of a direct claim upon the instruments described above, including
but not limited to CATS (Certificates of Accrual on Treasury Securities), TIGRS
(Treasury Investment Growth Receipts) and Government Trust Certificates;
or

       

      (ii) To the
extent permitted by law for the particular investment contemplated, pre-refunded
municipal obligations meeting the conditions set forth in (a) through (e)
below:

       

      (a) the
municipal obligations are (i) not subject to redemption prior to maturity or
(ii) the trustee for such municipal obligations has been given irrevocable
instructions concerning their calling and redemption and the issuer of such
municipal obligations has covenanted not to redeem such bonds other than as set
forth in such instructions; and

       

      (b) the
municipal obligations are secured by cash or non-callable United States
Government Obligations that may be applied only to interest, principal and
premium payments of such municipal obligations; and

       

      (c) the
principal of and interest on such United States Government Obligations (plus any
cash in an escrow fund) are sufficient to meet all of the liabilities of the
municipal obligations; and

       

      (d) the cash
and/or United States Government Obligations serving as security for the
municipal obligations are held by an escrow agent or trustee; and

       

      (e) the
United States Government Obligations are not available to satisfy any other
claims, including those against the trustee or escrow agent.

       

      "Indenture"
means this Trust Indenture dated as of May 1, 2008, as hereafter amended and
supplemented by any Supplemental Indenture.

       

      "Installment
Loan Payments" shall have the meaning ascribed thereto in the Loan
Agreement.

       

      "Interest
Payment Date" means (i) with respect to 2008A Bonds bearing interest at the
Daily Rate, Weekly Rate or Monthly Rate, the first Business Day of each calendar
month, and (ii) with respect to 2008A Bonds bearing interest at the Term Rate,
each Semiannual Date for the 2008A Bonds.

       

      "Investment
Securities" means and includes any of the following securities on which neither
the Company nor any of its subsidiaries is the
obligor:  (a) Government Obligations or obligations of any United
States Government Related Entity or obligations guaranteed or insured as to
principal and interest by the United States of America or any United States
Government Related Entity; "United States Government-Related Entity" shall mean
the Export-Import Bank of the United States, Farmers Home Administration,
Federal Housing Administration, General Services Administration, Government
National Mortgage Association, Federal National Mortgage Association, each
Federal Home Loan Bank, Federal Home Loan Mortgage Corporation, each Federal
Land Bank, each Federal Intermediate Credit Bank, Banks for Cooperatives and the
Farm Credit System and The Student Loan Marketing Association;
(b) obligations of a state, a territory, or a possession of the United
States, or any political subdivision of any of the foregoing or of the District
of Columbia as described in Section 103 of the Code, and rated not less
than "A2" by Moody’s or "A" by another Nationally Recognized Statistical Rating
Organization ("NRSRO"); split rated investments where one of the ratings falls
below the minimum rating set forth above are not permitted; (c) domestic
and eurodollar time deposits, overnight deposits, certificates of deposit and
banker’s acceptances (i) maintained at or issued by any office or branch of any
bank or trust company organized or licensed under the laws of the United States
of America or any state thereof which bank or trust company has capital, surplus
and undivided profits of at least $500,000,000, or (ii) maintained at or
issued by any bank organized under the laws of a jurisdiction outside of the
United States of America provided that the long term securities of such bank or
trust company are rated A or higher (A2 in the case of Moody’s) by at least one
NRSRO, in each case maturing not more than 360 days from the date of acquisition
thereof; split rated investments where one of the ratings falls below the
minimum rating set forth above are not permitted; (d) commercial paper and other
instruments that are rated, or that are issued or guaranteed by an issuer that
is rated, in the highest, short term category by at least two NRSROs (A-1 shall
be deemed to be the highest short term rating for Standard and Poor’s) and
maturing not more than 270 days from the date of acquisition thereof;
(e) corporate notes and 2008A Bonds rated "A" or higher (A2 in the case of
Moody’s) by two or more NRSROs maturing not more than 364 days from the date of
acquisition thereof; split ratings where one of the ratings falls below the
minimum rating set forth above are not permitted; (f) repurchase and
reverse repurchase agreements with any bank (or a broker-dealer subsidiary of
affiliate of such bank), provided such bank has combined capital, surplus and
undivided profits of at least $500,000,000, or any primary dealer of United
States government securities provided that the collateral is limited to the
investments described in (a) above; (g) shares of any money market mutual fund
registered with the Securities and Exchange Commission as an investment company
under the Investment Advisors Act of 1940, as amended, including any such fund
which is managed by the Trustee or one of its affiliates or subsidiaries,
including, without limitation, any mutual fund for which the Trustee or an
affiliate of the Trustee serves as investment manager, administrator,
shareholder servicing agent, and/or custodian or subcustodian, notwithstanding
that (i) the Trustee or an affiliate of the Trustee receives fees from such
funds for services rendered, (ii) the Trustee charges and collects fees for
services rendered pursuant to this Indenture, which fees are separate from the
fees received from such funds, and (iii) services performed for such funds and
pursuant to this Indenture may at times duplicate those provided to such funds
by the Trustee or its affiliates; and (h) as otherwise permitted by
Commonwealth law for such funds.

       

      "Issue
Date" means the date on which 2008A Bonds are first authenticated and delivered
to the initial purchasers against payment therefor.

       

      "Letter of Credit" means the Initial
Letter of Credit issued by the Initial LOC Bank to the Trustee on the Issue Date
and any Alternate Credit Facility delivered pursuant to Section 2C.7
hereof.

       

      "Letter
of Credit Facility" means a letter of credit which provides coverage for payment
of the purchase price of the 2008A Bonds tendered but not remarketed, a surety
bond, a standby bond purchase agreement or other liquidity facility issued in
accordance with Section 2C.1(b) and Section 2C.7, including any Alternate Credit
Facility.  Initially the "Letter of Credit Facility" means the Initial
Letter of Credit issued by the Initial LOC Bank.

       

      "Letter
of Credit Debt Service Account" means the special trust account of that name
established pursuant to Section 3.1 hereof which shall also be an Eligible
Account.

       

      "Letter
of Credit Purchase Account" means the special trust account so designated
established by the Paying Agent pursuant to Section 2B.1(g) which shall also be
an Eligible Account and which shall be for the benefit of the
Bondholders.

       

       "Loan
Agreement" means the Loan Agreement dated as of May 1, 2008 between the Issuer
and the Company, as hereafter amended and supplemented by any Supplemental Loan
Agreement.

       

      "Maturity
Date" means October 1, 2029.

       

      "Monthly
Mode" means, with respect to the 2008A Bonds, the mode of bearing interest
thereon at a Monthly Rate.

       

      "Monthly
Rate" means the rate of interest borne by the 2008A Bonds determined and
adjusted monthly for each Monthly Rate Period pursuant to Section 2A.3
hereof.

       

      "Monthly
Rate Calculation Date" means the last Business Day of each calendar
month.

       

      "Monthly
Rate Period" means, while the 2008A Bonds bear interest at a Monthly Rate, the
period which begins on the first Business Day of each calendar month and ends
and includes the date preceding the first Business Day of the next succeeding
calendar month, except that (i) if the 2008A Bonds are initially issued in the
Monthly Mode, the first Monthly Rate Period shall commence on the Issue Date and
end on and include the last day preceding the first Business Day of the next
succeeding calendar month, (ii) the first Monthly Rate Period following a
conversion from a Daily Mode, Weekly Mode or Term Mode to the Monthly Mode shall
commence on the Conversion Date of such conversion and end on and include the
last day preceding the first Business Day of the next succeeding calendar month;
and (iii) in the case of conversion from the Monthly Mode to a Daily Mode,
Weekly Mode or Term Mode, the last Monthly Rate Period prior to such conversion
shall end on and include the last day immediately preceding the Conversion Date
of such conversion.

       

      "Moody’s"
means Moody’s Investors Service, Inc., a corporation organized and existing
under the laws of the State of Delaware, its successors and their assigns, and,
if such corporation shall be dissolved or liquidated or shall no longer perform
the functions of a securities rating agency, "Moody’s" shall be deemed to refer
to any other nationally recognized securities rating agency designated by the
Company by written notice to the Trustee, the Remarketing Agent, the Bank, and
the Issuer.

       

      "Nominal
Term Rate Period" means, with respect to a Term Mode, a period of two or more
Semiannual Periods.

       

      "Office"
of an entity means its office at the address set forth in Section 11.5, or any
other office designated in writing by such entity to the Issuer, the Trustee,
the Paying Agent, the Remarketing Agent, the Company and the Bank as the Office
of such entity for purposes of this Indenture; provided that, for the purposes
of the definition of "Business Day" herein, the Office of the Trustee shall be
its designated corporate trust office in Harrisburg, Pennsylvania as set forth
in Section 11.5, the "Payment Office" and the "Delivery Office" of the Paying
Agent shall be as set forth in Section 11.5 and the Office of the Bank shall be
its office at which drawing documents are required to be presented under the
Letter of Credit Facility (if any).

       

      "Outstanding"
when used with reference to 2008A Bonds means all 2008A Bonds authenticated and
delivered under this Indenture as of the time in question, except:

       

      (a) All 2008A
Bonds theretofore canceled or required to be canceled under Section 2.11
hereof;

       

      (b) On or
after any Purchase Date for 2008A Bonds to be purchased pursuant to Article IIB,
all Undelivered 2008A Bonds which are purchased on such date, provided that
funds sufficient for such purchase are on deposit with the Paying
Agent;

       

      (c) 2008A
Bonds for the payment or redemption of which provision has been made in
accordance with Article X hereof; provided that, if such 2008A Bonds are
being redeemed, the required notice of redemption shall have been given or
provision satisfactory to the Trustee shall have been made therefor;
and

       

      (d) 2008A
Bonds in substitution for which other 2008A Bonds have been authenticated and
delivered pursuant to Article II hereof.

       

      In
determining whether the Registered Owners of a requisite aggregate principal
amount of Outstanding 2008A Bonds have concurred in any request, demand,
authorization, direction, notice, consent or waiver under the provisions hereof,
Pledged Bonds and any 2008A Bonds which are owned of record by any Affiliate
shall be disregarded and deemed not to be Outstanding hereunder for the purpose
of any such determination (except that, in determining whether the Trustee shall
be protected in relying upon any such request, demand, authorization, direction,
notice, consent or waiver, only 2008A Bonds which the Trustee knows to be so
owned or held shall be disregarded) unless all 2008A Bonds are Pledged Bonds or
2008A Bonds owned by any Affiliate, in which case such 2008A Bonds shall be
considered outstanding for the purpose of such determination.

       

      "Paying
Agent" means the Trustee which shall not be a Disqualified
Contractor.

       

      "Person"
means an individual, a corporation, a partnership, an association, a joint stock
company, a trust, any unincorporated organization, a governmental body or a
political subdivision, a municipal corporation, public corporation or any other
group or organization of individuals.

       

      "Pledged
Bonds" means 2008A Bonds pledged and assigned to the Bank in accordance with the
Reimbursement Agreement.

       

      "Preference
Opinion" shall mean an opinion of nationally recognized counsel experienced in
bankruptcy matters to the effect that the payment of principal, interest and
premium (if any) on the 2008A Bonds made solely with drawings under the Letter
of Credit and the payment of the purchase price of any 2008A Bonds made solely
from the proceeds of the remarketing of the 2008A Bonds or drawings under the
Letter of Credit will not be considered an avoidable "preferential transfer" by
the Company or the Issuer under the United States Bankruptcy Code in the event
of the commencement of a bankruptcy case under the United States Bankruptcy Code
by the Issuer or by or against the Company or any Affiliate of the Company, as
debtor.

       

      "Prevailing
Market Conditions" means, to the extent relevant (in the professional judgment
of the Remarketing Agent) at the time of the establishment of an interest rate
for the 2008A Bonds in accordance with this Indenture, (a) any past sales of, or
efforts to sell, the 2008A Bonds at a purchase price equal to the principal
amount thereof, plus accrued interest thereon (if any); (b) interest rates for
comparable securities (i) with interest rate periods and demand purchase options
substantially the same as the 2008A Bonds and bearing interest at a variable
rate intended to maintain their secondary market price at the principal amount
thereof, plus accrued interest thereon (if any), and (ii) rated by a national
credit Rating Service in the same category as the 2008A Bonds if rated at the
time; (c) other financial market rates and indices that may have a bearing on
the rate of interest (which may include either tax-exempt or taxable rates or
indices and may include, without limitation, rates and rate periods borne by
comparable securities, commercial paper and United States Treasury obligations,
commercial bank prime rates, federal funds rates, the London Interbank Offered
Rate, the J. J. Kenny Index and the SIFMA Municipal Swap Index); (d) general
financial market conditions (including current forward supply) that may have a
bearing on the rate of interest; (e) the financial condition, results of
operations and credit standing of the Bank and/or the Company to the extent such
standing has a bearing on the rate of interest of the 2008A Bonds; and (f) any
other relevant factor effecting the marketability of the 2008A
Bonds.

       

      "Purchase
Date" means (a) with respect to any optional tender for purchase pursuant to
Section 2B.1 of 2008A Bonds in the Daily Mode or Weekly Mode, any Business Day
designated as the date of such purchase pursuant to such Section; (b) with
respect to any optional tender for purchase pursuant to Section 2B.1 of 2008A
Bonds in the Monthly Mode, the first Business Day of the month designated as the
date of such purchase pursuant to such Section; (c) with respect to any
mandatory tender for purchase pursuant to Section 2B.2, (1) in the case of 2008A
Bonds which are to be purchased upon conversion from one Rate Mode to another
Rate Mode pursuant to Section 2A.5 or in connection with a proposed conversion
which has been rescinded by the Company, the Conversion Date or proposed
Conversion Date or, if such Conversion Date or proposed Conversion Date is not a
Business Day, the first Business Day succeeding such Conversion Date or proposed
Conversion Date, and (2) in the case of 2008A Bonds which are to be purchased
upon expiration of a Term Rate Period, the first Business Day immediately
following the end of such Term Rate Period; (d) with respect to any mandatory
tender for purchase pursuant to Section 2B.3, (1) in the case of 2008A Bonds
which are to be purchased in anticipation of the expiration or replacement of a
Letter of Credit Facility, the mandatory tender date as defined in Section
2B.3(a), and (2) in the case of 2008A Bonds which are to be purchased in
connection with the termination of the Letter of Credit Facility due to default,
the date specified by the Bank in its notice of termination; and (e) with
respect to any mandatory tender for purchase pursuant to Section 2B.4 in the
case of 2008A Bonds which are to be purchased in anticipation of the provision
or termination of a Letter of Credit Facility by the Company, the mandatory
tender date as set forth in Section 2B.4(a).

       

      "Rate
Mode" means the Daily Mode, the Weekly Mode, the Monthly Mode or a Term
Mode.

       

      "Rating
Agency" or "Rating Service" means S&P, if the 2008A Bonds are rated by such
at the time, and its successors and assigns, or if S&P shall be dissolved or
no longer assigning credit ratings to debt such as the 2008A Bonds, then any
other nationally-recognized entity assigning credit ratings to debt such as the
2008A Bonds designated by the Company and not unsatisfactory to the Issuer and
the Trustee.

       

      "Rebate
Fund" means the separate fund, if any, created pursuant to the Tax Documents at
the request of the Company and held by the Trustee but not as part of the Trust
Estate under this Indenture.

       

      "Register"
means the registration books of the Issuer described in Section 2.7(a)
hereof.

       

      "Registered
Owner" or "Bondholder" or "Owner" means the Person in whose name any 2008A Bond
is registered pursuant to Section 2.7(a) hereof.

       

      "Record
Date" means, as the case may be, the applicable Regular or Special Record
Date.

       

      "Regular
Record Date" means, while the 2008A Bonds are in the Daily Mode, Weekly Mode or
Monthly Mode, the close of business on the last Business Day preceding an
Interest Payment Date, and while the 2008A Bonds are in a Term Mode, the close
of business on the fifteenth (15th) day of
the calendar month immediately preceding the calendar month in which an Interest
Payment Date occurs.

       

      "Regulations"
means the applicable proposed, temporary or final Income Tax Regulations
promulgated under the Code, as such regulations may be amended or supplemented
from time to time.

       

      "Remarketing
Agent" means PNC Capital Markets, Inc., Philadelphia, Pennsylvania, and its
successor for the time being in such capacity as provided in Article
IID.

       

      "Remarketing
Agreement" means the Remarketing Agreement dated as of May 1, 2008 between the
Company and the Remarketing Agent or any subsequent remarketing agreement
executed by the Company and any subsequent Remarketing Agent appointed pursuant
hereto.

       

      "Remarketing
Proceeds Purchase Account" means the special trust account so designated
established by the Paying Agent pursuant to Section 2B.1(f) which shall also be
an Eligible Account and which shall be for the benefit of the
Bondholders.

       

      "Revenues
of the Issuer" or "Revenues"  means and includes all payments by or on
behalf of the Company, including specifically the Installment Loan Payments,
under the Loan Agreement to be paid into the Debt Service Fund, any moneys paid
to the Paying Agent under the terms of the Letter of Credit Facility or the
Remarketing Agreement and all receipts of the Trustee credited against such
payments, but not including payments with respect to the indemnification or
reimbursement of certain expenses of the Trustee, Paying Agent, Remarketing
Agent, Issuer and Local IDA under Sections 6.5, 6.6, 7.1 and 8.3, as the
case may be, of the Loan Agreement or under any other guaranty or
indemnification agreement.

       

      "S&P"
means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc., a corporation organized and existing under the laws of the
State of New York, its successors and their assigns, and, if such corporation
shall be dissolved or liquidated or shall no longer perform the functions of a
securities rating agency, "S&P" shall be deemed to refer to any other
nationally recognized securities rating agency designated by the Company, by
notice to the Trustee, the Remarketing Agent, the Bank, and the
Issuer.

       

      "Securities
Depository" means any "clearing agency" registered under Section 17A of the
Securities Exchange Act of 1934, as amended.

       

      "Semiannual
Date" means each April 1 and October 1.

       

      "Semiannual
Period" means a six month period commencing on a Semiannual Date and ending on
and concluding the day (whether or not a Business Day) immediately preceding the
next Semiannual Date.

       

      "SIFMA
Municipal Swap Index" means the Securities Industry and Financial Markets
Association Municipal Swap Index as of the most recent date for which such index
was published or such other weekly, high-grade index comprised of seven-day,
tax-exempt multimodal notes produced by Municipal Market Data, Inc., or its
successor, as otherwise designated by SIFMA; provided, however, that if such
index is no longer produced by Municipal Market Data, Inc., or its successor,
then "SIFMA Municipal Swap Index" shall mean such other reasonably comparable
index selected by the Company.

       

      "Special
Mandatory Redemption" means any redemption of 2008A Bonds made pursuant to
Section 5.7 hereof.

       

      "Special
Record Date" means the Special Record Date established by the Trustee pursuant
to Section 2.9(c) hereof with respect to payment of overdue
interest.

       

      "Supplemental
Indenture" means any supplement to this Indenture delivered pursuant to
Article IX hereof.

       

      "Supplemental
Loan Agreement" means any supplement to the Loan Agreement entered into pursuant
to Section 9.3 hereof.

       

      "Tax
Documents" means the Tax Certificate as to Arbitrage and Instructions as to
Compliance with Provisions of Section 103(a) of the Internal Revenue Code of
1986, as amended, of the Company and the Issuer, dated as of the issuance date
of the 2008A Bonds, and such other documents as Bond Counsel may require to be
executed and delivered in connection with the issuance of the 2008A Bonds
relating to their tax status under the Code.

       

      "Term
Mode" means, with respect to the 2008A Bonds, the mode of bearing interest
thereon at Term Rates based on a constant Nominal Term Rate Period.

       

      "Term
Rate" means the rate of interest borne by the 2008A Bonds for a Term Rate Period
determined pursuant to Section 2A.4.

       

      "Term
Rate Calculation Date" means a Business Day not more than 15 days and not less
than one day prior to the first day of the corresponding Term Rate
Period.

       

      "Term
Rate Period" means a period of two or more Semiannual Periods equal to the
applicable Nominal Term Rate Period determined pursuant to Section 2A.4
commencing on the Semiannual Date immediately following the last day of the
immediately preceding Term Rate Period and running through and ending on the day
immediately preceding the Semiannual Date which follows such commencement date
by a period equal to such Nominal Term Rate Period; except that the first Term
Rate Period after conversion from a Daily Mode, Weekly Mode or Monthly Mode to a
Term Mode shall commence on the Conversion Date of such conversion and end on
the day immediately preceding the Semiannual Date which follows the Semiannual
Date occurring on or immediately preceding the Conversion Date of such
conversion by a period equal to the applicable Nominal Term Rate
Period.

       

      "Term
Rate Period End Interest Payment Date" means the Semiannual Date immediately
following the last day of a Term Rate Period.

       

      "Trust
Estate" means the trust estate as defined in the granting clauses in this
Indenture.

       

      "Undelivered
2008A Bonds" means any 2008A Bonds (or portions of 2008A Bonds) subject to
purchase pursuant to Section 2B.1, 2B.2, 2B.3 or 2B.4 which the Owner has failed
to deliver as described in Section 2B.1(k), 2B.2(j), 2B.3(k) or
2B.4(j).

       

      "Underwriting
Agreement" means the Purchase Contract dated May __, 2008 among the Issuer, the
Company and PNC Capital Markets, Inc., as underwriter, providing for the
purchase and sale of the 2008A Bonds.

       

      "United
States Government Obligations" means direct obligations of, or obligations the
full and timely payment of which are unconditionally guaranteed by, the United
States of America.

       

      "Weekly
Mode" means, with respect to the 2008A Bonds, the mode of bearing interest
thereon at a Weekly Rate.

       

      "Weekly
Rate" means the rate of interest borne by the 2008A Bonds determined and
adjusted weekly for each Weekly Rate Period pursuant to Section
2A.2.

       

      "Weekly
Rate Calculation Date" means Wednesday in each calendar week or, if any
Wednesday is not a Business Day, the first Business Day preceding such Wednesday
or the first Business Day following such Wednesday (as determined by the
Remarketing Agent).

       

      "Weekly
Rate Period" means, while the 2008A Bonds bear interest at a Weekly Rate, the
weekly period which begins on Thursday of each calendar week and ends at the
close of business on Wednesday of the immediately following calendar week;
except that (i) the initial Weekly Rate Period for the 2008A Bonds shall
commence on the Issue Date and end on and include the first Wednesday occurring
after the Issue Date, (ii) the first Weekly Rate Period following a conversion
from a Daily Mode, Term Mode or Monthly Mode to the Weekly Mode shall commence
on the Conversion Date of such conversion and end on and include the first
Wednesday occurring after such date, and (iii) in the case of conversion from
the Weekly Mode to a Daily Mode, Term Mode or Monthly Mode, the last Weekly Rate
Period prior to such conversion shall end on and include the last day
immediately preceding the Conversion Date of such conversion.

       

      "2008A
Bonds" means the Issuer’s $12,000,000 aggregate principal amount of Exempt
Facilities Revenue Refunding Bonds, Series A of 2008 (The York Water Company
Project), authorized hereunder.

       

      Section
1.2. Certain Rules of
Interpretation.

       

      (a) The
definitions set forth in Article I and in the Loan Agreement shall be
equally applicable to both the singular and plural forms of the terms therein
defined and shall cover all genders.

       

      (b) "Herein,"
"hereby," "hereunder," "hereof," "hereinbefore," "hereinafter" and other
equivalent words refer to this Indenture and not solely to the particular
Article, Section or Subdivision hereof in which such word is used.

       

      (c) Reference
herein to an article number (e.g.,
Article IV) or a section number (e.g.,
Section 6.2) shall be construed to be a reference to the designated article
number or section number hereof unless the context or use clearly indicates
another or different meaning or intent.

       

      (d) Words of
the masculine gender shall mean and include correlative words of the feminine
and neuter genders and words importing the singular number shall mean and
include the plural number and vice versa.

       

      (e) Words
importing persons shall include firms, associations, partnerships (including
limited partnerships), trusts, corporations and other legal entities, including
public bodies, as well as natural persons.

       

      (f) Any
headings preceding the text of the several Articles and Sections of this
Indenture, and any table of contents appended to copies hereof, shall be solely
for convenience of reference and shall not constitute a part of this Indenture,
nor shall they affect its meaning, construction or effect.

       

      (g) References
to statutes or regulations are to be construed as including all statutory or
regulatory provisions consolidating, amending or replacing the statute or
regulation referred to; and references to agreements and other contractual
instruments shall be deemed to include any exhibits and appendices attached
thereto and all amendments, supplements and other modifications to such
instruments, but only to the extent such amendments, supplements and other
modifications are not prohibited by the terms of this Indenture.

       

      (h) Whenever
in this Indenture, the Issuer, the Company, the Remarking Agent,  the
Paying Agent or the Trustee is named or referred to, it shall include, and shall
be deemed to include, its respective successors and assigns whether so expressed
or not.  All of the covenants, stipulations, obligations and
agreements by or on behalf of, and other provisions for the benefit of, the
Issuer, the Company, the Remarketing Agent, the Paying Agent and the Trustee
contained in this Indenture shall inure to the benefit of such respective
successors and assigns, bind and shall, inure to the benefit of any officer,
board, commission, authority, agency or instrumentality to whom or to which
there shall be transferred by or in accordance with law any right, power or duty
of the Issuer or of its successors or assigns, the possession of which is
necessary or appropriate in order to comply with any such covenants,
stipulations, obligations, agreements or other provisions of this
Indenture.

       

      (i) Every
"request," "order," "demand," "application," "appointment," "notice,"
"statement," "certificate," "consent," "direction" or similar action hereunder
by persons referred to herein shall, unless the form thereof is specifically
provided, be in writing and signed by an Authorized Representative of the person
giving it.

       

      (j) References
to any time of the day in this Indenture shall refer to eastern standard time or
eastern daylight saving time, as in effect in the City of New York, New York on
such day, unless otherwise noted.

       

      ARTICLE
II                                

       

      THE
2008A BONDS

       

      Section
2.1. Authorized Amount and
Issuance of 2008A Bonds; Disposition of 2008A Bond Proceeds.

       

      Upon the
execution and delivery of this Indenture, the Issuer shall execute the 2008A
Bonds and deliver them to the Trustee for authentication.  At the
written direction of the Issuer, the Trustee shall authenticate the 2008A Bonds,
and deliver them to the purchasers thereof upon receipt by the Trustee of the
amount due the Issuer for the initial delivery of the 2008A Bonds pursuant to
the terms of the Underwriting Agreement by wire transfer of immediately
available funds.  The proceeds of the 2008A Bonds shall be deposited
by the Trustee in a settlement account and disbursed or transferred in amounts
set forth in a Closing Statement executed by the Issuer and the
Company.  The proceeds of the 2008A Bonds, together with an equity
contribution from the Issuer, shall be used to redeem the 2004B 2008A Bonds and
to pay Costs of Issuance of the 2008A Bonds.  The total principal
amount of the 2008A Bonds that may be issued hereunder is hereby expressly
limited to $12,000,000, except as provided in Section 2.8
hereof.  No additional 2008A Bonds may be issued under this
Indenture.

       

      Section
2.2. Terms of the 2008A
Bonds.

       

      The 2008A
Bonds shall be designated "Pennsylvania Economic Development Financing Authority
Exempt Facilities Revenue Refunding 2008A Bonds, Series A of 2008 (The York
Water Company Project)" and shall be issuable only as fully registered 2008A
Bonds without coupons in Authorized Denominations.  Unless the Issuer
shall otherwise direct, the 2008A Bonds shall be numbered separately from 1
upward.  The 2008A Bonds shall be dated their date of delivery and
shall mature, subject to prior redemption upon the terms and conditions
hereinafter set forth, on October 1, 2029.  Interest on the 2008A
Bonds shall be determined as provided in Article IIA.  Interest on
2008A Bonds bearing interest at a Daily Rate, Weekly Rate or Monthly Rate shall
be computed on the basis of a year of 365 or 366 days, as applicable, for the
number of days actually elapsed.  Interest on 2008A Bonds bearing
interest at a Term Rate shall be computed on the basis of a 360-day year of
twelve 30-day months.  Notwithstanding any contrary provisions hereof,
during any period in which a 2008A Bond is a Bank Bond, such 2008A Bonds shall
bear interest at the Bank Rate, which shall be computed on the basis of a
360-day year consisting of twelve 30-day months (unless otherwise agreed to by
the Company and the Bank).  Each 2008A Bond shall bear interest
(i) from the date of authentication, if authenticated on an Interest
Payment Date to which interest has been paid or duly provided for, or
(ii) from the last preceding Interest Payment Date to which interest has
been paid or duly provided for (or the Dated Date if no interest thereon has
been paid) in all other cases.  Each 2008A Bond shall bear interest on
overdue principal and premium, if any, and, to the extent permitted by law, on
overdue interest at the rate of interest borne by the 2008A Bonds.

       

      The 2008A
Bonds are subject to optional redemption, mandatory redemption and special
mandatory redemption prior to maturity, and optional and mandatory tender for
purchase as set forth in Article IV and Article V, respectively,
hereof.

       

      Section
2.3. [Reserved.]

       

      Section
2.4. [Reserved.]

       

      Section
2.5. Form of 2008A Bonds;
Execution; 2008A Bonds Equally and Ratably Secured; Limited Obligation of the
Issuer.

       

      (a) The 2008A
Bonds shall be substantially in the form of Exhibit A attached to this Indenture
and made a part hereof, with appropriate insertions, deletions and modifications
to reflect terms of the 2008A Bonds.  2008A Bonds authenticated and
delivered while such 2008A Bonds are in the Daily Mode, Weekly Mode, Monthly
Mode or Term Mode, as the case may be, shall set forth on the face side thereof,
in the place provided for designating the interest rate, the word "Daily Rate",
"Weekly Rate", "Monthly Rate" or "____% Term Rate for Term Rate Period ending
________, ___", respectively.

       

      (b) The 2008A
Bonds shall be executed on behalf of the Issuer with the manual or facsimile
signature of its Chairman, Executive Director, or the Deputy Secretary for
Business Assistance, Pennsylvania Department of Community and Economic
Development (the "Deputy Secretary") and attested by the manual or facsimile
signature of its Assistant Secretary, and shall have impressed or imprinted
thereon the official seal of the Issuer or a facsimile thereof.  All
authorized facsimile signatures shall have the same force and effect as if
manually signed.  In case any official whose signature or a facsimile
of whose signature shall appear on the 2008A Bonds shall cease to be such
official before the delivery of such 2008A Bonds, such signature or such
facsimile shall nevertheless be valid and sufficient for all purposes, the same
as if such official had remained in office until delivery.

       

      (c) The 2008A
Bonds shall be equally and ratably secured under the Indenture, except as
otherwise expressly provided herein.  The 2008A Bonds, together with
premium, if any, and interest thereon, shall be special, limited obligations of
the Issuer secured by the Trust Estate and payable solely from the Revenues
(except to the extent paid out of moneys attributable to the 2008A Bond proceeds
or the income from the temporary investment thereof) and shall be a valid claim
of the respective owners thereof only against the funds (except the Rebate Fund)
and accounts established hereunder and other moneys held by the Trustee or
Paying Agent and the Revenues, which Revenues shall be used for no other purpose
than to pay the principal and purchase price of, and premium, if any, and
interest on, the 2008A Bonds, except as may be otherwise expressly authorized in
this Indenture.  The
2008A Bonds are limited obligations of the Issuer and are payable solely from
amounts drawn under the Letter of Credit.  Neither the Commonwealth of
Pennsylvania nor any political subdivision thereof is or shall be obligated to
pay the principal or purchase price of or premium, if any, or interest on the
2008A Bonds, and the 2008A Bonds shall not be deemed an obligation of the
Commonwealth of Pennsylvania or any political subdivision
thereof.  Neither the faith and credit nor the taxing power of the
Commonwealth of Pennsylvania or any political subdivision thereof is pledged to
the payment of the principal or purchase price of or premium, if any, or the interest on the 2008A
Bonds.  The Issuer has no taxing power.  All
covenants, promises, agreements, duties and obligations of the Issuer set forth
in the Financing Documents shall be solely the covenants, promises, agreements,
duties and obligations of the Issuer and shall not be deemed to be, or be, the
covenants, promises, agreements, duties or obligations of any member, officer,
employee or agent of the Issuer or the Commonwealth in his or her individual
capacity, and no recourse shall be had for the payment of the principal of, or
interest on the 2008A Bonds or any other amount payable hereunder or in
connection herewith, or for any claim based hereon or on the 2008A Bonds or the
Loan Agreement, against any such member, officer, employee or agent in his or
her individual capacity.

       

      Section
2.6. Authentication.

       

      No 2008A
Bonds shall be valid for any purpose hereunder until the certificate of
authentication printed thereon is duly executed by the manual signature of an
authorized signatory of the Trustee, acting as authenticating
agent.  Such authentication or registration shall be proof that the
Registered Owner is entitled to the benefit of the trusts hereby
created.  The certificate of the Trustee may be executed by any person
authorized by the Trustee, and it shall not be necessary that the same
authorized person sign the certificates of authentication of all 2008A
Bonds.

       

      Any 2008A
Bond authenticated and delivered after the last Interest Payment Date preceding
the termination of a Letter of Credit Facility shall have noted on the face
thereof that the Letter of Credit Facility has expired and no longer supports
payment of such 2008A Bond and any other information which the Issuer deems
appropriate, unless an Alternate Credit Facility meeting the requirements of
Section 2C.7 has been delivered in respect of such 2008A Bond.

       

      Section
2.7. Registration, Transfer and
Exchange.

       

      (a) The
ownership of each 2008A Bond shall be recorded in the registration books of the
Issuer which shall be kept by the Trustee (the "Bond Register"), acting as Bond
registrar, at its designated corporate trust operations office and shall contain
such information as is necessary for the proper discharge of the duties of the
Trustee hereunder.

       

      (b) 2008A
Bonds may be transferred or exchanged as follows:  Any 2008A Bond may
be transferred if endorsed for such transfer by the Registered Owner thereof and
surrendered by such Registered Owner or his duly appointed attorney to the
Trustee at its designated corporate trust operations office, whereupon the
Trustee shall authenticate and deliver to the transferee a new 2008A Bond or
2008A Bonds in the same denominations as the 2008A Bond surrendered for transfer
or in different Authorized Denominations equal in the aggregate to the principal
amount of the surrendered 2008A Bond.

       

      (i) Any 2008A
Bond or 2008A Bonds may be exchanged for one or more 2008A Bonds and in the same
principal amount, but in a different Authorized Denomination or Authorized
Denominations.  Each 2008A Bond so to be exchanged shall be
surrendered by the Registered Owner thereof or his duly appointed attorney to
the Trustee at its designated corporate trust operations office, whereupon a new
2008A Bond or 2008A Bonds shall be authenticated and delivered to the Registered
Owner.

       

      (ii) In the
case of any 2008A Bond properly surrendered for partial redemption, the Trustee
shall authenticate and deliver a new 2008A Bond in exchange therefor, such new
2008A Bond to be in an Authorized Denomination equal to the unredeemed principal
amount of the surrendered 2008A Bond without cost to the Owner; provided that,
at its option, the Trustee may certify the amount and date of partial
redemption  upon the partial redemption certificate, if any, printed
on the surrendered 2008A Bond and return such surrendered 2008A Bond to the
Registered Owner in lieu of an exchange.

       

      (iii) No
additional resolutions need be adopted by the governing body of the Issuer or
any other body or person so as to accomplish the foregoing conversion and
exchange or replacement of any 2008A Bond or portion thereof, and the Trustee
shall provide for the completion, authentication, and delivery of the substitute
2008A Bonds in the manner prescribed herein.

       

      Except as
provided in subparagraph (iii) above, the Trustee shall not be required to
effect any transfer or exchange during the fifteen (15) days immediately
preceding the date of mailing of any notice of redemption or at any time
following the mailing of any such notice in the case of 2008A Bonds selected for
such redemption. No charge shall be imposed upon Registered Owners in connection
with any transfer or exchange, except for taxes or governmental charges related
thereto.  No transfers or exchanges shall be valid for any purposes
hereunder except as provided above.

       

      Section
2.8. Mutilated, Destroyed, Lost
or Stolen 2008A Bonds.

       

      (a) If any
2008A Bond is mutilated, lost, stolen or destroyed, the Registered Owner thereof
shall be entitled to the issuance of a substitute 2008A Bond provided
that:

       

      (i) in all
cases, the Registered Owner must provide indemnity to the Issuer, the Company
and the Trustee satisfactory to each such party to be indemnified against any
and all claims arising out of or otherwise related to the issuance of substitute
2008A Bonds pursuant to this Section;

       

      (ii) in the
case of a mutilated 2008A Bond the Registered Owner shall surrender the 2008A
Bond to the Trustee for cancellation; and

       

      (iii) in the
case of a lost, stolen or destroyed 2008A Bond, the Registered Owner shall
provide evidence, satisfactory to the Trustee, of the ownership and the loss,
theft or destruction of the affected 2008A Bond.

       

      Upon
compliance with the foregoing, a new 2008A Bond of like tenor and denomination,
executed by the Issuer, shall be authenticated by the Trustee and delivered to
the Registered Owner, all at the expense of the Registered Owner to whom the
substitute 2008A Bond is delivered.  Notwithstanding the foregoing,
the Trustee shall not be required to authenticate and deliver any substitute for
a 2008A Bond which has been called for redemption or which has matured or is
about to mature and, in any such case, the principal or redemption price then
due or becoming due shall be paid by the Trustee in accordance with the terms of
the mutilated, lost, stolen or destroyed 2008A Bond without substitution
therefor.

       

      (b) Every
2008A Bond issued pursuant to this Section 2.8 shall constitute an
additional contractual obligation of the Issuer, whether or not the 2008A Bond
alleged to have been destroyed, lost or stolen shall be at any time enforceable
by anyone, and shall be entitled to all the benefits of this Indenture equally
and proportionately with any and all other 2008A Bonds duly issued
hereunder.

       

      (c) All 2008A
Bonds shall be held and owned upon the express condition that the foregoing
provisions are exclusive with respect to the replacement or payment of
mutilated, destroyed, lost or stolen 2008A Bonds, and shall preclude any and all
other rights or remedies, unless expressly inconsistent with any law or statute
existing or hereafter enacted with respect to the replacement or payment of
negotiable instruments, investments or other securities without their
surrender.

       

      Section
2.9. Payments of Principal,
Redemption Price, Purchase Price and Interest; Persons Entitled
Thereto; Record
Dates. 

       

      (a) The
principal, redemption price or purchase price of any 2008A Bond shall be payable
upon presentation and surrender of such 2008A Bond at the Payment Office of the
Paying Agent.  Interest on any 2008A Bond on each Interest Payment
Date in respect thereof shall be payable by check mailed on the applicable
Interest Payment Date to the address of the person entitled thereto as such
address shall appear in the Bond Register; provided that at the written request
of the Owner of at least $1,000,000 aggregate principal amount of 2008A Bonds
(or the Bank to the extent the Bank owns any 2008A Bonds regardless of the
principal amount owned) received by the Paying Agent at least one Business Day
before the corresponding Record Date, interest accrued on the 2008A Bonds will
be payable by wire transfer within the continental United States in immediately
available funds to the bank account number of such Owner specified in such
request and entered by the Paying Agent on the Bond Register.  The
principal or redemption price and purchase price becoming due with respect to
2008A Bonds shall, at the written request of the Owner of at least $1,000,000
aggregate principal amount of such 2008A Bonds (or the Bank to the extent the
Bank owns any 2008A Bonds regardless of the principal amount owned), be paid by
wire transfer within the continental United States in immediately available
funds to the bank account number of such Owner appearing on the Bond Register,
but only upon presentation and surrender of such 2008A Bonds (subject to the
book-entry provisions of Section 2.13).  The principal, redemption
price or purchase price of and interest on the 2008A Bonds shall be paid in any
coin or currency of the United States of America which, at the time of payment,
is legal tender for the payment of public and private debts.

       

      (b) Interest
on any 2008A Bond which is payable, and is punctually paid or duly provided for,
on any Interest Payment Date shall be paid to the person in whose name that
2008A Bond is registered at the close of business on the Regular Record Date for
such interest.

       

      (c) Any
interest on any 2008A Bond which is payable on any Interest Payment Date but is
not paid or provided for on such date or within three Business Days thereafter
(herein called "Defaulted Interest") shall forthwith cease to be payable to the
Owner on the relevant Regular Record Date by virtue of having been such Owner,
and such Defaulted Interest shall be paid, pursuant to Section 7.10, to the
Owner in whose name the 2008A Bond is registered at the close of business on a
Special Record Date to be fixed by the Trustee, such date to be not more than
fifteen (15) nor less than five (5) days prior to the date of proposed
payment.  The Paying Agent shall cause notice of the proposed payment
of such Defaulted Interest and the Special Record Date therefor to be mailed,
first class postage prepaid, to each Bondholder, at his address as it appears in
the Bond Register, not less than ten (10) days prior to such Special Record
Date.

       

      (d) Subject
to the foregoing provisions of this Section, each 2008A Bond delivered under
this Indenture upon transfer of or exchange for or in lieu of any other 2008A
Bond shall carry the rights to interest accrued and unpaid, and to accrue, which
were carried by such other 2008A Bond.

       

      (e) All 2008A
Bonds issued hereunder are and are to be, to the extent provided in this
Indenture, equally and ratably secured by this Indenture without preference,
priority or distinction on account of the actual time or times of the
authentication, delivery or maturity of the 2008A Bonds so that, subject as
aforesaid, all 2008A Bonds at any time Outstanding hereunder shall have the same
right, lien and preference under and by virtue of this Indenture and shall all
be equally and ratably secured hereby with like effect as if they had all been
executed, authenticated and delivered simultaneously on the date hereof, whether
the same, or any of them, shall actually be disposed of at such date, or whether
they, or any of them, shall be disposed of at some future date.

       

      Section
2.10. Temporary 2008A
Bonds.

       

      Pending
preparation of definitive 2008A Bonds, the Issuer may issue, in lieu of
definitive 2008A Bonds, one or more temporary printed or typewritten 2008A Bonds
in Authorized Denominations, of substantially the tenor recited
above.  At the written request of the Issuer, the Trustee shall
authenticate definitive 2008A Bonds in exchange for and upon surrender of an
equal principal amount of temporary  2008A Bonds.  Until so
exchanged, temporary  2008A Bonds shall have the same rights, remedies
and security hereunder as definitive 2008A Bonds.  Temporary 2008A
Bonds shall be numbered consecutively upward from TR-1.

       

      Section
2.11. Cancellation of Surrendered
2008A Bonds.

       

      The
Trustee shall cancel (a) all 2008A Bonds surrendered for transfer or
exchange, for payment at maturity or for redemption (unless the surrendered
2008A Bond is to be partially redeemed and the Trustee elects to return the
2008A Bond, certified as to the partial redemption, to the Registered Owner
thereof pursuant to Section 2.7(b)(iii)), and (b) all 2008A Bonds
purchased at the direction of the Company and surrendered to the Trustee for
cancellation.  The Trustee shall deliver to the Issuer a certificate
of cancellation in respect of all 2008A Bonds canceled in accordance with this
Section.

       

      Section
2.12. Acts of Registered Owners;
Evidence of Ownership.

       

      Any
action to be taken by Registered Owners may be evidenced by one or more
concurrent written instruments of similar tenor signed or executed by such
Registered Owners in person or by an agent appointed in writing.  The
fact and date of the execution by any Person of any such instrument may be
proved by acknowledgment before a notary public or other officer empowered to
take acknowledgments or by an affidavit of a witness to such
execution.  Any action by the Registered Owner of any 2008A Bond shall
bind all future Registered Owners of the same 2008A Bond in respect of anything
done or suffered by the Issuer or the Trustee in pursuance thereof.

       

      Section
2.13. Book Entry
System.

       

      (a) DTC will
act as Securities Depository for the 2008A Bonds.  The 2008A Bonds
shall be initially issued in the form of a single fully registered 2008A Bond
registered in the name of Cede & Co. (DTC’s partnership
nominee).  So long as Cede & Co. is the Registered Owner of the
2008A Bonds, as nominee of DTC, references herein to Registered Owners,
Bondholders or holders or Owners of the 2008A Bonds shall mean Cede & Co.
and shall not mean the beneficial owners of the 2008A Bonds.

       

      (b) The
ownership interest of each of the Beneficial Owners of the 2008A Bonds will be
recorded through the records of a DTC Participant.  Transfers of
beneficial ownership interests in the 2008A Bonds which are registered in the
name of Cede & Co. will be accompanied by book entries made by DTC and, in
turn, by the DTC Participants who act on behalf of the Beneficial Owners of the
2008A Bonds.

       

      (c) With
respect to 2008A Bonds registered in the name of Cede & Co., DTC’s
partnership nominee, the Issuer and the Trustee shall have no responsibility or
obligation to any DTC Participant or to any person on behalf of whom such a DTC
Participant holds an interest in the 2008A Bonds, except as provided in this
Indenture.  Without limiting the immediately preceding sentence, the
Issuer and the Trustee shall have no responsibility or obligation with respect
to (i) the accuracy of the records of DTC, Cede & Co. or any DTC
Participant with respect to any ownership interest in the 2008A Bonds,
(ii) the delivery to any DTC Participant or any other person, other than a
Bondholder, as shown on the registration books, of any notice with respect to
the 2008A Bonds, including any notice of redemption, or (iii) the payment
to any DTC Participant or any other person, other than a Registered Owner, as
shown in the registration books of any amount with respect to principal of,
premium, if any, or interest on, the 2008A Bonds.

       

      (d) Notwithstanding
any other provisions of this Indenture to the contrary, the Issuer and the
Trustee shall be entitled to treat and consider the person in whose name each
2008A Bond is registered in the registration books as the absolute owner of such
2008A Bond for the purpose of payment of principal, premium, if any, and
interest with respect to such 2008A Bond, for the purpose of giving notices of
redemption and other matters with respect to such 2008A Bond, for the purpose of
registering transfers with respect to such 2008A Bond, and for all other
purposes whatsoever.  The Trustee shall pay all principal of, premium,
if any, and interest on the 2008A Bonds only to or upon the order of the
respective owners, as shown in the registration books as provided in this
Indenture, or their respective attorneys duly authorized in writing, and all
such payments shall be valid and effective to fully satisfy and discharge the
Issuer’s obligations with respect to payment of principal of, premium, if any,
and interest on, the 2008A Bonds to the extent of the sum or sums so
paid.

       

      (e) No person
other than a Registered Owner, as shown in the registration books, shall receive
a 2008A Bond certificate evidencing the obligation of the Issuer to make
payments of principal, premium, if any, and interest, pursuant to this
Indenture.

       

      (f) Any
provision of this Indenture permitting or requiring the delivery of 2008A Bonds
shall, while the book-entry system is in effect, be satisfied by the notation on
the books of DTC or a DTC Participant, if applicable, of the transfer of the
Beneficial Owner’s interest in such 2008A Bond.

       

      (g) So long
as the book-entry system is in effect, the Trustee and the Issuer shall comply
with the terms of the Letter of Representations, a copy of which is attached
hereto as Exhibit B and made a part hereof, or an alternate Letter of
Representations as required by DTC.

       

      (h) DTC may
determine to discontinue providing its service with respect to the 2008A Bonds
at any time by giving reasonable written notice and all relevant information on
the Beneficial Owners of the 2008A Bonds to the Issuer or the
Trustee.  If there is no successor Securities Depository appointed by
the Issuer, the Trustee shall authenticate and deliver 2008A Bonds to the
Beneficial Owners thereof in accordance with the information respecting the
Beneficial Owners provided to the Trustee by DTC, but without any liability on
the part of the Issuer or the Trustee for the accuracy of such
information.  The Issuer, at the direction of the Company, may
determine not to continue participation in the system of book entry transfers
through DTC (or a successor Securities Depository) at any time by giving
reasonable written notice to DTC (or a successor Securities Depository) and the
Trustee.  In such event, the Issuer shall execute and deliver to the
Trustee, and the Trustee shall authenticate and deliver the 2008A Bonds to the
Beneficial Owners thereof in accordance with the information respecting the
Beneficial Owners provided to the Trustee by DTC, but without any liability on
the part of the Issuer or the Trustee for the accuracy of such
information.

       

      The
Chairman, Executive Director or Deputy Secretary of the Issuer is hereby
authorized to execute any additional Letter of Representations or similar
document necessary from time to time to continue or provide for the DTC
book-entry system.

       

      (i) Notwithstanding
anything herein to the contrary, the provisions of this Section 2.13 are subject
to the provisions of Section 2B.5 hereof (relating to Pledged
Bonds).

       

      Section
2.14. Payments to Cede & Co.;
Payments to Beneficial Owners.

       

      (a) Notwithstanding
any other provision of this Indenture to the contrary, so long as any 2008A Bond
is registered in the name of Cede & Co., as nominee of DTC, all payments
with respect to principal of, premium, if any, and interest on, such 2008A Bond
and all notices with respect to such 2008A Bond shall be made and given,
respectively, pursuant to DTC’s rules and procedures.

       

      (b) Payments
by the DTC Participants to Beneficial Owners will be governed by standing
instructions and customary practices, as is now the case with municipal
securities held for the accounts of customers in bearer form or registered in
"street name," and will be the responsibility of such DTC Participant and not of
DTC, the Trustee or the Issuer, subject to any statutory and regulatory
requirements as may be in effect from time to time.

       

      ARTICLE
IIA

      INTEREST
RATE ON 2008A BONDS

      

                 Section
2A.1.  Daily
Rate.

       

      (a) A Daily
Rate shall be determined for each Daily Rate Period as described
below.  The Daily Rate for each Daily Rate Period shall be effective
from and including the commencement date of such period and shall remain in
effect through and including the last day thereof.  Each such Daily
Rate shall be determined by the Remarketing Agent not later than 10:00 a.m. on
the Daily Rate Calculation Date and shall be provided by the Remarketing Agent
in writing to the Paying Agent by 1:00 p.m. on that same day.  Each
such Daily Rate so to be determined shall be the lowest rate of interest which,
in the judgment of the Remarketing Agent, would cause the 2008A Bonds in the
Daily Mode to have a market value equal to the principal amount thereof, plus
accrued interest (if any), taking into account Prevailing Market Conditions as
of the date of determination; provided that:

       

      (i) if the
Remarketing Agent fails for any reason to determine and notify the Paying Agent
of the Daily Rate for any Daily Rate Period, such Daily Rate shall be the same
as the Daily Rate in effect for the immediately preceding Daily Rate Period,
except that if such failure continues for more than one consecutive Daily Rate
Period, the Daily Rate thereafter shall be 135% of the SIFMA Municipal Swap
Index published for that Daily Rate Period by Munifacts Wire System, Inc. (or a
replacement publisher of the SIFMA Municipal Swap Index designated in writing by
the Issuer at the direction of the Company to the Trustee and the Remarketing
Agent); provided that if Munifacts Wire System, Inc. or such replacement
publisher does not publish the SIFMA Municipal Swap Index on a day on which a
Daily Rate is to be set, the Daily Rate shall be 135% of a comparable index
selected by the Company published by Munifacts Wire System, Inc. or such
replacement publisher at such time; and

       

      (ii) in no
event shall the Daily Rate for any Daily Rate Period exceed 12% per
annum.

       

      (b) No notice
of Daily Rates will be given to the Company or the Owners of the 2008A Bonds;
however, the Company and the Owners may obtain Daily Rates from the Remarketing
Agent.  All determinations of Daily Rates pursuant to this Indenture
shall be conclusive and binding upon the Issuer, the Company, the Bank, the
Trustee, the Paying Agent and the Owners of the 2008A Bonds to which such rates
are applicable.  The Issuer, the Company, the Bank, the Trustee, the
Paying Agent and the Remarketing Agent shall not be liable to any Owner for
failure to give any notice required with respect to Daily Rates or for failure
of any person to receive any such notice.

       

                 Section
2A.2.  Weekly
Rate.

       

      (a) A Weekly
Rate shall be determined for each Weekly Rate Period as described
below.  The Weekly Rate for each Weekly Rate Period shall be effective
from and including the commencement date of such period and shall remain in
effect through and including the last day thereof.  Each such Weekly
Rate shall be determined by the Remarketing Agent on the Weekly Rate Calculation
Date and shall be provided by the Remarketing Agent in writing to the Paying
Agent by the close of business on that same day.  Each such Weekly
Rate so to be determined shall be the lowest rate of interest which, in the
judgment of the Remarketing Agent, would cause the 2008A Bonds in the Weekly
Mode to have a market value equal to the principal amount thereof, plus accrued
interest (if any), taking into account Prevailing Market Conditions as of the
date of determination; provided that:

       

      (i) if the
Remarketing Agent fails for any reason to determine and notify the Paying Agent
of the Weekly Rate for any Weekly Rate Period, such Weekly Rate shall be the
same as the Weekly Rate in effect for the immediately preceding Weekly Rate
Period, except that if such failure continues for more than one consecutive
Weekly Rate Period, the Weekly Rate thereafter shall be 135% of the SIFMA
Municipal Swap Index published for that Weekly Rate Period by Munifacts Wire
System, Inc. (or a replacement publisher of the SIFMA Municipal Swap Index
designated in writing by the Issuer at the direction of the Company to the
Trustee and the Remarketing Agent); provided that if Munifacts Wire System, Inc.
or such replacement publisher does not publish the SIFMA Municipal Swap Index on
a day on which a Weekly Rate is to be set, the Weekly Rate shall be 135% of a
comparable index selected by the Company published by Munifacts Wire System,
Inc. or such replacement publisher at such time; and

       

      (ii) in no
event shall the Weekly Rate for any Weekly Rate Period exceed 12% per
annum.

       

      (b) No notice
of Weekly Rates will be given to the Company or the Owners of the 2008A Bonds;
however, the Company and the Owners may obtain Weekly Rates from the Remarketing
Agent.  All determinations of Weekly Rates pursuant to this Indenture
shall be conclusive and binding upon the Issuer, the Company, the Bank, the
Trustee, the Paying Agent and the Owners of the 2008A Bonds to which such rates
are applicable.  The Issuer, the Company, the Bank, the Trustee, the
Paying Agent and the Remarketing Agent shall not be liable to any Owner for
failure to give any notice required with respect to Weekly Rates or for failure
of any person to receive any such notice.

       

      Section 2A.3.  Monthly
Rate.

       

      (a) A Monthly
Rate shall be determined for each Monthly Rate Period as described
below.  The Monthly Rate for each Monthly Rate Period shall be
effective from and including the commencement date of such period and shall
remain in effect through and including the last day thereof.  Each
such Monthly Rate shall be determined by the Remarketing Agent on the Monthly
Rate Calculation Date and shall be provided by the Remarketing Agent to the
Paying Agent in writing by the close of business on the same
day.  Each such Monthly Rate so to be determined shall be the lowest
rate of interest which, in the judgment of the Remarketing Agent, would cause
the 2008A Bonds in the Monthly Mode to have a market value equal to the
principal amount thereof, plus accrued interest (if any), taking into account
Prevailing Market Conditions as the date of determination; provided
that:

       

      (i) if the
Remarketing Agent fails for any reason to determine and notify the Paying Agent
of the Monthly Rate for any Monthly Rate Period, such Monthly Rate shall be the
same as the Monthly Rate in effect for the immediately preceding Monthly Rate
Period, except that if such failure continues for more than one consecutive
Monthly Rate Period, the Monthly Rate thereafter shall be 135% of the 30-day
tax-exempt commercial paper rate published for that Monthly Rate Period by
Munifacts Wire System, Inc. (or a replacement publisher of a tax-exempt
commercial paper rate designated in writing by the Issuer at the direction of
the Company to the Trustee and the Remarketing Agent), representing, as of the
publication date, the average of 30-day yield evaluations at par of tax-exempt
securities rated by the Rating Service in its highest commercial paper rating
category; provided that if Munifacts Wire System, Inc. or such replacement
publisher does not publish such a tax-exempt commercial paper rate on a day on
which a Monthly Rate is to be set, the Monthly Rate shall be 85% of the interest
rate for 90-day taxable commercial paper (prime paper placed through dealers)
announced on such day by the Federal Reserve Bank of New York; and

       

      (ii) in no
event shall the Monthly Rate for any Monthly Rate Period exceed 12% per
annum.

       

      (b) No notice
of Monthly Rates will be given to the Registered Owners of the 2008A Bonds;
however, such Owners may obtain Monthly Rates from the Remarketing
Agent.  All determinations of Monthly Rates pursuant to the Indenture
shall be conclusive and binding upon the Issuer, the Company, the Bank, the ,
the Trustee, the Paying Agent and the Registered Owners of the 2008A Bonds to
which such rates are applicable.  The Issuer, the Company, the Bank,
the Trustee, the Paying Agent and the Remarketing Agent shall not be liable to
any Registered Owner for failure to give any notice required with respect to
Monthly Rates or for failure for any person to receive such notice.

       

      Section 2A.4.  Term
Rate.

       

      (a) A Term
Rate shall be determined for each Term Rate Period as described
below.  Upon conversion to a Term Mode, a Nominal Term Rate Period
shall be fixed by the Company pursuant to Section 2A.5 as a term of two or more
Semiannual Periods constituting the nominal length of each Term Rate Period
thereafter until the date of a conversion to another Rate Mode.  Each
Term Rate shall be determined by the Remarketing Agent on the Term Rate
Calculation Date as the lowest rate of interest which, in the judgment of the
Remarketing Agent taking into account Prevailing Market Conditions, would be
necessary to enable the Remarketing Agent to arrange for the sale of the 2008A
Bonds in the Term Mode in a secondary market sale at a price equal to the
principal amount thereof on the first Business Day of the Term Rate Period;
provided that (1) if the Remarketing Agent fails for any reason to determine the
Term Rate for any Term Rate Period, such Term Rate shall be equal to 90% of the
average of the annual 2008A Bond equivalent yield evaluations at par as provided
by the Remarketing Agent as of the first day of the corresponding Term Rate
Period or, if such day is not a Business Day, the next preceding Business Day,
of United States Treasury obligations having a term to maturity similar to such
Term Rate Period, and (2) in no event shall any Term Rate for any Term Rate
Period exceed 12% per annum or, if a Letter of Credit Facility is in effect, the
maximum interest rate set forth in the Reimbursement Agreement for Pledged
Bonds.  Notice of each Term Rate shall promptly be given by telephone
(promptly confirmed in writing) by the Remarketing Agent to the Issuer, the
Trustee, the Company, the Bank and the Paying Agent.  Determinations
of Term Rates pursuant to this Section shall be conclusive and binding upon the
Issuer, the Company, the Trustee, the Paying Agent, the Bank and the
Owners.

       

      Section 2A.5.  Conversion at Option of
Company.

       

      (a) The
Company shall have the option to convert all (but not less than all) of the
2008A Bonds from one Rate Mode to another Rate Mode (including without
limitation a conversion from one Term Mode to another Term Mode) as herein
provided on any Conversion Date the Company shall select; provided that (i) each
Conversion Date shall be an Interest Payment Date and (ii) 2008A Bonds in a Term
Mode cannot be converted to another Rate Mode prior to the date on or after
which such 2008A Bonds may first be redeemed at the option of the Company at the
redemption price of par.  The Company may exercise its option to
convert the 2008A Bonds regardless of the number of times such 2008A Bonds have
previously been converted pursuant to the exercise of its option to
convert.  The Company shall exercise such option by giving written
notice to the Issuer, the Trustee, the Remarketing Agent, the Bank, and the
Paying Agent stating its election to convert the Rate Mode of the 2008A Bonds to
another Rate Mode specified in such notice and stating the Conversion Date
therefor, in the case of 2008A Bonds in the Daily Mode or Weekly Mode, not less
than 35 days, and in the case of 2008A Bonds in the Monthly Mode or Term Mode,
not less than 45 days, prior to such Conversion Date (or such shorter time as
may be agreed to by the Company, the Trustee, the Paying Agent and the
Remarketing Agent).  Such notice also shall state whether or not the
2008A Bonds to be converted will be covered by a Letter of Credit Facility
following such conversion.  Upon receipt of such notice by the
Trustee, the Trustee may conclusively assume that the Issuer, the Remarketing
Agent, the Bank, and the Paying Agent also received a copy of such notice and
that such condition has been complied with.  In connection with each
conversion to a Term Mode, the Nominal Term Rate Period shall be selected by the
Company and designated in such notice.

       

      (b) The
exercise of an option to convert shall not be effective unless there shall have
been delivered to the Trustee:

       

      (i) an
opinion of Bond Counsel addressed to the Trustee, the Paying Agent, the Issuer,
the Company, the Bank, and the Remarketing Agent stating that (i) such
conversion is authorized or permitted by this Indenture and the Act and (ii)
such conversion will not adversely affect the exclusion from gross income of the
interest on the 2008A Bonds for federal income tax purposes, which opinion shall
be confirmed by such Bond Counsel on the Conversion Date;

       

      (ii) in the
case of a conversion to a Term Mode, if a Letter of Credit Facility is in
effect, unless the Company elects not to provide a Letter of Credit Facility for
the 2008A Bonds following the Conversion Date, an amendment to the Letter of
Credit Facility securing the 2008A Bonds to be converted or an Alternate Credit
Facility which provides for (i) an Expiration Date not earlier than the first to
occur of (A) the first anniversary of the Conversion Date or (B) the Term Rate
Period End Interest Payment Date of the first Term Rate Period following the
Conversion Date, and (ii) coverage of 193 days' accrued interest on the 2008A
Bonds at a rate not less than the interest rate at which the then current Letter
of Credit Facility for such 2008A Bonds provides coverage, subject to adjustment
on the Conversion Date to the actual Term Rate as the same shall be fixed
immediately prior to the Conversion Date (or evidence satisfactory to the
Trustee and the Bank that the current Letter of Credit Facility provides for
sufficient coverage without an amendment thereto);

       

      (iii) in the
case of a conversion to the Daily Mode, Weekly Mode or Monthly Mode if the 2008A
Bonds are covered by a Letter of Credit Facility, unless the Company elects not
to provide a Letter of Credit Facility for the 2008A Bonds following the
Conversion Date, an amendment to the Letter of Credit Facility or an Alternate
Credit Facility which provides for (i) an Expiration Date not earlier than one
year from the Conversion Date of such conversion and (ii) on and after such
Conversion Date, coverage for 47 days' accrued interest on the 2008A Bonds at a
maximum rate of 12% per annum (or evidence satisfactory to the Trustee and the
Bank that the current Letter of Credit Facility provides for sufficient coverage
without an amendment thereto); and

       

      (iv) in the
case of a conversion to a Term Mode, evidence that the Company has complied with
the continuing disclosure requirements of SEC Rule 15c2-12 or any successor rule
or statutory provision unless the Company provides the Trustee with an opinion
of Counsel to the effect that such compliance is not required.

       

      (c) In the
case of any conversion, the Trustee shall give notice by first class mail
(postage prepaid) to the Owners of the 2008A Bonds being converted, in the case
of 2008A Bonds in the Daily Mode or Weekly Mode, not less than 20 days, and in
the case of 2008A Bonds in the Monthly Mode or Term Mode,  not less
than 30 days, prior to the proposed Conversion Date stating (i) that, in the
case of a conversion to a Term Mode, the current Rate Mode of such 2008A Bonds
is scheduled to be converted to a Term Mode and the Nominal Term Rate Period of
such Term Mode, or in the case of a conversion to the Daily Mode, Weekly Mode or
Monthly Mode, the interest rate on such 2008A Bonds is scheduled to be converted
to the Daily Mode, Weekly Mode or Monthly Mode, (ii) the proposed Conversion
Date, (iii) that the Company, on or before the date three (3) days prior to the
proposed Conversion Date, may determine not to convert such 2008A Bonds in which
case the Trustee shall notify the Owners in writing to such effect, and (iv)
that all Outstanding 2008A Bonds will be subject to a mandatory purchase on the
Conversion Date, or, if such Conversion Date is not a Business Day, the first
Business Day following such Conversion Date, at a price of par plus accrued
interest (if any).  The Issuer, the Company, the Trustee, the Paying
Agent, the Bank and the Remarketing Agent shall not be liable to any Owner for
failure to give any notice required above or for failure of any Owners to
receive such notice.  Upon each conversion under this Section, all
2008A Bonds being converted shall be subject to mandatory purchase pursuant to
Section 2B.2 on the Conversion Date, or, if such Conversion Date is not a
Business Day, the first Business Day following such Conversion
Date.

       

      (d) On or
before the date three (3) days prior to the proposed Conversion Date, the
Company may determine not to convert the 2008A Bonds proposed to be converted to
a new Rate Mode pursuant to its election to convert given under Section 2A.5(a)
by giving written notice to the Trustee, the Remarketing Agent, the Bank and the
Paying Agent (with a copy to the Issuer).  In such event (i) the 2008A
Bonds shall not be converted to the new Rate Mode but shall remain in the
current Rate Mode and (ii) the Owners of the 2008A Bonds shall nevertheless be
required to tender their 2008A Bonds for mandatory purchase pursuant to Section
2B.2.

       

      Section 2A.6.  Initial Interest Rates and
Subsequent Conversion.

       

      The 2008A Bonds shall initially bear
interest at a Weekly Rate (determined pursuant to this Article) for an initial
Weekly Rate Period commencing on the Issue Date.  2008A Bonds may be
converted from one Rate Mode to another Rate Mode as provided in Section
2A.5.  All 2008A Bonds shall bear interest at the same rate and shall
be in the same Rate Mode at all times.

      

      ARTICLE
IIB

      TENDER
AND PURCHASE OF 2008A BONDS

      

      Section 2B.1.  Optional Tender for Purchase
of Daily Rate, Weekly Rate and Monthly Rate 2008A Bonds.

       

      (a) Optional Tender
Rights.  The Owners of 2008A Bonds (or while the 2008A Bonds
are held pursuant to a book-entry system, the Beneficial Owners) bearing
interest at a Daily Rate, Weekly Rate or Monthly Rate shall have the right to
tender their 2008A Bonds (or portions thereof in amounts equal to a minimum of
$100,000 and whole multiples of $5,000 in excess of $100,000) for purchase, at a
price equal to 100% of the principal amount thereof (or of such portions) plus
accrued interest (if any), in the case of 2008A Bonds bearing interest at a
Daily Rate or Weekly Rate, on any Business Day, and in the case of 2008A Bonds
bearing interest at a Monthly Rate, on the first Business Day of the next
succeeding calendar month (each such date is referred to hereinafter as a
"Purchase Date") designated by written notice delivered to the Paying Agent and
the Remarketing Agent on a Business Day (i) in the case of 2008A Bonds in the
Daily Mode, by 10:30 a.m. on the Purchase Date, (ii) in the case of 2008A Bonds
in the Weekly Mode, at least seven (7) days prior to the Purchase Date, or (iii)
in the case of 2008A Bonds in the Monthly Mode, at least fourteen (14) days
prior to the Purchase Date.

       

      (b) Notice by Owner of
Tender.  Each notice of tender pursuant to Section 2B.1(a)
shall:

       

      (1) be
delivered to the Paying Agent at its Delivery Office and to the Remarketing
Agent at its Office and be substantially in the form set forth in Exhibit D to this
Indenture or in other form satisfactory to the Paying Agent;

       

      (2) state (i)
the principal amount of the 2008A Bond to which the notice relates, (ii) that
the Owner irrevocably demands purchase of such 2008A Bond (or a specified
portion thereof in an amount such that each portion thereof is equal to a whole
multiple of $5,000 but not less than $100,000), (iii) the Purchase Date on which
such 2008A Bond (or specified portion) is to be purchased, and (iv) payment
instructions with respect to the purchase price; and

       

      (3) automatically
constitute (i) an irrevocable offer to sell the 2008A Bond (or portion thereof)
to which such notice relates on the Purchase Date at a price equal to the
principal amount of such 2008A Bond (or portion thereof) plus any interest
thereon (if any) accrued and unpaid as of the Purchase Date, (ii) an irrevocable
authorization and instruction to the Paying Agent to effect transfer of such
2008A Bond (or portion thereof) upon payment of such price to the Paying Agent
on the Purchase Date, (iii) an irrevocable authorization and instruction to the
Paying Agent to effect the exchange of such 2008A Bond in whole or in part for
other 2008A Bonds in an equal aggregate principal amount so as to facilitate the
sale of such 2008A Bond (or portion thereof), and (iv) an acknowledgment that
such Owner will have no further rights with respect to such 2008A Bond (or
portion thereof) upon payment of the purchase price thereof to the Paying Agent
on the Purchase Date, except for the right of such Owner to receive such
purchase price upon surrender of such 2008A Bond to the Paying Agent endorsed
for transfer in blank and with guaranty of signatures satisfactory to the Paying
Agent, and that after the Purchase Date such Owner will hold such 2008A Bond as
agent for the Paying Agent.

       

      The
determination of the Paying Agent as to whether a notice of tender has been
properly delivered pursuant to the foregoing shall be conclusive and binding
upon the Owner.  Any notice of tender that is determined by the Paying
Agent to fail to comply with the requirements of this Section 2B.1(b) shall be
of no further force and effect notwithstanding any contrary provision of this
Indenture.

       

      (c) Notice by Paying Agent of
2008A Bonds to be Remarketed.  Not later than 12:00 noon on the
Business Day immediately following the date of receipt of any notice of tender
pursuant to this Section, the Paying Agent shall notify by telephone promptly
confirmed in writing the Remarketing Agent of the principal amount of 2008A
Bonds (or portions thereof) to be purchased and the Purchase Date, provided that
in the case of 2008A Bonds bearing interest at the Daily Rate, such notice shall
be given as promptly as reasonably practicable on the date of receipt of notice
of tender.

       

      (d) Remarketing of Tendered
2008A Bonds.  The Remarketing Agent shall use its reasonable
best efforts to find purchasers for and arrange for the sale on the respective
Purchase Date of all 2008A Bonds or portions thereof in respect of which a
notice of tender has been received pursuant to Section 2B.1(a), at a price equal
to 100% of the principal amount thereof plus accrued interest thereon (if any);
provided that no 2008A Bonds shall be remarketed by the Remarketing Agent to the
Issuer, the Company or an Affiliate or an affiliate of the
Issuer.  The terms of any such sale shall provide for the payment of
the purchase price for tendered 2008A Bonds to the Paying Agent (in exchange for
new registered 2008A Bonds) in immediately available funds at or before 11:00
a.m. on the Purchase Date.  Notwithstanding the foregoing, the
Remarketing Agent shall not arrange for the sale of any 2008A Bond as to which
(i) there has been given to the applicable Bondholder a notice of mandatory
tender for purchase pursuant to Section 2B.2, Section 2B.3 or Section 2B.4, a
notice of replacement of the Letter of Credit Facility pursuant to Section 2C.8,
or a notice of optional or special mandatory redemption pursuant to Sections 5.6
and 5.7, respectively, unless in each case the Remarketing Agent has delivered
to the person to whom the sale is made a copy of such notice, and such person
has acknowledged receipt and agreed to be bound by the terms thereof, or (ii)
provision for payment of such 2008A Bond has been made pursuant to Section
10.1.

       

      (e) Certain Notices by
Remarketing Agent and Paying Agent.

       

      (1) Notice by Remarketing Agent
of Remarketed 2008A Bonds.  At or before 3:00 p.m. on the third
Business Day immediately preceding, or, in the case of 2008A Bonds bearing
interest at the Daily Rate, by 11:00 a.m. on, the  Purchase Date
for purchase of optionally tendered 2008A Bonds pursuant to this Section, the
Remarketing Agent shall give notice by telephone, telegram, telecopy, telex or
other similar communication to the Paying Agent of (i) the principal amount of
tendered 2008A Bonds which have been remarketed and (ii) the principal amount of
tendered 2008A Bonds, if any, which have not been remarketed.

       

      (2) Notice by Paying Agent of
2008A Bonds Not Remarketed.  Not later than 5:00 p.m., or,
in the case of 2008A Bonds bearing interest at the Daily Rate, by
11:15 a.m., on the date of receipt of any notice pursuant to Section
2B.1(e)(1) informing the Paying Agent that tendered 2008A Bonds have not been
remarketed, the Paying Agent shall give notice by telephone, telegram, telecopy
or other similar communication to the Company and (if a Letter of Credit
Facility is in effect) the Bank specifying the principal amount of tendered
2008A Bonds as to which the Remarketing Agent has not found a purchaser at that
time.

       

      (3) Remarketing Agent Notice of
Amounts to be Drawn Under Letter of Credit Facility.  Prior to
10:00 a.m. on the second Business Day immediately preceding, or, in the case of
2008A Bonds bearing interest at the Daily Rate, by 11:30 a.m. on, the
Purchase Date for purchase of tendered 2008A Bonds pursuant to this Section, the
Remarketing Agent shall give telephonic notice, promptly confirmed in writing,
to the Paying Agent, the Company and (if a Letter of Credit Facility is in
effect) the Bank specifying the amounts of principal and interest, if any,
representing purchase price of such 2008A Bonds, which the Remarketing Agent
does not hold, for the benefit of the persons entitled to receive such purchase
price, at the time such notice is given.

       

      (4) Notice by Remarketing Agent
Identifying Purchasers of Remarketed 2008A Bonds.  At or before
12:00 Noon on the Business Day prior to, or, in the case of 2008A Bonds bearing
interest at the Daily Rate, by 12:00 noon on, the Purchase Date for
purchase of tendered 2008A Bonds pursuant to this Section, the Remarketing Agent
shall give notice to the Paying Agent by telephone (promptly confirmed in
writing) of the names, addresses and taxpayer identification numbers of the
purchasers, the denominations of 2008A Bonds to be delivered as hereinafter
provided to each purchaser and the payment instructions for regularly scheduled
interest payments.

       

      (f) Payment of Remarketing
Proceeds.  The Remarketing Agent shall cause to be paid to the
Paying Agent by 11:00 a.m. on the date fixed for purchase of tendered 2008A
Bonds all amounts then held by the Remarketing Agent representing proceeds of
the remarketing of such 2008A Bonds, such payments to be made in immediately
available funds.  All moneys received by the Paying Agent as
remarketing proceeds shall be deposited by the Paying Agent in a special trust
account designated as the "Remarketing Proceeds Purchase Account," which the
Paying Agent shall establish and use as provided in this Article, and shall not
be commingled with other funds held by the Paying Agent.  All moneys
in the Remarketing Proceeds Purchase Account shall be held in trust, uninvested
and without liability for interest thereon, pending application of such moneys
by the Paying Agent pursuant to this Article.

       

      (g) Drawings on Letter of Credit
Facility for Purchase Price.  If a Letter of Credit Facility is
in effect, following receipt by the Paying Agent of the notice described in
Section 2B.1(e)(3), the Paying Agent shall draw on the Purchase Date the amount
set forth in such notice as not being held by the Remarketing
Agent  under such Letter of Credit Facility in order for the Paying
Agent to make timely payments of purchase price of tendered 2008A Bonds from
remarketing proceeds or moneys drawn under such Letter of Credit
Facility.  In the absence of such notice, the Paying Agent shall be
deemed to have received notice from the Remarketing Agent specifying that no
portion of the purchase price of such 2008A Bonds is held by the Remarketing
Agent, in which case the Paying Agent shall draw the entire amount thereof under
the Letter of Credit Facility.  Before 11:00 a.m. on the Purchase Date
for purchase of tendered 2008A Bonds pursuant to this Section, the Paying Agent
shall take all action necessary to draw on the Letter of Credit Facility
securing such tendered 2008A Bonds in accordance with Section 2B.5(a) the
amounts specified (or deemed specified) for receipt by the Paying Agent on such
Purchase Date.  The Paying Agent shall establish a special trust
account designated as the "Letter of Credit Purchase Account", into which the
Paying Agent shall deposit and hold in trust, uninvested and without liability
for interest thereon, all such amounts received by the Paying Agent from
drawings on the applicable Letter of Credit Facility for purchases of tendered
2008A Bonds pending application of such amounts by the Paying Agent pursuant to
this Article.  Any remaining amounts in the Letter of Credit Purchase
Account after any application required by Section 2B.1(i) shall be paid over by
the Paying Agent to the Bank for the account of the Company as reimbursement for
the drawing on the Letter of Credit Facility from which such amounts were
derived; provided that such Letter of Credit Facility shall be reinstated to the
extent of such reimbursement and the Paying Agent shall take all necessary
action on its part pursuant to such Letter of Credit Facility to effect such
reinstatement.

       

      (h) Use of Funds in the Company
Debt Service Account for Purchase Price.  If sufficient funds
for the payment of the purchase price of tendered 2008A Bonds are not provided
by draws on the Letter of Credit by 3:00pm, New York City time, on the Purchase
Date, then the Paying Agent shall draw funds from the Company Debt Service
Account to the extent necessary to pay the purchase price of such tendered 2008A
Bonds in full.

       

      (i) Payments of Purchase Price
by Paying Agent.  The Paying Agent shall pay the purchase price
of 2008A Bonds tendered pursuant to this Section to the selling Owners thereof
at its Office not later than 5:00 p.m. on the later of (i) the Purchase Date for
the purchase of such 2008A Bonds pursuant to this Section or (ii) the date of
surrender of such 2008A Bonds to the Paying Agent properly endorsed for transfer
in blank and with all signatures guaranteed to the satisfaction of the Paying
Agent.  Such payments shall be made in immediately available funds,
but solely from the following sources in the order of priority
indicated:

       

      (1) moneys
held in the Remarketing Proceeds Purchase Account representing proceeds of the
remarketing of such 2008A Bonds pursuant to Section 2B.1(d) to any person other
than the Issuer, the Company or an Affiliate;

       

      (2) moneys
held in the subaccount of the Letter of Credit Purchase Account representing
proceeds of a drawing by the Paying Agent under the Letter of Credit Facility
for such purpose; and

       

      (3) moneys in
the Company’s Debt Service Account.

       

      If
sufficient funds are not available for the purchase of all tendered 2008A Bonds,
no purchase shall be consummated.

       

      

      (j) Registration and Delivery of
Tendered or Purchased 2008A Bonds.  On the Purchase Date for
the purchase of tendered 2008A Bonds pursuant to this Section, the Paying Agent
shall register and make available (or hold) all 2008A Bonds purchased on such
date as follows:

       

      (1) 2008A
Bonds remarketed by the Remarketing Agent shall be registered and made available
to the Remarketing Agent or the purchasers thereof (by overnight mail or similar
service) in accordance with the written instructions of the Remarketing Agent;
and

       

      (2) 2008A
Bonds purchased with proceeds of a drawing on the Letter of Credit Facility
securing such 2008A Bonds shall be Pledged Bonds and shall be pledged and
assigned to the Bank in accordance with the Reimbursement
Agreement.

       

      (k) Delivery of 2008A Bonds:
Effect of Failure to Surrender 2008A Bonds.  All 2008A Bonds to
be purchased on any date shall be delivered to the Payment Office of the Paying
Agent for receipt at or before 11:00 a.m. on the Purchase Date.  If
the Owner of any 2008A Bond (or portion thereof) that is subject to purchase
pursuant to this Section fails to deliver such 2008A Bond to the Paying Agent
for purchase on the Purchase Date, and if the Paying Agent is in receipt of the
purchase price therefor, such 2008A Bond (or portion thereof) shall nevertheless
be deemed tendered and purchased on the Purchase Date fixed for purchase thereof
and registration of the ownership of such 2008A Bond (or portion thereof) shall
be transferred to the purchaser thereof as provided in Section
2B.1(j).  Any Owner of any 2008A Bond (or portion thereof) that is
subject to purchase pursuant to this Section who so fails to deliver such 2008A
Bond for purchase on (or before) the Purchase Date (1) shall have no further
rights thereunder, except the right to receive the purchase price thereof upon
presentation and surrender of such 2008A Bond to the Paying Agent properly
endorsed for transfer in blank and with all signatures guaranteed to the
satisfaction of the Paying Agent, and (2) shall thereafter hold such 2008A Bond
as agent for the Paying Agent.  The Paying Agent shall, as to any
tendered 2008A Bonds (or portions thereof) which have not been delivered to it
("Undelivered 2008A Bonds"), (i) promptly notify the Remarketing Agent of such
non-delivery and (ii) place a stop transfer against an appropriate amount of
2008A Bonds registered in the name of the Owner(s) on the Bond
Register.  The Paying Agent shall place such stop transfer(s)
commencing with the lowest serial number 2008A Bond registered in the name of
such Owner(s) (until stop transfers have been placed against an appropriate
amount of 2008A Bonds) until the appropriate tendered 2008A Bonds are delivered
to the Paying Agent.  Upon such delivery, the Paying Agent shall make
any necessary adjustments to the Bond Register.  The Paying Agent
shall hold moneys representing the purchase price of Undelivered 2008A Bonds in
one or more separate accounts or subaccounts for the sole benefit of the former
Owner(s) of such Undelivered 2008A Bonds.

       

      Section
2B.2.  Mandatory Tender for
Purchase on Each Conversion Date and at End of Each Term Rate
Period.

       

      (a) Mandatory Tender Upon
Conversion or at End of Term Rate Period.  The 2008A Bonds
shall be subject to mandatory tender for purchase on (i) each Conversion Date
for the 2008A Bonds, or, if such Conversion Date is not a Business Day, the
first Business Day succeeding such Conversion Date, (ii) each proposed
Conversion Date for the 2008A Bonds designated by the Company for a conversion
election which the Company has rescinded pursuant to Section 2A.5(d), or, if
such proposed Conversion Date is not a Business Day, the first Business Day
succeeding such proposed Conversion Date, and (iii) and the first Business Day
immediately following the end of each Term Rate Period for the 2008A Bonds, at a
price equal to the principal amount thereof, plus accrued interest if the
Purchase Date is not an Interest Payment Date.

       

      (b) Remarketing.  The
Remarketing Agent shall use its reasonable best efforts to find purchasers for
and arrange for the sale on the respective Purchase Date of all 2008A Bonds
subject to mandatory tender for purchase pursuant to Section 2B.2(a), at a price
equal to 100% of the principal amount thereof plus interest accrued to the
Purchase Date (if any); provided that (1) no 2008A Bonds shall be remarketed by
the Remarketing Agent to the Issuer, the Company or an Affiliate or an affiliate
of the Issuer and (2) if a Letter of Credit Facility is in effect, the Letter of
Credit Facility coverage requirements of Section 2B.2(c) shall be
satisfied.  The terms of any sale arranged by the Remarketing Agent
shall provide for the payment of the purchase price to the Paying Agent of the
2008A Bonds being remarketed in immediately available funds at or before
11:00 a.m. on the Purchase Date.

       

      (c) Letter of Credit Facility
Coverage.  There shall be no remarketing of the 2008A Bonds
pursuant to Section 2B.2(b) unless and until (1) in the case of a conversion,
the applicable requirements of Section 2A.5 regarding the delivery of an
amendment to the Letter of Credit Facility or an Alternate Credit Facility (if
any) have been satisfied to the extent applicable and (2) in the case of a
remarketing for a new Term Rate Period not in connection with a conversion, if
the Company has elected to provide a Letter of Credit Facility for such 2008A
Bonds for the new Term Rate Period, there shall have been delivered to the
Paying Agent an amendment to the Letter of Credit Facility or an Alternate
Credit Facility which provides for (i) an Expiration Date not earlier than the
first to occur of (A) the first anniversary of the Purchase Date or (B) the Term
Rate Period End Interest Payment Date next following the Purchase Date, and (ii)
coverage of 193 days' accrued interest on the 2008A Bonds at a rate not less
than the interest rate at which the then current Letter of Credit Facility
provides coverage, subject to adjustment on the Purchase Date to the actual Term
Rate as the same shall be fixed immediately prior to such date (or evidence
satisfactory to the Trustee and the Bank that the current Letter of Credit
Facility provides for sufficient coverage without an amendment
thereto).

       

      (d) Certain Notices by
Remarketing Agent.  Subject to the provisions of Section
2B.2(b), the Remarketing Agent shall give the following notices:

       

      (1) Notice by Remarketing Agent
of Remarketed 2008A Bonds.  At or before 3:00 p.m. on the
third Business Day immediately preceding the Purchase Date for purchase of 2008A
Bonds pursuant to Section 2B.2(a), the Remarketing Agent shall give notice by
telephone, telegram, telecopy, telex or other similar communication to the
Paying Agent, the Company and the Bank of (i) the principal amount of 2008A
Bonds which have been remarketed and (ii) the principal amount of 2008A Bonds,
if any, which have not been remarketed.

       

      (2) Notice by Paying Agent of
2008A Bonds Not Remarketed.  Not later than 5:00 p.m. on
the date of receipt of any notice pursuant to Section 2B.2(d)(1) informing the
Paying Agent that 2008A Bonds have not been remarketed, the Paying Agent shall
give notice by telephone, telegram, telecopy or other similar communication to
the Company and the Bank, specifying the principal amount of 2008A Bonds as to
which the Remarketing Agent has not found a purchaser at that time.

       

      (3) Remarketing Agent Notice of
Amounts to be Drawn Under Letter of Credit Facility.  Prior to
10:00 a.m. on the second Business Day immediately preceding the Purchase Date
for purchase of tendered 2008A Bonds pursuant to Section 2B.2(a), the
Remarketing Agent shall give telephonic notice, promptly confirmed in writing,
to the Paying Agent, the Company and the Bank specifying the amounts of
principal and interest, if any, representing the purchase price of such 2008A
Bonds, which the Remarketing Agent does not hold, for the benefit of the persons
entitled to receive such purchase price, at the time such notice is
given.

       

      (4) At or
before 12:00 noon on the Business Day prior to the Purchase Date for the
purchase of 2008A Bonds pursuant to Section 2B.2(a), the Remarketing Agent shall
give notice to the Paying Agent by telephone (promptly confirmed in writing) of
the names, addresses and taxpayer identification numbers of the purchasers and
the denominations of 2008A Bonds to be delivered to each purchaser and the
payment instructions for regularly scheduled interest payments.

       

      (e) Payment of Remarketing
Proceeds.  The Remarketing Agent shall cause to be paid to the
Paying Agent by 11:00 a.m. on the Purchase Date for purchase of 2008A Bonds
pursuant to Section 2B.2(a) all amounts then held by the Remarketing Agent
representing proceeds of the remarketing of such 2008A Bonds, such payment to be
made in immediately available funds.  All such remarketing proceeds
received by the Paying Agent shall be deposited in the Remarketing Proceeds
Purchase Account and applied by the Paying Agent pursuant to this
Article.

       

      (f) Drawings on Letter of Credit
Facility for Purchase Price.  If a Letter of Credit Facility is
in effect, following receipt by the Paying Agent of the notice set forth in
Section 2B.2(d)(3), the Paying Agent shall draw on the Purchase Date the amounts
set forth in such notice as not being held by the Remarketing Agent under such
Letter of Credit Facility in order for the Paying Agent to make timely payments
of purchase price of 2008A Bonds subject to mandatory tender pursuant to Section
2B.2(a) from remarketing proceeds or moneys drawn under such Letter of Credit
Facility.  In the absence of such notice, the Paying Agent shall be
deemed to have received notice from the Remarketing Agent specifying that no
portion of the purchase price of such 2008A Bonds is held by the Remarketing
Agent, in which case the Paying Agent shall draw the entire amount thereof under
such Letter of Credit Facility.  Before 11:00 a.m. on the
Purchase Date for purchase of 2008A Bonds pursuant to Section 2B.2(a), the
Paying Agent shall take all action necessary to draw on such Letter of Credit
Facility in accordance with Section 2B.5(a) hereof the amounts specified (or
deemed specified) for receipt by the Paying Agent on such Purchase
Date.  The Paying Agent shall deposit into the Letter of Credit
Purchase Account and hold uninvested and without liability for interest all such
amounts received by the Paying Agent from drawings on the Letter of Credit
Facility securing such tendered 2008A Bonds for purchases of the 2008A Bonds
pending application of such amounts by the Paying Agent pursuant to this
Article.  Any remaining amounts in the applicable subaccount of the
Letter of Credit Purchase Account after any application required by Section
2B.2(h) shall be paid over by the Paying Agent to the Bank for the account of
the Company as reimbursement for the drawing on the applicable Letter of Credit
Facility from which such amounts were derived; provided that the Letter of
Credit Facility shall be reinstated to the extent of such reimbursement and the
Paying Agent shall take all necessary action on its part pursuant to the Letter
of Credit Facility to effect such reinstatement.

       

      (g) Use of Funds in the Company
Debt Service Account for Purchase Price.  If sufficient funds
for the payment of the purchase price of tendered 2008A Bonds are not provided
by draws on the Letter of Credit by 3:00pm, New York City time, on the Purchase
Date, then the Paying Agent shall draw funds from the Company Debt Service
Account to the extent necessary to pay the purchase price of such tendered 2008A
Bonds in full.

       

      (h) Payments of Purchase Price
by Paying Agent.  The Paying Agent shall pay the purchase price
of 2008A Bonds tendered pursuant to this Section to the selling Owners thereof
at its Payment Office not later than 5:00 p.m. on the later of (i) the Purchase
Date for the purchase of such 2008A Bonds or (ii) the date of surrender of such
2008A Bonds to the Paying Agent properly endorsed for transfer in blank and with
all signatures guaranteed to the satisfaction of the Paying
Agent.  Such payments shall be made in immediately available funds,
but solely from the following sources in the order of priority indicated,
neither the Issuer, the Trustee, the Paying Agent nor the Remarketing Agent
having an obligation to use funds from any other source:

       

      (1) moneys
held in the Remarketing Proceeds Purchase Account representing proceeds of the
remarketing of the 2008A Bonds pursuant to Section 2B.2(b) to any person other
than the Issuer, the Company or any Affiliate;

       

      (2) moneys
held in the Letter of Credit Purchase Account representing proceeds of a drawing
by the Paying Agent under the Letter of Credit Facility for such purpose;
and

       

      (3) moneys
held in the Company Debt Service Account.

       

      If
sufficient funds are not available for the purchase of all tendered 2008A Bonds,
no purchase shall be consummated.

      

      (i) Registration and Delivery of
Tendered or Purchased 2008A Bonds.  On the Purchase Date for
the purchase of tendered 2008A Bonds pursuant to this Section, the Paying Agent
shall register and deliver (or hold) all 2008A Bonds purchased on such date as
follows:

       

      (1) 2008A
Bonds remarketed by the Remarketing Agent shall be registered and made available
to the Remarketing Agent or the purchasers thereof (by overnight mail or similar
service) in accordance with the written instructions of the Remarketing Agent;
and

       

      (2) 2008A
Bonds purchased with proceeds of a drawing on the Letter of Credit Facility
shall be Pledged Bonds and shall be pledged and assigned to the Bank in
accordance with the Reimbursement Agreement.

       

      (j) Delivery of 2008A Bonds:
Effect of Failure to Surrender 2008A Bonds.  All 2008A Bonds to
be purchased on the Purchase Date shall be delivered to the Payment Office of
the Paying Agent for receipt at or before 11:00 a.m. on such date.  If
the Owner of any 2008A Bond that is subject to purchase pursuant to this Section
fails to deliver such 2008A Bond to the Paying Agent for purchase on the
Purchase Date, and if the Paying Agent is in receipt of the purchase price
therefor, such 2008A Bond shall nevertheless be deemed tendered and purchased on
the Purchase Date fixed for the purchase thereof, and registration of the
ownership of such 2008A Bond shall be transferred to the purchaser thereof as
provided in Section 2B.2(i). Any Owner who so fails to deliver such 2008A Bond
for purchase on (or before) the Purchase Date (1) shall have no further rights
thereunder, except the right to receive the purchase price thereof upon
presentation and surrender of such 2008A Bond to the Paying Agent properly
endorsed for transfer in blank and with all signatures guaranteed to the
satisfaction of the Paying Agent and (2) shall thereafter hold such 2008A Bond
as agent for the Paying Agent.  The Paying Agent shall, as to any
tendered 2008A Bonds which have not been delivered to it ("Undelivered 2008A
Bonds"), (i) promptly notify the Remarketing Agent of such non-delivery and (ii)
place a stop transfer against such 2008A Bonds until they are delivered to the
Paying Agent.  Upon such delivery, the Paying Agent shall make any
necessary adjustments to the Bond Register.  The Paying Agent shall
hold moneys representing the purchase price of Undelivered 2008A Bonds in one or
more separate accounts or subaccounts for the sole benefit of the former
Owner(s) of such Undelivered 2008A Bonds.

       

      Section 2B.3.  Mandatory Tender for
Purchase Upon Letter of Credit Facility Expiration, Replacement or Termination
Due to Default.

       

      (a) Mandatory Tender Upon
Expiration, Replacement or Termination Due to Default.  In the
event the Company has elected to provide a Letter of Credit Facility for the
2008A Bonds, the 2008A Bonds shall be subject to mandatory tender for purchase
on (1) the Interest Payment Date  immediately preceding the expiration
date of the Letter of Credit Facility then in effect but not less than five days
before such expiration date (or if such Interest Payment Date is not a Business
Day, the Business Day next following such Interest Payment Date) in the event
such Letter of Credit Facility shall not have been extended effective on or
before such Interest Payment Date in accordance with Section 2C.6, (2) the date
of replacement of the Letter of Credit Facility with an Alternate Credit
Facility pursuant to Section 2C.7 or (3) the date specified by the Bank in a
written notice to the Trustee, the Paying Agent, the Remarketing Agent and the
Company (or if such date is not a Business Day, the next succeeding Business
Day) stating that an Event of Termination, as defined in the Letter of Credit
Facility, has occurred and is continuing and the Bank has exercised its option
to terminate the Letter of Credit Facility (except as otherwise provided in
Section 2B.7 hereof, in which event the 2008A Bonds will not be subject to
mandatory tender for purchase).  Any such mandatory purchase shall be
at a purchase price equal to the principal amount thereof plus accrued interest
(if any); provided that if the 2008A Bonds are subject to mandatory tender
pursuant to Section 2B.2 on a date coinciding with the Interest Payment Date on
which the 2008A Bonds would otherwise be subject to mandatory tender pursuant to
this Section, then mandatory tender for purchase shall be made pursuant to
Section 2B.2 for purposes of this Indenture and the 2008A Bonds.  Each
of the dates for purchase set forth in this Section 2B.3(a)(1), (2) and (3)
above shall be a "mandatory tender date".

       

      (b) Notice to Registered
Owners.  On or before the 20th day prior to any mandatory
tender date, unless in the case of a mandatory tender for purchase pursuant to
Section 2B.3(a)(1) above the Letter of Credit Facility shall have been extended
in compliance with the conditions of Section 2C.6, the Paying Agent shall
promptly give notice of mandatory tender for purchase pursuant to this Section
by first-class mail to the Owners of all 2008A Bonds.  Such notice
shall state that all Outstanding 2008A Bonds are subject to mandatory tender for
purchase pursuant to the provisions thereof and of this Section in anticipation
of the expiration, replacement or termination of the Letter of Credit Facility
and will be purchased on the mandatory tender date (which date shall be set
forth in such notice) by payment of a purchase price equal to the principal
amount thereof plus accrued interest (if any).

       

      (c) No
Remarketing.  Anything in this Indenture to the contrary
notwithstanding, the Remarketing Agent shall have no obligation to remarket
2008A Bonds for purchase after notice of mandatory tender has been given
pursuant to Section 2B.3(b) with respect to mandatory purchase under Section
2B.3(a)(1) or (3) unless such Letter of Credit Facility is being replaced with
an Alternate Credit Facility or the Company has agreed to provide liquidity for
the 2008A Bonds itself in accordance with Section 2C.1 hereof.

       

      (d) Remarketing of 2008A
Bonds.  The Remarketing Agent shall use its reasonable best
efforts to find purchasers for and arrange for the sale on the respective
Purchase Date of all 2008A Bonds subject to mandatory tender for purchase
pursuant to Section 2B.3(a)(2) (or, in the case of a mandatory tender for
purchase pursuant to Section 2B.3(a)(1) or (3), if the Letter of Credit Facility
is being replaced with an Alternate Credit Facility, Section 2B.3(a)(1) or (3))
at a price equal to 100% of the principal amount thereof plus accrued interest
thereon (if any), provided that (i) no 2008A Bonds shall be remarketed by the
Remarketing Agent to the Company or an Affiliate or to the Issuer or to an
affiliate of the Issuer, and (ii) the Letter of Credit Facility coverage
requirements of this Indenture shall be satisfied.  The terms of any
sale arranged by the Remarketing Agent shall provide for the payment of the
Purchase Price to the Paying Agent of the 2008A Bonds in immediately available
funds at or before 11:00 a.m. on the Purchase Date.

       

      (e) Certain Notices by
Remarketing Agent.  The Remarketing Agent shall give the
following notices:

       

      (1) Notice by Remarketing Agent
of Remarketed 2008A Bonds.  At or before 3:00 p.m. on the third
Business Day immediately preceding the Purchase Date for purchase of 2008A Bonds
pursuant to Section 2B.3(a)(2) (or, in the case of a mandatory tender for
purchase pursuant to Section 2B.3(a)(1) or (3), if the Letter of Credit Facility
is being replaced with an Alternate Credit Facility, Section 2B.3(a)(1) or (3)),
the Remarketing Agent shall give notice by telephone, telegram, telecopy, telex
or other similar communication to the Paying Agent, the Company and the Bank of
(i) the principal amount of 2008A Bonds which have been remarketed and (ii) the
principal amount of 2008A Bonds, if any, which have not been
remarketed.

       

      (2) Notice by Paying Agent of
2008A Bonds Not Remarketed.  Not later than 5:00 p.m. on
the date of receipt of any notice pursuant to Section 2B.3(e)(1) informing the
Paying Agent that 2008A Bonds have not been remarketed, the Paying Agent shall
give notice by telephone, telegram, telecopy or other similar communication to
the Company and the Bank, specifying the principal amount of 2008A Bonds as to
which the Remarketing Agent has not found a purchaser at that time.

       

      (3) Remarketing Agent Notice of
Amounts to be Drawn Under Letter of Credit Facility.  Prior to
10:00 a.m. on the second Business Day immediately preceding the Purchase Date
for purchase of tendered 2008A Bonds pursuant to Section 2B.3(a)(2) (or, in the
case of a mandatory tender for purchase pursuant to Section 2B.3(a)(1) or (3),
if the Letter of Credit Facility is being replaced with an Alternate Credit
Facility, Section 2B.3(a)(1) or (3)), the Remarketing Agent shall give
telephonic notice, promptly confirmed in writing, to the Paying Agent, the
Company and the Bank specifying the amounts of principal and interest, if any,
representing the purchase price of such 2008A Bonds, which the Remarketing Agent
does not hold, for the benefit of the persons entitled to receive such purchase
price, at the time such notice is given.

       

      (4) Remarketing Agent Notice of
Bond Purchasers.  At or before 12:00 noon on the Business Day
prior to the Purchase Date for the purchase of 2008A Bonds pursuant to Section
2B.3(a)(2) (or, in the case of a mandatory tender for purchase pursuant to
Section 2B.3(a)(1) or (3), if the Letter of Credit Facility is being replaced
with an Alternate Credit Facility, Section 2B.3(a)(1) or (3)), the Remarketing
Agent shall give notice to the Paying Agent by telephone (promptly confirmed in
writing) of the names, addresses and taxpayer identification numbers of the
purchasers and the denominations of 2008A Bonds to be delivered to each
purchaser and the payment instructions for regularly scheduled interest
payments.

       

      (f) Payment of Remarketing
Proceeds.  The Remarketing Agent shall cause to be paid to the
Paying Agent by 11:00 a.m. on the Purchase Date for purchase of 2008A Bonds
pursuant to Section 2B.3(a)(2) (or, in the case of a mandatory tender for
purchase pursuant to Section 2B.3(a)(1) or (3), if the Letter of Credit Facility
is being replaced with an Alternate Credit Facility, Section 2B.3(a)(1) or (3))
all amounts then held by the Remarketing Agent representing proceeds of the
remarketing of such 2008A Bonds, such payment to be made in immediately
available funds.  All such remarketing proceeds received by the Paying
Agent shall be deposited in the Remarketing Proceeds Purchase Account and
applied by the Paying Agent pursuant to this Article.

       

      (g) Drawings on Letter of Credit
Facility for Purchase Price.  Following receipt of the notice
specified in Section 2B.3(e)(3), the Paying Agent shall in accordance with
Section 2B.5(a) draw on the Purchase Date the amounts set forth in such notice
as not then held by the Remarketing Agent (except to the extent such amounts are
then held by the Paying Agent) under the Letter of Credit Facility before
11:00 a.m. on the Purchase Date, for receipt by the Paying Agent on such
day for the purchase of 2008A Bonds pursuant to this Section.  The
proceeds of such drawing shall be deposited into the Letter of Credit Purchase
Account for use to the extent necessary to effect such purchase of 2008A
Bonds.  In the absence of such notice, the Paying Agent shall be
deemed to have received notice from the Remarketing Agent specifying that no
portion of the purchase price of such 2008A Bonds is held by the Remarketing
Agent, in which case the Paying Agent shall draw the entire amount thereof under
the Letter of Credit Facility.

       

      (h) Use of Funds in the Company
Debt Service Account for Purchase Price.  If sufficient funds
for the payment of the purchase price of tendered 2008A Bonds are not provided
by draws on the Letter of Credit by 3:00pm, New York City time, on the Purchase
Date, then the Paying Agent shall draw funds from the Company Debt Service
Account to the extent necessary to pay the purchase price of such tendered 2008A
Bonds in full.

       

      (i) Payments of Purchase Price
by Paying Agent.  The Paying Agent shall pay the purchase price
of 2008A Bonds tendered for purchase pursuant to this Section to the selling
Owners thereof at its Payment Office not later than 5:00 p.m. on the later of
(i) the Purchase Date for the purchase of such 2008A Bonds or (ii) the date of
surrender of such 2008A Bonds to the Paying Agent properly endorsed for transfer
in blank and with all signatures guaranteed to the satisfaction of the Paying
Agent.  Such payments shall be made in immediately available funds,
but solely from the following sources in the order of priority indicated,
neither the Issuer, the Trustee nor the Paying Agent having an obligation to use
funds from any other source:

       

      (1) moneys in
the Remarketing Proceeds Purchase Account representing proceeds of the
remarketing of the 2008A Bonds pursuant to Section 2B.3(d) to any person other
than the Issuer, the Company or any Affiliate, which shall be applied as
provided in such section;

       

      (2) moneys in
the Letter of Credit Purchase Account representing proceeds of a drawing by the
Paying Agent under the Letter of Credit Facility pursuant to Section 2B.3(g),
which shall be applied as provided in such Section; and

       

      (3) moneys in
the Company Debt Service Account.

       

      (j) Registration and Delivery of
Tendered or Purchased 2008A Bonds.  On the Purchase Date for
the purchase of 2008A Bonds pursuant to this Section, the Paying Agent shall
register and make available all 2008A Bonds purchased on such date as
follows:

       

      (1) 2008A
Bonds remarketed by the Remarketing Agent shall be registered and made available
to the Remarketing Agent or the purchaser thereof (by overnight mail or similar
service) in accordance with the written instructions of the Remarketing Agent;
and

       

      (2) 2008A
Bonds purchased with proceeds of a drawing on the Letter of Credit Facility for
which the Bank has not been reimbursed shall be Pledged Bonds and shall be
pledged and assigned to the Bank  in accordance with the Reimbursement
Agreement.

       

      (k) Delivery of 2008A Bonds:
Effect of Failure to Surrender 2008A Bonds.  All 2008A Bonds to
be purchased on the mandatory purchase date shall be delivered to the Office of
the Paying Agent for receipt at or before 11:00 a.m. on such date.  If
the Owner of any 2008A Bond that is subject to purchase pursuant to this Section
fails to deliver such 2008A Bond to the Paying Agent for purchase on the
Purchase Date, and if the Paying Agent is in receipt of the purchase price
therefor, such 2008A Bond shall nevertheless be deemed tendered and purchased on
the Purchase Date fixed for the purchase thereof and registration of the
ownership of such 2008A Bond shall be transferred to the purchaser thereof as
provided in Section 2B.3(j).  Any Owner who so fails to deliver such
2008A Bond for purchase on (or before) the Purchase Date (1) shall have no
further rights thereunder, except the right to receive the purchase price
thereof upon presentation and surrender of such 2008A Bond to the Paying Agent
properly endorsed for transfer in blank and with all signatures guaranteed to
the satisfaction of the Paying Agent and (2) shall thereafter hold such 2008A
Bond as agent for the Paying Agent.  The Paying Agent shall, as to any
tendered 2008A Bonds which have not been delivered to it ("Undelivered 2008A
Bonds"), place a stop transfer against such 2008A Bonds until they are delivered
to the Paying Agent.  Upon such delivery, the Paying Agent shall make
any necessary adjustments to the Bond Register.  The Paying Agent
shall hold moneys representing the purchase price of Undelivered 2008A Bonds in
one or more separate accounts or subaccounts for the sole benefit of the former
Owner(s) of such Undelivered 2008A Bonds.

       

      Section 2B.4.  Mandatory Tender and
Purchase Upon Provision or Termination of Letter of Credit
Facility.

       

      (a) Mandatory Tender and
Purchase.  In the event the Trustee receives written notice
from the Bank stating that an event of default has occurred under the
Reimbursement Agreement, the 2008A Bonds shall be subject to mandatory tender
and purchase on the effective date of the new Letter of Credit Facility or the
termination of the existing Letter of Credit Facility (as
applicable).

       

      (b) Notice to Registered
Owners.  Upon receipt of written notice from the Company of the
action to be undertaken, the Paying Agent shall promptly give notice of
mandatory tender for purchase pursuant to this Section by first-class mail to
the Owners of all 2008A Bonds at least 30 days prior to the effective date of
the new Letter of Credit Facility or the termination of the existing Letter of
Credit Facility (as applicable).  Such notice shall state that all
Outstanding 2008A Bonds are subject to mandatory tender for purchase pursuant to
the provisions thereof and of this Section in anticipation of the provision of a
Letter of Credit Facility or the termination of the existing Letter of Credit
Facility securing the 2008A Bonds (as applicable) and will be purchased on the
mandatory tender date (which date shall be set forth in such notice) by payment
of a purchase price equal to the principal amount thereof plus accrued interest
(if any).

       

      (c) Remarketing.  The
Remarketing Agent shall use its reasonable best efforts to find purchasers for
and arrange for the sale on the respective Purchase Date of all 2008A Bonds
subject to mandatory tender for purchase pursuant to Section 2B.4(a) at a price
equal to 100% of the principal amount thereof plus accrued interest thereon (if
any), provided that (i) no 2008A Bonds shall be remarketed by the Remarketing
Agent to the Company or an Affiliate or to the Issuer or an affiliate of the
Issuer, and (ii) the Letter of Credit Facility coverage requirements of this
Indenture shall be satisfied.  The terms of any sale arranged by the
Remarketing Agent shall provide for the payment of the Purchase Price to the
Paying Agent of the 2008A Bonds in immediately available funds at or before
11:00 a.m. on the Purchase Date.

       

      (d) Certain Notices by
Remarketing Agent.  The Remarketing Agent shall give the
following notices:

       

      (1) Notice by Remarketing Agent
of Remarketed 2008A Bonds.  At or before 3:00 p.m. on the
third Business Day immediately preceding the Purchase Date for purchase of 2008A
Bonds pursuant to Section 2B.4(a), the Remarketing Agent shall give notice by
telephone, telegram, telecopy, telex or other similar communication to the
Paying Agent, the Company and the Bank of (i) the principal amount of 2008A
Bonds which have been remarketed and (ii) the principal amount of 2008A Bonds,
if any, which have not been remarketed.

       

      (2) Notice by Paying Agent of
2008A Bonds Not Remarketed.  Not later than 5:00 p.m. on
the date of receipt of any notice pursuant to Section 2B.4(d) informing the
Paying Agent that 2008A Bonds have not been remarketed, the Paying Agent shall
give notice by telephone, telegram, telecopy or other similar communication to
the Company and the Bank, specifying the principal amount of 2008A Bonds as to
which the Remarketing Agent has not found a purchaser at that time.

       

      (3) Remarketing Agent Notice of
Amounts to be Drawn Under Letter of Credit Facility.  Prior to
10:00 a.m. on the second Business Day immediately preceding the Purchase Date
for purchase of tendered 2008A Bonds pursuant to Section 2B.4(a), the
Remarketing Agent shall give telephonic notice, promptly confirmed in writing,
to the Paying Agent, the Company and the Bank specifying the amounts of
principal and interest, if any, representing the purchase price of such 2008A
Bonds, which the Remarketing Agent does not hold, for the benefit of the persons
entitled to receive such purchase price, at the time such notice is
given.  In the absence of such notice, the Paying Agent and the
Company shall be deemed to have received notice from the Remarketing Agent
specifying that no portion of the purchase price of such 2008A Bonds is held by
the Remarketing Agent.

       

      (4) At or
before 12:00 noon on the Business Day prior to the Purchase Date for the
purchase of 2008A Bonds pursuant to Section 2B.4(a), the Remarketing Agent shall
give notice to the Paying Agent by telephone (promptly confirmed in writing) of
the names, addresses and taxpayer identification numbers of the purchasers and
the denominations of 2008A Bonds to be delivered to each purchaser and the
payment instructions for regularly scheduled interest payments.

       

      (e) Payment of Remarketing
Proceeds.  The Remarketing Agent shall cause to be paid to the
Paying Agent by 11:00 a.m. on the Purchase Date for purchase of 2008A Bonds
pursuant to Section 2B.4(a) all amounts then held by the Remarketing Agent
representing proceeds of the remarketing of such 2008A Bonds, such payment to be
made in immediately available funds.  All such remarketing proceeds
received by the Paying Agent shall be deposited in the Remarketing Proceeds
Purchase Account and applied by the Paying Agent pursuant to this
Article.

       

      (f) Drawings on Letter of Credit
Facility for Purchase Price.  If a Letter of Credit Facility is
then in effect with respect to the 2008A Bonds, following receipt by the Paying
Agent of the notice described in Section 2B.4(d)(3), the Paying Agent shall in
accordance with Section 2B.5(a) draw on the Letter of Credit Facility on the
Purchase Date with respect to the 2008A Bonds subject to mandatory tender before
11:00 a.m. on the Purchase Date, for receipt by the Paying Agent on such
day for the purchase of 2008A Bonds pursuant to this Section, an amount equal to
the amount stated in such notice as not being held by the Remarketing Agent
(except to the extent any such amounts are then held by the Paying Agent)
constituting the mandatory tender purchase price of such 2008A
Bonds.  In the absence of such notice, the Paying Agent and the
Company shall be deemed to have received notice from the Remarketing Agent
specifying that no portion of the purchase price of such 2008A Bonds is held by
the Remarketing Agent.  The proceeds of such drawing shall be
deposited into the Letter of Credit Purchase Account for use to the extent
necessary to effect the purchase of 2008A Bonds subject to mandatory
tender.

       

      (g) Use of Funds in the Company
Debt Service Account for Purchase Price.  If sufficient funds
for the payment of the purchase price of tendered 2008A Bonds are not provided
by draws on the Letter of Credit by 3:00pm, New York City time, on the Purchase
Date, then the Paying Agent shall draw funds from the Company Debt Service
Account to the extent necessary to pay the purchase price of such tendered 2008A
Bonds in full.

       

      (h) Payments of Purchase Price
by Paying Agent.  The Paying Agent shall pay the purchase price
of 2008A Bonds tendered for purchase pursuant to this Section to the selling
Owners thereof at its Payment Office not later than 5:00 p.m. on the later of
(i) the Purchase Date for the purchase of such 2008A Bonds or (ii) the date of
surrender of such 2008A Bonds to the Paying Agent properly endorsed for transfer
in blank and with all signatures guaranteed to the satisfaction of the Paying
Agent.  Such payments shall be made in immediately available funds,
but solely from the following sources in the order of priority indicated,
neither the Issuer, the Trustee nor the Paying Agent having an obligation to use
funds from any other source:

       

      (1) moneys in
the Remarketing Proceeds Purchase Account representing proceeds of the
remarketing of the 2008A Bonds pursuant to Section 2B.4(c), which shall be
applied as provided in Section 2B.4(e);

       

      (2) moneys in
the Letter of Credit Purchase Account representing proceeds of a drawing by the
Paying Agent under the Letter of Credit Facility with respect to tendered 2008A
Bonds, which shall be applied as provided pursuant to Section 2B.4(f);
and

       

      (3) moneys in
the Company Debt Service Account.

       

      (i) Registration and Delivery of
Tendered or Purchased 2008A Bonds.  On the Purchase Date for
the purchase of 2008A Bonds pursuant to this Section, the Paying Agent shall
register and make available all 2008A Bonds purchased on such date as
follows:

       

      (1) 2008A
Bonds remarketed by the Remarketing Agent shall be registered and made available
to the Remarketing Agent or the purchaser thereof (by overnight mail or similar
service) in accordance with the written instructions of the Remarketing Agent;
and

       

      (2) 2008A
Bonds purchased with proceeds of a drawing on the Letter of Credit Facility for
which the Bank has not been reimbursed shall be Pledged Bonds and shall be
pledged and assigned to the Bank in accordance with the Reimbursement
Agreement.

       

      (j) Delivery of 2008A Bonds:
Effect of Failure to Surrender 2008A Bonds.  All 2008A Bonds to
be purchased on the mandatory purchase date shall be delivered to the Payment
Office of the Paying Agent for receipt at or before 11:00 a.m. on such
date.  If the Owner of any 2008A Bond that is subject to purchase
pursuant to this Section fails to deliver such 2008A Bond to the Paying Agent
for purchase on the Purchase Date, and if the Paying Agent is in receipt of the
purchase price therefor, such 2008A Bond shall nevertheless be deemed tendered
and purchased on the Purchase Date fixed for the purchase thereof and
registration of the ownership of such 2008A Bond shall be transferred to the
purchaser thereof as provided in Section 2B.4(i).  Any Owner who so
fails to deliver such 2008A Bond for purchase on (or before) the Purchase Date
(1) shall have no further rights thereunder, except the right to receive the
purchase price thereof upon presentation and surrender of such 2008A Bond to the
Paying Agent properly endorsed for transfer in blank and with all signatures
guaranteed to the satisfaction of the Paying Agent and (2) shall thereafter hold
such 2008A Bond as agent for the Paying Agent.  The Paying Agent
shall, as to any tendered 2008A Bonds which have not been delivered to it
("Undelivered 2008A Bonds"), place a stop transfer against such 2008A Bonds
until they are delivered to the Paying Agent.  Upon such delivery, the
Paying Agent shall make any necessary adjustments to the Bond
Register.  The Paying Agent shall hold moneys representing the
purchase price of Undelivered 2008A Bonds in one or more separate accounts or
subaccounts for the sole benefit of the former Owner(s) of such Undelivered
2008A Bonds.

       

      Section 2B.5.  Drawings on Letter of Credit
Facility: 2008A Bonds Purchased with Proceeds of Letter of Credit
Facility.

       

      The
following provisions shall apply if a Letter of Credit Facility is in
effect:

       

      (a) Drawings on the Letter of
Credit Facility.  Before 11:00 a.m. on each Purchase Date
described in Sections 2B.1, 2B.2, 2B.3 and 2B.4 hereof, the Paying Agent shall
present the requisite draft and certificate for a drawing on the Letter of
Credit Facility securing the 2008A Bonds that are subject to optional or
mandatory tender, if any, then held by the Paying Agent, such drawing to include
interest on such tendered 2008A Bonds to the Purchase Date so as to receive the
proceeds of such drawing at or before 3:00 p.m. on such day, to pay
principal of, premium, if any, on (but only to the extent such Letter of Credit
Facility permits application to such premium) and interest on the 2008A Bonds to
be purchased on such Purchase Date pursuant to Sections 2B.1, 2B.2, 2B.3 and
2B.4 hereof as to which the Remarketing Agent has given notice are not
remarketed and to be purchased on such Purchase Date.  By 5:00 p.m. on
each date it presents the requisite documents for a drawing on the Letter of
Credit Facility securing the tendered 2008A Bonds, the Paying Agent shall give
notice to the Company by telephone, promptly confirmed in writing, of the amount
so drawn.

       

      (b) Pledged
Bonds.  Any 2008A Bonds purchased with proceeds of a drawing on
the Letter of Credit Facility pursuant to this Article shall be pledged and
assigned to the Bank in accordance with the Reimbursement
Agreement.

       

      (c) Remarketing of Pledged
Bonds.  Subject to the limitations of Sections 2B.1(d), 2B.2(b)
2B.3(c) and (d) and 2B.4(c), the Remarketing Agent shall continue to use its
best efforts to arrange for the sale of any Pledged Bonds, subject to the
reinstatement of the Letter of Credit Facility with respect to the drawings with
which such 2008A Bonds were purchased, at a price equal to the principal amount
thereof plus accrued interest (if any).

       

      (d) Notice of
Remarketing.  On or prior to each Business Day on which any
Pledged Bonds that are successfully remarketed by the Remarketing Agent are to
be purchased, the Remarketing Agent shall give telephonic notice, promptly
confirmed in writing, to the Paying Agent, the Company and the Bank
specifying:

       

      (1) the
Business Day on which such purchase will take place and the principal amount of
Pledged Bonds successfully remarketed by the Remarketing Agent, and

       

      (2) to the
Paying Agent only, the names, addresses and tax identification numbers of the
proposed purchasers thereof, the denominations of 2008A Bonds to be delivered to
each purchaser and, if available, the payment instructions for regularly
scheduled interest payments.

       

      (e) Delivery of Remarketed
Pledged Bonds and Proceeds Thereof.  Upon receipt of Bank’s
written confirmation of reinstatement of the Letter of Credit Facility relating
to Pledged Bonds as described in Section (b) and the sale of Pledged Bonds
arranged by the Remarketing Agent, the Paying Agent shall make available (i)
such 2008A Bonds to the Remarketing Agent for redelivery to the purchasers
thereof and (ii) the proceeds of such sale to the Bank to the extent of any
unpaid obligation under the Letter of Credit Facility for the prior drawing made
by the Paying Agent on the Letter of Credit Facility in respect of the purchase
of such 2008A Bonds.

       

      Section 2B.6.  [Reserved].

       

      Section 2B.7.  No Tenders in Certain
Circumstances.

       

      Anything
in this Indenture to the contrary notwithstanding, there shall be no optional or
mandatory tenders of 2008A Bonds pursuant to this Article if there shall have
occurred any Event of Default in respect of which the principal of all
Outstanding 2008A Bonds shall have been declared immediately due and payable
pursuant to Section 7.2 and such declaration shall not have been annulled,
stayed or otherwise suspended.

       

      Section 2B.8.  Inadequate Funds for
Tenders.

       

      If the
funds available for purchases of 2008A Bonds pursuant to this Article are
inadequate for the purchase of all 2008A Bonds tendered on any purchase date
pursuant to this Article, the Paying Agent shall, after any applicable grace
period:  (a) return all tendered 2008A Bonds to the Owners thereof,
(b) return all moneys received for the purchase of such 2008A Bonds (other than
moneys provided by the Company and other than Letter of Credit Facility
proceeds, unless the Letter of Credit Facility is reinstated with respect
thereto) to the persons providing such moneys; and (c) notify the Trustee of the
return of such 2008A Bonds and moneys and the failure to make payment for
tendered 2008A Bonds.

       

      ARTICLE
IIC

      LETTER
OF CREDIT AND LETTER OF CREDIT FACILITY

      

      Section 2C.1.   Letter of
Credit.

       

      (a)           The
2008A Bonds initially are covered by the Initial Letter of Credit issued by the
Initial LOC Bank which also constitutes the Letter of Credit
Facility.  The Letter of Credit shall be an irrevocable obligation of
the Bank to pay to the Paying Agent, upon request made with respect to the 2008A
Bonds and in accordance with the terms thereof, (i) amounts sufficient to pay
the principal and interest due on the 2008A Bonds in accordance with this
Indenture; and (ii) up to (x) an amount equal to the aggregate principal amount
of the Outstanding 2008A Bonds sufficient to pay the principal portion of the
purchase price of 2008A Bonds tendered for purchase pursuant to this Indenture
to the extent remarketing proceeds are not available for such purpose, plus (y)
an amount equal to 47 days' accrued interest on the 2008A Bonds at a maximum
rate of 12% per annum (based on a 365-day year) while the 2008A Bonds are in the
Daily Mode, the Weekly Mode or the Monthly Mode (or 193 days' accrued interest
at a rate equal to the actual Term Rate as the same shall be fixed immediately
prior to the Conversion Date (based on a 360-day year) while the 2008A Bonds are
in a Term Mode) to pay the accrued interest portion of the purchase price of the
2008A Bonds tendered for purchase pursuant to this Indenture to the extent
remarketing proceeds are not available for such purpose.  The Paying
Agent will not be entitled to draw on the Letter of Credit with respect to
Pledged Bonds unless the Letter of Credit so provides.  Each original
Letter of Credit shall provide that the Bank's obligation under such Letter of
Credit will be reduced to the extent of any drawing thereunder, subject to
reinstatement as described therein.

       

      Section 2C.2.  Drawings on Letter of Credit
and Letter of Credit Facility.

       

      The
Paying Agent shall draw moneys under the Letter of Credit in accordance with the
terms thereof to the extent necessary to make timely payments of principal and
interest on the 2008A Bonds.  The proceeds of such drawings shall be
deposited in the Debt Service Fund in accordance with Section 3.2
hereof.  The Paying Agent shall draw moneys under the Letter of Credit
Facility to make timely payments of the purchase price required to be made
pursuant to, and in accordance with, Article IIB.  The proceeds of
such drawings shall be deposited in the Letter of Credit Purchase
Account.

       

      Section 2C.3.  Reduction.

       

      In each
case that 2008A Bonds are redeemed or deemed to have been paid pursuant to
Section 10.1, the Paying Agent shall take such action as may be permitted under
the Letter of Credit Facility to reduce the amount available thereunder (a)
while the 2008A Bonds are in the Daily Mode, Weekly Mode or Monthly Mode to an
amount equal to the principal amount of the Outstanding 2008A Bonds, plus 47
days' interest on such principal amount computed at 12% per annum based on a
365-day year, and (b) while the 2008A Bonds are in a Term Mode, to an amount
equal to the principal amount of the Outstanding 2008A Bonds, plus 193 days'
interest thereon computed at the actual Term Rate then in effect, based on a
360-day year.

       

      Section 2C.4.  Expiration.

       

      Unless
all of the conditions of Section 2C.6 or Section 2C.7 have been met by the times
specified therein prior to the expiration of a Letter of Credit Facility, the
Paying Agent shall take all action necessary to call the 2008A Bonds secured by
such Letter of Credit Facility for mandatory tender for purchase pursuant to
Section 2B.3, by reason of the expiration of the Letter of Credit Facility, on
the Interest Payment Date preceding such expiration date but not less than five
days before such expiration date.  Notice of the expiration of a
Letter of Credit Facility shall be given by the Paying Agent to the Rating
Service and to the Issuer.

       

      Section
2C.5.  [Reserved.]

       

      Section 2C.6.  Extension.

       

      The
Company may arrange to extend the term of a Letter of Credit Facility, provided
that the extended Letter of Credit Facility shall meet the requirements of
Sections 2A.5 and 2B.2(c) above, as applicable.  The Company shall
give the Paying Agent and the Trustee and the Issuer written notice of such
extension no later than 45 days preceding the Interest Payment Date immediately
preceding the expiration date of the Letter of Credit Facility, and shall cause
the Bank's written amendment effecting such extension to be delivered to the
Paying Agent no later than 20 days immediately preceding the Interest Payment
Date next preceding the expiration date of the existing Letter of Credit
Facility.  Nothing herein shall imply that the Bank is under any
obligation to grant any such extension.

       

      Section 2C.7.  Replacement with Alternate
Credit Facility.

       

      (a)           Upon
satisfaction of the conditions set forth in this Section, the Company may, at
the close of business on any Interest Payment Date or, if the 2008A Bonds are in
a Monthly Mode or a Term Mode, on any Conversion Date prior to the expiration
of a Letter of Credit Facility, replace such Letter of Credit Facility with an
Alternate Credit Facility which shall have terms which are the same in all
material respects (except as to Expiration Date and except any changes pursuant
to this Indenture with respect to interest or premium coverage in connection
with a concurrent interest rate reset or conversion) as the current Letter of
Credit, which shall have an Expiration Date that is not less than one year from
the date of its delivery and not sooner than the Expiration Date of the current
Letter of Credit then in effect.

       

      (b)           Prior
to the replacement of any Letter of Credit Facility, the following conditions
shall have been met:

       

      (1) The
Trustee and the Paying Agent and the Issuer shall have received from the Company
written notice of such replacement and the effective date thereof no later than
45 days (or such shorter time as may be agreed to by the Company, the Trustee,
the Paying Agent and the Remarketing Agent) preceding such replacement
date;

       

      (2) The
Trustee and the Paying Agent and the Issuer shall have received the following no
later than 25 days preceding the effective date of such
replacement:

       

      (i) An
opinion of Counsel for the issuer of the Alternate Credit Facility (which
opinion is to be delivered upon the issuance of the Alternate Credit Facility)
that such Alternate Credit Facility constitutes a legal, valid and binding
obligation of the issuer in accordance with its terms;

       

      (ii) A
Favorable Opinion of Bond Counsel with respect to such replacement;
and

       

      (iii) Written
confirmation from the issuer of the Alternate Credit Facility that it will
deliver the original Alternate Credit Facility no later than the effective date
of such replacement;

       

      (3) The
Paying Agent shall have received the original replacement Letter of Credit
Facility no later than the effective date of such replacement;

       

      (4) The
requirements of Section 2B.3 above as to mandatory tender for purchase of 2008A
Bonds secured by the Letter of Credit Facility being replaced shall have been
met; and

       

      (5) The
issuer of the Alternate Credit Facility shall have agreed to purchase, and shall
purchase on or before the replacement date, from the Bank which issued the
Letter of Credit Facility being replaced any 2008A Bonds that are Pledged Bonds
at a price equal to the principal amount thereof plus accrued unpaid interest
thereon (if any) at the Bank Rate.

       

      (c)           Upon
receipt by the Paying Agent of the Alternate Credit Facility and satisfaction of
all other conditions set forth in Section 2C.7(b)(2), the Paying Agent shall
immediately notify the issuer of the Letter of Credit Facility being replaced
that such Letter of Credit Facility will be replaced by an Alternate Credit
Facility.  On the effective date of the replacement of the Letter of
Credit Facility, the replaced Letter of Credit Facility shall be promptly
surrendered to the issuer thereof for cancellation, provided, however, that the
replaced Letter of Credit Facility shall not be surrendered until all draws
thereunder shall have been honored and the replacement Alternate Credit Facility
shall have been delivered.

       

      Section 2C.8.  Notices of Extension or
Replacement.

       

      (a) The
Paying Agent shall, at least 20 days prior to the proposed replacement of a
Letter of Credit Facility with an Alternate Credit Facility pursuant to Section
2C.7, give notice thereof to the Owners of the 2008A Bonds by mailing notice to
the Owners of such 2008A Bonds.

       

      (b) The
Paying Agent shall, within 30 days after the extension of the term of a Letter
of Credit Facility pursuant to Section 2C.6, give notice thereof by mailing
written notice to the Owners of the 2008A Bonds secured by such Letter of Credit
Facility.

       

      (c) The
Paying Agent shall promptly give notice of any proposed extension or replacement
of a Letter of Credit Facility to the Issuer, the Trustee and the Remarketing
Agent and to the Rating Service.

       

      Section 2C.9.  Other Liquidity\Credit
Enhancement:  No Liquidity Enhancement.

       

      Nothing
in this Article IIC shall limit the Company's right to provide other liquidity
or credit enhancement (such as a Letter of Credit Facility or a Letter of Credit
Facility not meeting the requirements of Section 2C.7) or no liquidity
enhancement for the 2008A Bonds if the 2008A Bonds are converted  to a
Term Mode for a Term Rate Period, the last day of which is the maturity date of
the 2008A Bonds; provided that (a) any such liquidity enhancement shall have
administrative provisions reasonably satisfactory to the Trustee and the Paying
Agent, and the Company shall have furnished to the Trustee and the Paying Agent
a Favorable Opinion of Bond Counsel with respect thereto, (b) the Company may
not terminate a Letter of Credit Facility and elect to provide liquidity for the
2008A Bonds itself unless the Bank has consented in writing thereto and the
Company shall have furnished to the Trustee and the Paying Agent a Favorable
Opinion of Bond Counsel with respect thereto, and (c) in the event the Company
elects to terminate the existing Letter of Credit Facility without providing an
Alternate Credit Facility, the Company shall purchase, on or before the
termination date of the existing Letter of Credit Facility, any 2008A Bonds that
are Pledged Bonds at a price equal to the principal amount thereof plus accrued
unpaid interest thereon (if any) at the rate determined in accordance with the
reimbursement agreement.

       

      ARTICLE
IID

      THE
REMARKETING AGENT

      

      Section 2D.1.  
Appointment.

       

      The
Issuer hereby appoints PNC Capital Markets, Inc. as Remarketing Agent under this
Indenture.  The Remarketing Agent and any successor Remarketing Agent,
by written instrument delivered to the Issuer, the Trustee, the Bank, the Paying
Agent and the Company, shall accept the duties and obligations imposed on it
under this Indenture.

       

      Section 2D.2.  Duties.

       

      In
addition to the other obligations imposed on the Remarketing Agent hereunder,
the Remarketing Agent shall agree to:

       

      (1) hold all
2008A Bonds delivered to it by the Paying Agent hereunder for delivery to the
Owners thereof,

       

      (2) hold all
moneys representing the purchase price of 2008A Bonds for delivery to the Paying
Agent pursuant hereto for the benefit of the persons entitled to receive the
payment of such purchase price; and

       

      (3) keep such
books and records as shall be consistent with prudent industry practice and make
such books and records available for inspection by the Issuer, the Trustee, the
Paying Agent, the Company and the Bank at all reasonable times.

       

      Section 2D.3.  Qualification.

       

      The
Remarketing Agent shall at all times be registered as a Municipal Securities
Dealer under the Securities Exchange Act of 1934, as amended, and authorized by
law to perform its obligations hereunder.

       

      Section 2D.4.  Resignation;
Removal.

       

      If at any
time the Remarketing Agent is unable or unwilling to act as Remarketing Agent,
the Remarketing Agent, upon 60 days' prior written notice to the Issuer, the
Trustee, the Paying Agent, the Bank and the Company, may resign.  The
Remarketing Agent may be removed at any time by the Issuer, upon the direction
of the Company, upon 60 days’ written notice signed by the Issuer and the
Company delivered to the Trustee, the Paying Agent, the Remarketing Agent and
the Bank; provided that, if the Issuer fails to deliver such notice within 10
days of the date the Company delivers to the Issuer a written direction to do so
(with copies to the Remarketing Agent, the Trustee, the Paying Agent and the
Bank), then such written notice may be signed and delivered by the Company on
its own behalf and as agent for the Issuer.  Upon resignation or
removal of the Remarketing Agent, the Company, shall appoint a successor
Remarketing Agent meeting the qualifications of Section 2D.3 and reasonably
satisfactory to the Bank and the Issuer hereby acknowledges and consents to such
appointment.  Upon the resignation or removal of the Remarketing
Agent, the Remarketing Agent shall pay over, assign and deliver any moneys and
2008A Bonds held by it pursuant to Section 2D.2 above to its
successor.  In the event that the Company shall fail to appoint a
successor Remarketing Agent, upon the resignation or removal of the Remarketing
Agent or upon its dissolution, insolvency or bankruptcy, the Issuer shall
promptly appoint a successor Remarketing Agent.  Notwithstanding
anything contained herein to the contrary, the Remarketing Agent shall not
resign or be removed unless and until a successor Remarketing Agent shall have
been appointed and the successor Remarketing Agent shall have accepted such
appointment.

       

      Section 2D.5.  Notices.

       

      The
Trustee shall, within 30 days of the resignation or removal of the Remarketing
Agent or the appointment of a successor Remarketing Agent of which it has
received notice, give notice thereof by mail to the Company, the Bank, to each
Owner and to the Rating Service.

       

      Section 2D.6.  Effect of
Defeasance.

       

      Notwithstanding
anything stated to the contrary in this Article or in Article X, no defeasance
under Article X shall relieve the Remarketing Agent of any of its duties or
obligations imposed under this Indenture or under the Remarketing
Agreement.

       

      ARTICLE
III                                

       

      DEBT
SERVICE FUND 

       

      Section
3.1. Establishment of Funds and
Accounts.

       

      The
Trustee hereby establishes at the direction of the Issuer trust funds designated
the Debt Service Fund, within which there is hereby established a Company Debt
Service Account and a Letter of Credit Debt Service Account for the benefit of
the Bondholders and which must be Eligible Accounts.

       

      Section
3.2. Debt Service
Fund.

       

      (a) The
Trustee shall maintain the Debt Service Fund as follows:

       

      (i)           The
Trustee shall deposit into the Company Debt Service Account all Installment Loan
Payments and all other amounts received by the Trustee from the Company or for
the account of the Company pursuant to Section 5.4 of the Loan Agreement, and
all payments under and pursuant to the provisions of this Indenture or any of
the provisions of the Loan Agreement, when accompanied by written directions
from the Person depositing such moneys that such moneys are to be paid into the
Debt Service Fund.

       

      (ii)           The
Trustee shall deposit into the Letter of Credit Debt Service Account all moneys
received by the Trustee from drawings under the Letter of Credit to pay
principal of, premium, if any and interest on the 2008A Bonds.

       

      (iii)           Moneys
in the Letter of Credit Debt Service Account shall be applied to the payment
when due of principal, premium, if any, and interest on the 2008A Bonds prior to
the payment of any moneys under subsection 3.2(a)(iv).

       

      (iv)           Moneys
in the Company Debt Service Account shall be applied to the following in the
order of priority indicated:

       

      (A)           if
the Bank has honored in full a draw under the Letter of Credit, to the
reimbursement of the Bank when due in accordance with the Reimbursement
Agreement for moneys drawn under the Letter of Credit and deposited in the
Letter of Credit Debt Service Account for payment of principal of, premium, if
any, on and interest on the 2008A Bonds; and

       

      (B)           when
insufficient moneys have been received under the Letter of Credit for
application pursuant to subsection 3.2(a)(iii), to the payment when due of
principal of, premium, if any, on and interest on the 2008A Bonds

       

      (b)           Before
12:00 noon, New York City time, on the Business Day immediately preceding each
Interest Payment Date, each redemption date, the payment date upon acceleration
and the Maturity Date of the 2008A Bonds, the Trustee shall present the
requisite certificate for a drawing on the Letter of Credit so as to comply with
the provisions of the Letter of Credit for payment to be made in sufficient time
for the Trustee to receive the proceeds of such drawing at or before 1:00 p.m.,
New York City time, on such Interest Payment Date, redemption date or Maturity
Date, as the case may be, to pay principal of, premium, if any, and interest on
the 2008A Bonds due on such date.  In addition, the Trustee shall draw
on the Letter of Credit pursuant to its terms in accordance with and in order to
satisfy the requirements of Section 7.[__].  Promptly upon presenting
the requisite documents for a drawing on the Letter of Credit, the Trustee shall
give notice to the Company by telephone, promptly confirmed in writing, of the
amount so drawn.  The Trustee shall promptly notify the Company by
oral or telephonic communication confirmed in writing if the Bank fails to
transfer funds in accordance with the Letter of Credit upon the presentment of
the requisite certificate.  In calculating the amount to be drawn on
the Letter of Credit for the payment of principal of, premium, if any, and
interest on the 2008A Bonds, whether on an Interest Payment Date, on a Maturity
Date or upon redemption or acceleration, the Trustee shall not take into account
the potential receipt of funds from the Company under the Loan Agreement on such
Interest Payment Date, Maturity Date, redemption date or date of acceleration or
the existence of any other moneys in the Debt Service Fund, but shall draw on
the Letter of Credit for the full amount of principal of, premium, if any, and
interest coming due on the 2008A Bonds.  If sufficient funds for the
payment of principal of, premium, if any, and interest on the 2008A Bonds are
not provided by draws on the Letter of Credit, by 1:00 p.m., New York City time,
or such Interest Payment Date, redemption date or Maturity Date, as the case may
be, then the Paying Agent shall draw funds from the Company Debt Service Account
to the extent necessary to make such payments in full.

       

      Section
3.3. [Reserved.]

       

      Section
3.4. [Reserved.]

       

      Section
3.5. Debt Service Fund Moneys to
be Held for All Registered Owners, With Certain Exceptions.

       

      Until
applied as herein provided, moneys and investments held in the Debt Service Fund
shall be held in trust for the benefit of the Registered Owners of all
Outstanding 2008A Bonds, except that on and after the date on which the interest
on or principal or redemption price of any particular 2008A Bond or 2008A Bonds
is due and payable from the Debt Service Fund, the unexpended balance of the
amount deposited or reserved in such fund for the making of such payments shall,
to the extent necessary therefor, be held for the benefit of the Registered
Owner or Registered Owners entitled thereto.

       

      Section
3.6. Additional Accounts and
Subaccounts.

       

      At the
written request of the Company, the Trustee shall establish and maintain
additional accounts or subaccounts within the Debt Service Fund as the Company
may reasonably request; provided that (a) in each  case, the written
request of the Company shall set forth in reasonable detail the sources of
deposits into and disbursements from the account or subaccount to be
established, and (b) in each case, the sources of deposits into and
disbursements from the account or subaccount to be established shall be limited
to the sources of deposits permitted or required to be made into and the
disbursements permitted or required to be made from the fund or account within
which it is to be established.

       

      ARTICLE
IV                                

       

      INVESTMENTS,
TAX COVENANTS

       

      Section
4.1. Investment of
Funds.

       

      Except as
otherwise provided herein, pending disbursement of the amounts on deposit in the
Debt Service Fund (other than any moneys held by the Trustee to pay the
principal of, premium, if any, or interest which has previously become payable
with respect to the 2008A Bonds which shall only be invested as provided below
in the next succeeding paragraph) as provided herein, the Trustee is hereby
directed to invest and reinvest such amounts in Investment Securities promptly
upon receipt of, and, subject to the limitations set forth in this Article, in
accordance with the written instructions of the Company.  In the event
no such instructions are received by the Trustee, such amounts shall be invested
in Investment Securities described in clause (g) of the definition thereof,
pending receipt of such investment instructions.  All such
investments, as well as the investments described in the next succeeding
paragraph, shall be credited to the fund (and account and subaccount therein)
from which the money used to acquire such investments shall have come, and all
income and profits on such investments shall be credited to, and all losses
thereon shall be charged against, such fund (and account and subaccount
therein).  As amounts invested are needed for disbursement from the
Debt Service Fund, the Trustee shall cause a sufficient amount of the
investments credited to that fund to be redeemed or sold and converted into cash
to the credit of that fund (and account and subaccount therein).  The
Trustee shall not be liable or responsible for any loss resulting from any such
investment or reinvestment or redemption or sale as herein authorized; except
that the Trustee shall be liable for any loss resulting from its willful or
grossly negligent failure, within a reasonable time after  receiving
the direction from the Company to make any investment or reinvestment in the
manner provided for herein at the Company’s direction.  If the Trustee
is unable, after reasonable effort and within a reasonable time, to make any
such investment or reinvestment, it shall so notify the Company in writing and
thereafter the Trustee shall be relieved of all responsibility with respect
thereto.  The Trustee may make any and all such investments through
its own investment department or that of its affiliates or
subsidiaries.

       

      Notwithstanding
anything to the contrary contained herein: (1) any moneys held by the Trustee to
pay the principal of, premium, if any, or interest which has previously become
payable with respect to the 2008A Bonds shall only be invested by the Trustee
overnight in United States Government Obligations or other Investment Securities
rated AAA or Aaa by each Rating Agency then rating the 2008A Bonds as directed
in writing by the Company; and (2) moneys deposited in the Letter of Credit
Purchase Account or the Remarketing Proceeds Purchase Account shall not be
invested but shall be held uninvested without the Trustee or the Paying Agent
having any liability for interest in their respective accounts pending
application.

       

      The
Company by its execution of the Loan Agreement covenants to restrict the
investment of money in the funds created under this Indenture in such manner and
to such extent, if any, as may be necessary, after taking into account
reasonable expectations at the time the 2008A Bonds are delivered to their
original purchaser, so that the 2008A Bonds will not constitute arbitrage 2008A
Bonds under Section 148 of the Code and the Regulations, and the Trustee
hereby agrees to comply with the Company’s written instructions with respect to
the investment of money in the funds created under this Indenture so long as
such instructions conform to the requirements of the Indenture.

       

      Notwithstanding
the foregoing, the Company will not direct the Trustee to make investments under
this Indenture that conflict with or exceed the limitations set forth in the Tax
Documents.  The Trustee shall have no responsibility with respect to
the compliance by the Company or the Issuer with respect to any covenant herein
regarding investments made in accordance with this Article, other than to use
its best reasonable efforts to comply with instructions from the Company
regarding such investments.  Since the investments permitted by this
Section have been included at the request of the Company and the making of such
investments will be subject to the Company’s written direction, the Issuer and
the Trustee specifically disclaim and shall not have any obligation to the
Company for any loss arising from, or tax consequences of, investments pursuant
to the provisions of this Section.  Confirmations are not required
from the Trustee for permitted investments included in a monthly statement
rendered by the Trustee, and no statement need be rendered by the Trustee for
any fund or account if no investment or income accrual activity occurred in such
fund or account during such month.

       

      Section
4.2. Arbitrage Bond Covenant.

       

      With
respect to the authority to invest funds granted in this Indenture, the Issuer
hereby covenants with the Bondholders that, subject to the Company’s direction
of the investment of funds, it will make no use of the proceeds of the 2008A
Bonds, or any other funds which may be deemed to be proceeds of the 2008A Bonds
pursuant to Section 148 of the Code, which would cause the 2008A Bonds to
be "arbitrage bonds" within the meaning of such Section.

       

      The
Trustee shall provide such information as the Company may reasonably request in
writing to enable the Company to calculate the amount of earnings on the moneys
held under this Indenture.

       

      Section
4.3. Covenants Regarding Tax
Exemption.

       

      The
Issuer covenants to refrain from any action which would adversely affect, or to
take such action as is reasonable and available and within its control to
assure, the treatment of the 2008A Bonds as obligations described in
Section 103(a) of the Code, the interest on which is not included in the
"gross income" of the holder (other than the income of a "substantial user" of
the Project Facilities or a "related person" within the meaning of
Section 147(a) of the Code) for purposes of federal income
taxation.

       

      ARTICLE
V                                

       

      REDEMPTION
OF 2008A BONDS

       

      Section
5.1. 2008A Bonds Subject to
Redemption; Selection of 2008A Bonds for Redemption.

       

      The 2008A
Bonds are subject to redemption prior to maturity as provided below and in the
form of 2008A Bonds attached hereto as Exhibit A.  Except as otherwise
provided herein or in the 2008A Bonds, if less than all the 2008A Bonds are to
be redeemed, the particular 2008A Bonds to be called for redemption shall be
selected by lot or by such other method as the Paying Agent deems fair and
appropriate; provided that any Pledged Bonds shall be redeemed
first.  The Paying Agent shall treat any 2008A Bond while in the Daily
Mode, the Weekly Mode or the Monthly Mode of a denomination greater than
$100,000 as representing that number of separate 2008A Bonds each of the
denomination of $5,000 as can be obtained by dividing the actual principal
amount of such 2008A Bond by $5,000, but not in any event in a denomination
smaller than $100,000.  While the 2008A Bonds are in a Term Mode, the
Paying Agent shall treat any 2008A Bond of a denomination greater than $5,000 as
representing that number of separate 2008A Bonds each of the denomination of
$5,000 as can be obtained by dividing the actual principal amount of such 2008A
Bond by $5,000.  The Issuer, at the direction of the Company, shall
direct the Paying Agent to call 2008A Bonds for optional redemption when and
only when and to the extent that (a) the Company has itself notified the Trustee
and the Paying Agent of a corresponding prepayment made or proposed to be made
under the Loan Agreement or (b) there are otherwise sufficient moneys in the
Debt Service Fund to redeem the 2008A Bonds pursuant to Article
X.  Notice of any optional redemption shall specify the principal
amount of 2008A Bonds to be redeemed and the redemption date.  The
Issuer shall furnish the Company with a copy of the direction to the Paying
Agent.

       

      Section
5.2. Notice of
Redemption.

       

      (a) When
required to redeem 2008A Bonds under any provision of this Indenture, or when
directed to do so by the Issuer at the direction of the Company except in the
case of redemption of Pledged Bonds as provided in Section 5.8, the Paying Agent
shall cause notice of the redemption to be given not more than 60 days and not
less than 15 days prior to the redemption date by mailing copies of such notice
of redemption by first-class mail, postage prepaid, to all Owners of 2008A Bonds
to be redeemed at their registered addresses and also to the Rating Service, and
to The Bond Buyer, or
their respective successors, if any, but failure to mail any such notice or
defect in the mailing thereof in respect of any 2008A Bond shall not affect the
validity of the redemption of any other 2008A Bond with respect to which notice
was properly given.  Each such notice shall be dated and shall be
given in the name of the Issuer and shall state the following
information:

       

      (1) the
identification numbers, as established under the Indenture, and the CUSIP
numbers, if any, of the 2008A Bonds being redeemed, provided that any such
notice shall state that no representation is made as to the correctness of CUSIP
numbers either as printed on such 2008A Bonds or as contained in the notice of
redemption and that reliance may be placed only on the identification numbers
contained in the notice or printed on such 2008A Bonds;

       

      (2) any other
descriptive information needed to identify accurately the 2008A Bonds being
redeemed, including, but not limited to, the Issue Date and maturity date of,
and interest rate on, such 2008A Bonds;

       

      (3) in the
case of partial redemption of any 2008A Bonds, the principal amount thereof to
be redeemed;

       

      (4) the
redemption date;

       

      (5) the
redemption price;

       

      (6) that on
the redemption date the redemption price will become due and payable upon each
such 2008A Bond or portion thereof called for redemption, and that interest
thereon shall cease to accrue from and after said date; and

       

      (7) the place
where such 2008A Bonds are to be surrendered for payment of the redemption
price, which place of payment shall be the Payment Office of the Paying
Agent.

       

      In
addition, the Paying Agent shall at all reasonable times make available to the
Issuer, the Company, the Bank and the Remarketing Agent complete information as
to 2008A Bonds which have been redeemed or called for redemption.

       

      (b) In
addition to the foregoing notice, further notice of any redemption of 2008A
Bonds hereunder shall be given by the Paying Agent, on the day of the mailed
notice to Bondholders, by registered or certified mail or overnight delivery
service to Financial Information, Inc.'s "Daily Called 2008A Bond Service", 30
Montgomery Street, 10th Floor, Jersey City, New Jersey 07302, Attention: Editor;
Kenny Information Service's "Called 2008A Bond Service", 55 2008A Bond Street,
28th Floor, New York, New York 10004; Moody's "Municipal and Government", 99
Church Street, 8th Floor, New York, New York 10007, Attention: Municipal News
Report; and Standard and Poor's "Called 2008A Bond Record", 26 Broadway, 3rd
Floor, New York, New York 10004; or, in accordance with then-current guidelines
of the Securities and Exchange Commission, to such other addresses and/or such
other services, as the Issuer may designate in writing with respect to the 2008A
Bonds, including any nationally recognized municipal securities information
repository to which the Issuer and/or the Company is required to file
information or notices under SEC Rule 15c2-12 or any successor rule, or no such
services, as the Issuer may designate in a certificate of the Issuer delivered
to the Paying Agent and the Trustee.  Such further notice shall
contain the information required in clause (a) above.  Failure to give
all or any portion of such further notice shall not in any manner defeat the
effectiveness of a call for redemption if notice thereof is given to the
Bondholders as prescribed in clause (a) above.

       

      (c) If at the
time of mailing of notice of any optional redemption there shall not have been
deposited moneys in the Debt Service Fund available for payment pursuant to
Section 3.2(b) sufficient to redeem all the 2008A Bonds called for redemption,
such notice shall state that it is conditional in that it is subject to the
deposit of the moneys in the Debt Service Fund available for such payment
pursuant to Section 3.2(b) not later than the redemption date, and such notice
shall be of no effect unless such moneys are so deposited.

       

      Section
5.3. Effect of
Redemption.

       

      If the
redemption price of the 2008A Bonds has been paid to the Trustee in immediately
available funds on or before the redemption date, then interest thereon will
cease to accrue, and the Registered Owners will have no rights with respect to
such 2008A Bonds nor will they be entitled to the benefits of the Indenture
except to receive payment of the redemption price thereof and unpaid interest
accrued (if any) to the date fixed for redemption.

       

      Section
5.4. Purchase in Lieu of
Redemption.

       

      Notwithstanding
anything to the contrary contained herein, the Company may elect to purchase
from the Owners any 2008A Bonds that have been called for redemption under
Section 5.6 hereof on the redemption date by giving the Trustee and the
Issuer written notice at least two (2) Business Days prior to the date the 2008A
Bonds are to be redeemed.  The principal amount of 2008A Bonds to be
redeemed on the applicable redemption date shall be reduced by the amount of
2008A Bonds so purchased.  With respect to (i) 2008A Bonds which
have been called for redemption under Section 5.7 hereof, the Company (or
any Person acting on its behalf) cannot remarket such 2008A Bonds as tax exempt
2008A Bonds until the Company delivers to the Issuer and the Trustee an opinion
of Bond Counsel that the interest on the 2008A Bonds to be remarketed is not
includable in the gross income of the owners or Beneficial Owners thereof for
federal income tax purposes except for interest on any 2008A Bond for any period
during which such 2008A Bond is owned by a person who is a "substantial user" of
the Project Facilities or any person considered to be related to such person
within the meaning of Section 147(a) of the Code, or (ii) any 2008A
Bonds called for redemption under Section 5.6 hereof, the Company (or any
Person acting on its behalf) cannot remarket such 2008A Bonds until the Company
delivers to the Issuer and the Trustee an opinion of counsel that none of the
2008A Bonds or the Loan Agreement are subject to registration under the
Securities Act of 1933, as amended.

       

      Section
5.5. Payment of Redemption Price;
2008A Bonds Redeemed in Part.

       

      If (a)
unconditional notice of redemption has been duly given or duly waived by the
Owners of all 2008A Bonds called for redemption or (b) conditional notice of
redemption has been so given or waived and the moneys have been duly deposited
with the Paying Agent sufficient to make such redemption, then in either such
case the 2008A Bonds called for redemption shall be payable on the redemption
date at the applicable redemption price.  Payment of the redemption
price together with accrued interest (if any) shall be made by the Paying Agent,
out of Available Moneys, to or upon the order of the Owners of the 2008A Bonds
called for redemption upon surrender of such 2008A Bonds to the Payment Office
of the Paying Agent.  Upon the payment of the redemption price of
2008A Bonds being redeemed, each check or other transfer of funds issued for
such purpose shall bear the CUSIP number, if any, identifying by issue and
maturity, the 2008A Bonds being redeemed with the proceeds of such check or
other transfer.  So long as a Letter of Credit Facility is held by the
Paying Agent for 2008A Bonds, upon redemption of less than all of the 2008A
Bonds pursuant to this Indenture, the Paying Agent shall take such action as may
be permitted under the Letter of Credit Facility securing the 2008A Bonds to
reduce the amount available thereunder as required by Section 2C.3, and, upon a
redemption of all of the Outstanding 2008A Bonds pursuant to this Indenture,
shall surrender the Letter of Credit Facility securing the 2008A Bonds to the
Bank for cancellation.

       

      Any 2008A
Bond which is to be redeemed only in part shall be surrendered at a place stated
for the surrender of 2008A Bonds called for redemption in the notice provided
for in Section 5.2 (with due endorsement by, or a written instrument of transfer
in form satisfactory to the Paying Agent duly executed by, the Owner thereof or
his attorney duly authorized in writing and with guaranty of signatures
satisfactory to the Paying Agent) and the Issuer shall execute and the Trustee
shall authenticate and deliver to the Owner of such 2008A Bond without service
charge, a new 2008A Bond or 2008A Bonds, of the same series in any Authorized
Denomination as requested by such Owner in aggregate principal amount equal to
and in exchange for the unredeemed portion of the principal of the 2008A Bond so
surrendered.

       

      Section
5.6. Optional
Redemption.

       

      (a) While the
2008A Bonds are in the Daily Mode, Weekly Mode or Monthly Mode, the 2008A Bonds
may be redeemed by the Issuer, at the direction of the Company, in whole at any
time or in part on any Interest Payment Date, prior to maturity at a redemption
price equal to 100% of the principal amount thereof plus accrued interest (if
any) to the redemption date.

       

      (b) While the
2008A Bonds are in a Term Mode, the 2008A Bonds shall be subject to optional
redemption prior to maturity by the Issuer, at the direction of the Company,
only (i) in whole or in part on a Term Rate Period End Interest Payment Date at
a redemption price equal to 100% of the principal amount thereof plus accrued
interest (if any) to the redemption date or (ii) prior to the end of the then
current Term Rate Period in whole at any time or in part on any Interest Payment
Date, provided that the 2008A Bonds shall not be redeemable during the No Call
Period shown below, which shall begin on the first day of the current Term Rate
Period.  In each Term Rate Period, after the applicable No Call
Period, the 2008A Bonds shall be redeemable at the percentage of their principal
amount shown below in the Initial Premium column plus accrued interest (if any)
to the redemption date.  The premium shall decline semiannually by the
amount shown below in the Semiannual Reduction in Premium column until they
shall be redeemable without premium in the year indicated in the No Premium
After column and for any later years or periods in the respective Term Rate
Period.

       

      Term Rate
Period

      

      
        	
                Equal
      to or Greater
      Than

              	
                But
      Less

                Than

              	
                No
      Call

                Period

              	
                Initial
      Premium

              	
                Semiannual
      Reduction in Premium

              	
                No
      Premium After

              
	
                10
      Years

                8
      Years

                6
      Years

              	
                 N/A

                10
      Years

                8
      Years

              	
                8
      Years

                5
      Years

                3
      Years

              	
                102%

                101%

                100%

              	
                1⁄2%

                1⁄2%

              	
                10th
      year

                6th
      year

              

      

      

      (c) Notwithstanding
anything to the contrary in this Section 5.6: (i) 2008A Bonds which are in a
Term Mode for a Term Rate Period of less than six years shall not be subject to
optional redemption; and (ii) the Issuer may only call 2008A Bonds for any
redemption pursuant to this Section 5.6 if the Paying Agent has moneys
constituting (or which, in the case of a conditional call pursuant to Section
5.2(c) are expected to constitute) Available Moneys sufficient to effect such
redemption.

       

      Section
5.7. Special Mandatory
Redemption.

       

      The 2008A
Bonds are subject to Special Mandatory Redemption prior to maturity not later
than 180 days after the Company has notice or actual knowledge of the occurrence
of a Determination of Taxability at a redemption price equal to 100% of the
principal amount thereof, plus accrued interest, if any, to the redemption date,
but such redemption shall only be effected with Available Moneys.  Any
such Special Mandatory Redemption shall be in whole unless the Company delivers
to the Trustee an opinion of Bond Counsel that redemption of a portion of the
Outstanding 2008A Bonds would have the result that interest payable on the 2008A
Bonds remaining Outstanding after such redemption would not be includable for
federal income tax purposes in the gross income of any owner or Beneficial Owner
of a 2008A Bond (other than an owner or Beneficial Owner who is a "substantial
user" of the Project Facilities or a "related person" within the meaning of
Section 147(a) of the Code and the applicable regulations thereunder), and
in such event the 2008A Bonds or portions thereof (in Authorized Denominations)
shall be redeemed at such times and in such amounts as Bond Counsel shall so
direct in such opinion.

       

      If the
Trustee receives written notice from any Owner stating that (i) the Owner
has been notified in writing by the Internal Revenue Service that it proposes to
include the interest on any 2008A Bond in the gross income of such Owner for the
reasons stated in the definition of "Determination of Taxability" set forth
herein or any other proceeding has been instituted against such Owner which may
lead to a Final Determination, and (ii) such Owner will afford the Company
the opportunity to contest the same, either directly or in the name of the
Owner, and until a conclusion of any appellate review, if sought, then the
Trustee shall promptly give notice thereof to the Company and the Issuer and to
the Owners of 2008A Bonds then Outstanding.  If the Trustee thereafter
receives written notice of a Final Determination, the Trustee shall make demand
for prepayment of the unpaid Installment Loan Payments under the Loan Agreement
or necessary portions thereof from the Company and, only upon receipt of such
prepayment constituting Available Moneys, give notice of the Special Mandatory
Redemption of the appropriate amount of 2008A Bonds on the earliest practicable
date within the required period of 180 days.  In taking any action or
making any determination under this Section 5.1(b), the Trustee may rely on
an opinion of counsel.

       

      Section
5.8. [Reserved.]

       

      ARTICLE
VI                                

       

      REPRESENTATIONS
AND COVENANTS OF THE ISSUER

       

      Section
6.1. General Limitation; Issuer’s
Representation.

       

      The
representations and covenants of the Issuer herein and in any proceeding,
document or certification incidental to issuance of the 2008A Bonds shall not
create a pecuniary liability of the Issuer, except to the extent of the Trust
Estate.  The Issuer represents and covenants that it has made no
pledge, assignment or other conveyance of its rights, title and interest in the
Trust Estate except to the Trustee as provided herein.

       

      Section
6.2. Payment of 2008A Bonds and
Performance of Covenants.

       

      The
Issuer shall, but only out of the Revenues, promptly pay the principal of,
premium, if any, and interest on the 2008A Bonds at the place, on the dates and
in the manner provided in the 2008A Bonds.  The Issuer shall promptly
perform and observe all of its other covenants, undertakings and obligations set
forth in the Financing Documents.

       

      Section
6.3. Enforcement of the Loan
Agreement.

       

      The Loan
Agreement, a duly executed counterpart of which has been filed with the Trustee,
sets forth the covenants and obligations of the Company, including provisions
that the Loan Agreement may only be amended with the written consent of the
Trustee, and reference is hereby made to the Loan Agreement for a statement of
such covenants and obligations of the Company.  Subject to
Section 6.4 hereof and the enforcement of Unassigned Issuer’s Rights by the
Issuer, the Trustee may enforce against the Company or any Person any rights of
the Issuer or obligations of the Company under or arising from the 2008A Bonds
or the Loan Agreement, whether or not the Issuer is in default hereunder or
under the 2008A Bonds, but the Trustee shall not be deemed to have thereby
assumed the obligations of the Issuer under the Loan Agreement.  The
Issuer shall fully cooperate with the Trustee in the enforcement by the Trustee
of any such rights.

       

      Section
6.4. No Personal
Liability.

       

      No
member, officer or employee of the Issuer, including any person executing this
Indenture or the 2008A Bonds and no individual employee or agent of the Company
shall be liable personally on the 2008A Bonds or be subject to any personal
liability for any reason relating to the issuance of the 2008A
Bonds.

       

      Section
6.5. Exemption from Federal
Income Taxation.

       

      The
Issuer will not knowingly take any action, or omit to take any action, which
action or omission will adversely affect the exclusion from gross income for
federal income tax purposes of interest on the 2008A Bonds, and in the event of
such action or omission will promptly, upon receiving knowledge thereof, take
all lawful actions, based on advice of counsel and at the expense of the
Company, as may rescind or otherwise negate such action or
omission.

       

      Section
6.6. Corporate Existence;
Compliance with Laws.

       

      The
Issuer shall maintain its corporate existence; shall use its best efforts to
maintain and renew all its rights, powers, privileges and franchises; and shall
comply with all valid and applicable laws, rules, regulations, orders,
requirements and directions of any legislative, executive, administrative or
judicial body relating to the Issuer’s participation in the financing of the
Project, the issuance of the 2008 2008A Bonds or its execution, delivery and
performance of this Indenture and the Loan Agreement.

       

      Section
6.7. Filings.

       

      The
Issuer shall cause this Indenture or financing statements relating hereto to be
filed, in such manner and at such places as may be required by law fully to
protect the security of the Registered Owners and the right, title and interest
of the Trustee in and to the Trust Estate or any part thereof.  From
time to time, the Trustee may, but shall not be required to, obtain an opinion
of counsel setting forth what, if any, actions by the Issuer or Trustee should
be taken to preserve such security.  The Issuer shall execute or cause
to be executed any and all further instruments as shall reasonably be requested
by the Trustee for such protection of the interests of the Registered Owners and
shall furnish satisfactory evidence to the Trustee of filing and refiling of
such instruments and of every additional instrument which shall be necessary to
preserve the lien of the Indenture upon the Trust Estate or any part thereof
until the principal, redemption price or purchase price of, and interest on the
2008A Bonds issued hereunder shall have been paid in full.  The Issuer
shall cause to be prepared, and the Trustee shall execute or join in the
execution of, any such further or additional instrument and file or join in the
filing thereof at such time or times and in such place or places as it may be
advised by an opinion of counsel to preserve the lien of this Indenture upon the
Trust Estate or any part thereof until the aforesaid
principal,  redemption price, purchase price and interest shall have
been paid.

       

      Section
6.8. Further
Assurances.

       

      Except to
the extent otherwise provided in this Indenture, the Issuer shall not enter into
any contract or take any action by which the rights of the Trustee or the
Registered Owners may be impaired and shall, from time to time, execute and
deliver such further instruments and take such further action as may be required
to carry out the purposes of this Indenture.

       

      Section
6.9. Inspection of
Books.

       

      All books
and records, if any, in the Issuer’s possession relating to the Project and the
amounts derived from the Project and the Project Facilities shall, upon written
request and at all reasonable times, be open to inspection by such accountants
or other agents as the Trustee may from time to time designate.

       

      ARTICLE
VII                                

       

      EVENTS
OF DEFAULT AND REMEDIES

       

      Section
7.1. Events of Default
Defined.

       

      (a) Each of
the following shall be an Event of Default hereunder:

       

      (i) Payment
of any installment of interest, principal or premium, if any, on the 2008A
Bonds, or the purchase price on any 2008A Bond tendered pursuant to Article IIB,
is not made when due and payable; or

       

      (ii) An Act of
Bankruptcy shall occur; or

       

      (iii) Failure
by the Issuer to observe or perform any covenant, condition or agreement on its
part to be observed or performed under this Indenture, other than as referred to
in (i) above, for a period of 60 days after written notice is given to the
Issuer, specifying such failure and requesting that it be remedied, by the
Trustee; provided, however, that if the failure stated in the notice is such
that it can be remedied but not within such 60-day period, it shall not
constitute an Event of Default if the default, in the judgment of the Trustee in
reliance upon advice of counsel, is correctable without material adverse effect
on the Bondholders and if corrective action is instituted by the Issuer within
such period and is diligently pursued until the default is remedied;
or

       

      (iv) The
occurrence of an Event of Default under the Loan Agreement; or

       

      (v) Receipt
by the Trustee of a written notice from the Bank stating that an event of
default has occurred under the Reimbursement Agreement and directing the Trustee
to declare the principal of the outstanding 2008A Bonds immediately due and
payable; or

       

      (vi) Receipt
by the Trustee of a written notice from the Bank pursuant to the Letter of
Credit that amounts available to pay interest under the Letter of Credit will
not be reinstated following a drawing thereunder to pay interest;
or

       

      (vii) Receipt
by the Trustee of a written notice from the Bank, stating that an event of
default has occurred under the Reimbursement Agreement and directing that all of
the 2008A Bonds be required to be tendered for purchase pursuant to Section
2B4.

       

      (b) The
Trustee shall promptly notify the Issuer, the Company and the Bank in writing of
the occurrence of any Event of Default after it receives written notice or has
actual knowledge of such occurrence.

       

      (c) Force Majeure.  The
provisions of Section 7.1(a)(iii) hereof and Section [8.1(b)(vi)] of
the Loan Agreement are subject to the following limitations:  if by
reason of acts of God; strikes, lockouts or other industrial disturbances; acts
of public enemies; orders of any kind of the Government of the United States or
of the Commonwealth or any department, agency, political subdivision, court or
official of any of them, or any civil or military authority; insurrections;
riots; epidemics; landslides; lightning; earthquakes; volcanoes; fires;
hurricanes; tornadoes; storms; blue northers; floods; washouts; droughts;
restraint of government and people; civil disturbances; explosions; breakage or
accident to machinery; partial or entire failure of utilities; or any cause or
event not reasonably within the control of either the Company or the Issuer, the
Company is unable in whole or in part to carry out any one or more of its
agreements or obligations contained in the Loan Agreement (other than its
obligations under [Sections 6.4 through 6.6, 6.10, 7.1, 7.2 and 8.3
thereof]) or the Issuer is unable in whole or in part to carry out any one or
more of its agreements or obligations contained in this Indenture (other than
its obligations to pay the principal of, and premium, if any, and interest on
the 2008A Bonds as herein provided), neither the Company nor the Issuer shall be
deemed in default by reason of not carrying out said agreement or agreements or
performing said obligation or obligations during the continuance of such
inability.  Both the Company and the Issuer shall make commercially reasonable
efforts to remedy with all reasonable dispatch the cause or causes preventing
them from carrying out their respective agreements; provided, that the
settlement of strikes, lockouts and other industrial disturbances shall be
entirely within the discretion of the Company, and the Company shall not be
required to make settlement of strikes, lockouts and other disturbances by
acceding to the demands of the opposing party or parties when such course is in
the judgment of the Company unfavorable to the Company.

       

      Section
7.2. Acceleration and Annulment
Thereof.

       

                            If
any Event of Default occurs and is continuing, the Trustee (with the written
consent of the Bank) may, and upon written request of the Registered Owners of
at least 25% in principal amount of all 2008A Bonds then Outstanding (and, so
long as the Bank has not wrongfully dishonored any drawing under the Letter of
Credit, with the written consent of the Bank), or with respect to an Event of
Default under subsection 7.1(a)(v), (vi) or (vii) hereof, shall, by notice in
writing to the Issuer, the Bank and the Company, declare the principal of all
2008A Bonds then Outstanding to be immediately due and payable; and upon such
declaration the said principal, together with interest accrued thereon to the
date of such declaration, shall become due and payable immediately at the place
of payment provided therein, anything in the Indenture or in the 2008A Bonds to
the contrary notwithstanding.  Upon the occurrence of any acceleration
hereunder, the Trustee shall immediately declare all payments under the Loan
Agreement pursuant to Section 5.4 thereof to be due and payable
immediately.

       

      Immediately after any acceleration
hereunder, the Trustee, to the extent it has not already done so, shall notify
in writing the Issuer, the Company, the Paying Agent, the Bank, and the
Remarketing Agent of the occurrence of such acceleration.  Upon the
occurrence of any acceleration hereunder, the Trustee shall notify by first
class mail, postage prepaid, the owners of all Outstanding 2008A Bonds of the
occurrence of such acceleration.

       

      Upon any such declaration hereunder,
the Trustee shall immediately, on the date of such declaration, draw upon the
Letter of Credit to the full extent permitted by the terms thereof (such drawing
to include amounts in respect of interest accruing on the 2008A Bonds through
the date of declaration).  Upon receipt by the Trustee of payment of
the full amount drawn on the Letter of Credit and provided sufficient moneys are
available in the Bond Fund to pay pursuant to Section 3.2 all sums due on the
2008A Bonds, (i) interest on the 2008A Bonds shall cease to accrue on the date
of such declaration and (ii) the Bank shall succeed to and be subrogated to the
right, title and interest of the Trustee and the Registered Owners in and to the
Loan Agreement, all funds held under this Indenture (except any funds held in
the Debt Service Fund or the Letter of Credit Purchase Account which are
identified for the payment of the 2008A Bonds or of the purchase price of
undelivered 2008A Bonds) and any other security held for the payment of the
2008A Bonds, all of which, upon payment of any fees and expenses due and payable
to the Trustee pursuant to the Loan Agreement or this Indenture, shall be
assigned by the Trustee to the Bank.

       

      If, after the principal of the 2008A
Bonds has become due and payable, all arrears of interest upon the 2008A Bonds
are paid by the Issuer, and the Issuer also performs all other things in respect
to which it may have been in default hereunder and pays the reasonable charges
of the Trustee and the Registered Owners, including reasonable and necessary
attorneys' fees and expenses, then, and in every such case, the owners of a
majority in principal amount of the 2008A Bonds then Outstanding, by notice to
the Issuer and to the Trustee, may annul such acceleration and its consequences,
and such annulment shall be binding upon the Trustee and upon all owners of
2008A Bonds issued hereunder; provided that there shall be no annulment of any
declaration resulting from (A) any Event of Default specified in subsection
7.1(a)(v) or 7.1(a)(vii) without the prior written consent of the Bank, which
consent shall (i) rescind the Event of Default under the Reimbursement
Agreement; (ii) rescind
the notice of such Event of Default; and (iii) reinstate the Letter of
Credit, and (B) any Event of Default which has resulted in a drawing
under the Letter of Credit or any Event of Default specified in Section
7.1(a)(vi) unless the Trustee has received written notice from the Bank that the
Letter of Credit has been fully reinstated and that the expiration event has
been rescinded and notice of
the event of default under the reimbursement agreement has been rescinded
or an Alternate Credit Facility has been provided pursuant to Section 2C7
hereof.  No such annulment shall extend to or affect any subsequent
default or impair any right or remedy consequent thereon.  The Trustee
shall forward a copy of any notice from Registered Owners received by it
pursuant to this paragraph to the Company.  Immediately upon such
annulment, the Trustee shall cancel, by notice to the Company, any demand for
prepayment of all amounts due under the Loan Agreement made by the Trustee
pursuant to this Section.  The Trustee shall promptly give written
notice of such annulment to the Issuer, the Company, the Paying Agent, the
Remarketing Agent, and, if notice of the acceleration of the 2008A Bonds shall
have been given to the Registered Owners, shall give notice thereof to the
Registered Owners.

       

      Section
7.3. Legal Proceedings by
Trustee.

       

      If any
Event of Default has occurred and is continuing, the Trustee in its discretion
may, and upon the written request of the Registered Owners of 25% or more in
principal amount of the 2008A Bonds then Outstanding and receipt of indemnity to
its sole satisfaction shall (and, so long as the Bank has not wrongfully
dishonored any drawing under the Letter of Credit, with the written consent of
the Bank), in its own name;

       

      (a) By
mandamus, or other suit, action or proceeding at law or in equity, enforce all
rights of the Registered Owners, including the right to require the Issuer or
the Company to carry out any other agreements with, or for the benefit of, the
Registered Owners;

       

      (b) Bring
suit upon the 2008A Bonds;

       

      (c) By action
or suit in equity require the Issuer to account as if it were the trustee of an
express trust for the Registered Owners; and

       

      (d) By action
or suit in equity enjoin any acts or things which may be unlawful or in
violation of the rights of the Registered Owners.

       

      Section
7.4. Discontinuance of
Proceedings by Trustee.

       

      If any
proceeding taken by the Trustee on account of any default is discontinued or is
determined adversely to the Trustee, then the Issuer, the Trustee, the Company
and the Registered Owners shall be restored to their former positions and rights
hereunder as though no such proceeding had been taken.

       

      Section
7.5. Registered Owners May Direct
Proceedings.

       

      The
Registered Owners of a majority in principal amount of the 2008A Bonds then
Outstanding hereunder shall have the right to direct the method and place of
conducting all remedial proceedings by the Trustee hereunder; provided that the
Trustee shall have the right to decline to follow any such direction if the
Trustee, upon advice of counsel, determines that the action so directed may not
be lawfully taken or if the Trustee in good faith determines that the action so
directed might involve the Trustee in personal liability or might unduly
prejudice the interests of the Registered Owners not parties to such direction,
it being understood that the Trustee has no duty to ascertain whether or not
such actions so directed are unduly prejudicial to such Registered
Owners.

       

      Section
7.6. Limitations on Actions by
Registered Owners.

       

      No
Registered Owner shall have any right to pursue any remedy hereunder unless
(a) the Trustee shall have been given written notice of an Event of Default
or the Trustee is deemed to have notice as provided in Section 8.3(h),
(b) the Registered Owners of at least 25% in principal amount of the 2008A
Bonds then Outstanding shall have requested the Trustee, in writing, to exercise
the powers hereinabove granted or to pursue such remedy in its or their name or
names, (c) the Trustee shall have been offered indemnity satisfactory to it
against costs, expenses and liabilities, and (d) the Trustee shall have
failed to comply with such request within a reasonable time; it being understood
and intended that no one or more Registered Owners shall have any right in any
manner whatsoever to affect, disturb or prejudice the lien of this Indenture by
its, his or their action or to enforce any right hereunder except in the manner
herein provided, and that all proceedings at law or in equity shall be
instituted, had and maintained in the manner herein provided and for the equal
and ratable benefit of the owners of all 2008A Bonds then
Outstanding.  Nothing contained in this Indenture, however, shall
affect or impair the right of any Registered Owner to enforce the payment of the
principal of, premium, if any, and interest on any 2008A Bond at and after the
maturity thereof, or the obligation of the Issuer to cause the payment of the
principal of, premium, if any, and interest on each of the 2008A Bonds issued
hereunder to the respective owners thereof on the date, at the place, from the
source and in the manner in the 2008A Bonds expressed.

       

      Section
7.7. Trustee May Enforce Rights
Without Possession of 2008A Bonds.

       

      All
rights under this Indenture and the 2008A Bonds may be enforced by the Trustee
without the possession of any 2008A Bonds or the production thereof at the trial
or other proceedings relative thereto, and any proceeding instituted by the
Trustee shall be brought in its name for the ratable benefit of the Registered
Owners of the 2008A Bonds.

       

      Section
7.8. Remedies Not
Exclusive.

       

      Except as
limited under Section 11.1 of this Indenture, no remedy herein conferred is
intended to be exclusive of any other remedy or remedies, and each remedy is in
addition to every other remedy given hereunder or now or hereafter existing at
law or in equity or by statute.

       

      Section
7.9. Delays and Omissions Not to
Impair Rights.

       

      No delay
or omission in respect of exercising any right or power accruing upon any
default shall impair such right or power or be a waiver of such default, and
every remedy given by this Article may be exercised from time to time and as
often as may be deemed expedient.

       

      Section
7.10. Application of Moneys in
Event of Default.

       

      Any moneys received by the Trustee
under this Article shall be applied in the following order; provided, however,
that all moneys received by the Trustee pursuant to any drawing made upon the
Letter of Credit pursuant to Section 7.2 shall be applied by the Trustee to and
only to the payment of principal of and interest on the 2008A
Bonds:

       

      (a)           To
the payment of the reasonable costs and expenses of the Trustee, including
reasonable counsel fees and expenses, any disbursements of the Trustee with
interest thereon at the prime rate of the Trustee (or its primary banking
Affiliate) and its reasonable compensation; and

       

      (b)           To
the payment of principal or redemption price (as the case may be) and interest
then owing on the 2008A Bonds, and in case such moneys shall be insufficient to
pay the same in full, then to the payment of principal or redemption price and
interest ratably, without preference or priority of one over another or of any
installment of interest over any other installment of interest; and

       

      (c)           To
the payment of reasonable costs and expenses of the Issuer, including reasonable
counsel fees and expenses, incurred in connection with the Event of
Default.

       

      The
surplus, if any, shall to the extent of any unreimbursed drawing under the
Letter of Credit, or other obligations owing to the Bank under the Reimbursement
Agreement, in either event, as certified to the Trustee by the Bank, be paid to
the Bank, and any remaining amounts shall be paid to the
Company.  Funds on deposit in the Letter of Credit Purchase Account
shall be applied in accordance with Section 2B hereof.

       

      Section
7.11. Trustee’s Right to
Receiver.

       

      The
Trustee shall be entitled as of right to the appointment of a receiver; and the
Trustee, the Registered Owners and any receiver so appointed shall have such
rights and powers and be subject to such limitations and restrictions as are
permitted by law.

       

      Section
7.12. Trustee and Registered
Owners Entitled to All Remedies.

       

      It is the
purpose of this Article to make available to the Trustee and the Registered
Owners all lawful remedies; but should any remedy herein granted be held
unlawful, the Trustee and the Registered Owners shall nevertheless be entitled
to every other remedy provided by law.  It is further intended that,
insofar as lawfully possible, the provisions of this Article shall apply to and
be binding upon any trustee or receiver who may be appointed
hereunder.

       

      Section
7.13. Waiver of Past
Defaults.

       

      The
Registered Owners of not less than a majority in principal amount of the
Outstanding 2008A Bonds may on behalf of the Registered Owners of all the 2008A
Bonds (by written notice thereof to the Issuer and the Trustee) waive any past
default hereunder and its consequences, except a default (1) in the payment
of the principal of, redemption premium, if any, or interest on, any 2008A Bond
unless prior to such waiver or rescission, all arrears of principal or interest,
or both, as the case may be, and all expenses of the Trustee, in connection with
such default shall have been paid or provided for; or (2) in respect of a
covenant or provision hereof which under Article IX cannot be modified or
amended without the consent of the Registered Owner of each Outstanding 2008A
Bond.  Upon any such waiver, such default shall cease to exist, and
any Event of Default arising therefrom shall be deemed to have been cured, for
every purpose of this Indenture; but no such waiver shall extend to any
subsequent or other default or impair any right consequent thereon.

       

      ARTICLE
VIII                                

       

      THE
TRUSTEE AND THE PAYING AGENT

       

      Section
8.1. Certain Duties and
Responsibilities of Trustee.

       

      (a) The
Trustee accepts the trusts hereby created and agrees to perform the duties
herein required of it upon the terms and conditions hereof.  The
Trustee shall have the right, power and authority, at all times, to do all
things not inconsistent with the express provisions of this Indenture which it
may deem necessary or advisable in order to:  (i) enforce the
provisions of this Indenture, (ii) take any action with respect to any
Event of Default, (iii) institute, appear in or defend any suit or other
proceeding with respect to an Event of Default, or (iv) protect the
interests of the Owners of any Outstanding 2008A Bonds.  The Trustee
shall be responsible only for performing those duties of the Trustee
specifically provided for herein and no implied duties or liabilities shall be
read into this Indenture against the Trustee.

       

      (b) The
permissive rights of the Trustee to do things enumerated in this Indenture shall
not be construed as a duty and, except as provided in the next succeeding
sentence in respect of the period during the continuance of an Event of Default,
the Trustee shall not be liable for any action reasonably taken or omitted to be
taken by it in good faith and reasonably believed by it to be within the
discretion or power conferred upon it hereby, or be responsible other than for
its own gross negligence or willful misconduct.  In case an Event of
Default has occurred and is continuing of which the Trustee has been notified as
provided in Section 8.3(h) or of which it is deemed to have notice pursuant
to such Section, the Trustee shall exercise such of the rights and powers vested
in it by this Indenture, and use the same degree of care and skill in their
exercise, as a prudent man would exercise under the circumstances in the conduct
of his own affairs.

       

      (c) The
Trustee shall not be required to give any bond or surety in respect of the
execution of its rights and duties under this Indenture.

       

      (d) No
provision of this Indenture shall be construed to relieve the Trustee from
liability for its own grossly negligent action, its own negligent failure to act
or its own willful misconduct, except that

       

      (i) this
subsection shall not be construed to limit the effect of subsection (a) of this
Section;

       

      (ii) the
Trustee shall not be liable for any error of judgment made in good faith by its
officers, unless it shall be proved that the Trustee was grossly negligent in
ascertaining the pertinent facts;

       

      (iii) the
Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with any direction of the Registered
Owners of 25% of, or not less than a majority in aggregate principal amount of,
as the case may be, the Outstanding 2008A Bonds permitted to be given by them
under this Indenture except as otherwise provided herein; and

       

      (iv) no
provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of
its duties hereunder, or in the exercise of any of its rights or powers, if it
shall have reasonable grounds for believing that repayment of such funds or
adequate indemnity, satisfactory to the Trustee in its sole discretion, against
such risk or liability is not assured to it.

       

      (e) Whether
or not therein expressly so provided, every provision of this Indenture relating
to the conduct or affecting the liability of or affording protection to the
Trustee shall be subject to the provisions of this Section.

       

      (f) Except as
otherwise expressly provided by the provisions of this Indenture, the Trustee
shall not be obligated and may not be required to give or furnish any notice,
demand, report, request, reply, statement, advice or opinion to any Holder or
any other Person, and the Trustee shall not incur any liability for its failure
or refusal to give or furnish the same unless obligated or required to do so by
the express provisions hereof.

       

      (g) In acting
or omitting to act pursuant to the provisions of the Loan Agreement, the Trustee
shall be entitled to all of the rights and immunities accorded to it under this
Indenture, including but not limited to those set out in this Article
VIII.

       

      (h) Notwithstanding
any provisions of this Indenture to the contrary, the Trustee shall not be
liable or responsible for the accuracy of any calculation or determination which
may be required in connection with or for the purpose of complying with Section
148 of the Code, including, without limitation, the calculation of amounts
required to be paid to the United States under the provisions of Section 148 of
the Code, the maximum amount which may be invested in "nonpurpose obligations"
as defined in the Code and the fair market value of any investments made
hereunder, and the sole obligation of the Trustee with respect to the
investments of funds hereunder shall be to invest the moneys received by the
Trustee as provided herein pursuant to the written instructions of the
Company.

       

      Section
8.2. Notice if Event of Default
Occurs or Notice if Taxability Occurs.

       

      The
Trustee shall give written notice as soon as possible (and in any event within
three (3) Business Days) to the Registered Owners (with copies to the parties to
the Financing Documents) of the occurrence of any Event of Default hereunder
after the Trustee acquires actual knowledge thereof, unless such default shall
have been cured or waived; provided, however, that, in the case of an Event of
Default of the character described in Section 7.1(a)(iii), the Trustee
shall be protected in withholding such notice if and so long as the Trustee in
good faith determines that the withholding of such notice is in the interest of
the Registered Owners. The Trustee shall also give to the parties to the
Financing Documents and the Registered Owners written notice within five (5)
Business Days of receipt by it of any notification from the Internal Revenue
Service that the interest on the 2008A Bonds is, or may be, subject to federal
income taxation.

       

      Section
8.3. Certain Rights of
Trustee.

       

      Except as
otherwise provided in Section 8.1:

       

      (a) the
Trustee may conclusively rely upon, and shall be protected in acting or
refraining from acting upon, any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture or
other paper or document believed by it to be genuine and to have been signed or
presented by the proper party or parties and any action taken by the Trustee
pursuant to this Indenture upon the request, authority or consent of any
Registered Owner (determined at the time of such request, authority or consent)
shall be conclusive and binding upon all future owners of the same 2008A Bond
and any 2008A Bonds issued in exchange therefor);

       

      (b) any
request or direction of the Issuer or the Company mentioned herein shall be
sufficiently evidenced by a writing signed by an Authorized Representative and
any resolution of the Issuer may be sufficiently evidenced by a copy of such
resolution certified by an Authorized Representative;

       

      (c) whenever
in the administration of this Indenture the Trustee shall deem it desirable that
a matter be proved or established prior to taking, suffering or omitting any
action hereunder, the Trustee (unless other evidence is herein specifically
prescribed) may, in the absence of bad faith on its part, rely upon a
certificate of an Authorized Representative;

       

      (d) before
the Trustee acts or refrains from acting, it may consult with counsel, engineers
or other experts as may be appropriate, and the written advice of such counsel,
engineers or other experts as may be appropriate shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted
by it hereunder in good faith and in reliance thereon;

       

      (e) the
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the
Registered Owners pursuant to this Indenture, unless such Registered Owners
shall have offered to the Trustee security or indemnity acceptable to the
Trustee in its sole discretion against the costs, expenses and liabilities which
might be incurred by it in compliance with such request or direction and such
action may be lawfully taken;

       

      (f) the
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture or other paper or
document, but the Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the Trustee
shall determine to make such further inquiry or investigation, it shall be
entitled, upon reasonable notice and during regular business hours, and subject,
further to the Company’s safety and confidentiality requirements to examine the
books, records and premises of the Company and the books and records of the
Issuer concerning the 2008A Bonds personally or by agent or
attorney;

       

      (g) the
Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or indirectly or by or through agents or attorneys
provided that the Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney reasonably appointed by it
hereunder in good faith; and

       

      (h) the
Trustee shall not be required to take notice or be deemed to have notice of any
default hereunder unless the Trustee shall be specifically notified of such
default in writing by the Issuer, the Company or the Owners of a majority in
principal amount of the Outstanding 2008A Bonds, and in the absence of such
notice the Trustee may conclusively assume there is no default; provided,
however, that the Trustee shall be required to take and be deemed to have notice
of its failure to receive the moneys necessary to make payments when due of the
2008A Bond Obligations.

       

      Section
8.4. Trustee Not Responsible for
Recitals or Issuance of 2008A Bonds.

       

      Except
for the Trustee's certificate of authentication signed on the 2008A Bonds, the
Trustee assumes no responsibility for correctness of the terms set forth herein
or in the 2008A Bonds.  The Trustee makes no representations as to the
validity or sufficiency of this Indenture, except that the Trustee represents
that said Indenture has been duly authorized, executed and delivered by the
Trustee and constitutes a legal, valid and binding obligation of the Trustee in
accordance with the terms hereof, except as its enforceability may be subject to
(i) the exercise of judicial discretion in accordance with general
equitable principles; and (ii) applicable bankruptcy, insolvency,
reorganization, moratorium and other laws for the relief of debtors heretofore
or hereafter enacted to the extent that the same may be constitutionally
applied.  Further, the Trustee makes no representations as to the
validity or sufficiency of the 2008A Bonds.  The Trustee shall not be
accountable for the use or application by the Issuer or the Company of 2008A
Bonds or the proceeds thereof.  The Trustee shall not be bound to
ascertain or inquire as to the performance or observance of any covenant,
condition or agreement on the part of the Issuer or the Company under the Loan
Agreement (except as provided in Section 8.3(h) hereof), but the Trustee
may require of the Issuer or the Company full information and advice as to the
performance on such covenants, conditions and agreements.

       

      Section
8.5. Trustee May Hold 2008A
Bonds.

       

      The
Trustee or any other agent of the Issuer or the Company, in its individual or
any other capacity, may become the owner of 2008A Bonds and may otherwise deal
with the Issuer or the Company with the same rights it would have if it were not
Trustee or such other agent.  The Trustee may in good faith buy, sell,
own, hold and deal in any of the 2008A Bonds and may join in any action which
any Registered Owners may be entitled to take with like effect. The Trustee may
also engage in or be interested in financial or other transactions with the
Company and the Issuer; provided that such transactions are not in conflict with
its duties under this Indenture.

       

      Section
8.6. Money Held in
Trust.

       

      All money
deposited from time to time in the Debt Service Fund shall be held in trust for
the benefit of the Owners but, except as provided in Article X of this
Indenture, need not be segregated from other funds held in trust under this
Indenture by the Trustee, but shall be segregated at all times from all funds of
the Issuer or the Trustee not held by the Trustee under this
Indenture.  The Trustee shall be under no liability for interest on
any money received by it hereunder except as otherwise provided in this
Indenture.

       

      Section
8.7. Corporate Trustee Required;
Eligibility.

       

      There
shall at all times be a Trustee hereunder which shall be a corporation or
association organized and doing business under the laws of the United States of
America or of any state that is either a trust company or a bank in good
standing in the Commonwealth, authorized under such laws to exercise trust
powers and authorized under the Act to act as Trustee hereunder, having a
combined capital, surplus and undivided profits of at least $100,000,000,
subject to supervision or examination by federal or state authority, and shall
not be a Disqualified Contractor.  If such corporation publishes
reports of condition at least annually, pursuant to law or to the requirements
of the aforesaid supervising or examining authority, then for the purpose of
this Section, the combined capital and surplus of such corporation shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published.  If at any time the Trustee shall
cease to be eligible in accordance with the provisions of this Section, it shall
resign immediately in the manner and with the effect hereinafter specified in
this Article.

       

      Section
8.8. Resignation and Removal of
Trustee; Appointment of Successor.

       

      (a) No
resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of
appointment by the successor Trustee under Section 8.9 of this
Indenture.

       

      (b) The
Trustee may resign at any time by giving written notice thereof to the other
parties to the Financing Documents.  If an instrument of acceptance by
a successor Trustee shall not have been delivered to the resigning Trustee
within thirty (30) days after the giving of such notice of resignation, the
resigning Trustee may petition any court of competent jurisdiction for the
appointment of a successor Trustee.

       

      (c) The
Trustee may be removed at any time by the Owners of a majority in aggregate
principal amount of the Outstanding 2008A Bonds, or so long as no Event of
Default or no event which with the passage of time or the giving of notice or
both would constitute an Event of Default is then in existence, by the Company,
in either case by an instrument in writing delivered to the parties to the
Financing Documents not less than fifteen (15) days prior to the intended
effective date of the removal.

       

      (d) If at any
time:  (i) the Trustee shall cease to be eligible under
Section 8.7 of this Indenture or under applicable law and shall fail to
resign after written request therefor as a result thereof by any party to a
Financing Document or by a Registered Owner who has been a bona fide Owner for
at least six (6) months, or (ii) the Trustee shall become incapable of
acting or shall be adjudged a bankrupt or insolvent or a receiver of the Trustee
or of its property shall be appointed or any public officer shall take charge or
control of the Trustee or of its property or affairs for the purpose of
rehabilitation, conservation or liquidation, then, in any such case,
(x) the Company or the Issuer may remove the Trustee, or (y) any
Registered Owner who has been a bona fide Owner for at least six (6) months may,
on behalf of himself and all others similarly situated, petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a
successor Trustee.

       

      (e) If the
Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of Trustee for any cause, the Issuer, with the prior
consent of the Company, if any, shall promptly appoint a successor
Trustee.  If, within sixty (60) days after such resignation, removal
or incapability, or the occurrence of such resignation, removal or incapability,
or the occurrence of such vacancy, a successor Trustee shall be appointed by the
Owners of a majority in aggregate principal amount of the Outstanding 2008A
Bonds and notice of acceptance of such appointment is delivered to the parties
to the Financing Documents, the successor Trustee so appointed shall, forthwith
upon its acceptance of such appointment, become the successor Trustee and
supersede the successor Trustee appointed by the Issuer.  The Trustee
shall assign all its interests hereunder to the successor Trustee.  If
no successor Trustee shall have been so appointed by the Issuer or the
Registered Owners and accepted appointment in the manner hereinafter provided,
any Registered Owner who has been a bona fide Registered Owner for at least six
(6) months may, on behalf of himself and all other Owners similarly situated,
petition any court of competent jurisdiction for the appointment of a successor
Trustee.

       

      (f) The
Issuer, at the expense of the Company, shall give prompt notice of each
resignation and each removal of the Trustee and each appointment of a successor
Trustee by mailing written notice of such event to the Registered Owners and to
the parties to the Financing Documents.  Each notice shall include the
name of the successor Trustee and the address of its corporate trust operations
office.

       

      Section
8.9. Acceptance of Appointment by
Successor Trustee.

       

      Every
successor Trustee appointed hereunder shall execute, acknowledge and deliver to
the parties to the Financing Documents, including the retiring Trustee, an
instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee; but, on request of
the Issuer or the successor Trustee, such retiring Trustee shall, upon payment
of its charges and expenses by the Company, execute and deliver an instrument
prepared by the successor Trustee transferring to such successor Trustee all the
rights, powers and trusts of the retiring Trustee, and shall duly assign,
transfer and deliver to such successor Trustee all property and money held by
such retiring Trustee hereunder.  Upon request of any such successor
Trustee, the Issuer shall execute any and all instruments for more fully and
certainly vesting in and confirming to such successor Trustee all such rights,
powers and trusts.  No successor Trustee shall accept its appointment
unless at the time of such acceptance such successor Trustee shall be qualified
and eligible under this Article.

       

      Section
8.10. Merger, Conversion,
Consolidation or Succession to Business.

       

      Any
corporation or association into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation or association resulting
from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation or association succeeding to all or substantially all
of the corporate trust business of the Trustee, shall be the successor of the
Trustee hereunder, provided such corporation shall be otherwise qualified and
eligible under this Article, to the extent operative, without the execution or
filing of any paper or any further act on the part of any of the parties
hereto.

       

      Section
8.11. Fees, Charges and Expenses
of Trustee.

       

      Pursuant
to the provisions of Section 6.5 and 8.3 of the Loan Agreement, the Trustee
shall be entitled to be paid by the Company reasonable compensation for its
services rendered hereunder and to reimbursement for its actual out-of-pocket
expenses (including reasonable counsel fees) necessarily incurred in connection
therewith.  The Company may, without creating a default hereunder,
contest in good faith the necessity for and the reasonableness of any such
services and expenses after making payment therefor.  The Company, the
Issuer and the Bondholders agree that the Trustee shall have a lien for the
foregoing compensation, expenses and fees upon the Trust Estate (other than
moneys held for the payment of particular 2008A Bonds whether or not such
payment is then due and owing) and, upon an Event of Default hereunder, the
Trustee shall have a right of payment prior to payment to the Bondholders on
account of principal of, premium, if any, and interest on any 2008A Bond as
provided in Section 7.10 hereof.

       

      The
Issuer shall require the Company, pursuant to the Loan Agreement, to indemnify
and hold harmless the Trustee against any liabilities which the Trustee may
incur in the exercise and performance of its powers and duties hereunder, under
the Loan Agreement and any other agreement referred to herein which are not due
to the Trustee’s gross negligence or willful misconduct, and for any fees and
expenses of the Trustee to the extent funds are not available under this
Indenture as provided in the preceding paragraph for the payment
thereof.  The rights of the Trustee under this Section shall survive
the payment in full of the 2008A Bonds and the discharge of this
Indenture.  The Trustee acknowledges that the requirement set forth in
this paragraph has been satisfied by the Issuer and agrees that in the event the
Company fails to perform its obligations under the Loan Agreement relating to
such undertaking, the Trustee will make no claim against the Issuer with respect
thereto.

       

      When the
Trustee incurs expenses or renders services after an Event of Default as a
result of an Act of Bankruptcy of the Company, the expenses and the compensation
for services (including the fees and expenses of its agents and counsel) are
intended to constitute expenses of administration of the bankruptcy estate under
applicable bankruptcy law.

       

      Section
8.12. Appointment, Capacities and
Duties of Paying Agent.

       

      The Issuer shall appoint the Paying
Agent for the purpose of acting as paying agent, Bond registrar, transfer agent,
tender agent and the beneficiary of the Letter of Credit Facility as provided by
this Indenture; provided that in its capacities as tender agent and beneficiary
of the Letter of Credit Facility, the Paying Agent shall act as agent for the
Trustee.  The Paying Agent shall be a national banking association, a
bank and trust company or a trust company.  The Issuer hereby appoints
Manufacturers and Traders Trust Company, Harrisburg, Pennsylvania, as Paying
Agent and designates the Payment Office of the Paying Agent as a place of
payment, such appointment and designation to remain in effect until notice of
change pursuant to this Article is filed with the Trustee.  The Paying
Agent shall act as paying agent, Bond registrar, transfer agent, and tender
agent as provided in this Indenture.  The Paying Agent shall signify
its acceptance of the duties and obligations imposed upon it hereunder by its
written instrument of acceptance addressed to the Issuer, the Trustee and the
Company and delivered to such persons and to the Trustee, the Remarketing Agent
and the Bank, under which the Paying Agent shall agree to:

      

      (1)           hold
all sums delivered to it by the Trustee or the Company (or the Bank under a
Letter of Credit Facility) for the payment of principal or redemption price of,
premium, if any, on and interest on the 2008A Bonds in trust for the benefit of
the respective Owners until such sums shall be paid to such Owners or otherwise
disposed of as herein provided;

      

      (2)           hold
all 2008A Bonds tendered to it hereunder in trust for the benefit of the
respective Owners until moneys representing the purchase price of such 2008A
Bonds shall have been delivered to or for the account of or to the order of such
Owners;

      

      (3)           hold
all moneys delivered to it hereunder for the purchase of 2008A Bonds in trust
for the benefit of the person which shall have so delivered such moneys until
the 2008A Bonds purchased with such moneys shall have been delivered to or for
the account of such person;

      

      (4)           hold
and draw on any Letter of Credit Facility and apply the proceeds of drawings
thereon in accordance with the terms of this Indenture and Letter of Credit
Facility; and

      

      (5)           keep
such books and records as shall be consistent with prudent corporate trust
industry practice and make such books and records available for inspection by
the Trustee, the Remarketing Agent, the Issuer, the Company and the Bank at all
reasonable times upon prior written request.

      

      Section
8.13. Paying Agent May Act Through
Agents; Answerable Only for Willful Misconduct or Gross
Negligence.

       

      The Paying Agent may exercise any
powers hereunder and perform any duties required of it through attorneys,
agents, officers or employees, and shall be entitled to advice of counsel
concerning all questions hereunder.  The Paying Agent shall not be
responsible for the contents of the recitals, statements and representations in
the Indenture and the 2008A Bonds.  The Paying Agent shall not be
responsible for any loss or damage resulting from any action or inaction taken
in good faith in reliance upon an opinion of counsel.  The Paying
Agent shall not be answerable for the exercise of any discretion or power under
this Indenture, except only its own willful misconduct or gross
negligence.

      

      Section
8.14. Compensation and
Indemnity.

       

      Pursuant to Sections 6.5 and 7.1 of the
Loan Agreement, the Issuer shall cause the Company (i) to pay the Paying Agent
reasonable compensation for its services hereunder, and also all its reasonable
expenses and disbursements, including reasonable compensation for all attorneys
and agents engaged by it and the payment of the reasonable expenses of such
attorneys and agents, and (ii) to indemnify the Paying Agent, including its
officers, directors, employees and agents, against liabilities which it may
incur in the exercise and performance of its powers and duties hereunder, except
with respect to its willful misconduct or gross
negligence.  Notwithstanding anything herein to the contrary, the
Paying Agent's obligations herein to make payments on the 2008A Bonds with funds
provided under this Indenture for such purpose and to draw on any Letter of
Credit Facility shall not be conditioned upon the payment of such compensation,
expenses or indemnity. Draws on
the Company Debt Service Account shall not be conditioned upon the payment of
such compensation, expenses or indemnity.

      

      Section
8.15. Reliance.

       

      The Paying Agent may rely, and subject
to Section 8.13 shall be free of all liability for so relying on any
requisition, resolution, notice, telegram, request, consent, waiver,
certificate, statement, affidavit, voucher, bond, opinion of counsel or other
paper or document which it in good faith believes to be genuine and to have been
passed or signed by the proper persons or to have been prepared and furnished
pursuant to any of the provisions of this Indenture; and the Paying Agent shall
be under no duty to make any investigation as to any statement contained in any
such instrument, but may accept the same as conclusive evidence of the accuracy
of such statement.

      

      Section
8.16. Paying Agent May Deal in
2008A Bonds.

       

      The Paying Agent may in good faith buy,
sell, own, hold and deal in any of the 2008A Bonds and may join in any action
which any Bondholders may be entitled to take.  The Paying Agent may
be, or be affiliated with, the Trustee, the Remarketing Agent and/or the
Bank.  The Paying Agent may also engage in or be interested in any
financial or other transaction with the Issuer, the Company, the Bank, the , the
Remarketing Agent or any related party; provided that if the Paying Agent
determines that any such transaction is in conflict with its duties under this
Indenture, it shall eliminate the conflict or resign as Paying
Agent.

      

      Section
8.17. Removal or Resignation of
Paying Agent.

       

      The Paying Agent may be removed at any
time by an instrument appointing a successor to the Paying Agent so removed,
executed by (a) the Company with the prior written consent of the
Bank  (but only if no Event of Default has occurred and is
continuing); or (b) the Owners of a majority in principal amount of the 2008A
Bonds then Outstanding, which instrument in either case shall be filed with the
Paying Agent, the Trustee, the Issuer and the Bank (with a copy to the
Company).  The Company shall also designate a successor if the Paying
Agent resigns or becomes ineligible.  The Paying Agent may resign by
giving at least 60 days’ prior written notice to the Trustee, the Remarketing
Agent, the Company and the Bank.  Each successor Paying Agent shall be
a bank and trust company or trust company having a capital and surplus of not
less than $50,000,000 if there be such an institution willing, able and legally
qualified to perform the duties of the Paying Agent hereunder upon reasonable or
customary terms and shall be capable of performing the duties prescribed for it
herein.  The Paying Agent may but need not be the same person as the
Trustee.  The Issuer shall direct the Trustee to give notice of the
appointment of a successor Paying Agent in writing 15 days prior to such
appointment taking effect to each Owner as well as to the Rating
Service.  The Trustee will promptly certify to the Issuer that it has
mailed such notice to all Owners and such certificate will be conclusive
evidence that such notice was given in the manner required hereby.  In
the event of the resignation or removal of the Paying Agent, the Paying Agent
shall pay over, assign and deliver any moneys and 2008A Bonds held by it and the
2008A Bond Register maintained by it in such capacity to its successor, and
shall take all necessary action to cause any Letter of Credit Facility to be
transferred to its successor as of the effective date of such succession,
provided that the Paying Agent shall not be responsible for any transfer or
assignment fees imposed by the Bank.  Such resignation or removal
shall take effect only upon the appointment of a successor Paying Agent and the
transfer of any Letter of Credit Facility to it.

      

      Section
8.18. Successor Paying
Agents.

       

      Any
corporation or association which succeeds to the corporate trust business of the
Paying Agent as a whole or substantially as a whole, whether by sale, merger,
consolidation or otherwise, shall thereby become vested with all the property,
rights and powers of such Paying Agent under this Indenture, provided that the
Paying Agent has given at least 60 days’ prior written notice of the proposed
transaction resulting in such succession to the Issuer and the
Company.  In the event that the Paying Agent shall resign or be
removed, or be dissolved, or if the property or affairs of the Paying Agent
shall be taken under the control of any state or federal court or administrative
body because of bankruptcy or insolvency, or for any other reason, and the
Issuer shall not have appointed its successor, the Trustee shall ipso facto be
deemed to be the successor Paying Agent for all purposes until another successor
is appointed.

       

      Section
8.19. Trustee and Paying Agent
Obligations Survive Final Payment or Defeasance.

       

      Notwithstanding
anything stated to the contrary in this Indenture, the respective duties and
obligations of the Trustee and the Paying Agent shall survive any payment of all
Outstanding 2008A Bonds hereunder in accordance with the terms of the 2008A
Bonds or Article X hereof for a period of 124 days from the date of such
payment, unless such payment is made with cash constituting Available
Moneys.

       

      Section
8.20                                Certain Tax Reporting
Requirements by Trustee.

       

      (a)           The
Trustee, on behalf of the Issuer, shall report to the Internal Revenue Service
(the "IRS") and to the Registered Owners of the 2008A Bonds the amount of any
interest and "reportable payments," as such term is defined in the Code, paid to
Registered Owners during each calendar year and the amount of tax withheld, if
any, with respect to payments on the 2008A Bonds.

       

      (b)           The
Trustee shall request that each Registered Owner and Beneficial Owner of the
2008A Bonds known to the Trustee furnish the Trustee with its taxpayer
identification number ("TIN").

       

      (c)           With
respect to payments made on the 2008A Bonds, the Trustee shall withhold income
tax from a "reportable payment," as such term is defined in the Code, to the
extent required by the Code and regulations promulgated thereunder.

       

      ARTICLE
IX                                

       

      AMENDMENTS
AND SUPPLEMENTS

       

      Section
9.1. Amendments and Supplements
Without Registered Owners’ Consent.

       

      This
Indenture may be amended or supplemented from time to time, without the consent
of the Registered Owners by a Supplemental Indenture authorized by a certified
resolution of the Issuer filed with the Trustee, for one or more of the
following purposes:

       

      (a) to add
additional covenants of the Issuer or to surrender any right or power herein
conferred upon the Issuer; or

       

      (b) to cure
any ambiguity or to cure, correct or supplement any defective (whether because
of any inconsistency with any other provision hereof or otherwise) provision of
this Indenture in such manner as shall not be inconsistent with this Indenture
and shall not impair the security hereof or adversely affect the Registered
Owners; or

       

      (c) to
provide procedures permitting Registered Owners to utilize an uncertificated
system of registration for 2008A Bonds or for the issuance of 2008A Bonds
pursuant to a book entry system with a Securities Depository or other entity;
or

       

      (d) to
modify, alter, amend, supplement or restate this Indenture in any and all
respects necessary, desirable or appropriate in order to satisfy the
requirements of any Rating Agency which may from time to time provide a rating
on the 2008A Bonds, or in order to obtain or retain such rating on the 2008A
Bonds as is deemed necessary by the Company; or

       

      (e) to
implement a conversion of the Rate Mode for the 2008A Bonds or to evidence or
give effect to the delivery of a replacement Letter of Credit Facility for the
2008A Bonds or to provide for delivery of a Letter of Credit Facility or other
form of credit or liquidity enhancement for the 2008A Bonds, including without
limitation such changes to Section 5.8 as may be required by the provider of an
Alternate Credit Facility; or

       

      (f) to make
any change which, in the judgment of the Trustee, does not adversely affect the
rights or security of the Registered Owners.

       

      In
determining compliance with this Section, the Trustee may request such
certificates and opinions of counsel as it deems necessary and may rely
conclusively on such certificates and opinions in the absence of negligence or
willful misconduct.

       

      Section
9.2. Amendments With Company and
Registered Owners’ Consent.

       

      (a) Consent of
Majority.  With the written consent of the Company, the parties
to this Indenture may enter into Indentures supplemental to this Indenture or
amendments to this Indenture modifying, adding to or eliminating any of the
provisions hereof but, if such supplement or amendment is not of the character
described in Section 9.1, only with the consent of the Registered Owners of
not less than a majority of the aggregate principal amount of the Outstanding
2008A Bonds, but subject to the limitations of Section 9.2(b).

       

      (b) Consent of All
Bondholders.  Notwithstanding the foregoing, no supplement or
amendment to this Indenture shall, without the consent of the Registered Owner
of each Outstanding 2008A Bond so affected, (i) extend the maturity date of any
2008A Bond, or reduce the rate or extend the time of payment of interest
thereon, or reduce the principal amount thereof, or reduce any premium payable
upon the redemption thereof, or extend or reduce the amount of any mandatory
redemption requirement, or change the purchase provisions thereof, (ii) deprive
such Registered Owner of the lien hereof on the Revenues pledged hereunder and
on the Trust Estate, (iii) decrease the amounts payable by the Company under
Section 6.4 of the Loan Agreement, (iv) reduce the aggregate principal amount of
2008A Bonds the Registered Owners of which are required to approve any such
supplement or amendment to this Indenture, (v) increase the percentage of the
aggregate principal amount of 2008A Bonds the Registered Owners of which are
required to direct the Trustee to accelerate the maturity of the 2008A Bonds, or
(vi) provide a privilege or priority of any 2008A Bond over any other 2008A
Bond.

       

      (c) Effective Date of
Amendment.  The Trustee shall establish a record date for
purposes of approval of any such amendment or supplement described in
subsections (a) and (b) of this Section 9.2, and shall cause notice of such
record date and such proposed amendment to be given to the Owners in the same
manner as notices of redemption are given by the Trustee.  Such notice
shall briefly set forth the nature of the proposed amendment and shall state
that copies thereof are on file at the designated office of the Trustee for
inspection by all Registered Owners.  If, within sixty (60) days (or
such longer period as shall be prescribed by the Company in a written notice to
the Trustee and the Issuer) following the mailing of such notice, the Registered
Owners of the requisite aggregate principal amount of the Outstanding 2008A
Bonds at the time of the record date established for such purpose shall have
consented to and approved such amendment, no Registered Owner of any 2008A Bond
shall have any right to object to any of the terms and provisions contained
therein, or the operation thereof, or in any manner to question the propriety of
the execution thereof, or to enjoin or restrain the parties to such amendment
from adopting the same or from taking any action pursuant to the provisions
thereof.  Upon receipt of the consent of the Registered Owners of the
requisite aggregate principal amount of the Outstanding 2008A Bonds, the Issuer
and the Trustee may execute such amendment.

       

      The
consent of a Registered Owner shall be evidenced by an instrument executed by
such Registered Owner, delivered to the Trustee, which instrument shall refer to
the proposed amendment described in said notice and shall specifically consent
to and approve such amendment.  Any consent given by a Registered
Owner as of such record date shall be irrevocable for a period of six (6) months
from the date such consent is given, and shall be conclusive and binding upon
all future Registered Owners of the same 2008A Bond during such
period.  Such consent may be revoked at any time after six (6) months
from the date such consent was given by such Registered Owner or by a successor
in title, by filing written notice thereof with the Issuer, the Company and the
Trustee, but such revocation shall not be effective if the Registered Owners of
the requisite aggregate principal amount of the Outstanding 2008A Bonds have,
prior to the attempted revocation, consented to and approved such
amendment.

       

      Notwithstanding
any provision herein to the contrary, no amendment to this Indenture which
affects the rights or obligations of the Trustee shall be effective against the
Trustee without its written consent.

       

      Section
9.3. Amendments to Loan
Agreement.

       

      The Loan
Agreement may be amended by written agreement of the Issuer and the Company and
with the written consent of the Trustee, provided that no amendment may be made
which would adversely affect the rights of some but less than all Outstanding
2008A Bonds without the consent of (a) the Registered Owners of not less
than a majority in aggregate principal amount of the 2008A Bonds then
Outstanding and (b) the Registered Owners of not less than a majority in
aggregate principal amount of the 2008A Bonds so affected; and no amendment may
be made which would (i) decrease the amounts payable under the Loan
Agreement as Installment Loan Payments; (ii) change any date of payment or
prepayment provisions under the Loan Agreement; or (iii) change the
amendment provisions of the Loan Agreement without the consent of all of the
Registered Owners of the 2008A Bonds adversely affected thereby, and provided
further that the Loan Agreement may be amended by written agreement of the
Issuer and the Company and with the written consent of the Trustee, but not the
Owners, in order to make conforming changes with respect to amendments made to
this Indenture pursuant to Section 9.1(d), (e) or (f).

       

      Section
9.4. Right to
Payment.

       

      Notwithstanding
any other provisions in this Indenture to the contrary, the right of the Owner
of any 2008A Bond to receive payment of the principal of, and the premium, if
any, and interest on, such 2008A Bond, on or after the respective due dates
expressed herein, or to institute suit for the enforcement of any such payment
on or after such respective dates, will not be impaired or affected without the
consent of such Owner.

       

      Section
9.5. Amendment of Letter of
Credit Facility.

       

      If the
Bank proposes to amend a Letter of Credit Facility, the Paying Agent may consent
thereto, provided that (i) if such proposal would amend such Letter of Credit
Facility in such a way as would materially adversely affect the interests of the
Bondholders, the Paying Agent shall notify the Owners of the 2008A Bonds secured
by such Letter of Credit Facility of the proposed amendment and may consent
thereto only with the prior written consent of Owners of a majority in aggregate
principal amount of such 2008A Bonds then Outstanding, and (ii) the Paying Agent
shall not, without the unanimous consent of all Bondholders, consent to any
amendment which would decrease the amounts payable under the Letter of Credit
Facility securing such 2008A Bonds in respect of Outstanding 2008A Bonds secured
by such Letter of Credit Facility on any Interest Payment Date or on the date of
redemption, acceleration, payment at maturity or purchase of the 2008A Bonds, or
advance the stated expiration date of such Letter of Credit Facility to an
earlier date.  No consent of the Bondholders shall be required for
amendments to a Letter of Credit Facility which are provided for or contemplated
by this Indenture.  The Paying Agent shall provide notice to the
Issuer of any amendment to a Letter of Credit Facility.

       

      Section
9.6. Bank
Consent.

       

      Notwithstanding
any provision herein to the contrary, no amendments or supplements to the Bond
Documents shall be entered into without the prior written consent of the Bank so
long as the Bank is not in default under the Letter of Credit or the
Reimbursement Agreement.

       

      ARTICLE
X                                

       

      DEFEASANCE

       

      Section
10.1. Defeasance.

       

      If the
Issuer or Company shall pay or cause to be paid, or there shall be otherwise
paid or provision for payment made to or for the Owners from time to time of the
2008A Bonds, the principal of, premium, if any, and interest due or to become
due thereon on the dates and in the manner stipulated therein, and shall pay or
cause to be paid to the Trustee all sums of money due or to become due according
to the provisions hereof and if all other liabilities of the Company under the
Loan Agreement and the Reimbursement Agreement shall have been satisfied, then
these presents and the estate and rights hereby granted shall cease, determine
and be void, whereupon the lien of this Indenture shall be canceled and
discharged (except with respect to moneys held by the Trustee or Paying Agent
hereunder for the payment of 2008A Bonds as aforesaid, and the rights and
immunities of the Issuer, the Trustee and the Paying Agent hereunder), and upon
written request of the Issuer or the Company, the Trustee shall execute and
deliver to the Issuer such instruments in writing as shall be required by the
Issuer or the Company to cancel and discharge the lien hereof and thereof, and
reconvey, release, assign and deliver unto the Issuer and the Company,
respectively, the estate, right, title and interest in and to any and all
property conveyed, assigned or pledged to the Trustee or otherwise subject to
the lien of this Indenture.  Notwithstanding anything contained in
this Indenture to the contrary, the Trustee and Paying Agent shall comply with
the provisions of Section 8.19 hereof in connection with any final payment of
all outstanding 2008A Bonds hereunder.

       

      Any 2008A
Bond shall be deemed to be paid within the meaning of this Section 10.1
when payment of the principal of, and premium and tender purchase price
payments, if any, on such 2008A Bond, plus interest thereon to the due date
thereof (whether such due date be by reason of maturity, upon redemption prior
to maturity or upon optional or mandatory tender, as provided in this Indenture
or otherwise), either (i) shall have been made or caused to be made in
accordance with the terms thereof, or (ii) shall have been provided by
irrevocably depositing with the Trustee, in trust for the benefit of and subject
to a security interest in favor of the owner of such 2008A Bond, and irrevocably
setting aside exclusively for such payment on such due date, (1) moneys
sufficient to make such payment, or (2) Government Obligations maturing as
to principal and interest in such amounts and on such dates as will (together
with any moneys held under clause (1)), in the written opinion to the Trustee
from a firm of certified public accountants not unsatisfactory to the Trustee,
provide sufficient moneys without reinvestment to make such payment, and if all
necessary and proper fees, compensation and expenses of the Trustee pertaining
to the 2008A Bonds with respect to which such deposit is made and all other
liabilities of the Company under the Loan Agreement and the Reimbursement
Agreement shall have been paid or the payment thereof provided for to the
satisfaction of the Trustee; provided, however, that (x)
such amount on deposit described in (1) or (2) above shall be deemed sufficient
only if (A) while the 2008A Bonds bear interest at a Daily Rate, Weekly Rate or
Monthly Rate, it provides for payment of interest on the 2008A Bonds at the
maximum rate of 12% per annum and the Issuer shall have surrendered any power
hereunder to thereafter change such maximum rate applicable to such 2008A Bonds,
or (B) while the 2008A Bonds bear interest at a Term Rate, it provides for
payment of interest on the 2008A Bonds at the current Term Rate and the 2008A
Bonds mature or are scheduled to be redeemed at or prior to the expiration of
the current Term Rate Period, (y) in the opinion of Bond Counsel, delivered to
the Trustee and the Issuer, such deposit of Government Obligations described in
(2) above will not adversely affect the exclusion from gross income for federal
income tax purposes of interest on the 2008A Bonds or cause any of the 2008A
Bonds to be classified as "arbitrage bonds" within the meaning of
Section 148 of the Code, and (z) any 2008A Bond shall be deemed to be paid
only if (A) the Trustee and the Paying Agent hold in the Debt Service Fund (or a
separate escrow account) cash constituting Available Moneys and/or such
obligations purchased with Available Moneys for payment of such 2008A Bonds
pursuant to Section 3.2 above in amounts sufficient, together with the earnings
thereon, to make all payments specified above with respect to such 2008A Bonds,
as verified by an accountant's certification in form and by an accountant not
unacceptable to the Trustee and the Rating Service, and (B) in the case of 2008A
Bonds bearing interest at a Daily Rate, Weekly Rate or Monthly Rate, the 2008A
Bonds have been called for redemption on a date not more than sixty (60) days
from the date provision for payment is being made pursuant to this
Section.  Notwithstanding anything to the contrary in this Section
10.1, if provision is to be made for the payment of all, or less than all, of
the Outstanding 2008A Bonds, the Trustee shall have received written
confirmation from the Rating Service that any then-current ratings on the 2008A
Bonds will not be reduced or withdrawn.  At such time as a 2008A Bond
shall be deemed to be paid hereunder, as aforesaid, it shall no longer be
secured by or entitled to the benefits of this Indenture, except for the
purposes set forth in Sections 2.7 and 2.8 hereof and any such payment from
such moneys or Government Obligations on the date or dates specified at the time
of such deposit.

       

      Notwithstanding
the foregoing, in the case of 2008A Bonds which are to be redeemed prior to the
maturity date, no deposit under clause (ii) of the immediately preceding
paragraph shall be deemed a payment of such 2008A Bonds as aforesaid until
proper notice of redemption of such 2008A Bonds shall have been previously given
in accordance with Article V hereof, or until the Company, on behalf of the
Issuer, shall have given the Trustee, in form satisfactory to the Trustee,
irrevocable written instructions:

       

      (a) stating
the redemption date when the principal (and premium, if any) of each such 2008A
Bond is to be paid (which may be any redemption date permitted by this
Indenture); and

       

      (b) to call
for redemption pursuant to this Indenture any 2008A Bonds to be redeemed prior
to the maturity date pursuant to (a) hereof.

       

      In the
case of 2008A Bonds which are not to be redeemed within the next succeeding
sixty (60) days, the Trustee shall mail, as soon as practicable, in the manner
prescribed by Article V hereof, a notice to the Owners of such 2008A Bonds
that the deposit required by (ii) above has been made with the Trustee and that
said 2008A Bonds are deemed to have been paid in accordance with this
Section 10.1 and stating the redemption or maturity date upon which moneys
are to be available for the payment of the redemption price on or principal of
said 2008A Bonds.

       

      Any
moneys so deposited with the Trustee as provided in this Section 10.1 may
at the written direction of the Company also be invested and reinvested in
Government Obligations, maturing in the written opinion of a firm of certified
public accountants delivered and not unsatisfactory to the Trustee in the
amounts and on the dates as hereinbefore set forth, and all income from all
Government Obligations in the hands of the Trustee pursuant to this
Section 10.1 which, in the written opinion to the Trustee from a firm of
certified public accountants not unsatisfactory to the Trustee, is not required
for the payment of the 2008A Bonds and interest and premium, if any, thereon
with respect to which such moneys are deposited, shall be deposited in the Debt
Service Fund as and when collected for use and application as are other moneys
deposited in that fund.

       

      Anything
in Article IX hereof to the contrary notwithstanding, if moneys or
Government Obligations have been deposited or set aside with the Trustee
pursuant to this Section 10.1 for the payment of the principal of, and
premium and purchase price, if any, and interest on the 2008A Bonds and the
principal of, and premium and purchase price, if any, and interest on such 2008A
Bonds shall not have in fact been actually paid in full, no amendment to the
provisions of this Section 10.1 shall be made without the consent of the
Owner of each of the 2008A Bonds affected thereby.

       

      If an
agreement with a Securities Depository as described in Section 2.11 hereof
is then in effect and such agreement provides for the Company to obtain a CUSIP
number in the event of a partial refunding or redemption of the 2008A Bonds and
the authentication of a new 2008A Bond for the refunded or redeemed 2008A Bonds,
then the Company shall comply with the provisions of such
agreement.

       

      Section
10.2. Effect of
Defeasance.

       

      Notwithstanding
anything stated to the contrary in this Article, no defeasance hereunder shall
relieve the Trustee or the Paying Agent of any duty with respect to, or
discharge or terminate the provisions hereof with respect to, the payment,
transfer, purchase, exchange, registration or redemption of 2008A Bonds, as the
case may be.

       

      ARTICLE
XI                                

       

      MISCELLANEOUS
PROVISIONS

       

      Section
11.1. Limitations on Recourse;
Immunity of Certain Persons.

       

      No
recourse shall be had for any claim based on this Indenture or the 2008A Bonds
against any past, present or future member, officer, official or employee of the
Issuer, either directly or through the Issuer or any such successor body, under
any constitutional provision, statute or rule of law or by the enforcement of
any assessment or penalty or otherwise, all such liability and all such claims
being hereby expressly waived and released as a condition of, and as
consideration for, the execution of this Indenture and the issuance of the 2008A
Bonds.  The 2008A Bonds are payable solely from the Revenues pledged
hereunder and other moneys held by the Trustee hereunder for such
purpose.  The Issuer shall be conclusively deemed to have complied
with all of its covenants and other obligations hereunder, including but not
limited to those set forth in Articles III and VI hereof, upon requiring
the Company in the Loan Agreement to agree to perform such Issuer covenants and
other obligations (excepting only any approvals or consents permitted or
required to be given by the Issuer hereunder, and any exceptions to the
performance by the Company of the Issuer’s covenants and other obligations
hereunder, as may be contained in the Loan Agreement).  However,
nothing contained in any such agreement in the Loan Agreement shall prevent the
Issuer from time to time, in its discretion, from performing any such covenants
or other obligations.  The Issuer shall have no liability for any
failure to fulfill, or breach by the Company of, the Company’s obligations under
the 2008A Bonds, this Indenture, the Loan Agreement, or otherwise, including
without limitation the Company’s obligation to fulfill the Issuer’s covenants
and other obligations under this Indenture.

       

      Section
11.2. Deposit of Funds for Payment
of 2008A Bonds.

       

      If the principal or redemption price of
any 2008A Bonds becoming due, either at maturity or by call for redemption or
otherwise, together with all interest accruing thereon to the due date, has been
paid or provision therefor made in accordance with Section 10.1, all interest on
such 2008A Bonds shall cease to accrue on the due date and all liability of the
Issuer with respect to such 2008A Bonds shall likewise cease, except as
hereinafter provided.  Thereafter the Owners of such 2008A Bonds shall
be restricted exclusively to the funds so deposited for any claim of whatsoever
nature with respect to such 2008A Bonds, and the Trustee shall hold such funds
in trust for such owners.

       

      Other than moneys held in the Letter of
Credit Debt Service Account and the Letter of Credit Purchase Account which
shall be distributed pursuant to Section 3.3 hereof, moneys which remain
unclaimed two years after the due date shall, subject to any applicable
provisions of law relating to escheat of property, at the written request of the
Company, and if the Company is not, at the time, to the knowledge of the
Trustee, in default with respect to any covenant in the Loan Agreement or the
2008A Bonds, be paid to the Company, and the owners of the 2008A Bonds for which
the deposit was made shall thereafter be limited to a claim against the
Company.  Such moneys while held by the Trustee shall be held in trust
uninvested.  Before being required to make a payment to the Company
under this Section 11.2, the Trustee shall be entitled to receive at the
Company’s expenses an opinion of Counsel to the effect that such payment is
permitted under the provisions of Pennsylvania law.  In the absence of
any such written request from the Company, the Trustee shall from time to time
deliver such unclaimed funds to or as directed by pertinent escheat authority,
as identified by the Trustee in its sole discretion, pursuant to and in
accordance with applicable unclaimed property laws, rules or
regulations.  Any such delivery shall be in accordance with the
customary practices and procedures of the Trustee and the escheat
authority.  Any money held by the Trustee pursuant to this Section
11.2 shall be held uninvested and without any liability for
interest.

       

      Section
11.3. No Rights Conferred on
Others.

       

      Nothing
herein contained shall confer any right upon any Person other than the parties
hereto, the Company and the Registered Owners of the 2008A Bonds.

       

      Section
11.4. Illegal, Etc. Provisions
Disregarded.

       

      If any
term or provision of this Indenture or the 2008A Bonds or the application
thereof for any reason or circumstances shall to any extent be held invalid or
unenforceable, the remaining provisions or the application of such term or
provision to persons and situations other than those as to which it is held
invalid or unenforceable, shall not be affected thereby, and each term and
provision hereof and thereof shall be valid and enforced to the fullest extent
permitted by law.

       

      Section
11.5. Substitute Publication of
Notice.

       

      If for
any reason it shall be impossible to make publication of any notice required
hereby in a newspaper or newspapers, then such publication in lieu thereof as
shall be made with the approval of the Trustee shall constitute a sufficient
publication of such notice.

       

      Section
11.6. Mailed
Notice.

       

      All
notices required or authorized to be given to the Company, the Issuer and the
Trustee pursuant to this Indenture shall be in writing and shall be given as
provided herein or delivered by hand or overnight courier service or mailed by
first class, registered or certified mail, return receipt requested, postage
prepaid, or sent by telecopy with evidence of receipt confirmed to the sender,
to the following address:

       

      (a) to the
Company, to:

       

      The York
Water Company

      130 East
Market Street

      Box
15089

      York, PA
17405-7089

      Attention:  President
and CEO

      Telecopy
No.  (717) 852-0058

      

      (b) to the
Issuer, to:

       

      Pennsylvania
Economic Development Financing Authority

      Department
of Community and Economic Development

      Commonwealth
Keystone Building

      400 North
Street, 4th
Floor

      Harrisburg,
PA  17120-0225

      Attention:  Executive
Director

      Telecopy
No. (717) 787-0879

      

      (c) to the
Trustee and initial Paying Agent, to:

       

      Manufacturers
and Traders Trust Company

      213
Market Street

      Harrisburg,
PA  17101

      Attention:  Corporate
Trust Department

      Telecopy
No. (717) 231-2615

      

      (d) to the
Remarketing Agent, to:

       

      PNC
Capital Markets, Inc.

      1600
Market Street – 21st
Floor

      Philadelphia,
PA  19103

      Attention:  Manager,
Municipal Remarketing

      Telecopy
No. (215) 585-1463

      

      (e) to the
Bank, to:

       

      PNC Bank,
National Association

      PNC
Corporate Banking

      4242
Carlisle Pike

      Camp
Hill, PA  17011

      Attention:  Vice
President

      Telecopy
No.  (717) 730-2387

      

      (f) to
S&P, to:

       

      

      Standard & Poor’s

      55 Water Street, 42nd
Floor

      New York,
NY  10041-0003

      Attention:  LOC
Surveillance

      E-mail:  NYLOC@STANDARDANDPOORS.COM

      

      or to
such other addresses as may from time to time be furnished to the parties,
effective upon the receipt of notice thereof given as set forth
above.

       

      Section
11.7. Governing
Law.

       

      This
Indenture shall be governed, in all respects including validity, interpretation
and effect by, and shall be enforceable in accordance with, the laws of the
United States of America and of the Commonwealth.

       

      Section
11.8. Successors and
Assigns.

       

      All the
covenants, promises and agreements in this Indenture contained by or on behalf
of the Issuer or by or on behalf of the Trustee shall bind and inure to the
benefit of their respective successors and assigns, whether so expressed or
not.

       

      Section
11.9. Action by
Company.

       

      Any
requirement imposed by this Indenture or the Loan Agreement on the Issuer may,
if not performed by the Issuer, be performed by the Company and such performance
by the Company shall constitute compliance with the requirements of this
Indenture or the Loan Agreement as if performed by the Issuer.

       

      Section
11.10. Headings and Subheadings for
Convenience Only.

       

      The table
of contents and descriptive headings and subheadings in this Indenture are
inserted for convenience only and shall not control or affect the meaning or
construction of any of the provisions hereof.

       

      Section
11.11. Counterparts.

       

      This
Indenture may be executed in any number of counterparts, each of which when so
executed and delivered shall be an original; but such counterparts shall
together constitute but one and the same instrument.

       

      Section
11.12. Additional Notices to Rating
Agencies.

       

      The
Trustee hereby agrees that if at any time (a) there is a change in the
Trustee or the Remarketing
Agent (b) there are any amendments to the Indenture or the Loan
Agreement or the Letter of
Credit or (c) all or any part of the principal of the 2008A Bonds is
paid, the Trustee shall use its best efforts to promptly give notice as provided
in Section 11.6 hereof of any such event to each Rating Agency then
maintaining a rating on the 2008A Bonds, which notice in the case of an event
described in clause (b) above shall include a copy of any such
amendment.  The agreement contained in this paragraph is made as a
matter of courtesy and accommodation only and the Trustee shall have no
liability to any person for any failure to comply therewith.  S&P shall receive notice upon
expiration, termination, substitution or extension of the Letter of Credit and
notice upon conversion to a different Mode.

       

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

          
             

          

        

      

      IN
WITNESS WHEREOF, the Issuer and Trustee have caused this Indenture of Trust to
be executed in their respective corporate names and caused their respective
corporate seals to be hereunto affixed and attested by their respective duly
authorized officers or representatives, as of the day first above
written.

       

       

      
        	 	
                PENNSYLVANIA
      ECONOMIC DEVELOPMENT

                FINANCING
      AUTHORITY

              	 
	Attest:	 	 	 
	
                By:/s/Craig S.
    Petrasic

              	
                By:
      

              	/s/Stephen
      M. Drizos	 
	Craig
      S. Petrasic 	 	Stephen
      M. Drizos	 
	Assistant
      Secretary 	 	Executive
      Director	 
	 	 	 	 
	 	 	 	 

      

       

      

        
          
            	 	
                    MANUFACTURERS
      AND TRADERS TRUST COMPANY,  as Trustee

                  	 
	Attest:	 	 	 
	
                    By:/s/Adnan Ahmad

                  	
                    By: 

                  	/s/James C.
    Deitrick 	 
	Adnan
      Ahmad 	 	James
      C. Deitrick	 
	Assistant
      Vice President 	 	Vice
      President	 
	 	 	 	 
	 	 	 	 

          

        

         

      

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
A

       

      (FORM
OF 2008A BOND)

       

      

       

      SEE
TAB#______

       

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
B

       

      DTC
LETTER OF REPRESENTATION

       

      

      SEE TAB
#____

      

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
C

      

      FORM
OF NOTICE OF TENDER

      

      

      TO:

      

      

      NOTICE OF
TENDER

      

      

      PENNSYLVANIA
ECONOMIC DEVELOPMENT FINANCING AUTHORITY

      EXEMPT
FACILITIES REFUNDING 2008A BONDS, SERIES 2008

      (THE YORK
WATER COMPANY PROJECT)

      

      

      DESCRIPTION
OF 2008A BONDS TO BE TENDERED

      

      

      (Please complete the following
information.  Attach an additional list if necessary).

      

      
        	
                Name and Address of
      Owner

                 

                 

                 

                 

                 

              	
                Numbers
      of 2008A Bonds Tendered (optional, if
      available)

                 

                R-                                           

              	
                Portion
      of Principal

                Amount
      Tendered

                 

                R-                                           

              

      

      

      Tender
Date:                                           

      Payment
Instructions:                                                                           

      

      

      

      The undersigned Owner of the
above-listed 2008A Bonds hereby irrevocably demands the purchase of the
above-listed 2008A Bonds in the Principal Amount(s) Tendered shown above (which
Principal Amount(s) Tendered is either the principal amount of such 2008A Bond
or an integral multiple of $5,000 in excess of $100,000), on the Tender Date
specified above.

      

      The undersigned hereby agrees to
deliver the above-listed 2008A Bonds to the Paying Agent at Harrisburg,
Pennsylvania on or prior to the Tender Date and acknowledges that this Notice of
Tender constitutes (i) an irrevocable offer to sell the 2008A Bond (or portion
of the Principal Amount thereof) to which this Notice relates on the Tender Date
to any purchaser selected by the Remarketing Agent, at a price equal to the
principal amount of such 2008A Bond (or portion of the Principal Amount thereof)
plus any interest thereon accrued and unpaid as of the Tender Date, if the
Tender Date is not an Interest Payment Date, (ii) an irrevocable authorization
and instruction to the Paying Agent to effect transfer of such 2008A Bond (or
portion of the Principal Amount thereof) upon payment of such price to the
Paying Agent on the Tender Date, (iii) an irrevocable authorization and
instruction to the Paying Agent to effect the exchange of such 2008A Bond to be
purchased in whole or in part for other 2008A Bonds in an equal aggregate
principal amount so as to facilitate the sale of such 2008A Bond (or portion of
the Principal Amount thereof to be purchased), and (iv) an acknowledgment that
the Bondholder will have no further rights with respect to such 2008A Bond (or
portion of the Principal Amount thereof) upon payment of the Tender Price
thereof to the Paying Agent on the Tender Date, except for the right of such
holder to receive such Tender Price upon surrender of such 2008A Bond to the
Paying Agent endorsed for transfer in blank and with guarantee of signatures
satisfactory to the Paying Agent, and that after the Tender Date the Bondholder
will hold such 2008A Bond (or portion of the Principal Amount thereof) as agent
for the Paying Agent.

      

      Capitalized terms not otherwise defined
herein shall have the meanings given such terms in the Trust Indenture under
which the above-listed 2008A Bonds were issued.

      

      

      SIGN HERE

      

      Dated:                                                      ,
20__

      Signature(s)
of Bondholder(s)

      

      (Must be signed by Bondholder exactly
as name appears on 2008A Bonds or by the attorney of such Bondholder duly
authorized in writing by certificates and documents transmitted
herewith.  If signature is by trustee, executor, administrator,
guardian, attorney-in-fact, officer or corporation or others acting in a
fiduciary or representative capacity, please set forth full title)

      

      Name(s)                                           

      (Please Print)

      

      Capacity                                           

      

      Address                                           

      (including Zip Code)

      

      (Area
Code and
Tel.  No.)                                                      

      

      (Tax
Identification
Number)                                                      

      

      

      Please
contact Manufacturers and Traders Trust Company, Paying Agent,
telephone:  717/231-2613, or PNC Capital Markets, Inc., Philadelphia,
Pennsylvania, Remarketing Agent, telephone:  215/585-1441, with
questions regarding this Notice of Tender.

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