Document:

Exhibit 10.15

 

CONFORMED EXECUTION COPY

 

 

$1,500,000,000

 

REVOLVING CREDIT AGREEMENT

 

Dated as of October 27, 2006

 

among

 

EQUITABLE
RESOURCES, INC.,

as the Borrower,

 

BANK OF AMERICA, N.A.,

as Administrative Agent, Swing Line Lender and a L/C Issuer,

 

JPMORGAN CHASE BANK, N.A.

as Syndication Agent and a L/C Issuer,

 

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,
HOUSTON AGENCY,

CITIBANK, N.A.,

and PNC BANK, NATIONAL ASSOCIATION

as Co-Documentation Agents

 

and

 

The Other Lenders Party Hereto

 

BANC OF AMERICA SECURITIES LLC,

and

J.P. MORGAN SECURITIES INC.,

as

Lead Arrangers and Co-Book Managers

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS

  	
  1

  
	
  1.01

  	
  Defined Terms

  	
  1

  
	
  1.02

  	
  Other Interpretive
  Provisions

  	
  16

  
	
  1.03

  	
  Accounting Terms

  	
  16

  
	
  1.04

  	
  Rounding

  	
  17

  
	
  1.05

  	
  References to Agreements
  and Laws

  	
  17

  
	
  1.06

  	
  Times of Day

  	
  17

  
	
  1.07

  	
  Letter of Credit Amounts

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE II. THE COMMITMENTS AND BORROWINGS

  	
  17

  
	
  2.01

  	
  Loans

  	
  17

  
	
  2.02

  	
  Borrowings, Conversions
  and Continuations of Loans

  	
  17

  
	
  2.03

  	
  Letters of Credit

  	
  18

  
	
  2.04

  	
  Swing Line Loans

  	
  25

  
	
  2.05

  	
  Prepayments

  	
  27

  
	
  2.06

  	
  Termination or Reduction
  of Commitments

  	
  27

  
	
  2.07

  	
  Repayment of Loans

  	
  28

  
	
  2.08

  	
  Interest

  	
  28

  
	
  2.09

  	
  Fees

  	
  28

  
	
  2.10

  	
  Computation of Interest
  and Fees

  	
  29

  
	
  2.11

  	
  Evidence of Debt

  	
  29

  
	
  2.12

  	
  Payments Generally

  	
  30

  
	
  2.13

  	
  Sharing of Payments

  	
  31

  
	
  2.14

  	
  Extension of Stated
  Maturity Date

  	
  32

  
	
  2.15

  	
  Increase in Commitments

  	
  34

  
	
   

  	
   

  	
   

  
	
  ARTICLE III. TAXES, YIELD PROTECTION AND ILLEGALITY

  	
  36

  
	
  3.01

  	
  Taxes

  	
  36

  
	
  3.02

  	
  Illegality

  	
  37

  
	
  3.03

  	
  Inability to Determine
  Rates

  	
  37

  
	
  3.04

  	
  Increased Cost and Reduced
  Return; Capital Adequacy

  	
  37

  
	
  3.05

  	
  Funding Losses

  	
  38

  
	
  3.06

  	
  Matters Applicable to all
  Requests for Compensation

  	
  38

  
	
  3.07

  	
  Survival

  	
  38

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV. CONDITIONS PRECEDENT TO CLOSING DATE AND TO CREDIT
  EXTENSIONS

  	
  39

  
	
  4.01

  	
  Conditions of Closing Date
  and Initial Credit Extension

  	
  39

  
	
  4.02

  	
  Conditions to all Credit
  Extensions

  	
  40

  
	
   

  	
   

  	
   

  
	
  ARTICLE V. REPRESENTATIONS AND WARRANTIES

  	
  40

  
	
  5.01

  	
  Corporate Existence and
  Power

  	
  40

  
	
  5.02

  	
  Corporate and Governmental
  Authorization; No Contravention

  	
  40

  
	
  5.03

  	
  Binding Effect

  	
  40

  
	
  5.04

  	
  Financial Information

  	
  41

  
	
  5.05

  	
  Litigation

  	
  41

  
	
  5.06

  	
  No Default

  	
  41

  
	
  5.07

  	
  Compliance with ERISA

  	
  41

  
	
  5.08

  	
  Environmental Matters

  	
  41

  
	
  5.09

  	
  Taxes

  	
  42

  
	
  5.10

  	
  Subsidiaries

  	
  42

  
	
  5.11

  	
  Regulatory Restrictions on
  Borrowing; Margin Regulations

  	
  42

  

 

i

 

	
  5.12

  	
  Full Disclosure

  	
  42

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI. AFFIRMATIVE COVENANTS

  	
  42

  
	
  6.01

  	
  Information

  	
  42

  
	
  6.02

  	
  Payment of Obligations

  	
  42

  
	
  6.03

  	
  Maintenance
  of Property; Insurance

  	
  45

  
	
  6.04

  	
  Conduct of Business and
  Maintenance of Existence

  	
  45

  
	
  6.05

  	
  Compliance with Laws

  	
  45

  
	
  6.06

  	
  Inspection of Property,
  Books and Records

  	
  45

  
	
  6.07

  	
  Use of Proceeds

  	
  45

  
	
  6.08

  	
  Governmental Approvals and
  Filings

  	
  45

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII. NEGATIVE COVENANTS

  	
  46

  
	
  7.01

  	
  Liens

  	
  46

  
	
  7.02

  	
  Debt to Total Capital

  	
  47

  
	
  7.03

  	
  Transactions with
  Affiliates

  	
  47

  
	
  7.04

  	
  Limitation of Other
  Restrictions on Dividends by Subsidiaries, etc.

  	
  47

  
	
  7.05

  	
  Mergers and Sales of
  Assets

  	
  47

  
	
  7.06

  	
  Change in Nature of
  Business

  	
  48

  
	
  7.07

  	
  Use of Proceeds

  	
  48

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII. EVENTS OF DEFAULT AND REMEDIES

  	
  48

  
	
  8.01

  	
  Events of Default

  	
  48

  
	
  8.02

  	
  Remedies Upon Event of
  Default

  	
  49

  
	
  8.03

  	
  Application of Funds

  	
  50

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX. ADMINISTRATIVE AGENT

  	
  51

  
	
  9.01

  	
  Appointment and
  Authorization of Administrative Agent

  	
  51

  
	
  9.02

  	
  Rights as a Lender

  	
  51

  
	
  9.03

  	
  Exculpatory Provisions

  	
  51

  
	
  9.04

  	
  Reliance by Administrative
  Agent

  	
  52

  
	
  9.05

  	
  Indemnification of
  Administrative Agent

  	
  52

  
	
  9.06

  	
  Delegation of Duties

  	
  52

  
	
  9.07

  	
  Resignation of
  Administrative Agent

  	
  53

  
	
  9.08

  	
  Non-Reliance on
  Administrative Agent and Other Lenders

  	
  53

  
	
  9.09

  	
  No Other Duties, Etc

  	
  54

  
	
  9.10

  	
  Administrative Agent
  May File Proofs of Claim

  	
  54

  
	
   

  	
   

  	
   

  
	
  ARTICLE X. MISCELLANEOUS

  	
  54

  
	
  10.01

  	
  Amendments, Etc.

  	
  54

  
	
  10.02

  	
  Notices; Effectiveness;
  Electronic Communication

  	
  55

  
	
  10.03

  	
  No Waiver; Cumulative
  Remedies

  	
  57

  
	
  10.04

  	
  Attorney Costs, Expenses
  and Taxes

  	
  57

  
	
  10.05

  	
  Indemnification by the
  Borrower

  	
  57

  
	
  10.06

  	
  Payments Set Aside

  	
  58

  
	
  10.07

  	
  Successors and Assigns

  	
  58

  
	
  10.08

  	
  Confidentiality

  	
  62

  
	
  10.09

  	
  Set-off

  	
  63

  
	
  10.10

  	
  Interest Rate Limitation

  	
  63

  
	
  10.11

  	
  Counterparts

  	
  64

  
	
  10.12

  	
  Integration

  	
  64

  
	
  10.13

  	
  Survival of Representations
  and Warranties

  	
  64

  
	
  10.14

  	
  Severability

  	
  64

  
	
  10.15

  	
  Tax Forms

  	
  64

  
	
  10.16

  	
  Replacement of Lenders

  	
  66

  

 

ii

 

	
  10.17

  	
  Governing Law

  	
  66

  
	
  10.18

  	
  No
  Advisory or Fiduciary Responsibility

  	
  66

  
	
  10.19

  	
  Waiver of Right to Trial
  by Jury

  	
  67

  
	
  10.20

  	
  USA PATRIOT Act Notice

  	
  67

  
	
  10.21

  	
  Termination of Commitments
  Under Existing Credit Agreement

  	
  67

  
	
  10.22

  	
  Restructuring

  	
  68

  
	
  10.23

  	
  ENTIRE AGREEMENT

  	
  69

  
	
   

  	
   

  	
   

  
	
  SIGNATURES

  	
  S-1

  

 

iii

 

	
  SCHEDULES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  2.01

  	
  Commitments and Pro Rata Shares

  	
   

  
	
  10.02

  	
  Administrative Agent’s Office, Certain Addresses for Notices

  	
   

  
	
  10.22

  	
  Restructuring Terms and Alternatives

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Form of

  	
   

  
	
   

  	
   

  	
   

  
	
  A-1

  	
  Committed Loan Notice

  	
   

  
	
  A-2

  	
  Swing Line Loan Notice

  	
   

  
	
  B

  	
  Note

  	
   

  
	
  C

  	
  Compliance Certificate

  	
   

  
	
  D

  	
  Assignment and Assumption

  	
   

  
	
  E-1

  	
  Opinion of Reed Smith LLP

  	
   

  
	
  E-2

  	
  Opinion of In-House Counsel for the Borrower

  	
   

  

 

iv

 

CREDIT AGREEMENT

 

This REVOLVING
CREDIT AGREEMENT (“Agreement”) is entered into as of October 27,
2006, among EQUITABLE RESOURCES, INC., a Pennsylvania corporation (the “Borrower”), each lender from time to time
party hereto (collectively, the “Lenders” and individually, a “Lender”),
BANK OF AMERICA, N.A., as Administrative Agent, Swing Line Lender, and an L/C
Issuer, and JPMORGAN CHASE BANK, N.A., as Syndication Agent and an L/C Issuer.

 

The Borrower
has requested that the Lenders provide a revolving credit facility and the
Lenders are willing to do so on the terms and conditions set forth herein.

 

In
consideration of the mutual covenants and agreements herein contained, the
parties hereto covenant and agree as follows:

 

ARTICLE I.

DEFINITIONS AND ACCOUNTING TERMS

 

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

 

“Acquisition Period” means the period beginning with the funding
of the purchase price for the Dominion Acquisition and ending on the first
fiscal quarter end at least 365 days after the funding of such purchase price.

 

“Administrative Agent” means Bank of America in its capacity as
administrative agent under any of the Loan Documents, or any successor
administrative agent.

 

“Administrative Agent’s Office” means the Administrative Agent’s
address and, as appropriate, account as set forth on Schedule 10.02, or
such other address or account as the Administrative Agent may from time to time
notify the Borrower and the Lenders.

 

“Administrative Questionnaire” means an Administrative
Questionnaire in a form supplied by the Administrative Agent.

 

“Affiliate” means, with respect to any Person, another Person
that directly, or indirectly through one or more intermediaries, Controls or is
Controlled by or is under common Control with the Person specified.  “Control” means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of a Person, whether through the ability to exercise
voting power, by contract or otherwise.  “Controlling”
and “Controlled” have meanings correlative thereto.

 

“Agent-Related Persons”  means each of the Administrative
Agent and each L/C Issuer, together with its respective Affiliates, and the
officers, directors, employees, agents and attorneys-in-fact of such Persons
and Affiliates.

 

“Aggregate Commitments” means the
Commitments of all the Lenders.

 

“Agreement” means this Credit Agreement.

 

“ANPI” means Appalachian NPI, LLC a Delaware limited liability
company.

 

“ANPI Obligations” means obligations with respect to the 7.76%
Senior Secured Bonds due February 28, 2016 of ANPI, with respect to the
related swap transaction between ANPI and Barclays Bank PLC (successor to
Credit Suisse First Boston International) and with respect to the ownership 

 

 

interests in Appalachian Natural Gas Trust, in each case under
documentation in place as of the date of this Agreement, with such changes in
such documentation as, in the reasonable opinion of the Administrative Agent,
do not adversely affect the interest of the Lenders.

 

“ANPI Transaction” means the transaction pursuant to which the
ANPI Obligations were incurred.

 

“Applicable Rate” means, from time to time, the following
percentages per annum (set forth in basis points), based upon the Public Debt
Ratings as set forth below:

 

	
   

  	
   

  	
  Applicable Rate

  	
   

  
	
  Pricing 

  Level

  	
   

  	
  Public Debt 

  Ratings 

  S&P/Moody’s

  /Fitch

  	
   

  	
  Facility 

  Fee

  	
   

  	
  Utilization 

  Fee

  	
   

  	
  Eurodollar 

  Rate

  	
   

  	
  Letters 

  of 

  Credit

  	
   

  	
  Base 

  Rate

  	
   

  
	
  1

  	
   

  	
  A+/A1/A+ or better

  	
   

  	
  5.0

  	
   

  	
  5.0

  	
   

  	
  15.0

  	
   

  	
  15.0

  	
   

  	
  0.0

  	
   

  
	
  2

  	
   

  	
  A/A2/A

  	
   

  	
  6.0

  	
   

  	
  5.0

  	
   

  	
  19.0

  	
   

  	
  19.0

  	
   

  	
  0.0

  	
   

  
	
  3

  	
   

  	
  A-/A3/A-

  	
   

  	
  7.0

  	
   

  	
  5.0

  	
   

  	
  23.0

  	
   

  	
  23.0

  	
   

  	
  0.0

  	
   

  
	
  4

  	
   

  	
  BBB+/Baa1/BBB+

  	
   

  	
  8.0

  	
   

  	
  5.0

  	
   

  	
  27.0

  	
   

  	
  27.0

  	
   

  	
  0.0

  	
   

  
	
  5

  	
   

  	
  BBB/Baa2/BBB

  	
   

  	
  10.0

  	
   

  	
  5.0

  	
   

  	
  35.0

  	
   

  	
  35.0

  	
   

  	
  0.0

  	
   

  
	
  6

  	
   

  	
  BBB-/Baa3/BBB- or worse

  	
   

  	
  12.5

  	
   

  	
  5.0

  	
   

  	
  47.5

  	
   

  	
  47.5

  	
   

  	
  0.0

  	
   

  

 

“Public Debt Ratings” means a rating to be based on the
Borrower’s long-term senior unsecured non-credit enhanced debt ratings (“Senior
Unsecured Ratings”) established by S&P, Moody’s, and Fitch.  If at any time there is a split in Senior
Unsecured Ratings among S&P, Moody’s, and Fitch and (a) two Senior
Unsecured Ratings are equal and higher than the third Senior Unsecured Rating,
the higher Senior Unsecured Ratings will apply, (b) two Senior Unsecured
Ratings are equal and lower than the third Senior Unsecured Rating, the lower
Senior Unsecured Ratings will apply, or (c) no Senior Unsecured Ratings
are equal, the intermediate Senior Unsecured Rating will apply.  In the event that the Borrower shall maintain
Senior Unsecured Ratings from only two of S&P, Moody’s, or Fitch, and there
is a split in such Senior Unsecured Ratings, (i) in the event of a single
level split, the higher Senior Unsecured Rating (i.e. the lower pricing) will
apply and (ii) in the event of a multiple level split, the pricing will be
based on the rating one level lower than the higher of the two.  If only S&P, Moody’s, or Fitch issues a
rating then such rating shall apply.  In
the event that the Borrower’s senior unsecured long-term debt is not rated by
any of S&P, Moody’s or Fitch, then the Applicable Rate shall be calculated
at Pricing Level 6.

 

Initially, the Applicable Rate shall be determined based upon the
Public Debt Ratings specified in the certificate delivered pursuant to Section 4.01(a)(vi).  Thereafter, each change in the Applicable
Rate resulting from a publicly announced change in the Public Debt Ratings
shall be effective during the period commencing on the date of the public
announcement thereof and ending on the date immediately preceding the effective
date of the next such change.

 

“Approved Fund” has the meaning specified in Section 10.07(h).

 

“Arranger” means each of Banc of America Securities LLC and J.P.
Morgan Securities, Inc., in their capacity as co-lead arrangers and
co-book managers.

 

2

 

“Assignee Group” means two or more Eligible Assignees that are
Affiliates of one another or two or more Approved Funds managed by the same
investment advisor.

 

“Assignment and Assumption” means an Assignment and Assumption
substantially in the form of Exhibit D.

 

“Attorney Costs” means and includes all fees, expenses and
disbursements of any law firm or other external counsel and, without
duplication, the allocated cost of internal legal services and all expenses and
disbursements of internal counsel.

 

“Audited Financial Statements” means the audited consolidated
balance sheet of the Borrower and its Subsidiaries for the fiscal year ended December 31,
2005 and the related consolidated statements of income or operations,
shareholders’ equity and cash flows for such fiscal year of the Borrower and
its Subsidiaries, including the notes thereto.

 

“Authorizations” means all filings, recordings, and
registrations with, and all validations or exemptions, approvals, orders,
authorizations, consents, franchises, licenses, certificates, and permits from,
any Governmental Authority.

 

“Availability Period” means the period
from and including the Closing Date to the Maturity Date.

 

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

 

“Base Rate”  means for any day a fluctuating
rate per annum equal to the higher of (a) the Federal Funds Rate plus 1/2
of 1% and (b) the rate of interest in effect for such day as publicly
announced from time to time by Bank of America as its “prime rate.”  The “prime rate” is a rate set by Bank of
America based upon various factors including Bank of America’s costs and
desired return, general economic conditions and other factors, and is used as a
reference point for pricing some loans, which may be priced at, above, or below
such announced rate.  Any change in such
rate announced by Bank of America shall take effect at the opening of business
on the day specified in the public announcement of such change.

 

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

 

“Base Rate Loan” means a
Loan that bears interest based on the Base Rate.  All Base Rate Loans shall be denominated in
Dollars.

 

“Benefit Arrangement” means, at any time, an employee benefit
plan within the meaning of Section 3(3) of ERISA which is not a Plan
or a Multiemployer Plan and which is maintained or otherwise contributed to by
any member of the ERISA Group.

 

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

 

“Borrower Materials” has the meaning specified in Section 6.01.

 

“Borrowing” means a Committed Borrowing or a Swing Line
Borrowing, as the context may require.

 

“Business Day” means any day other than a Saturday, Sunday or
other day on which commercial banks are authorized to close under the Laws of,
or are in fact closed in, the state where the Administrative Agent’s Office is
located and, if such day relates to any Eurodollar Rate Loan, means any 

 

3

 

such day on which dealings in Dollar deposits are conducted by and
between banks in the London interbank eurodollar market.

 

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

 

“Change of Control” means, with respect to any Person, an event
or series of events by which:

 

(a)           any
“person” or “group” (as such terms are used in Sections 13(d) and 14(d) of
the Securities Exchange Act of 1934, but excluding any employee benefit plan of
such person or its subsidiaries, and any person or entity acting in its
capacity as trustee, agent or other fiduciary or administrator of any such
plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5
under the Securities Exchange Act of 1934, except that a person or group shall
be deemed to have “beneficial ownership” of all securities that such person or
group has the right to acquire (such right, an “option right”), whether
such right is exercisable immediately or only after the passage of time),
directly or indirectly, of 33-1/3% or more of the equity securities of such
Person entitled to vote for members of the board of directors or equivalent
governing body of such Person on a fully-diluted basis (and taking into account
all such securities that such person or group has the right to acquire pursuant
to any option right); or

 

(b)           during
any period of 12 consecutive months, a majority of the members of the board of
directors or other equivalent governing body of such Person cease to be
composed of individuals (i) who were members of that board or equivalent
governing body on the first day of such period, (ii) whose election or
nomination to that board or equivalent governing body was approved by
individuals referred to in clause (i) above constituting at the time of
such election or nomination at least a majority of that board or equivalent
governing body or (iii) whose election or nomination to that board or
other equivalent governing body was approved by individuals referred to in
clauses (i) and (ii) above constituting at the time of such election
or nomination at least a majority of that board or equivalent governing body
(excluding, in the case of both clause (ii) and clause (iii), any
individual whose initial nomination for, or assumption of office as, a member
of that board or equivalent governing body occurs as a result of an actual or
threatened solicitation of proxies or consents for the election or removal of
one or more directors by any person or group other than a solicitation for the
election of one or more directors by or on behalf of the board of directors).

 

“Closing Date” means October 27,
2006, which is the first date all the conditions precedent in Section 4.01
are satisfied or waived in accordance with Section 4.01 (or, in the
case of Section 4.01(b), waived by the Person entitled to receive
the applicable payment).

 

“Code” means the Internal Revenue Code of 1986.

 

“Commitment” means, as to each Lender, its obligation to (a) make
Committed Loans to the Borrower pursuant to Section 2.01, (b) purchase
participations in L/C Obligations, and (c) purchase participations in
Swing Line Loans, in an aggregate principal amount at any one time outstanding
not to exceed the amount set forth opposite such Lender’s name on Schedule
2.01 or in the Assignment and Assumption pursuant to which such Lender
becomes a party hereto, as applicable, as such amount may be adjusted from time
to time in accordance with this Agreement.

 

“Committed Borrowing” means a Borrowing consisting of
simultaneous Committed Loans of the same Type and, in the case of Eurodollar
Rate Loans, having the same Interest Period made by each of the Lenders
pursuant to Section 2.01.

 

“Committed Loan” has the meaning specified in Section 2.01.

 

4

 

 

“Committed Loan Notice” means a notice of (a) a Borrowing
of Committed Loans, (b) a conversion of Committed Loans from one Type to
the other, or (c) a continuation of Eurodollar Rate Loans, pursuant to Section 2.02(a),
which shall be substantially in the form of Exhibit A-1.

 

“Compliance Certificate” means a certificate substantially in
the form of Exhibit C.

 

“Consolidated Debt” means,
as of any date of determination, the Debt of the Borrower and its Subsidiaries
on a consolidated basis other than (i) Non-Recourse Debt and (ii) Designated
Hybrid Equity Securities.

 

“Consolidated Subsidiaries”
means, at any date, any Subsidiary or other entity, the accounts of which would
be consolidated with those of the Borrower in its consolidated financial
statements if such statements were prepared as of such date.

 

“Contractual Obligation” means, as to
any Person, any provision of any security issued by such Person or of any
agreement, instrument or other undertaking to which such Person is a party or
by which it or any of its property is bound.

 

“Control” has the meaning specified in
the definition of “Affiliate.”

 

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

 

“Daily Floating
Eurodollar Rate” means, with respect to any Daily Floating
Eurodollar Rate Loan for each day that it is a Daily Floating Eurodollar Rate
Loan, the rate per annum equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”),
as published by Reuters (or other commercially available source providing
quotations of BBA LIBOR as designated by the Administrative Agent from time to
time) at approximately 11:00 a.m. (London time) on such day (if such day
is a Business Day) or the immediately preceding Business Day (if such day is
not a Business Day), for U.S. dollar deposits with a term equivalent to one (1) month.  If such rate is not available at such time
for any reason, then the “Daily Floating Eurodollar Rate” shall be the rate per
annum determined by the Administrative Agent in accordance with its usual
practice to be the rate at which deposits in U.S. dollars in same day funds in
the approximate amount of the Daily Floating Eurodollar Rate Loan being made,
continued or converted by Bank of America and with a term equivalent to one (1) month
would be offered by Bank of America’s London Branch to major banks in the
London interbank eurodollar market at their request at approximately 11:00 a.m.
(London time) on such day (if such day is a Business Day) or the immediately
preceding Business Day (if such day is not a Business Day).

 

“Daily Floating
Eurodollar Rate Loan” means a Swing Line Loan that bears interest at
a rate based upon the Daily Floating Eurodollar Rate.

 

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

 

(a) all obligations of
such Person for borrowed money and all obligations of such Person evidenced by
bonds, debentures, notes, loan agreements or other similar instruments;

 

(b) all non-contingent
obligations (and, for purposes of Section 8.01(e) and the definitions
of Material Debt and Material Financial Obligations, all contingent
obligations) of such Person arising under letters of credit (including standby
and commercial), bankers’ acceptances, bank guaranties, surety bonds and
similar instruments;

 

5

 

(c) all obligations of
such Person to pay the deferred purchase price of property or services (other
than trade accounts payable in the ordinary course of business);

 

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

 

(e) capital leases;

 

(f) to the extent
required to be included on the Borrower’s consolidated balance sheet as debt or
liabilities in accordance with GAAP, Synthetic Lease Obligations;

 

(g) all obligations of
such Person for the payment of money under Production Payments; and

 

(h) all Guarantees of
such Person in respect of any of the foregoing. 
For all purposes hereof, the Debt of the Borrower shall include the Debt
of any partnership or joint venture (other than a joint venture that is itself
a corporation or limited liability company) in which the Borrower or any
Subsidiary of the Borrower is a general partner or a joint venturer, unless
such Debt is expressly made non-recourse to the Borrower or Subsidiary, as
applicable.

 

“Debtor Relief Laws” means the Bankruptcy Code of the United
States, and all other liquidation, conservatorship, bankruptcy, assignment for
the benefit of creditors, moratorium, rearrangement, receivership, insolvency,
reorganization, or similar debtor relief Laws of the United States or other
applicable jurisdictions from time to time in effect and affecting the rights
of creditors generally.

 

“Default” means any event or condition
that constitutes an Event of Default or that, with the giving of any notice,
the passage of time, or both, would be an Event of Default.

 

“Default Rate” means an interest rate
equal to (a) the Base Rate plus (b) the Applicable Rate, if
any, applicable to Base Rate Loans plus (c) 2% per annum; provided,
however, that with respect to a Eurodollar Rate Loan, the Default Rate
shall be an interest rate equal to the interest rate (including any Applicable
Rate) otherwise applicable to such Loan plus 2% per annum, in each case to the
fullest extent permitted by applicable Laws.

 

“Defaulting Lender” means any Lender
that (a) has failed to fund any portion of the Committed Loans,
participations in L/C Obligations or participations in Swing Line Loans
required to be funded by it hereunder within one Business Day of the date
required to be funded by it hereunder, (b) has otherwise failed to pay
over to the Administrative Agent or any other Lender any other amount required
to be paid by it hereunder within one Business Day of the date when due, unless
the subject of a good faith dispute, or (c) has been deemed insolvent or
become the subject of a bankruptcy or insolvency proceeding.

 

“Designated Hybrid Equity Securities”
means at any time Hybrid Equity Securities in an outstanding principal amount
equal to the lesser of (i) the outstanding principal amount of Hybrid
Equity Securities at such time, and (ii) 10% of Total Capital at such
time.

 

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

 

“Domestic” means organized under the
laws of any state of the United States.

 

6

 

“Dominion Acquisition”  means the acquisition by the Borrower or a
Subsidiary of the Borrower of the stock of The Peoples Natural Gas Company and
Hope Gas, Inc. from Consolidated Natural Gas Company, a wholly-owned
Subsidiary of Dominion Resources, Inc.

 

“Eligible Assignee” has the meaning specified in Section 10.07(h).

 

“Environmental Laws” means any and all Federal, state, local,
and foreign statutes, laws, regulations, ordinances, rules, judgments, orders,
decrees, permits, concessions, grants, franchises, licenses, agreements or
governmental restrictions relating to pollution and the protection of the
environment or the release of any materials into the environment, including
those related to hazardous substances or wastes, air emissions and discharges
to waste or public systems.

 

“Environmental Liability” means any
liability, contingent or otherwise (including any liability for damages, costs
of environmental remediation, fines, penalties or indemnities), of the Borrower
or any of its Subsidiaries directly or indirectly resulting from or based upon (a) violation
of any Environmental Law, (b) the generation, use, handling,
transportation, storage, treatment or disposal of any Hazardous Substances, (c) exposure
to any Hazardous Substances, (d) the release or threatened release of any
Hazardous Substances into the environment or (e) any contract, agreement
or other consensual arrangement pursuant to which liability is assumed or
imposed with respect to any of the foregoing.

 

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

 

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

 

“Eurodollar Rate” means the Fixed Period Eurodollar Rate or the
Daily Floating Eurodollar Rate.

 

“Eurodollar Rate Loan” means a Fixed Period Eurodollar Rate Loan
or a Daily Floating Eurodollar Rate Loan. 
Each reference to Eurodollar Rate Loan when used in connection with
Committed Loans shall mean a Fixed Period Eurodollar Rate Loan.  Each reference to Eurodollar Rate Loan when
used in connection with Swing Line Loans shall mean a Daily Floating Eurodollar
Rate Loan.

 

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

 

“Excluded Subsidiary” means at any
time a Subsidiary which is not a Material Subsidiary, and is organized solely
for the purpose of holding, directly or indirectly, an ownership interest in
one entity or property (or related entities or properties), does not engage in
any business unrelated to such entity(ies) or property(ies) or the financing
thereof and does not have any assets or indebtedness other than those related
to its interest in such entity(ies) or property(ies) or the financing thereof
and which shall have been identified as an Excluded Subsidiary at or prior to
such time by notice from the Borrower to the Lenders.

 

“Existing Bond Debt” means Debt of the
Borrower pursuant to the bonds issued under the Indentures dated April 1,
1983 and July 1, 1996.

 

“Existing Credit Agreement” means that certain Revolving Credit
Agreement dated as of August 11, 2005 among the Borrower, Bank of America,
N.A., as administrative agent and letter of credit issuer, and the other agents
and lenders therein named, as amended.

 

“Existing Lenders” means the lenders who are parties to the
Existing Credit Agreement.

 

7

 

“Federal Funds Rate”  means, for any day, the rate per
annum equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published by the Federal Reserve Bank on the
Business Day next succeeding such day; provided that (a) if such
day is not a Business Day, the Federal Funds Rate for such day shall be such
rate on such transactions on the next preceding Business Day as so published on
the next succeeding Business Day, and (b) if no such rate is so published
on such next succeeding Business Day, the Federal Funds Rate for such day shall
be the average rate (rounded upward, if necessary, to a whole multiple of 1/100
of 1%) charged to Bank of America on such day on such transactions as
determined by the Administrative Agent in accordance with its usual practice.

 

“Fee Letters” means the letter agreement, dated September 27,
2006 among the Borrower, the Administrative Agent and Banc of America Securities
LLC and the letter agreement, dated September 27, 2006 among the Borrower
and J.P. Morgan Securities, Inc.

 

“Fitch” means Fitch Ratings Inc. and any successor thereto.

 

“Fixed Period
Eurodollar Rate”
means, with respect to any Fixed Period Eurodollar Rate Loan for the Interest
Period applicable to such Fixed Period Eurodollar Rate Loan, the rate per annum
equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters
(or other commercially available source providing quotations of BBA LIBOR as
designated by the Administrative Agent from time to time) at approximately
11:00 a.m., London time, two Business Days prior to the commencement of
such Interest Period, for U.S. dollar deposits (for delivery on the first day
of such Interest Period) with a term equivalent to such Interest Period.  If such rate is not available at such time
for any reason, then the “Fixed Period Eurodollar Rate” for such Interest
Period shall be the rate per annum determined by the Administrative Agent in
accordance with its usual practice to be the rate at which deposits in U.S.
dollars for delivery on the first day of such Interest Period in same day funds
in the approximate amount of the Fixed Period Eurodollar Rate Loan being made,
continued or converted by Bank of America and with a term equivalent to such
Interest Period would be offered by Bank of America’s London Branch to major
banks in the London interbank eurodollar market at their request at
approximately 11:00 a.m. (London time) two Business Days prior to the
commencement of such Interest Period.

 

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

 

“Foreign Lender” has the meaning specified in Section 10.15(a)(i).

 

“Forward
Sale” means an obligation to deliver oil, gas or other minerals to be
acquired or produced in the future in consideration of advance payment
therefor.

 

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

 

“Fund” has the meaning specified in Section 10.07(h).

 

“GAAP” means generally accepted accounting principles in the
United States set forth in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and
statements and pronouncements of the Financial Accounting Standards Board or
such other principles as may be approved by a significant segment of the
accounting profession in the United States, that are applicable to the
circumstances as of the date of determination, consistently applied.

 

“Governmental Authority” means any nation or government, any
state or other political subdivision thereof, any agency, authority,
instrumentality, regulatory body, court, administrative 

 

8

 

tribunal, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions
of or pertaining to government.

 

“Granting Lender” has the meaning specified in Section 10.07(i).

 

“Guarantee” means, as to any Person, any (a) any
obligation, contingent or otherwise, of such Person guaranteeing or having the
economic effect of guaranteeing any Debt or other obligation payable or
performable by another Person (the “primary obligor”) in any manner, whether
directly or indirectly, and including any obligation of such Person, direct or
indirect, (i) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Debt or other obligation, (ii) to purchase or
lease property, securities or services for the purpose of assuring the obligee
in respect of such Debt or other obligation of the payment or performance of
such Debt or other obligation, (iii) to maintain working capital, equity
capital or any other financial statement condition or liquidity or level of
income or cash flow of the primary obligor so as to enable the primary obligor
to pay such Debt or other obligation, or (iv) entered into for the purpose
of assuring in any other manner the obligee in respect of such Debt or other
obligation of the payment or performance thereof or to protect such obligee
against loss in respect thereof (in whole or in part), or (b) any Lien on
any assets of such Person securing any Debt or other obligation of any other
Person, whether or not such Debt or other obligation is assumed by such
Person.  The amount of any Guarantee
shall be deemed to be an amount equal to the stated or determinable amount of
the related primary obligation, or portion thereof, in respect of which such
Guarantee is made or, if not stated or determinable, the maximum reasonably
anticipated liability in respect thereof as determined by the guaranteeing
Person in good faith.  The term “Guarantee”
as a verb has a corresponding meaning.

 

“Hazardous Substances” means all explosive or radioactive
substances or wastes and all hazardous or toxic substances, wastes or other
pollutants, including petroleum or petroleum distillates, asbestos or
asbestos-containing materials, polychlorinated biphenyls, radon gas, infectious
or medical wastes and all other substances or wastes of any nature regulated
pursuant to any Environmental Law.

 

“Hybrid Equity Securities” means, on any date (the “determination date”),
any securities issued by the Borrower or a financing vehicle of the Borrower,
other than common stock, that meet the following criteria: (a) (i) the
Borrower demonstrates that such securities are classified, at the time they are
issued, as possessing a minimum of “intermediate equity content” by S&P and
“Basket C equity credit” by Moody’s (or the equivalent classifications then in
effect by such agencies) and (ii) on such determination date such
securities are classified as possessing a minimum of “intermediate equity
content” by S&P or “Basket C equity credit” by Moody’s (or the equivalent
classifications then in effect by such agencies) and (b) such securities
require no repayments or prepayments and no mandatory redemptions or
repurchases, in each case, prior to at least 91 days after the later of the
termination of the Commitments and the repayment in full of the
Obligations.  As used in this definition,
“mandatory redemption” shall not include conversion of a security into common
stock.

 

“Indemnified Liabilities” has the meaning set forth in Section 10.05.

 

“Indemnitees” has the meaning set forth in Section 10.05.

 

“Information” has the meaning set forth in Section 10.08.

 

“Interest Payment Date” means, (a) as to any Loan other
than a Base Rate Loan and other than a Daily Floating Eurodollar Rate Loan, the
last day of each Interest Period applicable to such Loan and the Maturity Date;
provided, however, that if any Interest Period for a Eurodollar
Rate Loan exceeds three months, the respective dates that fall every three
months after the beginning of such Interest Period shall also be Interest
Payment Dates; (b) as to any Base Rate Loan (including a Swing Line Loan),
the last 

 

9

 

Business Day of each March, June, September and December and
the Maturity Date; and (c) as to any Daily Floating Eurodollar Rate Loan,
the last Business Day of each calendar month.

 

“Interest Period” means, (a) with respect to any Fixed
Period Eurodollar Rate Loan, the period commencing on the date such Fixed
Period Eurodollar Rate Loan is disbursed or converted to or continued as a
Fixed Period Eurodollar Rate Loan and ending on the date one, two, three or six
months thereafter, as selected by the Borrower in its Loan Notice, or (b) with
respect to any Daily Floating Eurodollar Rate Loan, the period commencing on
the date such Daily Floating Eurodollar Rate Loan commences and ending one
Business Day thereafter; provided that:

 

(i)          any Interest Period applicable to any
Fixed Period Eurodollar Rate Loan which would otherwise end on a day that is
not a Business Day shall be extended to the next succeeding Business Day unless
such Business Day falls in another calendar month, in which case such Interest
Period shall end on the immediately preceding Business Day;

 

(ii)         any Interest Period applicable to any
Daily Floating Eurodollar Rate Loan that would otherwise end on a day that is
not a Business Day shall be extended to the next succeeding Business Day;

 

(iii)        any Interest Period applicable to any
Fixed Period Eurodollar Rate Loan that begins on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding day
in the calendar month at the end of such Interest Period) shall, subject to the
provisions of clause (i) above, end on the last Business Day of the calendar
month at the end of such Interest Period; and

 

(iv)       no Interest Period shall extend beyond
the Maturity Date.

 

“IRS” means the United States Internal Revenue Service.

 

“ISP” has the meaning set forth in Section 2.03(h).

 

“JPM” means JPMorgan Chase Bank, N.A., and its successors.

 

“Laws” means, collectively, all international, foreign, Federal,
state and local statutes, treaties, rules, guidelines, regulations, ordinances,
codes and administrative or judicial precedents or authorities, including the interpretation
or administration thereof by any Governmental Authority charged with the
enforcement, interpretation or administration thereof, and all applicable
administrative orders, directed duties, requests, licenses, authorizations and
permits of, and agreements with, any Governmental Authority, in each case
whether or not having the force of law.

 

“L/C Advance” means, with respect to each Lender, such Lender’s
funding of its participation in any L/C Borrowing in accordance with its Pro
Rata Share.

 

“L/C Borrowing” means an extension of credit resulting from a
drawing under any Letter of Credit which has not been reimbursed on the date
when made or refinanced as a Borrowing.

 

“L/C Credit Extension” means, with respect to any Letter of
Credit, the issuance thereof or extension of the expiry date thereof, or the
renewal or increase of the amount thereof.

 

“L/C Issuer” means either Bank of America or JPM in its capacity
as an issuer of Letters of Credit hereunder, or any successor issuer of Letters
of Credit hereunder; provided  however, that the commitment of
each of Bank of America and JPM to issue Letters of Credit hereunder shall be
limited to an aggregate maximum amount for all such Letters of Credit issued by
Bank of America or JPM, as 

 

10

 

applicable, that is equal to the lesser of (i) $750,000,000, and (ii) 50%
of the Aggregate Commitments as determined at the time of any proposed issuance
of a Letter of Credit.  As used herein,
the term “the L/C Issuer” shall mean “each L/C Issuer” or  “the applicable L/C Issuer,” as the context
may require.

 

“L/C Obligations” means, as at any date of determination, the
aggregate undrawn amount of all outstanding Letters of Credit plus the
aggregate of all Unreimbursed Amounts, including all L/C Borrowings.  For purposes of computing the amount
available to be drawn under any Letter of Credit, the amount of such Letter of
Credit shall be determined in accordance with Section 1.07.  For all purposes of this Agreement, if on any
date of determination a Letter of Credit has expired by its terms but any
amount may still be drawn thereunder by reason of the operation of Rule 3.14
of the ISP, such Letter of Credit shall be deemed to be “outstanding” in the
amount so remaining available to be drawn.

 

“Lender” has the meaning specified in the introductory paragraph
hereto and, as the context requires, includes the L/C Issuer and the Swing Line
Lender.

 

“Lending Office” means, as to any Lender, the office or offices
of such Lender described as such in such Lender’s Administrative Questionnaire,
or such other office or offices as a Lender may from time to time notify the
Borrower and the Administrative Agent.

 

“Letter of Credit” means any standby letter of credit issued
hereunder.

 

“Letter of Credit Application” means an application and
agreement for the issuance or amendment of a Letter of Credit in the form from
time to time in use by the L/C Issuer.

 

“Letter of Credit Expiration Date” means the day that is seven
days prior to the Stated Maturity Date then in effect (or, if such day is not a
Business Day, the next preceding Business Day).

 

“Letter of Credit Sublimit” means an amount equal to
$1,500,000,000, as such amount may be reduced pursuant to Section 2.06.  The Letter of Credit Sublimit is part of, and
not in addition to, the Aggregate Commitments.

 

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

 

“Loan” means an extension of credit by a Lender to the Borrower
under Article II in the form of a Committed Loan or a Swing Line
Loan.

 

“Loan Documents” means this Agreement, each Note, and the Fee
Letters.

 

“Material Debt” means Debt (other than (i) Non-Recourse
Debt and (ii) the Loans) of the Borrower and one or more Subsidiaries,
arising in one or more related or unrelated transactions, in an aggregate
principal or face amount exceeding $100,000,000.

 

“Material Financial Obligations” means (i) a principal or
face amount of Debt, (ii) payment or collateralization obligations in
respect of Swap Contracts, or (iii) payment obligations in respect of
Forward Sales, in each case of the Borrower or any of its Subsidiaries, arising
in one or more related or unrelated transactions, exceeding in the aggregate
$100,000,000.

 

“Material Plan” means, at any time, a Plan or Plans having
aggregate Unfunded Liabilities in excess of $100,000,000.

 

11

 

“Material Subsidiary” means any Subsidiary of Borrower for which
(i) its assets and the assets of its consolidated Subsidiaries comprise
more than 5% of the assets of the Borrower and its consolidated Subsidiaries,
or (ii) its revenue and the revenue of its consolidated Subsidiaries
comprise more than 5% of the revenue of the Borrower and its consolidated
Subsidiaries, in each case determined on a consolidated basis in accordance
with GAAP as of the end of the most recent fiscal year.

 

“Maturity Date” means the earlier of (a) the Stated
Maturity Date and (b) the effective date of any other termination,
cancellation, or acceleration of all Commitments under this Agreement.

 

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

 

“Multiemployer Plan” means, at any time, an employee pension
benefit plan within the meaning of Section 4001(a)(3) of
ERISA to which any member of the ERISA Group is then making or accruing an
obligation to make contributions, or has within the preceding five plan years
made contributions, including for these purposes any Person which ceased to be
a member of the ERISA Group during such five year period.

 

“New Parent Co.” has the meaning set forth in Schedule 10.22.

 

“Non-Recourse Debt” of any Person means Debt secured by a Lien
on one or more assets of such Person, where the rights and remedies of the
holder of such Debt in respect of such Debt do not extend to any other assets
of such Person and, if such Person is organized under the laws of or doing
business in the United States or any political subdivision thereof or therein,
as to which such holder has effectively waived (or subordinated in favor of the
Lenders) such holder’s right to make the election provided under 11 U.S.C. §
1111(b)(1)(A) (a “Recourse Waiver”); provided however, that no
Recourse Waiver shall be required with respect to Production Payments, and no
Recourse Waiver shall be required with respect to the ANPI Obligations.  Debt of an Excluded Subsidiary which is
without recourse to the Borrower or any other Subsidiary shall be deemed
Non-Recourse Debt of such Excluded Subsidiary secured by all assets of such
Excluded Subsidiary (whether or not such Debt is in fact so secured) and no
Recourse Waiver shall be required in respect thereof.  For purposes of this definition, the holders
of ANPI Obligations which are Debt of a Person shall be deemed to have a Lien
(to the extent permitted by Section 7.01(j) hereof) on assets
of such Person securing such ANPI Obligations.

 

“Note” means a promissory note made by the Borrower in favor of
a Lender evidencing Loans made by such Lender, substantially in the form of Exhibit B.

 

“Obligations” means all advances to, and debts, liabilities,
obligations, covenants and duties of, any the Borrower arising under any Loan
Document or otherwise with respect to any Loan or Letter of Credit, whether
direct or indirect (including those acquired by assumption), absolute or
contingent, due or to become due, now existing or hereafter arising and
including interest and fees that accrue after the commencement by or against
any the Borrower or any Affiliate of the Borrower of any proceeding under any
Debtor Relief Laws naming such Person as the debtor in such proceeding,
regardless of whether such interest and fees are allowed claims in such
proceeding.

 

“Organization Documents” means, (a) with respect to any
corporation, the certificate or articles of incorporation and the bylaws (or
equivalent or comparable constitutive documents with respect to any non-U.S.
jurisdiction); (b) with respect to any limited liability company, the
certificate or articles of formation or organization and operating agreement;
and (c) with respect to any partnership, joint venture, trust or other
form of business entity, the partnership, joint venture or other applicable
agreement of formation or organization and any agreement, instrument, filing or
notice with respect thereto filed in connection with its formation or
organization with the applicable Governmental Authority in the 

 

12

 

jurisdiction of its formation or organization and, if applicable, any
certificate or articles of formation or organization of such entity.

 

“Outstanding Amount” means (i) with respect to Committed
Loans on any date, the aggregate outstanding principal amount thereof after
giving effect to any borrowings and prepayments or repayments of such Committed
Loans occurring on such date; (ii) with respect to Swing Line Loans on any
date, the aggregate outstanding principal amount thereof after giving effect to
any borrowings and prepayments or repayments of such Swing Line Loans occurring
on such date; and (iii) with respect to any L/C Obligations on any date,
the amount of such L/C Obligations on such date after giving effect to any L/C
Credit Extension occurring on such date and any other changes in the aggregate
amount of the L/C Obligations as of such date, including as a result of any
reimbursements of outstanding unpaid drawings under any Letters of Credit or
any reductions in the maximum amount available for drawing under Letters of
Credit taking effect on such date.

 

“Participant” has the meaning specified in Section 10.07(d).

 

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

 

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

 

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

 

“Platform” has the meaning set forth
in Section 6.01.

 

“Production Payment” means an assignment of an interest in a
fixed quantity (measured by proceeds or by volume) of oil and gas or other
hydrocarbons when produced from a specified oil and gas property or properties,
in consideration for a payment in advance of production.

 

“Pro Rata Share” means, with respect to each Lender at any time,
a fraction (expressed as a percentage, carried out to the ninth decimal place),
the numerator of which is the amount of the Commitment of such Lender at such
time and the denominator of which is the amount of the Aggregate Commitments at
such time; provided that if the commitment of each Lender to make Loans
and the obligation of the L/C Issuer to make L/C Credit Extensions have been
terminated pursuant to Section 8.02, then the Pro Rata Share of
each Lender shall be determined based on the Pro Rata Share of such Lender
immediately prior to such termination and after giving effect to any subsequent
assignments made pursuant to the terms hereof. 
The initial Pro Rata Share of each Lender is set forth opposite the name
of such Lender on Schedule 2.01 or in the Assignment and Assumption
pursuant to which such Lender becomes a party hereto, as applicable.

 

“Public Debt Ratings” has the meaning
set forth in the definition of “Applicable Rate.”

 

“PUC” means any state or local regulatory agency or governmental
authority that exercises jurisdiction over the rates, services, ownership,
capital structure, authority to borrow, operation or production of electricity,
oil, gas or hydrocarbons, or over Persons who own, construct, or operate
facilities or systems that produce, transport, process, or market electricity,
oil, gas, or hydrocarbons.

 

13

 

“Register” has the meaning set forth in Section 10.07(c).

 

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

 

“Required Lenders” means, as of any date of determination,
Lenders having at least 51% of the Aggregate Commitments or, if the commitment
of each Lender to make Loans and the obligation of the L/C Issuer to make L/C
Credit Extensions have been terminated pursuant to Section 8.02,
Lenders holding in the aggregate at least 51% of the Total Outstandings (with
the aggregate amount of each Lender’s risk participation and funded
participation in L/C Obligations and Swing Line Loans being deemed “held” by
such Lender for purposes of this definition).

 

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

 

“Restructuring” shall mean, as elected by the Borrower, either
Restructuring Alternative No. 1 or Restructuring Alternative No. 2.

 

“Restructuring Alternative No. 1” shall mean the corporate
and debt restructuring described as “Restructuring Alternative No. 1” on Schedule
10.22, on the terms and conditions set forth in such Schedule.

 

“Restructuring Alternative No. 2” shall mean the corporate
and debt restructuring described as “Restructuring Alternative No. 2” on Schedule
10.22, on the terms and conditions set forth in such Schedule.

 

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

 

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

 

“Shareholders’ Equity” means, as of any date of determination,
consolidated shareholders’ equity of the Borrower and its Subsidiaries as of
that date determined in accordance with GAAP.

 

“SPC” has the meaning specified in Section 10.07(i).

 

“Stated Maturity Date” means October 25, 2007; provided,
however, if the Stated Maturity Date is extended pursuant to Section 2.14,
the latest date that the Stated Maturity Date has been extended pursuant to
such Section.

 

“Subsidiary” of a Person means a corporation, partnership, joint
venture, limited liability company or other business entity of which a majority
of the shares of securities or other interests having ordinary voting power for
the election of directors or other governing body (other than securities or
interests having such power only by reason of the happening of a contingency)
are at the time beneficially owned, or the management of which is otherwise
controlled, directly, or indirectly through one or more intermediaries, or
both, by such Person.  Unless otherwise
specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall
refer to a Subsidiary or Subsidiaries of the Borrower.

 

14

 

“Swap Contract” means (a) any and all rate swap
transactions, basis swaps, credit derivative transactions, forward rate
transactions, commodity swaps, commodity options, forward commodity contracts, equity
or equity index swaps or options, bond or bond price or bond index swaps or
options or forward bond or forward bond price or forward bond index
transactions, interest rate options, forward foreign exchange transactions, cap
transactions, floor transactions, collar transactions, currency swap
transactions, cross-currency rate swap transactions, currency options, spot
contracts, or any other similar transactions or any combination of any of the
foregoing (including any options to enter into any of the foregoing), whether
or not any such transaction is governed by or subject to any master agreement,
and (b) any and all transactions of any kind, and the related
confirmations, which are subject to the terms and conditions of, or governed
by, any form of master agreement published by the International Swaps and
Derivatives Association, Inc., any International Foreign Exchange Master
Agreement, or any other master agreement (any such master agreement, together
with any related schedules, a “Master Agreement”), including any such
obligations or liabilities under any Master Agreement.

 

“Swing Line” means the revolving credit facility made available
by the Swing Line Lender pursuant to Section 2.04.

 

“Swing Line Borrowing” means a borrowing of a Swing Line Loan pursuant
to Section 2.04.

 

“Swing Line Lender” means Bank of America in its capacity as
provider of Swing Line Loans, or any successor swing line lender hereunder.

 

“Swing Line Loan” has the meaning specified in Section 2.04(a).

 

“Swing Line Loan Notice” means a notice of (a) a Borrowing
of Swing Line Loans, or (b) a conversion of Swing Line Loans from one Type
to the other, pursuant to Section 2.04(b), which, if in writing,
shall be substantially in the form of Exhibit A-2.

 

“Swing Line Sublimit” means an amount equal to the lesser of (a) $150,000,000
and (b) the Aggregate Commitments. 
The Swing Line Sublimit is part of, and not in addition to, the
Aggregate Commitments.

 

“Synthetic Lease Obligation” means the monetary obligation of a
Person under (a) a so-called synthetic, off-balance sheet or tax retention
lease, or (b) an agreement for the use or possession of property creating
obligations that do not appear on the balance sheet of such Person but which,
upon the insolvency or bankruptcy of such Person, would be characterized as the
indebtedness of such Person (without regard to accounting treatment).

 

“Total Capital” means, at any date, the total of (i) Consolidated
Debt plus (ii) Shareholders’ Equity plus (iii) Designated Hybrid
Equity Securities less (iv) to the extent reflected in Shareholders’
Equity, any excess of the net book value of assets subject to Liens securing
Non-Recourse Debt (including the total assets of Excluded Subsidiaries) over
the amount of the related Non-Recourse Debt and (v) either (a) less
the absolute value of accumulated other comprehensive income as determined in
accordance with GAAP, or (b) plus the absolute value of accumulated other
comprehensive loss as determined in accordance with GAAP, in each case
determined at such date.

 

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

 

“Type” means, (a) with respect to a Committed Loan, its
character as a Base Rate Loan or a Fixed Period Eurodollar Rate Loan, and (b) with
respect to a Swing Line Loan, its character as a Base Rate Loan or a Daily
Floating Eurodollar Rate Loan.

 

15

 

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

 

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

 

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

 

1.02        Other
Interpretive Provisions.  With reference to this Agreement and each
other Loan Document, unless otherwise specified herein or in such other Loan
Document:

 

(a)           The meanings of
defined terms are equally applicable to the singular and plural forms of the
defined terms.

 

(b)           (i)            The words “herein,” “hereto,”
“hereof” and “hereunder” and words of similar import when used in
any Loan Document shall refer to such Loan Document as a whole and not to any
particular provision thereof.

 

(ii)           Article, Section, Exhibit and Schedule references are
to the Loan Document in which such reference appears.

 

(iii)          The term “including” is by way of example and not
limitation.

 

(iv)          The term “documents” includes any and all instruments,
documents, agreements, certificates, notices, reports, financial statements and
other writings, however evidenced, whether in physical or electronic form.

 

(c)           In the computation
of periods of time from a specified date to a later specified date, the word “from”
means “from and including”; the words “to” and “until”
each mean “to but excluding”; and the word “through” means “to
and including.”

 

(d)           Section headings
herein and in the other Loan Documents are included for convenience of
reference only and shall not affect the interpretation of this Agreement or any
other Loan Document.

 

1.03        Accounting
Terms.  (a) 
All accounting terms not specifically or completely defined herein shall be
construed in conformity with, and all financial data (including financial
ratios and other financial calculations) required to be submitted pursuant to
this Agreement shall be prepared in conformity with, GAAP applied on a
consistent basis, as in effect from time to time, applied in a manner
consistent with that used in preparing the Audited Financial Statements, except
as otherwise specifically prescribed herein.

 

(b)           If at any time any
change in GAAP would affect the computation of any financial ratio or
requirement set forth in any Loan Document, and either the Borrower or the
Required Lenders shall so request, the Administrative Agent, the Lenders and
the Borrower shall negotiate in good faith to amend such ratio or requirement
to preserve the original intent thereof in light of such change in GAAP
(subject to the approval of the Required Lenders); provided  that,
until so amended, (i) such ratio or requirement shall continue to be
computed in accordance with GAAP prior to such change therein and (ii) the
Borrower shall provide to the Administrative Agent and the Lenders financial
statements and other

 

16

 

documents required under this Agreement or as reasonably requested
hereunder setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in GAAP.

 

1.04        Rounding.  Any financial ratios required to be
maintained by the Borrower pursuant to this Agreement shall be calculated by
dividing the appropriate component by the other component, carrying the result
to one place more than the number of places by which such ratio is expressed
herein and rounding the result up or down to the nearest number (with a
rounding-up if there is no nearest number).

 

1.05        References
to Agreements and Laws.  Unless otherwise expressly provided herein, (a) references
to Organization Documents, agreements (including the Loan Documents) and other
contractual instruments shall be deemed to include all subsequent amendments,
restatements, extensions, supplements and other modifications thereto, but only
to the extent that such amendments, restatements, extensions, supplements and
other modifications are not prohibited by any Loan Document; and (b) references
to any Law shall include all statutory and regulatory provisions consolidating,
amending, replacing, supplementing or interpreting such Law.

 

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

 

1.07        Letter
of Credit Amounts. 
Unless otherwise specified, all references herein to the amount of a
Letter of Credit at any time shall be deemed to mean the maximum face amount of
such Letter of Credit after giving effect to all increases thereof contemplated
by such Letter of Credit or the Letter of Credit Application therefor, whether
or not such maximum face amount is in effect at such time.

 

ARTICLE II.

THE COMMITMENTS AND BORROWINGS

 

2.01        Committed
Loans.  Subject
to the terms and conditions set forth herein, each Lender severally agrees to
make loans (each such loan, a “Committed Loan”) to the Borrower from
time to time, on any Business Day during the Availability Period, in an
aggregate amount not to exceed at any time outstanding the amount of such
Lender’s Commitment; provided, however, that after giving effect
to any Borrowing, (i) the Total Outstandings shall not exceed the
Aggregate Commitments, and (ii) the aggregate Outstanding Amount of the
Committed Loans of any Lender, plus such Lender’s Pro Rata Share of the
Outstanding Amount of all L/C Obligations, plus such Lender’s Pro Rata
Share of the Outstanding Amount of all Swing Line Loans shall not exceed such
Lender’s Commitment.  Within the limits
of each Lender’s Commitment, and subject to the other terms and conditions
hereof, the Borrower may borrow under this Section 2.01, prepay
under Section 2.05, and reborrow under this Section 2.01.  Committed Loans may be Base Rate Loans or
Eurodollar Rate Loans, as further provided herein.

 

2.02        Borrowings,
Conversions and Continuations of Committed Loans.

 

(a)           Each Borrowing, each
conversion of Committed Loans from one Type to the other, and each continuation
of Eurodollar Rate Loans shall be made upon the Borrower’s delivery to the
Administrative Agent of an irrevocable written Committed Loan Notice,
appropriately completed and signed by a Responsible Officer of the Borrower,
which may be delivered via facsimile. 
Each such notice must be received by the Administrative Agent not later
than 11:00 a.m. (i) three Business Days prior to the requested date
of any Borrowing of, conversion to or continuation of Eurodollar Rate Loans or
of any conversion of Eurodollar Rate Loans to Base Rate Committed Loans, and (ii) on
the requested date of any Borrowing of Base Rate Committed Loans.  Each Borrowing of, conversion or continuation
of Committed Loans shall be in a principal amount of $5,000,000 or a whole
multiple of $1,000,000 in excess thereof. 
Each Committed Loan Notice shall specify (i) whether the Borrower
is requesting a 

 

17

 

Borrowing, a conversion of Committed Loans from one Type to the other,
or a continuation of Eurodollar Rate Loans, (ii) the requested date of the
Borrowing, conversion or continuation, as the case may be (which shall be a
Business Day), (iii) the principal amount of Committed Loans to be
borrowed, converted or continued, (iv) the Type of Committed Loans to be
borrowed or to which existing Committed Loans are to be converted, and (v) if
applicable, the duration of the Interest Period with respect thereto.  If the Borrower fails to specify a Type of
Committed Loan in a Committed Loan Notice or if the Borrower fails to give a
timely notice requesting a conversion or continuation, then the applicable
Committed Loans shall be made as, or converted to, Base Rate Committed
Loans.  Any such automatic conversion to
Base Rate Committed Loans shall be effective as of the last day of the Interest
Period then in effect with respect to the applicable Eurodollar Rate
Loans.  If the Borrower requests a
Borrowing of, conversion to, or continuation of Eurodollar Rate Loans in any
such Committed Loan Notice, but fails to specify an Interest Period, it will be
deemed to have specified an Interest Period of one month.

 

(b)           Following receipt of
a Committed Loan Notice, the Administrative Agent shall promptly notify each
Lender of the amount of its Pro Rata Share of the applicable Committed Loans,
and if no timely notice of a conversion or continuation is provided by the
Borrower, the Administrative Agent shall notify each Lender of the details of
any automatic conversion to Base Rate Loans described in the preceding
subsection.  Each Lender shall make the
amount of its Committed Loan available to the Administrative Agent in
immediately available funds at the Administrative Agent’s Office not later than
1:00 p.m. on the Business Day specified in the applicable Committed Loan
Notice.  Upon satisfaction of the
applicable conditions set forth in Section 4.02 (and, if such
Borrowing is the initial Credit Extension, Section 4.01), the
Administrative Agent shall make all funds so received available to the Borrower
in like funds as received by the Administrative Agent either by (i) crediting
the account of the Borrower on the books of Bank of America with the amount of
such funds or (ii) wire transfer of such funds, in each case in accordance
with instructions provided to (and reasonably acceptable to) the Administrative
Agent by the Borrower; provided, however, that if, on the date the Committed
Loan Notice with respect to such Borrowing is given by the Borrower, there are
L/C Borrowings outstanding, then the proceeds of such Borrowing shall be
applied, first, to the payment in full of any such L/C Borrowings and second,
to the Borrower as provided above.

 

(c)           Except as otherwise
provided herein, a Eurodollar Rate Loan may be continued or converted only on
the last day of an Interest Period for such Eurodollar Rate Loan.  During the existence of a Default, no Loans
may be requested as, converted to or continued as Eurodollar Rate Loans without
the consent of the Required Lenders.

 

(d)           The Administrative
Agent shall promptly notify the Borrower and the Lenders of the interest rate
applicable to any Interest Period for Fixed Period Eurodollar Rate Loans upon
determination of such interest rate.  The
determination of the Fixed Period Eurodollar Rate by the Administrative Agent
shall be conclusive in the absence of manifest error.  At any time that Base Rate Loans are
outstanding, the Administrative Agent shall notify the Borrower and the Lenders
of any change in Bank of America’s prime rate used in determining the Base Rate
promptly following the public announcement of such change.

 

(e)           After giving effect
to all Borrowings, all conversions of Committed Loans from one Type to the
other, and all continuations of Committed Loans as the same Type, there shall
not be more than ten Interest Periods in effect with respect to Committed
Loans.

 

2.03        Letters
of Credit.

 

(a)           The Letter of Credit
Commitment.

 

(i)            Subject
to the terms and conditions set forth herein, (A) the L/C Issuer agrees,
in reliance upon the agreements of the other Lenders set forth in this Section 2.03,
(1) from time to 

 

18

 

time on any Business Day during the period from the Closing Date until
the Letter of Credit Expiration Date, to issue Letters of Credit for the
account of the Borrower, and to amend or renew Letters of Credit previously
issued by it, in accordance with subsection (b) below, and (2) to
honor drafts under the Letters of Credit; and (B) the Lenders severally
agree to participate in Letters of Credit issued for the account of the
Borrower; provided that the L/C Issuer shall not be obligated to make
any L/C Credit Extension with respect to any Letter of Credit, and no Lender
shall be obligated to participate in any Letter of Credit if as of the date of
such L/C Credit Extension, (x) the Total Outstandings would exceed the
Aggregate Commitments, (y) the aggregate Outstanding Amount of the Committed
Loans of any Lender, plus such Lender’s Pro Rata Share of the
Outstanding Amount of all L/C Obligations, plus such Lender’s Pro Rata
Share of the Outstanding Amount of all Swing Line Loans would exceed such
Lender’s Commitment, or (z) the Outstanding Amount of the L/C Obligations
would exceed the Letter of Credit Sublimit. 
Within the foregoing limits, and subject to the terms and conditions
hereof, the Borrower’s ability to obtain Letters of Credit shall be fully
revolving, and accordingly the Borrower may, during the foregoing period,
obtain Letters of Credit to replace Letters of Credit that have expired or that
have been drawn upon and reimbursed.

 

(ii)           The
L/C Issuer shall be under no obligation to issue any Letter of Credit and, in
the case of clauses (B) and (C) below shall not issue any Letter of
Credit, if:

 

(A)          any
order, judgment or decree of any Governmental Authority or arbitrator shall by
its terms purport to enjoin or restrain the L/C Issuer from issuing such Letter
of Credit, or any Law applicable to the L/C Issuer or any request or directive
(whether or not having the force of law) from any Governmental Authority with
jurisdiction over the L/C Issuer shall prohibit, or request that the L/C Issuer
refrain from, the issuance of Letters of Credit generally or such Letter of
Credit in particular or shall impose upon the L/C Issuer with respect to such
Letter of Credit any restriction, reserve or capital requirement (for which the
L/C Issuer is not otherwise compensated hereunder) not in effect on the Closing
Date, or shall impose upon the L/C Issuer any unreimbursed loss, cost or
expense which was not applicable on the Closing Date and which the L/C Issuer
in good faith deems material to it;

 

(B)           subject
to Section 2.03(b)(iii), the expiry date of such requested Letter
of Credit would occur more than twelve months after the date of issuance or
last renewal, unless the Required Lenders have approved such expiry date;

 

(C)           the
expiry date of such requested Letter of Credit would occur (1) after the
Letter of Credit Expiration Date, unless all the Lenders have approved such
expiry date, or (2) after any Stated Maturity Date applicable to any
Declining Lender (as defined in Section 2.14(b)), unless the amount
of such Letter of Credit together with all other L/C Obligations outstanding on
the date of issuance of such Letter of Credit is equal to or less than the
aggregate Commitments of all Lenders who shall remain parties to this Agreement
subsequent to the Stated Maturity Date that immediately precedes the expiry
date of such Letter of Credit;

 

(D)          the
issuance of such Letter of Credit would violate one or more policies of the L/C
Issuer;  or

 

(E)           such
Letter of Credit is (1) in an initial amount less than $500,000, (2) is
to be denominated in a currency other than Dollars, or (3) is to be issued
for a purpose other than to support surety bonds (including appeal bonds),
worker’s compensation requirements and other general corporate purposes.

 

(iii)          The
L/C Issuer shall not amend any Letter of Credit if (A) the L/C Issuer
would have no obligation at such time to issue such Letter of Credit in its
amended form under any of

 

19

 

Sections 2.03(a)(ii)(B), (C) or (E)(2) or
(3), or (B) the beneficiary of such Letter of Credit does not
accept the proposed amendment to such Letter of Credit.

 

(b)           Procedures for Issuance and
Amendment of Letters of Credit; Auto-Renewal Letters of Credit.

 

(i)            Each
Letter of Credit shall be issued or amended, as the case may be, upon the
request of the Borrower delivered to the L/C Issuer (with a copy to the
Administrative Agent) in the form of a Letter of Credit Application,
appropriately completed and signed by a Responsible Officer of the Borrower.  Such Letter of Credit Application must be
received by the L/C Issuer and the Administrative Agent not later than 11:00 a.m.
at least two Business Days (or such later date and time as the L/C Issuer may
agree in a particular instance in its sole discretion) prior to the proposed
issuance date or date of amendment, as the case may be.  In the case of a request for an initial
issuance of a Letter of Credit, such Letter of Credit Application shall specify
in form and detail satisfactory to the L/C Issuer: (A) the proposed
issuance date of the requested Letter of Credit (which shall be a Business
Day); (B) the amount thereof; (C) the expiry date thereof; (D) the
name and address of the beneficiary thereof; (E) the documents to be
presented by such beneficiary in case of any drawing thereunder; (F) the
full text of any certificate to be presented by such beneficiary in case of any
drawing thereunder; and (G) such other matters as the L/C Issuer may
require.  In the case of a request for an
amendment of any outstanding Letter of Credit, such Letter of Credit
Application shall specify in form and detail satisfactory to the L/C Issuer (A) the
Letter of Credit to be amended; (B) the proposed date of amendment thereof
(which shall be a Business Day); (C) the nature of the proposed amendment;
and (D) such other matters as the L/C Issuer may require.

 

(ii)           Promptly
after receipt of any Letter of Credit Application, the L/C Issuer will confirm
with the Administrative Agent (by telephone or in writing) that the
Administrative Agent has received a copy of such Letter of Credit Application
from the Borrower and, if not, the L/C Issuer will provide the Administrative
Agent with a copy thereof.  Upon receipt
by the L/C Issuer of confirmation from the Administrative Agent that the
requested issuance or amendment is permitted in accordance with the terms
hereof, then, subject to the terms and conditions hereof, the L/C Issuer shall,
on the requested date, issue a Letter of Credit for the account of the Borrower
or enter into the applicable amendment, as the case may be, in each case in
accordance with the L/C Issuer’s usual and customary business practices.  Immediately upon the issuance of each Letter
of Credit, each Lender shall be deemed to, and hereby irrevocably and unconditionally
agrees to, purchase from the L/C Issuer a risk participation in such Letter of
Credit in an amount equal to the product of such Lender’s Pro Rata Share times
the amount of such Letter of Credit.

 

(iii)          If
the Borrower so requests in any applicable Letter of Credit Application, the
L/C Issuer may, in its sole and absolute discretion, agree to issue a Letter of
Credit that has automatic extension provisions (each, an “Auto-Extension
Letter of Credit”); provided that any such Auto-Extension Letter of
Credit must permit the L/C Issuer to prevent any such extension at least once
in each twelve-month period (commencing with the date of issuance of such
Letter of Credit) by giving prior notice to the beneficiary thereof not later
than a day (the “Non-Extension Notice Date”) in each such twelve-month
period to be agreed upon at the time such Letter of Credit is issued.  Unless otherwise directed by the L/C Issuer,
the Borrower shall not be required to make a specific request to the L/C Issuer
for any such extension.  Once an Auto-Extension
Letter of Credit has been issued, the Lenders shall be deemed to have
authorized (but may not require) the L/C Issuer to permit the extension of such
Letter of Credit at any time to an expiry date not later than the Letter of
Credit Expiration Date; provided, however, that the L/C Issuer
shall not permit any such extension if (A) the L/C Issuer has determined
that it would not be permitted, or would have no obligation, at such time to
issue such Letter of Credit in its revised 

 

20

 

form  (as extended) under the
terms hereof (by reason of the provisions of Section 2.03(a) or
otherwise), or (B) it has received notice (which may be by telephone or in
writing) on or before the day that is seven Business Days before the
Non-Extension Notice Date (1) from the Administrative Agent that the
Required Lenders have elected not to permit such extension or (2) from the
Administrative Agent, any Lender or the Borrower that one or more of the
applicable conditions specified in Section 4.02 is not then
satisfied and in each such case directing the L/C Issuer not to permit such
extension.

 

(iv)          Promptly
after its delivery of any Letter of Credit or any amendment to a Letter of
Credit to an advising bank with respect thereto or to the beneficiary thereof,
the L/C Issuer will also deliver to the Borrower and the Administrative Agent a
true and complete copy of such Letter of Credit or amendment.  The Administrative Agent shall give the
Lenders notice of the issuance of any Letter of Credit and any amendment
thereto.

 

(c)           Drawings and Reimbursements;
Funding of Participations.

 

(i)            Upon
receipt from the beneficiary of any Letter of Credit of any notice of a drawing
under such Letter of Credit, the L/C Issuer shall notify the Borrower and the
Administrative Agent thereof.  Not later
than 11:00 a.m. on the date of any payment by the L/C Issuer under a
Letter of Credit (each such date, an “Honor Date”), the Borrower shall
reimburse the L/C Issuer through the Administrative Agent in an amount equal to
the amount of such drawing.  If the
Borrower fails to so reimburse the L/C Issuer by such time, the Administrative
Agent shall promptly notify each Lender of the Honor Date, the amount of the
unreimbursed drawing (the “Unreimbursed Amount”), and the amount of such
Lender’s Pro Rata Share thereof.  In such
event, the Borrower shall be deemed to have requested a Committed Borrowing of
Base Rate Loans to be disbursed on the Honor Date in an amount equal to the
Unreimbursed Amount, without regard to the minimum and multiples specified in Section 2.02
for the principal amount of Base Rate Loans, but subject to the amount of the
unutilized portion of the Aggregate Commitments and the conditions set forth in
Section 4.02 (other than the delivery of a Committed Loan
Notice).  Any notice given by the L/C
Issuer or the Administrative Agent pursuant to this Section 2.03(c)(i) may
be given by telephone if immediately confirmed in writing; provided that
the lack of such an immediate confirmation shall not affect the conclusiveness
or binding effect of such notice.

 

(ii)           Each
Lender (including the Lender acting as L/C Issuer) shall upon any notice
pursuant to Section 2.03(c)(i) make funds available to the
Administrative Agent for the account of the L/C Issuer at the Administrative
Agent’s Office in an amount equal to its Pro Rata Share of the Unreimbursed
Amount not later than 1:00 p.m. on the Business Day specified in such
notice by the Administrative Agent, whereupon, subject to the provisions of Section 2.03(c)(iii),
each Lender that so makes funds available shall be deemed to have made a Base
Rate Committed Loan to the Borrower in such amount.  The Administrative Agent shall remit the
funds so received to the L/C Issuer.

 

(iii)          With
respect to any Unreimbursed Amount that is not fully refinanced by a Committed
Borrowing of Base Rate Loans because the conditions set forth in Section 4.02
cannot be satisfied or for any other reason, the Borrower shall be deemed to
have incurred from the L/C Issuer an L/C Borrowing in the amount of the
Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be due
and payable on demand (together with interest) and shall bear interest at the
Default Rate.  In such event, each
Lender’s payment to the Administrative Agent for the account of the L/C Issuer
pursuant to Section 2.03(c)(ii) shall be deemed payment in
respect of its participation in such L/C Borrowing and shall constitute an L/C
Advance from such Lender in satisfaction of its participation obligation under
this Section 2.03.

 

21

 

(iv)          Until
each Lender funds its Committed Loan or L/C Advance pursuant to this Section 2.03(c) to
reimburse the L/C Issuer for any amount drawn under any Letter of Credit,
interest in respect of such Lender’s Pro Rata Share of such amount shall be
solely for the account of the L/C Issuer.

 

(v)           Each
Lender’s obligation to make Committed Loans or L/C Advances to reimburse the
L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this Section 2.03(c),
shall be absolute and unconditional and shall not be affected by any
circumstance, including (A) any set-off, counterclaim, recoupment, defense
or other right which such Lender may have against the L/C Issuer, the Borrower
or any other Person for any reason whatsoever; (B) the occurrence or
continuance of a Default, or (C) any other occurrence, event or condition,
whether or not similar to any of the foregoing; provided, however,
that each Lender’s obligation to make Committed Loans pursuant to this Section 2.03(c) is
subject to the conditions set forth in Section 4.02 (other than
delivery by the Borrower of a Committed Loan Notice).  No such making of an L/C Advance shall
relieve or otherwise impair the obligation of the Borrower to reimburse the L/C
Issuer for the amount of any payment made by the L/C Issuer under any Letter of
Credit, together with interest as provided herein.

 

(vi)          If
any Lender fails to make available to the Administrative Agent for the account
of the L/C Issuer any amount required to be paid by such Lender pursuant to the
foregoing provisions of this Section 2.03(c) by the time
specified in Section 2.03(c)(ii), the L/C Issuer shall be entitled
to recover from such Lender (acting through the Administrative Agent), on
demand, such amount with interest thereon for the period from the date such
payment is required to the date on which such payment is immediately available
to the L/C Issuer at a rate per annum equal to the Federal Funds Rate from time
to time in effect.  A certificate of the
L/C Issuer submitted to any Lender (through the Administrative Agent) with
respect to any amounts owing under this clause (vi) shall be conclusive
absent manifest error.

 

(d)           Repayment of Participations.

 

(i)            At
any time after the L/C Issuer has made a payment under any Letter of Credit and
has received from any Lender such Lender’s L/C Advance in respect of such
payment in accordance with Section 2.03(c), if the Administrative
Agent receives for the account of the L/C Issuer any payment in respect of the
related Unreimbursed Amount or interest thereon (whether directly from the
Borrower or otherwise, including proceeds of Cash Collateral (as defined in Section 2.03(g))
applied thereto by the Administrative Agent), the Administrative Agent will
distribute to such Lender its Pro Rata Share thereof (appropriately adjusted,
in the case of interest payments, to reflect the period of time during which
such Lender’s L/C Advance was outstanding) in the same funds as those received by
the Administrative Agent.

 

(ii)           If
any payment received by the Administrative Agent for the account of the L/C
Issuer pursuant to Section 2.03(c)(i) is required to be
returned under any of the circumstances described in Section 10.06
(including pursuant to any settlement entered into by the L/C Issuer in its
discretion), each Lender shall pay to the Administrative Agent for the account
of the L/C Issuer its Pro Rata Share thereof on demand of the Administrative
Agent, plus interest thereon from the date of such demand to the date such
amount is returned by such Lender, at a rate per annum equal to the Federal
Funds Rate from time to time in effect.

 

(e)           Obligations
Absolute.  The obligation of the
Borrower to reimburse the L/C Issuer for each drawing under each Letter of
Credit and to repay each L/C Borrowing shall be absolute, unconditional and
irrevocable, and shall be paid strictly in accordance with the terms of this
Agreement under all circumstances, including the following:

 

22

 

(i)            any
lack of validity or enforceability of such Letter of Credit, this Agreement, or
any other agreement or instrument relating thereto;

 

(ii)           the
existence of any claim, counterclaim, set-off, defense or other right that the
Borrower may have at any time against any beneficiary or any transferee of such
Letter of Credit (or any Person for whom any such beneficiary or any such
transferee may be acting), the L/C Issuer or any other Person, whether in
connection with this Agreement, the transactions contemplated hereby or by such
Letter of Credit or any agreement or instrument relating thereto, or any
unrelated transaction;

 

(iii)          any
draft, demand, certificate or other document presented under such Letter of
Credit proving to be forged, fraudulent, invalid or insufficient in any respect
or any statement therein being untrue or inaccurate in any respect; or any loss
or delay in the transmission or otherwise of any document required in order to
make a drawing under such Letter of Credit;

 

(iv)          any
payment by the L/C Issuer under such Letter of Credit against presentation of a
draft or certificate that does not strictly comply with the terms of such
Letter of Credit; or any payment made by the L/C Issuer under such Letter of
Credit to any Person purporting to be a trustee in bankruptcy,
debtor-in-possession, assignee for the benefit of creditors, liquidator,
receiver or other representative of or successor to any beneficiary or any
transferee of such Letter of Credit, including any arising in connection with
any proceeding under any Debtor Relief Law; or

 

(v)           any
other circumstance or happening whatsoever, whether or not similar to any of
the foregoing, including any other circumstance that might otherwise constitute
a defense available to, or a discharge of, the Borrower.

 

The Borrower shall promptly examine a copy of each Letter of Credit and
each amendment thereto that is delivered to it and, in the event of any claim
of noncompliance with the Borrower’s instructions or other irregularity, the
Borrower will immediately notify the L/C Issuer.  The Borrower shall be conclusively deemed to
have waived any such claim against the L/C Issuer and its correspondents unless
such notice is given as aforesaid.

 

(f)            Role of L/C Issuer.  Each Lender and the Borrower agree that, in
paying any drawing under a Letter of Credit, the L/C Issuer shall not have any
responsibility to obtain any document (other than any sight draft, certificates
and documents expressly required by the Letter of Credit) or to ascertain or
inquire as to the validity or accuracy of any such document or the authority of
the Person executing or delivering any such document.  None of the L/C Issuer, any Agent-Related
Person, nor any of the respective correspondents, participants or assignees of
the L/C Issuer shall be liable to any Lender for (i) any action taken or
omitted in connection herewith at the request or with the approval of the
Lenders or the Required Lenders, as applicable; (ii) any action taken or
omitted in the absence of gross negligence or willful misconduct; or (iii) the
due execution, effectiveness, validity or enforceability of any document or
instrument related to any Letter of Credit or Letter of Credit
Application.  The Borrower hereby assumes
all risks of the acts or omissions of any beneficiary or transferee with
respect to its use of any Letter of Credit; provided, however,
that this assumption is not intended to, and shall not, preclude the Borrower’s
pursuing such rights and remedies as it may have against the beneficiary or
transferee at law or under any other agreement. 
None of the L/C Issuer, any Agent-Related Person, any Lender, nor any of
the respective correspondents, participants or assignees of the L/C Issuer, shall
be liable or responsible to the Borrower for any of the matters described in
clauses (i) through (v) of Section 2.03(e); provided,
however, that anything in such clauses to the contrary notwithstanding,
the Borrower may have a claim against the L/C Issuer, and the L/C Issuer may be
liable to the Borrower, to the extent, but only to the extent, of any direct,
as opposed to consequential or exemplary, damages suffered by the Borrower
which the Borrower proves were caused by the L/C Issuer’s willful misconduct or
gross negligence or the L/C 

 

23

 

Issuer’s willful failure to pay under any Letter of Credit after the
presentation to it by the beneficiary of a sight draft and certificate(s) strictly
complying with the terms and conditions of a Letter of Credit.  In furtherance and not in limitation of the
foregoing, the L/C Issuer may accept documents that appear on their face to be
in order, without responsibility for further investigation, regardless of any
notice or information to the contrary, and the L/C Issuer shall not be
responsible for the validity or sufficiency of any instrument transferring or
assigning or purporting to transfer or assign a Letter of Credit or the rights
or benefits thereunder or proceeds thereof, in whole or in part, which may
prove to be invalid or ineffective for any reason.

 

(g)           Cash Collateral.  Upon the request of the Administrative Agent,
(i) if the L/C Issuer has honored any full or partial drawing request
under any Letter of Credit and such drawing has resulted in an L/C Borrowing,
or (ii) if, as of the Letter of Credit Expiration Date, any Letter of
Credit may for any reason remain outstanding and partially or wholly undrawn,
the Borrower shall immediately Cash Collateralize the then Outstanding Amount
of all L/C Obligations (in an amount equal to such Outstanding Amount
determined as of the date of such L/C Borrowing or the Letter of Credit
Expiration Date, as the case may be). 
For purposes hereof, “Cash Collateralize” means to pledge and
deposit with or deliver to the Administrative Agent, for the benefit of the L/C
Issuer and the Lenders, as collateral for the L/C Obligations, cash or deposit
account balances pursuant to documentation in form and substance satisfactory
to the Administrative Agent and the L/C Issuer (which documents are hereby
consented to by the Lenders). 
Derivatives of such term have corresponding meanings.  The Borrower hereby grants to the
Administrative Agent, for the benefit of the L/C Issuer and the Lenders, a
security interest in all such cash, deposit accounts and all balances therein
and all proceeds of the foregoing.  Cash
collateral shall be maintained in blocked, non-interest bearing deposit
accounts at Bank of America.

 

(h)           Applicability of
ISP.  Unless otherwise expressly
agreed by the L/C Issuer and the Borrower when a Letter of Credit is issued,
the rules of the “International Standby Practices 1998” published by the
Institute of International Banking Law & Practice (or such later
version thereof as may be in effect at the time of issuance) (the “ISP”)  shall apply to each standby Letter of Credit.

 

(i)            Letter of Credit
Fees.  The Borrower shall pay to the
Administrative Agent for the account of each Lender in accordance with its Pro
Rata Share a Letter of Credit fee for each Letter of Credit equal to the
Applicable Rate times the daily maximum amount available to be drawn under such
Letter of Credit (whether or not such maximum amount is then in effect under
such Letter of Credit).  Such Letter of Credit
fees shall be computed on a quarterly basis in arrears.  Such Letter of Credit fees shall be due and
payable on the first Business Day after the end of each March, June, September and
December, commencing with the first such date to occur after the issuance of
such Letter of Credit, on the Letter of Credit Expiration Date and thereafter
on demand.  If there is any change in the
Applicable Rate during any quarter, the daily maximum amount of each Letter of
Credit shall be computed and multiplied by the Applicable Rate separately for
each period during such quarter that such Applicable Rate was in effect.

 

(j)            Fronting Fee and
Documentary and Processing Charges Payable to L/C Issuer.  The Borrower shall pay directly to the L/C
Issuer for its own account a fronting fee with respect to each Letter of Credit
in the amounts and at the times specified in the Fee Letter.  In addition, the Borrower shall pay directly
to the L/C Issuer for its own account the customary issuance, presentation,
amendment and other processing fees, and other standard costs and charges, of
the L/C Issuer relating to Letters of Credit as from time to time in
effect.  Such customary fees and standard
costs and charges are due and payable on demand and are nonrefundable.

 

(k)           Conflict with
Letter of Credit Application.  In the
event of any conflict between the terms hereof and the terms of any Letter of
Credit Application, the terms hereof shall control.

 

24

 

2.04        Swing
Line Loans.

 

(a)           The Swing Line.  Subject to the terms and conditions set forth
herein, the Swing Line Lender agrees, in reliance upon the agreements of the
other Lenders set forth in this Section 2.04, to make loans (each
such loan, a “Swing Line Loan”) to the Borrower from time to time on any
Business Day during the Availability Period in an aggregate amount not to
exceed at any time outstanding the amount of the Swing Line Sublimit,
notwithstanding the fact that such Swing Line Loans, when aggregated with the
Pro Rata Share of the Outstanding Amount of Committed Loans and L/C Obligations
of the Lender acting as Swing Line Lender, may exceed the amount of such
Lender’s Commitment; provided, however, that after giving effect
to any Swing Line Loan, (i) the Total Outstandings shall not exceed the
Aggregate Commitments, and (ii) the aggregate Outstanding Amount of the
Committed Loans of any Lender, plus such Lender’s Pro Rata Share of the
Outstanding Amount of all L/C Obligations, plus such Lender’s Pro Rata
Share of the Outstanding Amount of all Swing Line Loans shall not exceed such
Lender’s Commitment, and provided, further, that the Borrower
shall not use the proceeds of any Swing Line Loan to refinance any outstanding
Swing Line Loan.  Within
the foregoing limits, and subject to the other terms and conditions hereof, the
Borrower may borrow under this Section 2.04, prepay under Section 2.05,
and reborrow under this Section 2.04.  The Borrower will have the option to choose
whether the Swing Line Loan is a  (1) Base
Rate Loan, or a (2) Daily Floating
Eurodollar Rate Loan.  Immediately
upon the making of a Swing Line Loan, each Lender shall be deemed to, and
hereby irrevocably and unconditionally agrees to, purchase from the Swing Line
Lender a risk participation in such Swing Line Loan in an amount equal to the
product of such Lender’s Pro Rata Share times the amount of such Swing
Line Loan.

 

(b)           Borrowing Procedures; Conversion
to Base Rate.  Each Swing Line
Borrowing, and each conversion of Swing Line Borrowings from one Type to the
other shall be made upon the Borrower’s irrevocable notice to the Swing Line
Lender and the Administrative Agent, which may be given by telephone.  Each such notice must be received by the
Swing Line Lender and the Administrative Agent not later than 1:00 p.m. on
the requested borrowing date, and shall specify (i) the amount to be
borrowed, which shall be a minimum of $100,000,  (ii) the requested borrowing or
conversion date, which shall be a Business Day, and (iii) whether the loan
is a Base Rate Loan or a Daily Floating Eurodollar Rate Loan.  Each such telephonic notice must be confirmed
promptly by delivery to the Swing Line Lender and the Administrative Agent of a
written Swing Line Loan Notice, appropriately completed and signed by a
Responsible Officer of the Borrower. 
Promptly after receipt by the Swing Line Lender of any telephonic Swing
Line Loan Notice, the Swing Line Lender will confirm with the Administrative
Agent (by telephone or in writing) that the Administrative Agent has also
received such Swing Line Loan Notice and, if not, the Swing Line Lender will
notify the Administrative Agent (by telephone or in writing) of the contents
thereof.  Unless the Swing Line Lender
has received notice (by telephone or in writing) from the Administrative Agent
(including at the request of any Lender) prior to 2:00 p.m. on the date of
the proposed Swing Line Borrowing (A) directing the Swing Line Lender not
to make such Swing Line Loan as a result of the limitations set forth in the
proviso to the first sentence of Section 2.04(a), or (B) that
one or more of the applicable conditions specified in Article IV is
not then satisfied, then, subject to the terms and conditions hereof, the Swing
Line Lender will, not later than 3:00 p.m. on the borrowing date specified
in such Swing Line Loan Notice, make the amount of its Swing Line Loan
available to the Borrower.

 

(c)           Refinancing of
Swing Line Loans.

 

(i)            The Swing Line Lender at any time in its sole and
absolute discretion may request, on behalf of the Borrower (which hereby
irrevocably authorizes the Swing Line Lender to so request on its behalf), that
each Lender make a Base Rate Committed Loan in an amount equal to such Lender’s
Pro Rata Share of the amount of Swing Line Loans then outstanding.  Such request shall be made in writing (which
written request shall be deemed to be a Committed Loan Notice for purposes
hereof) and in accordance with the requirements of Section 2.02, 

 

25

 

without regard
to the minimum and multiples specified therein for the principal amount of Base
Rate Loans, but subject to the unutilized portion of the Aggregate Commitments
and the conditions set forth in Section 4.02.  The Swing Line Lender shall furnish the
Borrower with a copy of the applicable Committed Loan Notice promptly after
delivering such notice to the Administrative Agent.  Each Lender shall make an amount equal to its
Pro Rata Share of the amount specified in such Committed Loan Notice available
to the Administrative Agent in Same Day Funds for the account of the Swing Line
Lender at the Administrative Agent’s Office for Dollar-denominated payments not
later than 1:00 p.m. on the day specified in such Committed Loan Notice,
whereupon, subject to Section 2.04(c)(ii), each Lender that so makes
funds available shall be deemed to have made a Base Rate Committed Loan to the
Borrower in such amount.  The
Administrative Agent shall remit the funds so received to the Swing Line
Lender.

 

(ii)           If for any reason
any Swing Line Loan cannot be refinanced by such a Committed Borrowing in
accordance with Section 2.04(c)(i), the request for Base Rate Committed
Loans submitted by the Swing Line Lender as set forth herein shall be deemed to
be a request by the Swing Line Lender that each of the Lenders fund its risk
participation in the relevant Swing Line Loan and each Lender’s payment to the
Administrative Agent for the account of the Swing Line Lender pursuant to Section
2.04(c)(i) shall be deemed payment in respect of such participation.

 

(iii)          If any Lender fails
to make available to the Administrative Agent for the account of the Swing Line
Lender any amount required to be paid by such Lender pursuant to the foregoing
provisions of this Section 2.04(c) by the time specified in Section
2.04(c)(i), the Swing Line Lender shall be entitled to recover from such
Lender (acting through the Administrative Agent), on demand, such amount with
interest thereon for the period from the date such payment is required to the
date on which such payment is immediately available to the Swing Line Lender at
a rate per annum equal to the greater of the Federal Funds Rate and a rate
determined by the Swing Line Lender in accordance with banking industry rules
on interbank compensation.  A certificate
of the Swing Line Lender submitted to any Lender (through the Administrative
Agent) with respect to any amounts owing under this clause (iii) shall be
conclusive absent manifest error.

 

(iv)          Each Lender’s
obligation to make Committed Loans or to purchase and fund risk participations
in Swing Line Loans pursuant to this Section 2.04(c) shall be absolute
and unconditional and shall not be affected by any circumstance, including (A)
any setoff, counterclaim, recoupment, defense or other right which such Lender
may have against the Swing Line Lender, the Borrower or any other Person for
any reason whatsoever, (B) the occurrence or continuance of a Default, or (C)
any other occurrence, event or condition, whether or not similar to any of the
foregoing; provided, however, that each Lender’s obligation to
make Committed Loans pursuant to this Section 2.04(c) is subject to the
conditions set forth in Section 4.02. 
No such funding of risk participations shall relieve or otherwise impair
the obligation of the Borrower to repay Swing Line Loans, together with
interest as provided herein.

 

(d)           Repayment of Participations.

 

(i)            At any time after
any Lender has purchased and funded a risk participation in a Swing Line Loan,
if the Swing Line Lender receives any payment on account of such Swing Line
Loan, the Swing Line Lender will distribute to such Lender its Pro Rata Share
thereof in the same funds as those received by the Swing Line Lender.

 

(ii)           If any payment
received by the Swing Line Lender in respect of principal or interest on any
Swing Line Loan is required to be returned by the Swing Line Lender under any
of the circumstances described in Section 10.05 (including pursuant to
any settlement entered into

 

26

 

by the Swing Line Lender in its discretion), each Lender shall pay to
the Swing Line Lender its Pro Rata Share thereof on demand of the
Administrative Agent, plus interest thereon from the date of such demand to the
date such amount is returned, at a rate per annum equal to the Federal Funds
Rate.  The Administrative Agent will make
such demand upon the request of the Swing Line Lender.  The obligations of the Lenders under this clause
shall survive the payment in full of the Obligations and the termination of
this Agreement.

 

(e)                                  Interest for
Account of Swing Line Lender.  The Swing Line Lender shall be responsible
for invoicing the Borrower for interest on the Swing Line Loans.  Until each Lender funds its Committed Loan or
risk participation pursuant to this Section 2.04 to refinance such
Lender’s Pro Rata Share of any Swing Line Loan, interest in respect of such Pro
Rata Share shall be solely for the account of the Swing Line Lender.

 

(f)                                    Payments
Directly to Swing Line Lender.  The Borrower shall make all payments of
principal and interest in respect of the Swing Line Loans directly to the Swing
Line Lender.

 

2.05                         Prepayments.

 

(a)                                  The Borrower
may, upon notice to the Administrative Agent, at any time or from time to time
voluntarily prepay Committed Loans in whole or in part without premium or
penalty; provided that (i) such notice must be received by the
Administrative Agent not later than 11:00 a.m. (A) three Business
Days prior to any date of prepayment of Eurodollar Rate Loans and (B) on the date of
prepayment of Base Rate Committed Loans; (ii) any prepayment of Fixed
Period Eurodollar Rate
Loans shall be in a principal amount of $5,000,000 or a whole multiple of
$1,000,000 in excess thereof, and (iii) any prepayment of Base Rate
Committed Loans shall be in a principal amount of $500,000 or a whole multiple
of $100,000 in excess thereof or, in each case, if less, the entire principal
amount thereof then outstanding.  Each
such notice shall specify the date and amount of such prepayment and the Type(s) of
Committed Loans to be prepaid.  The
Administrative Agent will promptly notify each Lender of its receipt of each
such notice, and of the amount of such Lender’s Pro Rata Share of such
prepayment.  If such notice is given by
the Borrower, the Borrower shall make such prepayment and the payment amount
specified in such notice shall be due and payable on the date specified
therein.  Any prepayment of Fixed Period Eurodollar Rate Loans shall be
accompanied by all accrued interest thereon, together with any additional
amounts required pursuant to Section 3.05.  Each such prepayment shall be applied to the
Committed Loans of the Lenders in accordance with their respective Pro Rata
Shares.

 

(b)                                 The Borrower
may, upon notice to the Swing Line Lender (with a copy to the Administrative
Agent), at any time or from time to time, voluntarily prepay Swing Line Loans
in whole or in part without premium or penalty; provided that (i) such
notice must be received by the Swing Line Lender and the Administrative Agent
not later than 1:00 p.m. on the date of the prepayment, and (ii) any
such prepayment shall be in a minimum principal amount of $100,000.  Each such notice shall specify the date and
amount of such prepayment.  If such
notice is given by the Company, the Company shall make such prepayment and the
payment amount specified in such notice shall be due and payable on the date
specified therein.

 

(c)                                  If for any
reason the Total Outstandings at any time exceed the Aggregate Commitments then
in effect, the Borrower shall immediately prepay Loans and/or Cash
Collateralize the L/C Obligations in an aggregate amount equal to such excess; provided,
however, that the Borrower shall not be required to Cash Collateralize
the L/C Obligations pursuant to this Section 2.05(b) unless
after the prepayment in full of the Loans, the Total Outstandings exceed the
Aggregate Commitments then in effect.

 

2.06                         Termination
or Reduction of Commitments.  The Borrower may, upon notice to the
Administrative Agent, terminate the Aggregate Commitments, or from time to time
permanently reduce 

 

27

 

the
Aggregate Commitments; provided that (i) any such notice shall be
received by the Administrative Agent not later than 11:00 a.m. three
Business Days prior to the date of termination or reduction, (ii) any such
partial reduction shall be in an aggregate amount of $10,000,000 or any whole
multiple of $1,000,000 in excess thereof, (iii) the Borrower shall not
terminate or reduce the Aggregate Commitments if, after giving effect thereto
and to any concurrent prepayments hereunder, the Total Outstandings would
exceed the Aggregate Commitments, and (iv) if, after giving effect to any
reduction of the Aggregate Commitments, the Letter of Credit Sublimit or the Swing
Line Sublimit exceeds the amount of the Aggregate Commitments, such Letter of
Credit Sublimit or such Swing Line Sublimit shall be automatically reduced by
the amount of such excess.  The
Administrative Agent will promptly notify the Lenders of any such notice of
termination or reduction of the Aggregate Commitments.  Any reduction of the Aggregate Commitments
shall be applied to the Commitment of each Lender according to its Pro Rata
Share.  All facility and utilization fees
accrued until the effective date of any termination of the Aggregate
Commitments shall be paid on the effective date of such termination.

 

2.07                         Repayment
of Loans.

 

(a)                                  The Borrower
shall repay to the Lenders on the Maturity Date the aggregate principal amount
of Committed Loans outstanding on such date.

 

(b)                                 The Borrower
shall repay each Swing Line Loan on the earlier to occur of (i) the date
ten Business Days after such Swing Line Loan is made and (ii) the Maturity
Date.

 

2.08                         Interest.

 

(a)                                  Subject to the
provisions of subsection (b) below, (i) each Fixed Period Eurodollar
Rate Loan shall bear interest on the outstanding principal amount thereof for
each Interest Period at a rate per annum equal to the Fixed Period Eurodollar
Rate for such Interest Period plus the Applicable Rate; (ii) each
Base Rate Committed Loan shall bear interest on the outstanding principal
amount thereof from the applicable borrowing date at a rate per annum equal to
the Base Rate plus the Applicable Rate and (iii) each Swing Line
Loan shall bear interest on the outstanding principal amount thereof from the
applicable borrowing date at a rate per annum equal to the (1) Base Rate plus
the Applicable Rate, or (2) Daily Floating Eurodollar Rate plus the
Applicable Rate.

 

(b)                                 If any amount
payable by the Borrower under any Loan Document is not paid when due (without
regard to any applicable grace periods), whether at stated maturity, by
acceleration or otherwise, such amount shall thereafter bear interest at a
fluctuating interest rate per annum at all times equal to the Default Rate to
the fullest extent permitted by applicable Laws.  Furthermore, while any Event of Default
exists, the Borrower shall pay interest on the principal amount of all
outstanding Obligations hereunder at a fluctuating interest rate per annum at
all times equal to the Default Rate to the fullest extent permitted by
applicable Laws.  Accrued and unpaid
interest on past due amounts (including interest on past due interest) shall be
due and payable upon demand.

 

(c)                                  Interest on
each Loan shall be due and payable in arrears on each Interest Payment Date
applicable thereto and at such other times as may be specified herein.  Interest hereunder shall be due and payable
in accordance with the terms hereof before and after judgment, and before and after
the commencement of any proceeding under any Debtor Relief Law.

 

2.09                         Fees.

 

(a)                                  Facility Fee.  The Borrower shall pay to the Administrative
Agent for the account of each Lender in accordance with its Pro Rata Share, a
facility fee equal to the Applicable Rate times the actual daily amount
of the Aggregate Commitments (or, if the Aggregate Commitments have terminated,
on the Outstanding Amount of all Committed Loans, Swing Line Loans, and L/C
Obligations), regardless of 

 

28

 

usage.  The facility fee shall accrue at all times
during the Availability Period (and thereafter so long as any Committed Loans,
Swing Line Loans, or L/C Obligations remain outstanding), including at any time
during which one or more of the conditions in Article IV is not
met, and shall be due and payable quarterly in arrears on the last Business Day
of each March, June, September and December, commencing with the first
such date to occur after the Closing Date, and on the Maturity Date (and, if
applicable, thereafter on demand).  The
facility fee shall be calculated quarterly in arrears, and if there is any
change in the Applicable Rate during any quarter, the actual daily amount shall
be computed and multiplied by the Applicable Rate separately for each period
during such quarter that such Applicable Rate was in effect.

 

(b)                                 Utilization Fee.  The Borrower shall pay to the Administrative
Agent for the account of each Lender in accordance with its Pro Rata Share, a
utilization fee equal to the Applicable Rate times the Total
Outstandings on each day that the Total Outstandings exceed 50% of the actual
daily amount of the Aggregate Commitments. 
The utilization fee shall be due and payable quarterly in arrears on the
last Business Day of each March, June, September and December, commencing
with the first such date to occur after the Closing Date, and on the Maturity
Date.  The utilization fee shall be
calculated quarterly in arrears and if there is any change in the Applicable Rate
during any quarter, the daily amount shall be computed and multiplied by the
Applicable Rate for each period during which such Applicable Rate was in
effect.  The utilization fee shall accrue
at all times, including at any time during which one or more of the conditions
in Article IV is not met.

 

(c)                                  Other Fees.

 

(i)                                     The Borrower
shall pay to each Arranger and the Administrative Agent for their own
respective accounts fees in the amounts and at the times specified in the Fee
Letters.  Such fees shall be fully earned
when paid and shall not be refundable for any reason whatsoever.

 

(ii)                                  The Borrower
shall pay to the Lenders such fees as shall have been separately agreed upon in
writing in the amounts and at the times so specified.  Such fees shall be fully earned when paid and
shall not be refundable for any reason whatsoever.

 

2.10                         Computation
of Interest and Fees.  All
computations of interest for Base Rate Loans when the Base Rate is determined
by Bank of America’s “prime rate” shall be made on the basis of a year of 365
or 366 days, as the case may be, and actual days elapsed.  All other computations of fees and interest
shall be made on the basis of a 360-day year and actual days elapsed (which
results in more fees or interest, as applicable, being paid than if computed on
the basis of a 365-day year).  Interest
shall accrue on each Loan for the day on which the Loan is made, and shall not
accrue on a Loan, or any portion thereof, for the day on which the Loan or such
portion is paid, provided that any Loan that is repaid on the same day
on which it is made shall, subject to Section 2.12(a), bear
interest for one day.

 

2.11                         Evidence of
Debt.

 

(a)                                  The Credit
Extensions made by each Lender shall be evidenced by one or more accounts or
records maintained by such Lender and by the Administrative Agent in the
ordinary course of business.  The
accounts or records maintained by the Administrative Agent and each Lender
shall be prima  facie evidence of the amount of the Credit
Extensions made by the Lenders to the Borrower and the interest and payments
thereon.  Any failure to so record or any
error in doing so shall not, however, limit or otherwise affect the obligation
of the Borrower hereunder to pay any amount owing with respect to the
Obligations.  In the event of any conflict
between the accounts and records maintained by any Lender and the accounts and
records of the Administrative Agent in respect of such matters, the accounts
and records of the Administrative Agent shall control in the absence of
manifest error.  Upon the request of any
Lender made through the Administrative Agent, the Borrower shall execute and
deliver to such Lender (through the Administrative Agent) a Note, which shall
evidence such Lender’s Loans in addition to such accounts 

 

29

 

or records. 
Each Lender may attach schedules to its Note and endorse thereon the
date, Type (if applicable), amount and maturity of its Loans and payments with
respect thereto.

 

(b)                                 In addition to
the accounts and records referred to in subsection (a), each Lender and the
Administrative Agent shall maintain in accordance with its usual practice
accounts or records evidencing the purchases and sales by such Lender of
participations in Letters of Credit and Swing Line Loans.  In the event of any conflict between the
accounts and records maintained by the Administrative Agent and the accounts
and records of any Lender in respect of such matters, the accounts and records
of the Administrative Agent shall control in the absence of manifest error.

 

2.12                         Payments
Generally.

 

(a)                                  All payments to
be made by the Borrower shall be made without condition or deduction for any
counterclaim, defense, recoupment or setoff. 
Except as otherwise expressly provided herein, all payments by the Borrower
hereunder shall be made to the Administrative Agent, for the account of the
respective Lenders to which such payment is owed, at the Administrative Agent’s
Office in Dollars and in immediately available funds not later than 2:00 p.m.
on the date specified herein.  The
Administrative Agent will promptly distribute to each Lender its Pro Rata Share
(or other applicable share as provided herein) of such payment in like funds as
received by wire transfer to such Lender’s Lending Office.  All payments received by the Administrative
Agent after 2:00 p.m. shall be deemed received on the next succeeding
Business Day and any applicable interest or fee shall continue to accrue.

 

(b)                                 If any payment
to be made by the Borrower shall come due on a day other than a Business Day,
payment shall be made on the next following Business Day, and such extension of
time shall be reflected in computing interest or fees, as the case may be.

 

(c)                                  (i)                                     Unless the
Borrower has notified the Administrative Agent, prior to the date any payment
is required to be made by it to the Administrative Agent or the L/C Issuer
hereunder, that the Borrower will not make such payment, the Administrative
Agent may assume that the Borrower has timely made such payment and may (but
shall not be so required to), in reliance thereon, make available a
corresponding amount to the Person entitled thereto.  If and to the extent that such payment was
not in fact made to the Administrative Agent in immediately available funds,
then each of the Lenders or the L/C Issuer, as the case may be, shall forthwith
on demand repay to the Administrative Agent the portion of such assumed payment
that was made available to such Lender or the L/C Issuer in immediately
available funds, together with interest thereon in respect of each day from and
including the date such amount was made available by the Administrative Agent
to such Lender or the L/C Issuer to the date such amount is repaid to the
Administrative Agent in immediately available funds at the greater of the Federal
Funds Rate and a rate determined by the Administrative Agent in accordance with
banking industry rules on interbank compensation.

 

(ii)                                  Unless the
Administrative Agent shall have received notice from a Lender prior to the
proposed date of any Borrowing of Fixed Period Eurodollar Rate Loans (or, in
the case of any Borrowing of Base Rate Committed Loans, prior to 12:00 noon on
the date of such Borrowing) that such Lender will not make available to the
Administrative Agent such Lender’s share of such Borrowing, the Administrative
Agent may assume that such Lender has made such share available on such date in
accordance with Section 2.02 (or, in the case of a Borrowing of
Base Rate Loans, that such Lender has made such share available in accordance
with and at the time required by Section 2.02) and may, in reliance
upon such assumption, make available to the Borrower a corresponding
amount.  In such event, if a Lender has
not in fact made its share of the applicable Borrowing available to the
Administrative Agent, then the applicable Lender and the Borrower severally
agree to pay to the Administrative Agent forthwith on demand such corresponding
amount in immediately available funds with interest thereon, for each day from
and including the date such amount is made available to the Borrower to but
excluding the date of payment to the Administrative Agent, at (A) in the
case of a payment to be made by such Lender, the 

 

30

 

greater of the Federal Funds Rate and a rate
determined by the Administrative Agent in accordance with banking industry rules on
interbank compensation plus any administrative, processing or similar fees
customarily charged by the Administrative Agent in connection with the
foregoing, and (B) in the case of a payment to be made by the Borrower,
the interest rate applicable to Base Rate Loans.  If the Borrower and such Lender shall pay
such interest to the Administrative Agent for the same or an overlapping period,
the Administrative Agent shall promptly remit to the Borrower the amount of
such interest paid by the Borrower for such period.  If such Lender pays its share of the
applicable Borrowing to the Administrative Agent, then the amount so paid shall
constitute such Lender’s Committed Loan included in such Borrowing.  Any payment by the Borrower shall be without
prejudice to any claim the Borrower may have against a Lender that shall have
failed to make such payment to the Administrative Agent.

 

A
notice of the Administrative Agent to any Lender or the Borrower with respect
to any amount owing under this subsection (c) shall be conclusive, absent
manifest error.

 

(d)                                 If any Lender
makes available to the Administrative Agent funds for any Loan to be made by
such Lender as provided in the foregoing provisions of this Article II,
and such funds are not made available to the Borrower by the Administrative
Agent because the conditions to the applicable Credit Extension set forth in Article IV
are not satisfied or waived in accordance with the terms hereof, the
Administrative Agent shall return such funds (in like funds as received from
such Lender) to such Lender, without interest.

 

(e)                                  The obligations
of the Lenders hereunder to make Committed Loans and to fund participations in
Letters of Credit and Swing Line Loans are several and not joint.  The failure of any Lender to make any
Committed Loan, to fund any such participation or to make any payment under Sections
10.4 or 10.5 on any date required hereunder shall not relieve any
other Lender of its corresponding obligation to do so on such date, and no
Lender shall be responsible for the failure of any other Lender to so make its
Committed Loan, purchase its participation or make its payment under Sections
10.4 or 10.5.

 

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

 

2.13                         Sharing of
Payments.  If, other than
as expressly provided elsewhere herein, any Lender shall obtain on account of
the Committed Loans made by it, or the participations in L/C Obligations or in
Swing Line Loans held by it, any payment (whether voluntary, involuntary, through
the exercise of any right of set-off, or otherwise) in excess of its ratable
share (or other share contemplated hereunder) thereof, such Lender shall
immediately (a) notify the Administrative Agent of such fact, and (b) purchase
from the other Lenders such participations in the Committed Loans made by them,
and/or such subparticipations in the participations in L/C Obligations and
Swing Line Loans held by them, as the case may be, as shall be necessary to
cause such purchasing Lender to share the excess payment in respect of such
Loans or such participations, as the case may be, pro rata with each of them; provided,
however, that if all or any portion of such excess payment is thereafter
recovered from the purchasing Lender under any of the circumstances described
in Section 10.06 (including pursuant to any settlement entered into
by the purchasing Lender in its discretion), such purchase shall to that extent
be rescinded and each other Lender shall repay to the purchasing Lender the
purchase price paid therefor, together with an amount equal to such paying
Lender’s ratable share (according to the proportion of (i) the amount of
such paying Lender’s required repayment to (ii) the total amount so
recovered from the purchasing Lender) of any interest or other amount paid or
payable by the purchasing Lender in respect of the total amount so recovered,
without further interest thereon.  The
Borrower agrees that any Lender so purchasing a participation from another
Lender may, to the fullest extent permitted by law, exercise all its rights of
payment (including the right of set-off, but subject to Section 10.09)
with respect to such participation as fully as if such Lender were the direct
creditor of the Borrower in the amount of such participation.  The Administrative 

 

31

 

Agent will keep records (which shall be
conclusive and binding in the absence of manifest error) of participations
purchased under this Section and will in each case notify the Lenders
following any such purchases or repayments. 
Each Lender that purchases a participation pursuant to this Section shall
from and after such purchase have the right to give all notices, requests,
demands, directions and other communications under this Agreement with respect
to the portion of the Obligations purchased to the same extent as though the
purchasing Lender were the original owner of the Obligations purchased.

 

2.14                         Extension
of Stated Maturity Date.

 

(a)                                  Without further action by or
consent from the Lenders, the Stated Maturity Date shall be extended to October 26,
2011 (or, if such date is not a Business Day, the next preceding Business Day)
if the following requirements are satisfied on or before September 25,
2007:

 

(i)                                     if the
Restructuring has not occurred prior to such date, the Borrower shall have
provided to the Administrative Agent the following, in form and substance
satisfactory to the Administrative Agent (A) a copy of the securities
certificate registered with the Pennsylvania Public Utility Commission (the “Securities
Certificate”) and of the order of the Pennsylvania Public Utility
Commission approving the Borrower’s incurring indebtedness hereunder with a
maturity date of October 26, 2011, (B) an opinion of counsel to the
Borrower (which may be internal counsel) stating that (x) the Securities
Certificate has been registered with the Pennsylvania Public Utility Commission
in accordance with Chapter 19 of the Pennsylvania Public Utility Code and by
virtue of such registration, authorizes the Borrower to incur indebtedness
hereunder with a maturity date of October 26, 2011, and (y) no other
Authorizations are required by the Pennsylvania Public Utility Commission or by
the PUC in any other state identified by the Borrower as being a state in which
the Borrower or any of its Subsidiaries is subject to regulation by a PUC, (C) copies
of corporate resolutions certified by the Secretary or Assistant Secretary of
the Borrower, or such other evidence as may be satisfactory to the
Administrative Agent, demonstrating that the Borrower’s incurrence of
indebtedness hereunder with a maturity date of October 26, 2011 has been
duly authorized by all necessary corporate action, together with an opinion of
counsel to the Borrower (which may be internal counsel) to such effect, and (D) a
certificate of a Responsible Officer of the Borrower stating that all federal
and state Authorizations required in order to permit the Borrower to incur
indebtedness hereunder with a maturity date of October 26, 2011 have been
obtained, listing any such Authorizations obtained and attaching true and
correct copies thereof, or stating that no such Authorizations are required; or

 

(ii) if the Restructuring has occurred
prior to such date, the Borrower shall have provided to the Administrative
Agent (A) an opinion of counsel (which may be internal counsel) in form
and substance reasonably satisfactory to the Administrative Agent stating that
all Authorizations of federal regulators and of state regulators in
Pennsylvania and West Virginia (and in any other state, if any, where the
Borrower or any of its Subsidiaries is subject to PUC regulation) required in
order to permit the Borrower to incur indebtedness hereunder with a maturity
date of October 26, 2011 have been obtained and listing any such
Authorizations obtained, or stating that no such Authorizations are required,
and (B) copies of corporate resolutions certified by the Secretary or
Assistant Secretary of the Borrower, or such other evidence as may be
satisfactory to the Administrative Agent, demonstrating that Borrower’s
incurrence of indebtedness hereunder with a maturity date of October 26,
2011 has been duly authorized by all necessary corporate action, together with
an opinion of counsel to the Borrower (which may be internal counsel) to such
effect, and (C) a certificate of a Responsible Officer of the Borrower
stating that all federal and state Authorizations required in order to permit
the Borrower to incur indebtedness hereunder with a maturity date of October 26,
2011 have been obtained, listing any such Authorizations obtained and attaching
true and correct copies thereof, or stating that no such Authorizations are
required.

 

32

 

The
Administrative Agent shall promptly notify the Lenders when the foregoing
conditions have been satisfied, and the extension shall be effective as of the
date of such notice.

 

(b)                                 Not earlier than
90 days prior to, nor later than 30 days prior to, an annual anniversary of the
Closing Date, the Borrower may, upon notice to the Administrative Agent (who
shall promptly notify the Lenders), request a one year extension of the then
current Stated Maturity Date.  The
Borrower may request such an extension no more than two times.  Within 15 days of delivery of such notice,
each Lender shall notify the Administrative Agent whether or not it consents to
such extension (which consent may be given or withheld in such Lender’s sole
and absolute discretion).  Any Lender not
responding within the above time period shall be deemed not to have consented
to such extension.  The Administrative
Agent shall promptly notify the Borrower and the Lenders of the Lenders’
responses.  If any Lender
declines, or is deemed to have declined, to consent to such extension (a “Declining
Lender”), the Borrower may cause any such Declining Lender to be removed or
replaced as a Lender pursuant to Section 10.16.

 

Only if Lenders holding at
least 51% of the Commitments (calculated prior to giving effect to any removals
and/or replacements of Lenders permitted herein) (the “Consenting Lenders”)
have consented to an extension requested pursuant to this Section 2.14(b),
the Stated Maturity Date shall be extended, with respect only to the Consenting
Lenders and any Lender replacing a Declining Lender pursuant to Section 10.16.  If so extended, the Stated Maturity Date, as
to the Consenting Lenders and each Lender replacing a Declining Lender pursuant
to Section 10.16, shall be extended to the date falling one year
after the existing Stated Maturity Date (except that if such date is not a
Business Day, such Stated Maturity Date, as so extended, shall be the next
preceding Business Day); provided, however, that the pre-existing
Stated Maturity Date shall remain in effect with respect to any Declining
Lender that is not replaced.  The
Administrative Agent and the Borrower shall promptly confirm to the Lenders
such extension, and the Administrative Agent shall distribute an amended  Schedule
2.01 (which shall be deemed
incorporated into this Agreement), to reflect any changes in Lenders and their
respective Commitments.

 

As a condition precedent to
such extension, the Borrower shall have provided to the
Administrative Agent the following, in form and substance satisfactory to the
Administrative Agent:

 

(i) copies of corporate
resolutions certified by the Secretary or Assistant Secretary of the Borrower,
or such other evidence as may be satisfactory to the Administrative Agent,
demonstrating that Borrower’s incurrence of indebtedness hereunder with a maturity
date of the Stated Maturity Date, as extended pursuant to this Section 2.14(b),
has been duly authorized by all necessary corporate action, together with an
opinion of counsel to the Borrower (which may be internal counsel) to such
effect,

 

(ii) a certificate
(in sufficient copies for each Lender), signed by a Responsible Officer of the
Borrower certifying that, (A) before and after giving effect to such
extension, the representations and warranties contained in Article V  (including without
limitation the representation and warranties set forth in Sections 5.04(c) and
5.05) and the other Loan Documents are true and correct on and
as of the date thereof, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they are true
and correct as of such earlier date, and except that for purposes of this Section 2.14(b),
the representations and warranties contained in subsections (a) and (b) of
Section 5.04 shall be deemed to refer to the most recent statements
furnished pursuant to subsections (a) and (b), respectively, of Section 6.01, (B) no
Default or Event of Default exists, and (C) all federal
and state Authorizations required in order to permit the Borrower to incur
indebtedness hereunder with a maturity date of the Stated Maturity Date, as
extended pursuant to this Section 2.14(b) have been obtained,
listing any such Authorizations obtained and attaching true and correct copies
thereof, or stating that no such Authorizations are required,

 

33

 

(iii) a copy of the
securities certificate registered with the Pennsylvania Public Utility
Commission and of the order of the Pennsylvania Public Utility Commission
approving the Borrower’s incurring indebtedness hereunder with a maturity date
of the Stated Maturity Date, as extended pursuant to this Section 2.14(b),
and

 

(iv) an opinion of
counsel to the Borrower (which may be internal counsel) stating that (A) such
securities certificate has been registered with the Pennsylvania Public Utility
Commission in accordance with Chapter 19 of the Pennsylvania Public Utility
Code and by virtue of such registration, authorizes the Borrower to incur
indebtedness hereunder with a maturity date of the Stated Maturity Date, as extended
pursuant to this Section 2.14(b), and (B) no other
Authorizations are required by the Pennsylvania Public Utility Commission or by
the PUC in any other state identified by the Borrower as being a state in which
the Borrower or any of its Subsidiaries is subject to regulation by a PUC;

 

provided, however,
that the delivery of the items set forth in the foregoing clauses  (iii) and
(iv) shall not be required as a condition precedent to such
extension in the event that prior to the Borrower’s request for such extension (1) the
Restructuring has been consummated and (2) the Borrower has provided an
opinion of counsel (which may be internal counsel) in form and substance
reasonably satisfactory to the Administrative Agent stating that all
Authorizations of federal regulators and of state regulators in Pennsylvania
and West Virginia (and in any other state, if any, where the Borrower or any of
its Subsidiaries is subject to the PUC regulation) required in order to permit
the Borrower to incur indebtedness hereunder with a maturity date of the Stated
Maturity Date, as extended pursuant to this Section 2.14(b), have
been obtained and listing any such Authorizations obtained, or stating that no
such Authorizations are required.

 

The Borrower shall (i) on the
existing Stated Maturity Date, prior to or contemporaneous with giving effect
to any extension, pay amounts due, in full, to any Declining Lender that is not
replaced as a Lender pursuant to Section 10.16, and (ii) prepay
any Committed Loans outstanding on the existing Stated Maturity Date which were
made to it (and pay any additional amounts required pursuant to Section 3.05) to the extent
necessary to keep outstanding Committed Loans ratable with the Pro Rata Shares
of all the Lenders.

 

2.15                         Increase in
Commitments.

 

(a)                                  Provided there
exists no Default, upon notice to the Administrative Agent (which shall
promptly notify the Lenders), the Borrower may on a one-time basis request an
increase in the Aggregate Commitments to an amount not exceeding $2,000,000,000;
provided that any such request for an increase shall be in a minimum
amount of $5,000,000 or a whole multiple of $1,000,000 in excess thereof.  At the time of sending such notice, the
Borrower (in consultation with the Administrative Agent) shall specify the time
period within which each Lender is requested to respond (which shall in no
event be less than ten Business Days from the date of delivery of such notice
to the Lenders).  Each Lender shall
notify the Administrative Agent within such time period whether or not it
agrees to increase its Commitment and, if so, whether by an amount equal to,
greater than, or less than its Pro Rata Share of such requested increase.  Any Lender not responding within such time period
shall be deemed to have declined to increase its Commitment.  The Administrative Agent shall notify the
Borrower and each Lender of the Lenders’ responses to each request made
hereunder.  To achieve the full amount of
a requested increase, the Borrower may also invite additional Eligible Assignees
to become Lenders pursuant to a joinder agreement in form and substance
satisfactory to the Administrative Agent and its counsel.

 

(b)                                 If the
Aggregate Commitments are increased in accordance with this Section, the
Administrative Agent and the Borrower shall determine the effective date (the “Increase
Effective Date”) and the final allocation of such increase.  The Administrative Agent shall promptly
notify the Borrower and the Lenders of the final allocation of such increase
and the Increase Effective Date.  As a
condition 

 

34

 

precedent to such increase, the Borrower
shall have provided to the Administrative Agent the following, in form and
substance satisfactory to the Administrative Agent:

 

(i) copies of corporate
resolutions certified by the Secretary or Assistant Secretary of the Borrower,
or such other evidence as may be satisfactory to the Administrative Agent,
demonstrating that Borrower’s incurrence of indebtedness hereunder in the
amount of the Aggregate Commitments as increased pursuant to this Section 2.15
and with a maturity date of the Stated Maturity Date then in effect, has been
duly authorized by all necessary corporate action, together with an opinion of
counsel to the Borrower (which may be internal counsel) to such effect,

 

(ii) a certificate
dated as of the Increase Effective Date (in sufficient copies for each Lender)
signed by a Responsible Officer of the Borrower certifying that, before and
after giving effect to such increase, (A) the representations and
warranties contained in Article V (including without limitation the
representation and warranties set forth in Sections 5.04(c) and 5.05)
and the other Loan Documents are true and correct on and as of the Increase
Effective Date, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they are true and correct
as of such earlier date, and except that for purposes of this Section 2.15,
the representations and warranties contained in subsections (a) and (b) of
Section 5.04 shall be deemed to refer to the most recent statements
furnished pursuant to subsections (a) and (b), respectively, of Section 6.01,
(B) no Default exists, and (C) a certificate of a Responsible Officer
of the Borrower stating that all Authorizations of federal and state regulators
required in order to authorize the Borrower to incur indebtedness hereunder in
the amount of the Aggregate Commitments as increased pursuant to this Section 2.15
and with a maturity date of the Stated Maturity Date then in effect have been
obtained, listing any such Authorizations obtained and attaching true and
correct copies thereof, or stating that no such Authorizations are required,

 

(iii) a copy of the
securities certificate registered with the Pennsylvania Public Utility
Commission and the order of the Pennsylvania Public Utility Commission
approving the Borrower’s incurring indebtedness hereunder in the amount of the
Aggregate Commitments as increased pursuant to this Section 2.15
and with a maturity date of the Stated Maturity Date then in effect, and

 

(iv) an opinion of
counsel to the Borrower (which may be internal counsel) stating that (x) such
securities certificate has been registered with the Pennsylvania Public Utility
Commission in accordance with Chapter 19 of the Pennsylvania Public Utility
Code and by virtue of such registration, authorizes the Borrower to incur
indebtedness hereunder in the amount of the Aggregate Commitments as increased
pursuant to this Section 2.15 and with a maturity date of the
Stated Maturity Date then in effect, and (y) no other Authorizations are
required by the Pennsylvania Public Utility Commission or by the PUC in any
other state identified by the Borrower as being a state in which the Borrower
or any of its Subsidiaries is subject to regulation by a PUC;

 

provided, however,
that the delivery of the items set forth in the foregoing clauses  (iii) and
(iv) shall not be required as a condition precedent to such
increase in the event that prior to the Borrower’s request for such increase (x) the
Stated Maturity Date has not been extended beyond October 25, 2007
pursuant to Section 2.14, or (y)(1) the Restructuring has been
consummated, and (2) the Borrower provides an opinion of counsel (which
may be internal counsel) in form and substance reasonably satisfactory to the
Administrative Agent stating that all Authorizations of federal regulators and
of state regulators in Pennsylvania and West Virginia (and in any other state,
if any, where the Borrower or any of its Subsidiaries is subject to the PUC
regulation) required in order to permit the Borrower to incur indebtedness
hereunder in the amount of the Aggregate Commitments as increased pursuant to
this Section 2.15 and with a maturity date of the Stated Maturity
Date then in effect have been obtained and listing any such Authorizations
obtained, or stating that no such Authorizations are required.

 

The
Borrower shall prepay any Committed Loans outstanding on the Increase Effective
Date (and pay any additional amounts required pursuant to Section 3.05)
to the extent necessary to keep the 

 

35

 

outstanding
Committed Loans ratable with any revised Pro Rata Shares arising from any
nonratable increase in the Commitments under this Section.

 

(c)                                  This Section shall
supersede any provisions in Sections 2.12 or 10.01 to the
contrary.

 

ARTICLE III.

TAXES, YIELD PROTECTION AND ILLEGALITY

 

3.01                         Taxes.

 

(a)                                  Any and all
payments by the Borrower to or for the account of the Administrative Agent or
any Lender under any Loan Document shall be made free and clear of and without
deduction for any and all present or future taxes, duties, levies, imposts,
deductions, assessments, fees, withholdings or similar charges, and all
liabilities with respect thereto, excluding, in the case of the
Administrative Agent and each Lender, taxes imposed on or measured by its
overall net income, and franchise taxes imposed on it (in lieu of net income
taxes), by the jurisdiction (or any political subdivision thereof) under the
Laws of which the Administrative Agent or such Lender, as the case may be, is
organized or maintains a lending office (all such non-excluded taxes, duties,
levies, imposts, deductions, assessments, fees, withholdings or similar
charges, and liabilities being hereinafter referred to as “Taxes”).  If the Borrower shall be required by any Laws
to deduct any Taxes from or in respect of any sum payable under any Loan
Document to the Administrative Agent or any Lender, (i) the sum payable
shall be increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this
Section), each of the Administrative Agent and such Lender receives an amount
equal to the sum it would have received had no such deductions been made, (ii) the
Borrower shall make such deductions, (iii) the Borrower shall pay the full
amount deducted to the relevant taxation authority or other authority in
accordance with applicable Laws, and (iv) within 30 days after the date of
such payment, the Borrower shall furnish to the Administrative Agent (which
shall forward the same to such Lender) the original or a certified copy of a
receipt evidencing payment thereof.

 

(b)                                 In addition,
the Borrower agrees to pay any and all present or future stamp, court or
documentary taxes and any other excise or property taxes or charges or similar
levies which arise from any payment made under any Loan Document or from the
execution, delivery, performance, enforcement or registration of, or otherwise
with respect to, any Loan Document (hereinafter referred to as “Other Taxes”).

 

(c)                                  If the Borrower shall be
required to deduct or pay any Taxes or Other Taxes from or in respect of any
sum payable under any Loan Document to the Administrative Agent or any Lender,
the Borrower shall also pay to the Administrative Agent or to such Lender, as
the case may be, at the time interest is paid, such additional amount that the
Administrative Agent or such Lender specifies is necessary to preserve the
after-tax yield (after factoring in all taxes, including taxes imposed on or
measured by net income) that the Administrative Agent or such Lender would have
received if such Taxes or Other Taxes had not been imposed.

 

(d)                                 The Borrower
agrees to indemnify the Administrative Agent and each Lender for (i) the
full amount of Taxes and Other Taxes (including any Taxes or Other Taxes
imposed or asserted by any jurisdiction on amounts payable under this Section)
paid by the Administrative Agent and such Lender, (ii) amounts payable
under Section 3.01(c) and (iii) any liability (including
additions to tax, penalties, interest and expenses) arising therefrom or with
respect thereto, in each case whether or not such Taxes or Other Taxes were correctly
or legally imposed or asserted by the relevant Governmental Authority.  Payment under this subsection (d) shall
be made within 30 days after the date the Lender or the Administrative Agent
makes a demand therefor.

 

36

 

3.02                        Illegality.  If any Lender determines
that any Law has made it unlawful, or that any Governmental Authority has
asserted that it is unlawful, for any Lender or its applicable Lending Office
to make, maintain or fund Eurodollar Rate Loans, or to determine or charge
interest rates based upon the Eurodollar Rate, then, on notice thereof by such
Lender to the Borrower through the Administrative Agent, any obligation of such
Lender to make or continue Eurodollar Rate Loans or to convert Base Rate Loans
to Eurodollar Rate Loans shall be suspended until such Lender notifies the
Administrative Agent and the Borrower that the circumstances giving rise to
such determination no longer exist.  Upon
receipt of such notice, the Borrower shall, upon demand from such Lender (with
a copy to the Administrative Agent), prepay or, if applicable, convert all
Eurodollar Rate Loans of such Lender to Base Rate Loans, either on the last day
of the Interest Period therefor, if such Lender may lawfully continue to
maintain such Eurodollar Rate Loans to such day, or immediately, if such Lender
may not lawfully continue to maintain such Eurodollar Rate Loans.  Upon any such prepayment or conversion, the
Borrower shall also pay accrued interest on the amount so prepaid or converted.
 Each Lender agrees to designate a
different Lending Office if such designation will avoid the need for such
notice and will not, in the good faith judgment of such Lender, otherwise be
materially disadvantageous to such Lender.

 

3.03                        Inability
to Determine Rates.  If the Required
Lenders determine that for any reason adequate and reasonable means do not
exist for determining the Eurodollar Rate for any requested Interest Period
with respect to a proposed Eurodollar Rate Loan, or that the Eurodollar Rate for
any requested Interest Period with respect to a proposed Eurodollar Rate Loan
does not adequately and fairly reflect the cost to such Lenders of funding such
Loan, the Administrative Agent will promptly so notify the Borrower and each
Lender.  Thereafter, the obligation of
the Lenders to make or maintain Eurodollar Rate Loans shall be suspended until
the Administrative Agent (upon the instruction of the Required Lenders) revokes
such notice.  Upon receipt of such notice,
the Borrower may revoke any pending request for a Borrowing of, conversion to
or continuation of Eurodollar Rate Loans or, failing that, will be deemed to
have converted such request into a request for a Borrowing of Base Rate Loans
in the amount specified therein.

 

3.04                        Increased
Cost and Reduced Return; Capital Adequacy.

 

(a)                                  If any Lender
determines that as a result of the introduction of or any change in or in the
interpretation of any Law, or such Lender’s compliance therewith, there shall
be any increase in the cost to such Lender of agreeing to make or making,
funding or maintaining Eurodollar Rate Loans or (as the case may be) issuing or
participating in Letters of Credit, or a reduction in the amount received or
receivable by such Lender in connection with any of the foregoing (excluding
for purposes of this subsection (a) any such increased costs or reduction
in amount resulting from (i) Taxes or Other Taxes (as to which Section 3.01
shall govern), (ii) changes in the basis of taxation of overall net income
or overall gross income by the United States or any foreign jurisdiction or any
political subdivision of either thereof under the Laws of which such Lender is
organized or has its Lending Office, and (iii) reserve requirements
contemplated by Section 3.04(c)), then from time to time upon
demand of such Lender (with a copy of such demand to the Administrative Agent),
the Borrower shall pay to such Lender such additional amounts as will
compensate such Lender for such increased cost or reduction.

 

(b)                                 If any Lender
determines that the introduction of any Law regarding capital adequacy or any
change therein or in the interpretation thereof, or compliance by such Lender
(or its Lending Office) therewith, has the effect of reducing the rate of
return on the capital of such Lender or any corporation controlling such Lender
as a consequence of such Lender’s obligations hereunder (taking into
consideration its policies with respect to capital adequacy and such Lender’s
desired return on capital), then from time to time upon demand of such Lender
(with a copy of such demand to the Administrative Agent), the Borrower shall
pay to such Lender such additional amounts as will compensate such Lender for
such reduction.

 

37

 

(c)                                  The Borrower
shall pay to each Lender, as long as such Lender shall be required to maintain
reserves with respect to liabilities or assets consisting of or including
Eurocurrency funds or deposits, additional interest on the unpaid principal
amount of each Eurodollar Rate Loan equal to the actual costs of such reserves
allocated to such Loan by such Lender (as determined by such Lender in good
faith, which determination shall be conclusive), which shall be due and payable
on each date on which interest is payable on such Loan, provided the
Borrower shall have received at least 15 days’ prior notice (with a copy to the
Administrative Agent) of such additional interest from such Lender.  If a Lender fails to give notice 15 days
prior to the relevant Interest Payment Date, such additional interest shall be
due and payable 15 days from receipt of such notice.  Each Lender will promptly notify the Borrower
and the Administrative Agent of any event of which it has knowledge, occurring
after the date hereof, which will entitle such Lender to compensation pursuant
to this Section and will designate a different Lending Office if such
designation will avoid the need for, or reduce the amount of, such compensation
and will not, in the judgment of such Lender, be otherwise disadvantageous to
such Lender.

 

3.05                        Funding
Losses.  Upon demand of any Lender
(with a copy to the Administrative Agent) from time to time, the Borrower shall
promptly compensate such Lender for and hold such Lender harmless from any
loss, cost or expense incurred by it as a result of:

 

(a)                                  any
continuation, conversion, payment or prepayment of any Loan other than a Base
Rate Loan or Daily
Floating Eurodollar Rate Loan on a day other than the last day of the
Interest Period for such Loan (whether voluntary, mandatory, automatic, by
reason of acceleration, or otherwise);

 

(b)                                 any failure by
the Borrower (for a reason other than the failure of such Lender to make a
Loan) to prepay, borrow, continue or convert any Loan other than a Base Rate
Loan or Daily Floating
Eurodollar Rate Loan on the date or in the amount notified by the
Borrower; or

 

(c)                                  any assignment
of a Fixed Period Eurodollar Rate Loan on a day other than the last day of the
Interest Period therefor as a result of a request by the Borrower pursuant to Section 10.16;

 

including
any loss or expense arising from the liquidation or reemployment of funds
obtained by it to maintain such Loan (excluding loss of anticipated profits) or
from fees payable to terminate the deposits from which such funds were
obtained.  The Borrower shall also pay
any customary administrative fees charged by such Lender in connection with the
foregoing.

 

For
purposes of calculating amounts payable by the Borrower to the Lenders under
this Section 3.05, each Lender shall be deemed to have funded each
Fixed Period Eurodollar Rate Loan made by it at the Fixed Period Eurodollar
Rate for such Loan by a matching deposit or other borrowing in the London
interbank eurodollar market for a comparable amount and for a comparable
period, whether or not such Fixed Period Eurodollar Rate Loan was in fact so
funded.

 

3.06                        Matters
Applicable to all Requests for Compensation. 
A certificate of the Administrative Agent or any Lender claiming
compensation under this Article III and setting forth the
additional amount or amounts to be paid to it hereunder shall be conclusive in
the absence of manifest error.  In
determining such amount, the Administrative Agent or such Lender may use any
reasonable averaging and attribution methods.

 

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

 

38

 

ARTICLE IV.

CONDITIONS PRECEDENT TO CLOSING DATE AND TO CREDIT EXTENSIONS

 

4.01                        Conditions
of Closing Date and Initial Credit Extension. 
The obligation of each Lender to make its initial Credit Extension,
hereunder is subject to satisfaction of the following conditions precedent:

 

(a)                                  The
Administrative Agent’s receipt of the following, each of which shall be
originals or facsimiles (followed promptly by originals) unless otherwise
specified, each properly executed by a Responsible Officer of the Borrower,
each dated the Closing Date (or, in the case of certificates of governmental
officials, a recent date before the Closing Date) and each in form and
substance satisfactory to the Administrative Agent and its legal counsel:

 

(i)                                     executed counterparts of
this Agreement, sufficient in number for distribution to the Administrative
Agent, each Lender and the Borrower;

 

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

 

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

 

(iv)                              a certificate of the
Pennsylvania Secretary of State evidencing that the Borrower is duly organized
or formed, and is validly existing, in good standing under the laws of the
State of Pennsylvania;

 

(v)                                 a favorable opinion of Reed
Smith LLP, counsel to the Borrower, addressed to the Administrative Agent and
each Lender, as to the matters set forth in Exhibit E-1 and a
favorable opinion of the Deputy General Counsel of the Borrower, addressed to
the Administrative Agent and each Lender, as to the matters set forth in Exhibit E-2;

 

(vi)                              a certificate signed by a
Responsible Officer of the Borrower certifying (A) that the
representations and warranties of the Borrower contained in Article V
are true and correct on and as of the date hereof, (B) that no Default
exists or would result from the execution of this Agreement, (C) that
there has been no material adverse change since December 31, 2005 in the
business, assets, liabilities (actual or contingent), operations, or condition
(financial or otherwise) of the Borrower and its subsidiaries taken as a whole;
and (D) the current Public Debt Ratings;

 

(vii)                           evidence that the
Commitments under the Existing Credit Agreement have been or concurrently with
the Closing Date are being terminated, and that the Borrower has repaid all
amounts owed thereunder upon such termination; and

 

(viii)                        such other assurances,
certificates, documents, consents or opinions as the Administrative Agent, the
L/C Issuer, the Swing Line Lender or the Required Lenders reasonably may
require.

 

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

 

(c)                                  Unless waived
by the Administrative Agent, the Borrower shall have paid all Attorney Costs of
the Administrative Agent to the extent invoiced prior to or on the Closing
Date.

 

39

 

4.02                        Conditions
to all Credit Extensions.  The obligation
of each Lender to honor any Request for Credit Extension (other than (i) a
Committed Loan Notice requesting only a conversion of Committed Loans to the
other Type, (ii) a continuation of Eurodollar Rate Loans, or (iii) a
Swing Line Loan Notice requesting only a conversion of Swing Line Loans to the
other Type) is subject to the following conditions precedent:

 

(a)                                  The
representations and warranties of the Borrower contained in Article V
(except the representations and warranties in Sections 5.04(c), 5.05
and 5.06, as to any matter which has theretofore been disclosed in
writing by the Borrower to the Lenders by written notice given to the
Administrative Agent) or in any other Loan Document, or which are contained in
any document furnished at any time under or in connection herewith or
therewith, shall be true and correct on and as of the date of such Credit
Extension, except that for purposes of this Section 4.02, the
representations and warranties contained in subsections (a) and (b) of
Section 5.04 shall be deemed to refer to the most recent statements
furnished pursuant to clauses (a) and (b), respectively, of Section 6.01.

 

(b)                                 No Default
shall exist, or would result from such proposed Credit Extension.

 

(c)                                  The
Administrative Agent and, if applicable, the L/C Issuer or the Swing Line
Lender shall have received a Request for Credit Extension in accordance with
the requirements hereof.

 

Each Request for Extension (other than (i) a Committed Loan Notice
requesting only a conversion of Committed Loans to the other Type, (ii) a
continuation of Eurodollar Rate Loans, or (iii) a Swing Line Loan Notice
requesting only a conversion of Swing Line Loans to the other Type) submitted
by the Borrower shall be deemed to be a representation and warranty that the
conditions specified in Sections 4.02(a) and (b) have
been satisfied on and as of the date of the applicable Credit Extension.

 

ARTICLE V.

REPRESENTATIONS AND WARRANTIES

 

The Borrower represents and
warrants that:

 

5.01                        Corporate
Existence and Power.  The
Borrower is a corporation duly incorporated, validly existing and in good
standing under the laws of the jurisdiction of its incorporation, and has all
corporate powers and all material Authorizations required to carry on its
business as now conducted.

 

5.02                        Corporate
and Governmental Authorization; No Contravention.  The Borrower’s incurrence of Debt hereunder,
and the execution, delivery and performance by the Borrower of this Agreement
and the Notes, are within the corporate powers of the Borrower, have been duly
authorized by all necessary corporate action, require no action by or in
respect of, or filing with, any Governmental Authority (except such as has been
obtained), do not contravene, or constitute a default under, any provision of
applicable law or regulation or of the certificate of incorporation or by-laws
of the Borrower or of any agreement, judgment, injunction, order, decree or
other instrument binding upon the Borrower or any of its Subsidiaries, or
result in the creation or imposition of any Lien on any asset of the Borrower
or any of its Subsidiaries.

 

5.03                        Binding
Effect.  This Agreement constitutes a
valid and binding agreement of the Borrower, and each Note, when executed and
delivered in accordance with this Agreement, will constitute a valid and
binding obligation of the Borrower, in each case enforceable in accordance with
its terms, except as such enforcement may be limited by bankruptcy, insolvency
or similar laws of general application relating to the enforcement of creditors’
rights.

 

40

 

5.04                        Financial
Information.

 

(a)                                  The
consolidated balance sheet of the Borrower and its Consolidated Subsidiaries as
of December 31, 2005, and the related consolidated statements of income,
cash flows and changes in stockholders’ equity for the fiscal year then ended,
reported on by Ernst & Young LLP, independent certified public
accountants for the Borrower, and set forth in the Borrower’s 2005 Form 10-K,
a copy of which has been delivered to each of the Lenders, (i) fairly
present, in conformity with GAAP, the consolidated financial position of the
Borrower and its Consolidated Subsidiaries as of such date and their
consolidated results of operations and cash flows for such fiscal year, and (ii) show,
to the extent required by GAAP, all material indebtedness and other
liabilities, direct or contingent, of the Borrower and its Subsidiaries as of
the date thereof, including liabilities for taxes, material commitments and
Debt.

 

(b)                                 The unaudited
consolidated balance sheet of the Borrower and its Consolidated Subsidiaries as
of June 30, 2006, and the related unaudited consolidated statements of
income and cash flows for the three months then ended, set forth in the
Borrower’s Form 10-Q for the quarter ended June 30, 2006, a copy of
which has been delivered to each of the Lenders, fairly present, in conformity
with GAAP applied on a basis consistent with the financial statements referred
to in subsection (a) of this Section, the consolidated financial position
of the Borrower and its Consolidated Subsidiaries as of such date and their
consolidated results of operations and cash flows for such three month period
(subject to normal year-end adjustments).

 

(c)                                  Since December 31,
2005 there has been no material adverse change in the business, financial
position or results of operations of the Borrower and its Consolidated
Subsidiaries, considered as a whole.

 

5.05                        Litigation. There is no
action, suit, proceeding or investigation pending against, or, to the knowledge
of the Borrower, threatened against or affecting, the Borrower or any of its
Subsidiaries before any Governmental Authority in which there is a reasonable
possibility of an adverse decision which could materially adversely affect the
business, consolidated financial position or consolidated results of operations
of the Borrower and its Consolidated Subsidiaries, considered as a whole, or
which in any manner draws into question the validity or enforceability of this
Agreement or the Notes.

 

5.06                        No Default.  Neither the Borrower nor any of its
Subsidiaries is in default under or with respect to any Contractual Obligation
which could be reasonably expected to have a material adverse effect on the
business, financial condition, results of operations or prospects of the
Borrower and its Consolidated Subsidiaries, considered as a whole.

 

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

 

5.08                        Environmental
Matters.  In the ordinary course of its
business, the Borrower conducts an ongoing review of the effect of
Environmental Laws on the business, operations and properties of the Borrower
and its Subsidiaries, in the course of which it identifies and evaluates
associated liabilities and costs (including, without limitation, any capital or
operating expenditures required for clean-up or closure of properties presently
or previously owned, any capital or operating expenditures required to achieve
or 

 

41

 

maintain compliance with environmental
protection standards imposed by law or as a condition of any license, permit or
contract, any related constraints on operating activities, including any
periodic or permanent shutdown of any facility or reduction in the level of or
change in the nature of operations conducted thereat, any costs or liabilities
in connection with off-site disposal of wastes or Hazardous Substances, and any
actual or potential liabilities to third parties, including employees, and any
related costs and expenses).  On the
basis of this review, the Borrower has concluded that such associated
liabilities and costs, including the costs of compliance with Environmental
Laws, are unlikely to have a material adverse effect on the business, financial
condition, results of operations or prospects of the Borrower and its
Consolidated Subsidiaries, considered as a whole.

 

5.09                        Taxes.  The Borrower and its Subsidiaries have filed
all United States Federal income tax returns and all other material tax returns
which are required to be filed by them, and have paid all taxes due pursuant to
such returns or pursuant to any assessment received by the Borrower or any
Subsidiary (other than those not yet delinquent and payable without premium or
penalty, and except for those being diligently contested in good faith by
appropriate proceedings, and in each case, for which adequate reserves and
provisions for taxes have been made on the books of the Borrower and each
Subsidiary).  The charges, accruals and
reserves on the books of the Borrower and its Subsidiaries in respect of taxes
or other governmental charges are, in the opinion of the Borrower, adequate.

 

5.10                        Subsidiaries.  Each of the Borrower’s corporate Subsidiaries
is a corporation duly incorporated, validly existing and in good standing under
the laws of its jurisdiction of incorporation, and has all corporate powers and
all material governmental authorizations required to carry on its business as
now conducted, except where the absence of any of the foregoing could not
reasonably be expected to have a material adverse effect on the business,
financial condition, results of operations or prospects of the Borrower and its
Consolidated Subsidiaries, considered as a whole.

 

5.11                        Regulatory
Restrictions on Borrowing; Margin Regulations.

 

(a)                                  None of the
Borrower, any Person Controlling the Borrower, or any Subsidiary is an “investment company” within the meaning of
the Investment Company Act of 1940, as amended.

 

(b)                                 Margin stock
does not constitute more than 25% of the assets of the Borrower and its
Subsidiaries.

 

5.12                        Full
Disclosure.  No
statement, information, report, representation, or warranty made by the
Borrower in any Loan Document or furnished to the Administrative Agent or any
Lender by or on behalf of the Borrower in connection with any Loan Document
contains any untrue statement of a material fact or omits any material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading.

 

ARTICLE VI.

AFFIRMATIVE COVENANTS

 

The Borrower agrees that, so long as any Lender has any Commitment
hereunder, any Letter of Credit remains outstanding or any amount payable
hereunder remains unpaid:

 

6.01                        Information.  The Borrower will deliver to the Administrative
Agent and each Lender:

 

(a)                                  as soon as
available, and in any event within 60 days after the end of each fiscal year of
the Borrower, a consolidated balance sheet of the Borrower and its Consolidated
Subsidiaries as of the end of such fiscal year and the related consolidated
statements of income, cash flows and changes in stockholders’ equity for such
fiscal year, setting forth in each case in comparative form the figures for the

 

42

 

previous
fiscal year, all in reasonable detail and prepared in accordance with GAAP,
audited and accompanied by a report and opinion of an independent certified
public accountant of nationally recognized standing selected by the Borrower,
which report and opinion shall be prepared in accordance with generally
accepted auditing standards and shall not be subject to any “going concern” or
like qualification or exception or any qualification or exception as to the
scope of such audit;

 

(b)                                 as soon as
available, and in any event within 35 days after the end of each of the first
three quarters of each fiscal year of the Borrower, a consolidated balance
sheet of the Borrower and its Consolidated Subsidiaries as of the end of such
quarter and the related consolidated statements of income and cash flows for
such quarter and for the portion of the Borrower’s fiscal year ended at the end
of such quarter, setting forth in the case of such statements of income and
cash flows, in comparative form the figures for the corresponding quarter and
the corresponding portion of the Borrower’s previous fiscal year, all certified
(subject to normal year-end adjustments) as to fairness of presentation,
conformity to GAAP and consistency by the chief financial officer or the chief
accounting officer of the Borrower;

 

(c)                                  simultaneously
with the delivery of each set of financial statements referred to in clauses
(a) and (b) above, a certificate of a Responsible
Officer of the Borrower substantially in the form of the Compliance Certificate
attached hereto;

 

(d)                                 within five
days after any officer of the Borrower obtains actual knowledge of any Default,
if such Default is then continuing, a certificate of a Responsible Officer of
the Borrower setting forth the details thereof and the action which the Borrower
is taking or proposes to take with respect thereto;

 

(e)                                  promptly upon
the mailing thereof to the shareholders of the Borrower generally, copies of
all financial statements, reports and proxy statements so mailed;

 

(f)                                    promptly upon
the filing thereof, copies of all registration statements (other than the
exhibits thereto and any registration statements on Form S-8 or its
equivalent) and reports on Forms 10-K, 10-Q and 8-K (or their equivalents)
which the Borrower shall have filed with the Securities and Exchange
Commission;

 

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

 

43

 

(h)                                 notice that
S&P or Moody’s has changed the equity treatment for any securities if such
change would be relevant to the determination of whether such securities are
Hybrid Equity Securities, such notice to be given by the Borrower promptly upon
receiving notice from S&P or Moody’s, or promptly upon otherwise acquiring
actual knowledge of the foregoing; and

 

(i)                                     from time to
time, such additional information regarding the financial position or business
of the Borrower and its Subsidiaries as the Administrative Agent, at the
request of any Lender, may reasonably request.

 

Documents required to be
delivered pursuant to Section 6.01(a), (b), (e) or
(f) (to the extent any such documents are included in materials
otherwise filed with the SEC) may be delivered electronically and if so
delivered, shall be deemed to have been delivered on the date (i) (A) on
which the Borrower posts such documents, or provides a link thereto on the
Borrower’s website on the Internet at the website address listed on Schedule 10.02;
or (B) on which such documents are posted on the Borrower’s behalf on
IntraLinks/IntraAgency or another relevant website, if any, to which each
Lender and the Administrative Agent have access (whether a commercial,
third-party website or whether sponsored by the Administrative Agent), and (ii) on
which the Borrower notifies (which may be by facsimile or electronic mail) the
Administrative Agent and each Lender of the posting of any such documents; provided
that the Borrower shall deliver paper copies or soft copies (by electronic
mail) of such documents to the Administrative Agent or any Lender that requests
the Borrower to deliver such paper copies or soft copies.  Notwithstanding anything contained herein, in
every instance the Borrower shall be required to provide paper copies of the
Compliance Certificates required by Section 6.01(c) to the
Administrative Agent.  Except for such
Compliance Certificates, the Administrative Agent shall have no obligation to
request the delivery or to maintain copies of the documents referred to above,
and in any event shall have no responsibility to monitor compliance by the
Borrower with any such request for delivery, and each Lender shall be solely
responsible for requesting delivery to it or maintaining its copies of such
documents.

 

The Borrower hereby
acknowledges that (a) the Administrative Agent and/or the Arranger will
make available to the Lenders and the L/C Issuer materials and/or information
provided by or on behalf of the Borrower hereunder (collectively, “Borrower
Materials”) by posting the Borrower Materials on IntraLinks or another
similar electronic system (the “Platform”) and (b) certain of the
Lenders may be “public-side” Lenders (i.e.,
Lenders that do not wish to receive material non-public information with
respect to the Borrower or its securities) (each, a “Public Lender”).  The Borrower hereby agrees that (w) all
Borrower Materials that are to be made available to Public Lenders shall be
clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that
the word “PUBLIC” shall appear prominently on the first page thereof; (x) by
marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to have
authorized the Administrative Agent, the Arranger, the L/C Issuer and the
Lenders to treat such Borrower Materials as not containing any material
non-public information with respect to the Borrower or its securities for
purposes of United States Federal and state securities laws (provided, however,
that to the extent such Borrower Materials constitute Information, they shall
be treated as set forth in Section 10.08); (y) all Borrower
Materials marked “PUBLIC” are permitted to be made available through a portion
of the Platform designated “Public Investor;” and (z) the Administrative
Agent and the Arranger shall be entitled to treat any Borrower Materials that
are not marked “PUBLIC” as being suitable only for posting on a portion of the
Platform not designated “Public Investor.”

 

6.02                        Payment of
Obligations.  The
Borrower will pay and discharge, and will cause each Subsidiary to pay and
discharge, at or before maturity, all their respective material obligations and
liabilities (including, without limitation, tax liabilities and claims of
materialmen, warehousemen and the like, which if unpaid might by law give rise
to a Lien), except where the same may be contested in good faith by appropriate
proceedings, and will maintain, and will cause each Subsidiary to maintain, in
accordance with generally accepted accounting principles, appropriate reserves
for the accrual of any of the same.

 

44

 

6.03                        Maintenance
of Property; Insurance.

 

(a)                                  The Borrower
will keep, and will cause each Subsidiary to keep, all material property useful
and necessary in its business in good working order and condition, ordinary
wear and tear excepted.

 

(b)                                 The Borrower
will, and will cause each of its Subsidiaries to, maintain (either in the name
of the Borrower or in such Subsidiary’s own name) with financially sound and
responsible insurance companies, insurance on all their respective properties
in at least such amounts, against at least such risks and with such risk
retention as are usually maintained, insured against or retained, as the case
may be, in the same general area by companies of established repute engaged in
the same or a similar business; and will furnish to the Lenders, upon request
from the Administrative Agent, information presented in reasonable detail as to
the insurance so carried.

 

6.04                        Conduct of
Business and Maintenance of Existence.  The Borrower will preserve, renew and keep in
full force and effect, and will cause each Subsidiary to preserve, renew and
keep in full force and effect their respective legal existence and good
standing under the Laws of the jurisdiction of its organization and their
respective rights, privileges and franchises necessary or desirable in the normal
conduct of business; provided that nothing in this Section 6.04
shall prohibit (i) the Restructuring, (ii) the merger of a Subsidiary
into the Borrower or the merger or consolidation of a Subsidiary with or into
another Person if (A) in the case of a domestic Subsidiary, the
corporation surviving such consolidation or merger is a domestic Subsidiary and
(B) in the case of a foreign Subsidiary, the entity surviving such
consolidation or merger is a Subsidiary, if, in each case covered by this
clause (i), after giving effect thereto, no Default shall have occurred and be
continuing, or (iii) the termination of the corporate existence of any
Subsidiary if the Borrower in good faith determines that such termination is in
the best interest of the Borrower and is not materially disadvantageous to the
Lenders.

 

6.05                        Compliance with Laws.  The Borrower will comply, and cause each
Subsidiary to comply, in all material respects with all applicable laws,
ordinances, rules, regulations, and requirements of governmental authorities
(including, without limitation, Environmental Laws and ERISA and the rules and
regulations thereunder) except where the necessity of compliance therewith is
contested in good faith by appropriate proceedings.

 

6.06                        Inspection of Property, Books and Records.  The Borrower will keep, and will cause each
Subsidiary to keep, proper books of record and account in which full, true and
correct entries shall be made of all dealings and transactions in relation to
its business and activities; and will permit, and will cause each Subsidiary to
permit, representatives of any Lender at such Lender’s expense to visit and
inspect any of their respective properties, to examine and make abstracts from
any of their respective books and records, and to discuss their respective
affairs, finances and accounts with their respective officers, employees and
independent public accountants, all at such reasonable times and as often as
may reasonably be desired.

 

6.07                        Use of Proceeds.  The
proceeds of the Loans made under this Agreement will be used by the Borrower (i) to
repay borrowings under the Existing Credit Agreement, (ii) for working
capital, capital expenditures, share repurchases, and other lawful corporate
purposes, and (iii) as support for the Borrower’s commercial paper
program.

 

6.08                        Governmental Approvals and Filings.  The Borrower will, and will cause each
Subsidiary to, keep and maintain in full force and effect all action by or in
respect of, or filing with, any Governmental Authority necessary in connection
with (a) the execution and delivery of this Agreement, or any Note issued
hereunder by the Borrower, (b) the consummation by the Borrower of the
transactions herein or therein contemplated, (c) the performance of or
compliance with the terms and conditions hereof 

 

45

 

or thereof by the Borrower, or (d) any
other actions required to ensure the legality, validity, binding effect,
enforceability or admissibility in evidence hereof or thereof.

 

ARTICLE VII.

NEGATIVE COVENANTS

 

So long as any Lender shall have any Commitment hereunder, any Loan or
other Obligation hereunder shall remain unpaid or unsatisfied, or any Letter of
Credit shall remain outstanding:

 

7.01                        Liens.  Neither the Borrower nor any
Subsidiary shall, directly or indirectly, create, incur, assume or suffer to
exist any Lien on any asset now owned or hereafter acquired by it, except:

 

(a)                                  Liens existing
on the date of this Agreement securing Debt outstanding on the date of this
Agreement in an aggregate principal or face amount not exceeding $10,000,000;

 

(b)                                 any Lien
existing on any asset of any Person at the time such Person becomes a
Subsidiary, and not created in contemplation of such event;

 

(c)                                  any Lien on any
asset securing Debt incurred or assumed for the purpose of financing all or any
part of the cost of acquiring such asset, provided that such Lien attaches to
such asset concurrently with or within 90 days after completion of the
acquisition thereof;

 

(d)                                 [Intentionally
Omitted];

 

(e)                                  any Lien on any
asset of any Person existing at the time such Person is merged or consolidated
with or into the Borrower or a Subsidiary and not created in contemplation of
such event;

 

(f)                                    any Lien
existing on any asset prior to the acquisition thereof by the Borrower or a
Subsidiary, and not created in contemplation of such acquisition;

 

(g)                                 any Lien
arising out of the refinancing, extension, renewal or refunding of any Debt
secured by any Lien permitted by any of the foregoing clauses of this Section;
provided that such Debt is not increased and is not secured by any additional
assets;

 

(h)                                 Liens arising
in the ordinary course of its business which (i) do not secure Debt or
obligations in respect of Swap Contracts, (ii) do not secure any
obligation in an amount exceeding $20,000,000 and (iii) do not in the
aggregate materially detract from the value of its assets or materially impair
the use thereof in the operation of its business;

 

(i)                                     Liens on cash
and cash equivalents to secure obligations arising under Swap Contracts which
Liens (i) are granted by and governed by standard International Swaps and
Derivatives Association, Inc. (“ISDA”) documentation, and (ii) secure
Swap Contracts consisting of derivative transactions contemplated to be settled
in cash and not by physical delivery and which are non-speculative in nature
and are designed to minimize the risk of fluctuations in oil and gas prices
with respect to the Company’s operations in the ordinary course of its
business;

 

(j)                                     Liens on the
oil and gas properties, revenue therefrom, and other assets related to the ANPI
Transaction securing ANPI Obligations, as such Liens are described in
documentation in place as of the date of this Agreement, with such changes in
such documentation as, in the reasonable opinion of the Administrative Agent,
do not adversely affect the interest of the Lenders;

 

46

 

(k)                                  Production
Payments and Liens on the properties covered thereby to secure performance
obligations in connection therewith, provided that the aggregate principal
amount of balance sheet obligations in respect of Production Payments may at no
time exceed $500,000,000;

 

(l)                                     [Intentionally
Omitted]; and

 

(m)                               Liens not
otherwise permitted by the foregoing clauses of this Section securing Debt
in an aggregate principal or face amount at any date not to exceed
$100,000,000.

 

7.02                         Debt to Total Capital.  Consolidated Debt will at no time exceed (1) during
any period other than the Acquisition Period, sixty-five percent (65%) of Total
Capital, and (2) during the Acquisition Period, seventy percent (70%) of
Total Capital.

 

7.03                         Transactions with Affiliates.  The Borrower will not, and will not permit
any Subsidiary to, directly or indirectly, pay any funds to or for the account
of, make any investment (whether by acquisition of stock or indebtedness, by
loan, advance, transfer of property, guarantee or other agreement to pay,
purchase or service, directly or indirectly, any Debt, or otherwise) in, lease,
sell, transfer or otherwise dispose of any assets, tangible or intangible, to,
or participate in, or effect, any transaction with, any Affiliate, except on an
arms-length basis on terms at least as favorable to the Borrower or such
Subsidiary than could have been obtained from a third party who was not an
Affiliate; provided that the
foregoing provisions of this Section shall not prohibit either (i) any
such Person from declaring or paying any lawful dividend or other payment
ratably in respect of all of its capital stock of the relevant class so long
as, after giving effect thereto, no Default shall have occurred and be
continuing or (ii) the Restructuring.

 

7.04                         Limitation
of Other Restrictions on Dividends by Subsidiaries, etc.  The Borrower will not permit any Subsidiary
to be or become subject to any restriction of any nature (whether arising by
operation of law, by agreement, by its articles of incorporation, by-laws or
other constituent documents of such Subsidiary, or otherwise) on the right of
such Subsidiary from time to time to (w) declare and pay dividends or
distributions with respect to capital stock owned by the Borrower or any
Subsidiary, (x) pay any indebtedness, obligations or liabilities from time
to time owed to the Borrower or any Subsidiary, (y) make loans or advances
to the Borrower or any Subsidiary, or (z) transfer any of its properties
or assets to the Borrower or any Subsidiary, except:

 

(a)                                  legal
restrictions under other applicable Law, if any, and fraudulent conveyance or
similar laws of general applicability for the benefit of creditors of such
Subsidiary generally;

 

(b)                                 with respect to
clause (z) above:  (i) non-assignment
provisions of any executory contract or of any lease by the Borrower or such
Subsidiary as lessee, and (ii) restrictions on transfer of property
subject to a Lien permitted by Section 7.01 for the benefit of the
holder of such Lien;

 

(c)                                  restrictions
applicable solely to an Excluded Subsidiary; and

 

(d)                                 restrictions
imposed by a PUC order or other Law applicable to (i) any Subsidiary
regulated by a PUC or (ii) the immediate parent company (e.g., HoldCoSub
referenced in Schedule 10.22) of any such Subsidiary which has no material
Subsidiary not regulated by a PUC;

 

provided that the
foregoing shall not prohibit financial incurrence, maintenance and similar
covenants that have the effect of prohibiting or restricting the ability of a
Subsidiary to make such payments or transfers, or provisions that require that
a certain amount of capital be maintained.

 

7.05                         Mergers and Sales of Assets.  The Borrower will not (i) consolidate or
merge with or into any other Person or (ii) sell, lease or otherwise
transfer, directly or indirectly, all or substantially all 

 

47

 

of the assets of the Borrower and its
Subsidiaries, taken as a whole, to any other Person; provided that the Borrower may merge with another Person if (x) the
Borrower is the corporation surviving such merger and (y) after giving
effect to such merger, no Default shall have occurred and be continuing; and provided further that the foregoing provisions of this Section shall
not prohibit any merger or sale of assets necessary to effectuate the
Restructuring so long as the conditions precedent to such Restructuring set
forth in Section 10.22 (b) or (c), as applicable, have
been satisfied.

 

7.06                         Change in Nature of Business.  The Borrower
shall not, nor shall it permit any Subsidiary to, directly or indirectly,
engage in any material line of business substantially different from those
lines of business conducted by the Borrower and its Subsidiaries on the date
hereof or any business substantially related or incidental thereto.

 

7.07                         Use of Proceeds.  The Borrower
shall not use the proceeds of any Credit Extension, whether directly or
indirectly, for a purpose that entails a violation of Regulation U of the FRB.

 

ARTICLE VIII.

EVENTS OF DEFAULT AND REMEDIES

 

8.01                         Events of
Default.  Any of the following shall
constitute an Event of Default:

 

(a)                                  Non-Payment.  The Borrower fails to pay (i) when and
as required to be paid herein, any amount of principal of any Loan or any L/C
Obligation, or (ii) within five days after the same becomes due, any
interest on any Loan or on any L/C Obligation, or any facility, utilization or
other fee due hereunder, or any other amount payable hereunder or under any
other Loan Document; or

 

(b)                                 Specific
Covenants.  The
Borrower fails to perform or observe any term, covenant or agreement contained
in any of Sections  6.01(d), 6.07 or 6.08 or Article VII;
or

 

(c)                                  Other Defaults.  The Borrower fails to perform or observe any
other covenant or agreement (not specified in subsection (a) or (b) above)
contained in any Loan Document on its part to be performed or observed and such
failure continues for 30 days; or

 

(d)                                 Representations
and Warranties.  Any
representation, warranty, certification or statement of fact made or deemed
made by or on behalf of the Borrower, in any other Loan Document, or in any
document delivered in connection herewith or therewith shall be incorrect or
misleading when made or deemed made; provided that (except in the
case of any representation, warranty or certification made with respect to any
financial statement of the Borrower) if such lack of correctness is capable of
being remedied or cured within a 30-day period, Borrower shall have a period of
30 days after written notice thereof has been given to Borrower by
Administrative Agent (acting on the request of one or more Lenders) within
which to remedy or cure such lack of correctness; or

 

(e)                                  Cross-Payment
Default; Cross-Acceleration.  The Borrower or any Subsidiary (A) fails
to make any payment when due (whether by scheduled maturity, required
prepayment, acceleration, demand, or otherwise) in respect of any Material
Financial Obligations, or (B) fails to observe or perform any other
agreement or condition relating to any Material Debt or contained in any
instrument or agreement evidencing, securing or relating thereto, or any other
event occurs, the effect of which default or other event is to cause the
maturity of such Material Debt to be accelerated or to cause such Material Debt
to be repurchased, prepaid, defeased or redeemed (automatically or otherwise),
or an offer to repurchase, prepay, defease or redeem such Debt to be made,
prior to its stated maturity; or

 

(f)                                    Insolvency
Proceedings, Etc.  The Borrower
or any Material Subsidiary institutes or consents to the institution of any proceeding
under any Debtor Relief Law, or makes an assignment for the benefit of
creditors; or applies for or consents to the appointment of any receiver,
trustee, custodian, 

 

48

 

conservator, liquidator, rehabilitator or
similar officer for it or for all or any material part of its property; or any
receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar
officer is appointed without the application or consent of such Person and the appointment
continues undischarged or unstayed for 60 calendar days; or any proceeding
under any Debtor Relief Law relating to any such Person or to all or any
material part of its property is instituted without the consent of such Person
and continues undismissed or unstayed for 60 calendar days, or an order for
relief is entered in any such proceeding; or

 

(g)                                 Inability to
Pay Debts; Attachment.  (i) The
Borrower or any Material Subsidiary admits in writing its inability or fails
generally to pay its debts as they become due, or (ii) any writ or warrant
of attachment or execution or similar process is issued or levied against all
or any material part of the property of any such Person and is not released,
vacated or fully bonded within 30 days after its issue or levy; or

 

(h)                                 Judgments.  There is entered against the Borrower or any
Subsidiary final judgments or orders for the payment of money in an aggregate
amount exceeding $100,000,000 (to the extent not covered by independent
third-party insurance as to which the insurer does not dispute coverage), and (A) enforcement
proceedings are commenced by any creditor upon such judgment or order, or (B) there
is a period of 30 consecutive days during which a stay of enforcement of such
judgment, by reason of a pending appeal or otherwise, is not in effect; or

 

(i)                                     ERISA.  Any member of the ERISA Group
shall fail to pay when due an amount or amounts aggregating in excess of
$100,000,000 which it shall have become liable to pay under Title IV of ERISA;
or notice of intent to terminate a Material Plan shall be filed under Title IV
of ERISA by any member of the ERISA Group, any plan administrator or any
combination of the foregoing; or the PBGC shall institute proceedings under
Title IV of ERISA to terminate, to impose liability (other than for premiums
under Section 4007 of ERISA)
in respect of, or to cause a trustee to be appointed to administer, any
Material Plan; or a condition shall exist by reason of which the PBGC would be
entitled to obtain a decree adjudicating that any Material Plan must be
terminated; or there shall occur a complete or partial withdrawal from, or a
default, within the meaning of Section 4219(c)(5) of
ERISA, with respect to, one or more Multiemployer Plans, which could cause one
or more members of the ERISA Group to incur a current payment obligation in
excess of $100,000,000 in the aggregate; or

 

(j)                                     Invalidity of
Loan Documents.  Any Loan
Document (other than the Fee Letters), at any time after its execution and
delivery and for any reason other than as expressly permitted hereunder or
satisfaction in full of all the Obligations, ceases to be in full force and
effect; or the Borrower or any other Person contests in any manner the validity
or enforceability of any Loan Document; or the Borrower denies that it has any
or further liability or obligation under any Loan Document, or purports to
revoke, terminate or rescind any Loan Document; or

 

(k)                                  Change of
Control.  There occurs any Change of
Control with respect to the Borrower, provided, however, that the transactions
contemplated by the Restructuring shall not constitute a Change of Control for
purposes of this Agreement.

 

8.02                         Remedies Upon Event of Default.  If any Event of
Default occurs and is continuing, the Administrative Agent shall, at the request
of, or may, with the consent of, the Required Lenders, take any or all of the
following actions:

 

(a)                                  declare the
commitment of each Lender to make Loans and any obligations of the L/C Issuer
to make L/C Credit Extensions to be terminated, whereupon such commitments and
obligation shall be terminated;

 

49

 

(b)                                 declare the
unpaid principal amount of all outstanding Loans, all interest accrued and
unpaid thereon, and all other amounts owing or payable hereunder or under any
other Loan Document to be immediately due and payable, without presentment,
demand, protest or other notice of any kind, all of which are hereby expressly
waived by the Borrower;

 

(c)                                  require that
the Borrower Cash Collateralize the L/C Obligations (in an amount equal to the
then Outstanding Amount thereof); and

 

(d)                                 exercise on
behalf of itself and the Lenders all rights and remedies available to it and
the Lenders under the Loan Documents or applicable law;

 

provided, however,
that upon the occurrence of an actual or deemed entry of an order for relief
with respect to the Borrower under the Bankruptcy Code of the United States,
the obligation of each Lender to make Loans and any obligation of the L/C
Issuer to make L/C Credit Extensions shall automatically terminate, the unpaid
principal amount of all outstanding Loans and all interest and other amounts as
aforesaid shall automatically become due and payable, and the obligation of the
Borrower to Cash Collateralize the L/C Obligations as aforesaid shall
automatically become effective, in each case without further act of the
Administrative Agent or any Lender.

 

8.03                         Application
of Funds.  After the
exercise of remedies provided for in Section 8.02 (or after the
Loans have automatically become immediately due and payable and the L/C
Obligations have automatically been required to be Cash Collateralized as set
forth in the proviso to Section 8.02), any amounts received on
account of the Obligations shall be applied by the Administrative Agent in the
following order:

 

First, to payment of
that portion of the Obligations constituting fees, indemnities, expenses and
other amounts (including Attorney Costs and amounts payable under Article III)
payable to the Administrative Agent in its capacity as such;

 

Second, to payment of
that portion of the Obligations constituting fees, indemnities and other
amounts (other than principal and interest) payable to the Lenders (including
Attorney Costs and amounts payable under Article III), ratably
among them in proportion to the amounts described in this clause Second
payable to them;

 

Third, to payment of
that portion of the Obligations constituting accrued and unpaid interest on the
Loans, ratably among the Lenders in proportion to the respective amounts described
in this clause Third payable to them;

 

Fourth, to payment of
that portion of the Obligations constituting unpaid principal of the Loans and
L/C Borrowings, ratably among the Lenders in proportion to the respective
amounts described in this clause Fourth held by them;

 

Fifth, to the
Administrative Agent for the account of the L/C Issuer, to Cash Collateralize
that portion of L/C Obligations comprised of the aggregate undrawn amount of
Letters of Credit; and

 

Last, the balance,
if any, after all of the Obligations have been indefeasibly paid in full, to
the Borrower or as otherwise required by Law.

 

Subject
to Section 2.03(c), amounts used to Cash Collateralize the
aggregate undrawn amount of Letters of Credit pursuant to clause Fifth above
shall be applied to satisfy drawings under such Letters of Credit as they
occur.  If any amount remains on deposit
as Cash Collateral after all Letters of Credit have either been fully drawn or
expired, such remaining amount shall be applied to the other Obligations, if
any, in the order set forth above.

 

50

 

ARTICLE IX.

ADMINISTRATIVE AGENT

 

9.01                         Appointment
and Authorization of Administrative Agent.

 

Each
of the Lenders and the L/C Issuer hereby irrevocably appoints Bank of America
to act on its behalf as the Administrative Agent hereunder and under the other
Loan Documents and authorizes the Administrative Agent to take such actions on
its behalf and to exercise such powers as are delegated to the Administrative
Agent by the terms hereof or thereof, together with such actions and powers as
are reasonably incidental thereto.  The
provisions of this Article are solely for the benefit of the
Administrative Agent, the Lenders and the L/C Issuer, and the Borrower shall
not have rights as a third party beneficiary of any of such provisions.

 

9.02                         Rights as a Lender.  The
Person serving as the Administrative Agent hereunder shall have the same rights
and powers in its capacity as a Lender as any other Lender and may exercise the
same as though it were not the Administrative Agent and the term “Lender” or “Lenders”
shall, unless otherwise expressly indicated or unless the context otherwise
requires, include the Person serving as the Administrative Agent hereunder in
its individual capacity.  Such Person and
its Affiliates may accept deposits from, lend money to, act as the financial
advisor or in any other advisory capacity for and generally engage in any kind
of business with the Borrower or any Subsidiary or other Affiliate thereof as
if such Person were not the Administrative Agent hereunder and without any duty
to account therefor to the Lenders.

 

9.03                         Exculpatory Provisions.  The Administrative Agent shall not have any
duties or obligations except those expressly set forth herein and in the other
Loan Documents.  Without limiting the
generality of the foregoing, the Administrative Agent:

 

(a)                                  shall not be
subject to any fiduciary or other implied duties, regardless of whether a
Default has occurred and is continuing;

 

(b)                                 shall not have
any duty to take any discretionary action or exercise any discretionary powers,
except discretionary rights and powers expressly contemplated hereby or by the
other Loan Documents that the Administrative Agent is required to exercise as
directed in writing by the Required Lenders (or such other number or percentage
of the Lenders as shall be expressly provided for herein or in the other Loan
Documents), provided that the Administrative Agent shall not be required to
take any action that, in its opinion or the opinion of its counsel, may expose
the Administrative Agent to liability or that is contrary to any Loan Document
or applicable law; and

 

(c)                                  shall not,
except as expressly set forth herein and in the other Loan Documents, have any
duty to disclose, and shall not be liable for the failure to disclose, any
information relating to the Borrower or any of its Affiliates that is
communicated to or obtained by the Person serving as the Administrative Agent
or any of its Affiliates in any capacity.

 

The
Administrative Agent shall not be liable for any action taken or not taken by
it (i) with the consent or at the request of the Required Lenders (or such
other number or percentage of the Lenders as shall be necessary, or as the
Administrative Agent shall believe in good faith shall be necessary, under the
circumstances as provided in Sections 10.01 and 8.02) or (ii) in
the absence of its own gross negligence or willful misconduct.  The Administrative Agent shall be deemed not
to have knowledge of any Default unless and until notice describing such
Default is given to the Administrative Agent by the Borrower, a Lender or the
L/C Issuer.

 

51

 

The
Administrative Agent shall not be responsible for or have any duty to ascertain
or inquire into (i) any statement, warranty or representation made in or
in connection with this Agreement or any other Loan Document, (ii) the
contents of any certificate, report or other document delivered hereunder or
thereunder or in connection herewith or therewith, (iii) the performance
or observance of any of the covenants, agreements or other terms or conditions
set forth herein or therein or the occurrence of any Default, (iv) the
validity, enforceability, effectiveness or genuineness of this Agreement, any
other Loan Document or any other agreement, instrument or document or (v) the
satisfaction of any condition set forth in Article IV or elsewhere herein,
other than to confirm receipt of items expressly required to be delivered to the
Administrative Agent.

 

9.04                         Reliance by
Administrative Agent.

 

The
Administrative Agent shall be entitled to rely upon, and shall not incur any
liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing (including any electronic
message, Internet or intranet website posting or other distribution) believed
by it to be genuine and to have been signed, sent or otherwise authenticated by
the proper Person.  The Administrative
Agent also may rely upon any statement made to it orally or by telephone and
believed by it to have been made by the proper Person, and shall not incur any
liability for relying thereon.  In
determining compliance with any condition hereunder to the making of a Loan, or
the issuance of a Letter of Credit, that by its terms must be fulfilled to the
satisfaction of a Lender or the L/C Issuer, the Administrative Agent may
presume that such condition is satisfactory to such Lender or the L/C Issuer
unless the Administrative Agent shall have received notice to the contrary from
such Lender or the L/C Issuer prior to the making of such Loan or the issuance
of such Letter of Credit.  The
Administrative Agent shall be entitled to rely on legal counsel (who may be
counsel for the Borrower), independent accountants and other experts selected
by it.

 

9.05                         Indemnification of Administrative Agent. 
Whether or not the transactions contemplated hereby are consummated,
the Lenders shall indemnify upon demand each Agent-Related Person (to the extent
not reimbursed by or on behalf of the Borrower and without limiting the
obligation of the Borrower to do so), pro rata, and hold harmless each
Agent-Related Person from and against any and all Indemnified Liabilities
incurred by it, provided that such unreimbursed Indemnified Liabilities
were incurred by or asserted against the Administrative Agent or an L/C Issuer
in each case in its capacity as such or against any Agent-Related Persons
acting for the Administrative Agent or an L/C Issuer in connection with such
capacity; provided, however, that no Lender shall be liable for
the payment to any Agent-Related Person of any portion of such Indemnified
Liabilities to the extent determined in a final, nonappealable judgment by a
court of competent jurisdiction to have resulted from such Agent-Related Person’s
own gross negligence or willful misconduct; and provided, further,
that no action taken in accordance with the directions of the Required Lenders
shall be deemed to constitute gross negligence or willful misconduct for
purposes of this Section.  Without
limitation of the foregoing, each Lender shall reimburse the Administrative
Agent upon demand for its ratable share of any costs or out-of-pocket expenses
(including Attorney Costs) incurred by the Administrative Agent in connection
with the preparation, execution, delivery, administration, modification,
amendment or enforcement (whether through negotiations, legal proceedings or
otherwise) of, or legal advice in respect of rights or responsibilities under,
this Agreement, any other Loan Document, or any document contemplated by or
referred to herein, to the extent that the Administrative Agent is not
reimbursed for such expenses by or on behalf of the Borrower.  The obligations of the Lenders in this Section are
subject to the provisions of Section 2.12(e) and shall survive
termination of the Aggregate Commitments, the payment of all other Obligations
and the resignation of the Administrative Agent.

 

9.06                         Delegation of Duties.  The Administrative Agent may perform any and
all of its duties and exercise its rights and powers hereunder or under any
other Loan Document by or through any one or more sub agents appointed by the
Administrative Agent.  The Administrative
Agent and any such sub agent may perform any and all of its duties and exercise
its rights and powers by or through their 

 

52

 

respective Related Parties.  The exculpatory provisions of this Article shall
apply to any such sub agent and to the Related Parties of the Administrative
Agent and any such sub agent, and shall apply to their respective activities in
connection with the syndication of the credit facilities provided for herein as
well as activities as Administrative Agent.

 

9.07                         Resignation of Administrative Agent.  The Administrative Agent may at any time give
notice of its resignation to the Lenders, the L/C Issuer and the Borrower.  Upon receipt of any such notice of
resignation, the Required Lenders shall have the right, in consultation with the
Borrower (so long as no Event of Default exists), to appoint a successor, which
shall be a bank with an office in the United States, or an Affiliate of any
such bank with an office in the United States. 
If no such successor shall have been so appointed by the Required
Lenders and shall have accepted such appointment within 30 days after the
retiring Administrative Agent gives notice of its resignation, then the
retiring Administrative Agent may on behalf of the Lenders and the L/C Issuer,
appoint a successor Administrative Agent meeting the qualifications set forth
above; provided that if the Administrative Agent shall notify the
Borrower and the Lenders that no qualifying Person has accepted such
appointment, then such resignation shall nonetheless become effective in
accordance with such notice and (1) the retiring Administrative Agent
shall be discharged from its duties and obligations hereunder and under the
other Loan Documents and (2) all payments, communications and
determinations provided to be made by, to or through the Administrative Agent
shall instead be made by or to each Lender and the L/C Issuer directly, until
such time as the Required Lenders appoint a successor Administrative Agent as
provided for above in this Section.  Upon
the acceptance of a successor’s appointment as Administrative Agent hereunder,
such successor shall succeed to and become vested with all of the rights,
powers, privileges and duties of the retiring (or retired) Administrative
Agent, and the retiring Administrative Agent shall be discharged from all of
its duties and obligations hereunder or under the other Loan Documents (if not
already discharged therefrom as provided above in this Section).  The fees payable by the Borrower to a
successor Administrative Agent shall be the same as those payable to its
predecessor unless otherwise agreed between the Borrower and such
successor.  After the retiring
Administrative Agent’s resignation hereunder and under the other Loan
Documents, the provisions of this Article and Section 10.04
shall continue in effect for the benefit of such retiring Administrative Agent,
its sub agents and their respective Related Parties in respect of any actions
taken or omitted to be taken by any of them while the retiring Administrative
Agent was acting as Administrative Agent.

 

Any
resignation by Bank of America as Administrative Agent pursuant to this Section shall
also constitute its resignation as L/C Issuer and Swing Line Lender.  Upon the acceptance of a successor’s
appointment as Administrative Agent hereunder, (a) such successor shall
succeed to and become vested with all of the rights, powers, privileges and
duties of the retiring L/C Issuer and Swing Line Lender, (b) the retiring
L/C Issuer and Swing Line Lender shall be discharged from all of their
respective duties and obligations hereunder or under the other Loan Documents,
and (c) the successor L/C Issuer shall issue letters of credit in
substitution for the Letters of Credit, if any, outstanding at the time of such
succession or make other arrangements satisfactory to the retiring L/C Issuer
to effectively assume the obligations of the retiring L/C Issuer with respect
to such Letters of Credit.

 

9.08                         Non-Reliance on Administrative Agent and Other Lenders.  Each Lender and the L/C Issuer acknowledges
that it has, independently and without reliance upon the Administrative Agent
or any other Lender or any of their Related Parties and based on such documents
and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. 
Each Lender and the L/C Issuer also acknowledges that it will,
independently and without reliance upon the Administrative Agent or any other
Lender or any of their Related Parties and based on such documents and
information as it shall from time to time deem appropriate, continue to make
its own decisions in taking or not taking action under or based upon this
Agreement, any other Loan Document or any related agreement or any document
furnished hereunder or thereunder.

 

53

 

9.09                         No Other Duties, Etc.  Anything herein to the contrary
notwithstanding, none of the Bookrunners, Arrangers, Documentation Agent or
Syndication Agent listed on the cover page hereof shall have any powers,
duties or responsibilities under this Agreement or any of the other Loan
Documents, except in its capacity, as applicable, as the Administrative Agent,
a Lender or the L/C Issuer hereunder.

 

9.10                         Administrative Agent May File Proofs of Claim.  In case of the pendency of any receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to the Borrower, the
Administrative Agent (irrespective of whether the principal of any Loan or L/C
Obligation shall then be due and payable as herein expressed or by declaration
or otherwise and irrespective of whether the Administrative Agent shall have
made any demand on the Borrower) shall be entitled and empowered, by
intervention in such proceeding or otherwise

 

(a)                                  to file and
prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Loans, L/C Obligations and all other Obligations that
are owing and unpaid and to file such other documents as may be necessary or
advisable in order to have the claims of the Lenders, the L/C Issuer and the
Administrative Agent (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Lenders, the L/C Issuer and the
Administrative Agent and their respective agents and counsel and all other
amounts due the Lenders, the L/C Issuer and the Administrative Agent under Sections
2.03(i) and (j), 2.09, 10.04 and 10.05)
allowed in such judicial proceeding; and

 

(b)                                 to collect and
receive any monies or other property payable or deliverable on any such claims
and to distribute the same;

 

and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or other similar official in any such
judicial proceeding is hereby authorized by each Lender and the L/C Issuer to
make such payments to the Administrative Agent and, in the event that the
Administrative Agent shall consent to the making of such payments directly to
the Lenders and the L/C Issuer, to pay to the Administrative Agent any amount
due for the reasonable compensation, expenses, disbursements and advances of
the Administrative Agent and its agents and counsel, and any other amounts due
the Administrative Agent under Sections 2.09, 10.04 and 10.05.

 

Nothing
contained herein shall be deemed to authorize the Administrative Agent to
authorize or consent to or accept or adopt on behalf of any Lender or the L/C
Issuer any plan of reorganization, arrangement, adjustment or composition
affecting the Obligations or the rights of any Lender or to authorize the
Administrative Agent to vote in respect of the claim of any Lender in any such
proceeding.

 

ARTICLE X.

MISCELLANEOUS

 

10.01                  Amendments, Etc.  No amendment or
waiver of any provision of this Agreement or any other Loan Document, and no consent
to any departure by the Borrower therefrom, shall be effective unless in
writing signed by the Required Lenders and the Borrower, and acknowledged by
the Administrative Agent, and each such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given; provided,
however, that no such amendment, waiver or consent shall:

 

(a)                                  extend or
increase the Commitment of any Lender (or reinstate any Commitment terminated
pursuant to Section 8.02) without the written consent of such
Lender;

 

54

 

(b)                                 postpone any
date fixed by this Agreement or any other Loan Document for any payment of
principal, interest, fees or other amounts due to the Lenders (or any of them)
hereunder or under any other Loan Document without the written consent of each
Lender directly affected thereby;

 

(c)                                  reduce the
principal of, or the rate of interest specified herein on, any Loan or L/C
Borrowing, or (subject to clause (iv) of the second proviso to this Section 10.01)
any fees or other amounts payable hereunder or under any other Loan Document
without the written consent of each Lender directly affected thereby; provided,
however, that only the consent of the Required Lenders shall be necessary
to amend the definition of “Default Rate” or to waive any obligation of the
Borrower to pay interest at the Default Rate;

 

(d)                                 change Section 2.13
or Section 8.03 in a manner that would alter the pro rata sharing
of payments required thereby without the written consent of each Lender; or

 

(e)                                  change any
provision of this Section or the definition of “Required Lenders” or any
other provision hereof specifying the number or percentage of Lenders required
to amend, waive or otherwise modify any rights hereunder or make any
determination or grant any consent hereunder, without the written consent of
each Lender;

 

and,
provided  further, that (i) no amendment, waiver or consent
shall, unless in writing and signed by the L/C Issuer in addition to the
Lenders required above, affect the rights or duties of the L/C Issuer under
this Agreement or any Letter of Credit Application relating to any Letter of
Credit issued or to be issued by it; (ii) no amendment, waiver or consent
shall, unless in writing and signed by the Swing Line Lender in addition to the
Lenders required above, affect the rights or duties of the Swing Line Lender
under this Agreement; (iii) no amendment, waiver or consent shall, unless
in writing and signed by the Administrative Agent in addition to the Lenders
required above, affect the rights or duties of the Administrative Agent under
this Agreement or any other Loan Document; (iv) Section 10.07(h) may
not be amended, waived or otherwise modified without the consent of each
Granting Lender all or any part of whose Loans are being funded by an SPC at
the time of such amendment, waiver or other modification; and (v) the Fee
Letters may be amended, or rights or privileges thereunder waived, in a writing
executed only by the parties thereto.

 

10.02                  Notices; Effectiveness; Electronic Communication.

 

(a)                                  Notices
Generally.  Except in
the case of notices and other communications expressly permitted to be given by
telephone (and except as provided in subsection (b) below), all notices
and other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopier as follows, and all notices and other
communications expressly permitted hereunder to be given by telephone shall be
made to the applicable telephone number, as follows:

 

(i)                                     if to the Borrower, the
Administrative Agent, the L/C Issuer or the Swing Line Lender, to the address,
telecopier number, electronic mail address or telephone number specified for
such Person on Schedule 10.02; and

 

(ii)                                  if to any other Lender, to
the address, telecopier number, electronic mail address or telephone number
specified in its Administrative Questionnaire.

 

Notices
sent by hand or overnight courier service, or mailed by certified or registered
mail, shall be deemed to have been given when received; notices sent by
telecopier shall be deemed to have been given when sent (except that, if not
given during normal business hours for the recipient, shall be deemed to have
been given at the opening of business on the next business day for the
recipient).  Notices delivered 

 

55

 

through
electronic communications to the extent provided in subsection (b) below,
shall be effective as provided in such subsection (b).

 

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

 

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

 

(c)                                  The Platform.  THE PLATFORM IS PROVIDED “AS IS” AND “AS
AVAILABLE.”  THE AGENT PARTIES (AS
DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER
MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR
ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR
STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR
OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER
MATERIALS OR THE PLATFORM.  In no event
shall the Administrative Agent or any of its Related Parties (collectively, the
“Agent Parties”) have any liability to the Borrower, any Lender, the L/C
Issuer or any other Person for losses, claims, damages, liabilities or expenses
of any kind (whether in tort, contract or otherwise) arising out of the
Borrower’s or the Administrative Agent’s transmission of Borrower Materials through
the Internet, except to the extent that such losses, claims, damages,
liabilities or expenses are determined by a court of competent jurisdiction by
a final and nonappealable judgment to have resulted from the gross negligence
or willful misconduct of such Agent Party; provided, however,
that in no event shall any Agent Party have any liability to the Borrower, any
Lender, the L/C Issuer or any other Person for indirect, special, incidental,
consequential or punitive damages (as opposed to direct or actual damages).

 

(d)                                 Change of
Address, Etc.  Each of the
Borrower, the Administrative Agent, the L/C Issuer and the Swing Line Lender
may change its address, telecopier or telephone number for notices and other
communications hereunder by notice to the other parties hereto.  Each other Lender may change its address,
telecopier or telephone number for notices and other communications hereunder
by notice to the Borrower, the Administrative Agent, the L/C Issuer and the
Swing Line Lender.  In addition, each Lender
agrees to notify the Administrative Agent from time to time to ensure that the
Administrative Agent has on record (i) an effective address, contact name,
telephone number, telecopier number and electronic mail address to which
notices and other communications may be sent and (ii) accurate wire
instructions for such Lender.

 

56

 

(e)                                  Reliance by
Administrative Agent, L/C Issuer and Lenders.  The Administrative Agent, the L/C
Issuer and the Lenders shall be entitled to rely and act upon any notices
(including telephonic Swing Line Loan Notices) purportedly given by or on
behalf of the Borrower even if (i) such notices were not made in a manner
specified herein, were incomplete or were not preceded or followed by any other
form of notice specified herein, or (ii) the terms thereof, as understood
by the recipient, varied from any confirmation thereof.  The Borrower shall indemnify the
Administrative Agent, the L/C Issuer, each Lender and the Related Parties of
each of them from all losses, costs, expenses and liabilities resulting from
the reliance by such Person on each notice purportedly given by or on behalf of
the Borrower.  All telephonic notices to
and other telephonic communications with the Administrative Agent may be
recorded by the Administrative Agent, and each of the parties hereto hereby
consents to such recording.

 

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

 

10.04                 Attorney Costs, Expenses and Taxes.  The Borrower agrees (a) to pay or
reimburse the Administrative Agent for all costs and expenses incurred in
connection with the development, preparation, negotiation and execution of this
Agreement and the other Loan Documents and any amendment, waiver, consent or
other modification of the provisions hereof and thereof (whether or not the
transactions contemplated hereby or thereby are consummated), and the
consummation and administration of the transactions contemplated hereby and
thereby, including all Attorney Costs, and (b) to pay or reimburse the
Administrative Agent and each Lender for all costs and expenses incurred in
connection with the enforcement, attempted enforcement, or preservation of any
rights or remedies under this Agreement or the other Loan Documents (including
all such costs and expenses incurred during any “workout” or restructuring in
respect of the Obligations and during any legal proceeding, including any
proceeding under any Debtor Relief Law), including all Attorney Costs.  The foregoing costs and expenses shall
include all search, filing, recording, title insurance and appraisal charges
and fees and taxes related thereto, and other out-of-pocket expenses incurred
by the Administrative Agent and the cost of independent public accountants and
other outside experts retained by the Administrative Agent or any Lender.  All amounts due under this Section 10.04
shall be payable within ten Business Days after demand therefore.  The agreements in this Section shall
survive the termination of the Aggregate Commitments and repayment of all other
Obligations.

 

10.05                 Indemnification by the Borrower.  Whether or not the transactions contemplated
hereby are consummated, the Borrower shall indemnify and hold harmless each
Agent-Related Person, each Lender and their respective Affiliates, directors,
officers, employees, counsel, agents and attorneys-in-fact (collectively the “Indemnitees”)
from and against any and all liabilities, obligations, losses, damages,
penalties, claims, demands, actions, judgments, suits, costs, expenses and
disbursements (including Attorney Costs) of any kind or nature whatsoever which
may at any time be imposed on, incurred by or asserted against any such
Indemnitee in any way relating to or arising out of or in connection with (a) the
execution, delivery, enforcement, performance or administration of any Loan
Document or any other agreement, letter or instrument delivered in connection
with the transactions contemplated thereby or the consummation of the
transactions contemplated thereby, (b) any Commitment, Loan or Letter of
Credit or the use or proposed use of the proceeds therefrom (including any
refusal by the L/C Issuer to honor a demand for payment under a Letter of
Credit if the documents presented in connection with such demand do not
strictly comply with the terms of such Letter of Credit), (c) any actual
or alleged presence or release of Hazardous Substances on or from any property
currently or formerly owned or operated by the Borrower or any Subsidiary of
the Borrower, or any Environmental Liability related in any way to the Borrower
or any Subsidiary of the Borrower, or (d) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing,
whether based 

 

57

 

on contract, tort or any other theory
(including any investigation of, preparation for, or defense of any pending or
threatened claim, investigation, litigation or proceeding) and regardless of
whether any Indemnitee is a party thereto (all the foregoing, collectively, the
“Indemnified Liabilities”), in
all cases, whether or not caused by or arising, in whole or in part, out of the
negligence of the Indemnitee; provided that such indemnity shall not, as
to any Indemnitee, be available to the extent that such liabilities,
obligations, losses, damages, penalties, claims, demands, actions, judgments,
suits, costs, expenses or disbursements are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the
gross negligence or willful misconduct of such Indemnitee.  No Indemnitee shall be liable for any damages
arising from the use by others of any information or other materials obtained
through IntraLinks or other similar information transmission systems in
connection with this Agreement.  All
amounts due under this Section 10.05 shall be payable within ten
Business Days after demand therefore. 
The agreements in this Section shall survive the resignation of the
Administrative Agent, the replacement of any Lender, the termination of the
Aggregate Commitments and the repayment, satisfaction or discharge of all the
other Obligations.

 

10.06                 Payments Set Aside.  To the extent
that any payment by or on behalf of the Borrower is made to the Administrative
Agent or any Lender, or the Administrative Agent or any Lender exercises its
right of set-off, and such payment or the proceeds of such set-off or any part
thereof is subsequently invalidated, declared to be fraudulent or preferential,
set aside or required (including pursuant to any settlement entered into by the
Administrative Agent or such Lender in its discretion) to be repaid to a
trustee, receiver or any other party, in connection with any proceeding under
any Debtor Relief Law or otherwise, then (a) to the extent of such
recovery, the obligation or part thereof originally intended to be satisfied
shall be revived and continued in full force and effect as if such payment had
not been made or such set-off had not occurred, and (b) each Lender
severally agrees to pay to the Administrative Agent upon demand its applicable
share of any amount so recovered from or repaid by the Administrative Agent,
plus interest thereon from the date of such demand to the date such payment is
made at a rate per annum equal to the Federal Funds Rate from time to time in
effect.

 

10.07                 Successors and Assigns.

 

(a)                                  The provisions
of this Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns permitted hereby, except
that the Borrower may not assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of each Lender and no
Lender may assign or otherwise transfer any of its rights or obligations
hereunder except (i) to an assignee in accordance with the provisions of
subsection (b) of this Section, (ii) by way of participation in accordance
with the provisions of subsection (d) of this Section, (iii) by way
of pledge or assignment of a security interest subject to the restrictions of
subsection (f) or (i) of this Section, or (iv) to an SPC in
accordance with the provisions of subsection (h) of this Section (and
any other attempted assignment or transfer by any party hereto shall be null
and void).  Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby,
Participants to the extent provided in subsection (d) of this Section and,
to the extent expressly contemplated hereby, the Indemnitees) any legal or
equitable right, remedy or claim under or by reason of this Agreement.  Notwithstanding the foregoing, the Borrower
may assign or otherwise transfer any of its rights or obligations hereunder in
accordance with Section 10.22 hereof.

 

(b)                                 Any Lender may
at any time assign to one or more assignees all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitment
and the Loans (including for purposes of this subsection (b), participations in
L/C Obligations and Swing Line Loans) at the time owing to it); provided
that any such assignment shall be subject to the following conditions:

 

58

 

(i) Minimum
Amounts.

 

(A) in the case of an assignment of the entire remaining amount of
the assigning Lender’s Commitment and the Loans at the time owing to it or in
the case of an assignment to a Lender, an Affiliate of a Lender or an Approved
Fund (as defined in subsection (h) of this Section), no minimum amount
need be assigned, and

 

(B) in any case not described in subsection (b)(i)(A) of
this Section, the aggregate amount of the Commitment (which for this purpose
includes Loans outstanding thereunder) or, if the Commitment is not then in
effect, the principal outstanding balance of the Loans of the assigning Lender
subject to each such assignment, determined as of the date the Assignment and
Assumption with respect to such assignment is delivered to the Administrative
Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of
the Trade Date, shall not be less than $5,000,000  unless
each of the Administrative Agent, each L/C Issuer, and, so long as no Default
or Event of Default has occurred and is continuing, the Borrower otherwise
consents (each such consent not to be unreasonably withheld or delayed);
provided, however, that concurrent assignments to members of an Assignee Group
and concurrent assignments from members of an Assignee Group to a single
assignee (or to an assignee and members of its Assignee Group) will be treated
as a single assignment for purposes of determining whether such minimum amount
has been met.

 

(ii) Proportionate Amounts. 
Each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender’s rights and obligations under
this Agreement with respect to the Loans or the Commitment assigned, except
that this clause (ii) shall not apply to rights in respect of Swing Line
Loans.

 

(iii) Required Consents. 
No consent shall be required for any assignment except to the extent
required by subsection (b)(i)(B) of this Section and, in
addition:

 

(A)                              the consent of
the Borrower (such consent not to be unreasonably withheld or delayed) shall be
required unless (1) an Event of Default has occurred and is continuing at
the time of such assignment or (2) such assignment is to a Lender, an
Affiliate of a Lender or an Approved Fund;

 

(B)                                the consent of
the Administrative Agent (such consent not to be unreasonably withheld or
delayed) shall be required if such assignment is to a Person that is not a
Lender, an Affiliate of such Lender or an Approved Fund with respect to such
Lender;

 

(C)                                the consent of
each L/C Issuer (such consent not to be unreasonably withheld or delayed) shall
be required for any assignment that increases the obligation of the assignee to
participate in exposure under one or more Letters of Credit (whether or not
then outstanding); and

 

(D) the consent of the Swing Line Lender (such consent not to be
unreasonably withheld or delayed) shall be required for any assignment.

 

(iv)                              Assignment and
Assumption.  The parties
to each assignment shall execute and deliver to the Administrative Agent an
Assignment and Assumption, together with a processing and recordation fee in
the amount of $3,500; provided, however, that the Administrative
Agent may, in its sole discretion, elect to waive such processing and
recordation fee in the case of any assignment. 
The assignee, if it is not a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire.

 

(v)                                 No Assignment
to the Borrower.  No such
assignment shall be made to the Borrower or any of the Borrower’s Affiliates or
Subsidiaries.

 

(vi)                              No Assignment
to Natural Persons. No such assignment shall be made to a natural
person.

 

59

 

Subject to acceptance and recording thereof by the Administrative Agent
pursuant to subsection (c) of this Section, from and after the effective
date specified in each Assignment and Assumption, the assignee thereunder shall
be a party to this Agreement and, to the extent of the interest assigned by
such Assignment and Assumption, have the rights and obligations of a Lender
under this Agreement, and the assigning Lender thereunder shall, to the extent
of the interest assigned by such Assignment and Assumption, be released from
its obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under
this Agreement, such Lender shall cease to be a party hereto) but shall
continue to be entitled to the benefits of Sections 3.01, 3.04, 3.05,
10.04 and 10.05 with respect to facts and circumstances occurring
prior to the effective date of such assignment).  Upon request, the Borrower (at its expense)
shall execute and deliver a Note to the assignee Lender.  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
subsection shall be treated for purposes of this Agreement as a sale by such
Lender of a participation in such rights and obligations in accordance with
subsection (d) of this Section.

 

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

 

(d)                                 Any Lender may
at any time, without the consent of, or notice to, the Borrower or the
Administrative Agent, sell participations to any Person (other than a natural
person or the Borrower or any of the Borrower’s Affiliates or Subsidiaries)
(each, a “Participant”) in all or a portion of such Lender’s rights
and/or obligations under this Agreement (including all or a portion of its
Commitment and/or the Loans (including for purposes of this subsection (b),
participations in L/C Obligations and/or Swing Line Loans) owing to it); provided
that (i) such Lender’s obligations under this Agreement shall remain
unchanged, (ii) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations and (iii) the
Borrower, the Administrative Agent and the other Lenders shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights
and obligations under this Agreement. 
Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and to approve any amendment, modification or waiver of
any  provision of this Agreement; provided
that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, waiver or other
modification described in the first proviso to Section 10.01 that
directly affects such Participant. 
Subject to subsection (e) of this Section, the Borrower agrees that
each Participant shall be entitled to the benefits of Sections 3.01, 3.04
and 3.05  to the same extent as if it were
a Lender and had acquired its interest by assignment pursuant to subsection (b) of
this Section.  To the extent permitted by
law, each Participant also shall be entitled to the benefits of Section 10.09  as though it were a Lender, provided such
Participant agrees to be subject to Section 2.13 as though it were
a Lender.

 

(e)                                  A Participant
shall not be entitled to receive any greater payment under Section 3.01
or 3.04  than the applicable Lender would
have been entitled to receive with respect to the participation sold to such
Participant, unless the sale of the participation to such Participant is made
with the Borrower’s prior written consent. 
A Participant that would be a Foreign Lender if it were a Lender shall
not be entitled to the benefits of Section 3.01 unless the Borrower
is notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Borrower, to comply with Section 10.15
as though it were a Lender.

 

60

 

(f)                                    Any Lender may
at any time pledge or assign a security interest in all or any portion of its
rights under this Agreement (including under its Note, if any) to secure
obligations of such Lender, including any pledge or assignment to secure
obligations to a Federal Reserve Bank; provided that no such pledge or
assignment shall release such Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.

 

(g)                                 Electronic
Execution of Assignments.  The
words “execution,” “signed,” “signature,” and words of like import in any
Assignment and Assumption shall be deemed to include electronic signatures or
the keeping of records in electronic form, each of which shall be of the same
legal effect, validity or enforceability as a manually executed signature or
the use of a paper-based recordkeeping system, as the case may be, to the
extent and as provided for in any applicable law, including the Federal
Electronic Signatures in Global and National Commerce Act, the New York State
Electronic Signatures and Records Act, or any other similar state laws based on
the Uniform Electronic Transactions Act.

 

(h)                                 As used herein,
the following terms have the following meanings:

 

“Eligible Assignee”
means any Person that meets the requirements to be an assignee under Section 10.07(b)(iii),
(v) and (vi) (subject to such consents, if any, as may
be required under Section 10.07(b)(iii).

 

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

 

“Approved Fund” means
any Fund that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers or manages a Lender.

 

(i)                                     Notwithstanding
anything to the contrary contained herein, any Lender (a “Granting Lender”)
may grant to a special purpose funding vehicle identified as such in writing
from time to time by the Granting Lender to the Administrative Agent and the
Borrower (an “SPC”) the option to provide all or any part of any
Committed Loan that such Granting Lender would otherwise be obligated to make
pursuant to this Agreement; provided that (i) nothing herein shall
constitute a commitment by any SPC to fund any Committed Loan, and (ii) if
an SPC elects not to exercise such option or otherwise fails to make all or any
part of such Committed Loan, the Granting Lender shall be obligated to make
such Committed Loan pursuant to the terms hereof.  Each party hereto hereby agrees that (i) neither
the grant to any SPC nor the exercise by any SPC of such option shall increase
the costs or expenses or otherwise increase or change the obligations of the
Borrower under this Agreement (including its obligations under Section 3.04),
(ii) no SPC shall be liable for any indemnity or similar payment
obligation under this Agreement for which a Lender would be liable, and (iii) the
Granting Lender shall for all purposes, including the approval of any
amendment, waiver or other modification of any provision of any Loan Document,
remain the lender of record hereunder. 
The making of a Committed Loan by an SPC hereunder shall utilize the
Commitment of the Granting Lender to the same extent, and as if, such Committed
Loan were made by such Granting Lender. 
In furtherance of the foregoing, each party hereto hereby agrees (which
agreement shall survive the termination of this Agreement) that, prior to the
date that is one year and one day after the payment in full of all outstanding
commercial paper or other senior debt of any SPC, it will not institute
against, or join any other Person in instituting against, such SPC any
bankruptcy, reorganization, arrangement, insolvency, or liquidation proceeding
under the laws of the United States or any State thereof.  Notwithstanding anything to the contrary
contained herein, any SPC may (i) with notice to, but without prior
consent of the Borrower and the Administrative Agent and with payment of a
processing fee of $3,500 (which processing fee may be waived by the
Administrative Agent in its sole discretion), assign all or any portion of its
right to receive payment with respect to any Committed Loan to the Granting
Lender and (ii) disclose on a confidential basis any non-public
information relating to its 

 

61

 

funding of Committed Loans to any rating
agency, commercial paper dealer or provider of any surety or Guarantee or
credit or liquidity enhancement to such SPC.

 

(j)                                     Notwithstanding anything to the contrary contained herein, any Lender
that is a Fund may create a security interest in all or any portion of the
Loans owing to it and the Note, if any, held by it to the trustee for holders
of obligations owed, or securities issued, by such Fund as security for such
obligations or securities, provided that unless and until such trustee
actually becomes a Lender in compliance with the other provisions of this Section 10.07,
(i) no such pledge shall release the pledging Lender from any of its
obligations under the Loan Documents and (ii) such trustee shall not be
entitled to exercise any of the rights of a Lender under the Loan Documents
even though such trustee may have acquired ownership rights with respect to the
pledged interest through foreclosure or otherwise.

 

(k)                                  Notwithstanding anything to the contrary contained herein, if at any time
Bank of America assigns all of its Commitment and Loans pursuant to subsection (b) above,
Bank of America may, (i) upon 30 days’ notice to the Borrower and the
Lenders, resign as L/C Issuer and/or (ii) upon 30 days’ notice to the
Company, resign as Swing Line Lender.  In the event of any such resignation as L/C
Issuer or Swing Line Lender, the Borrower shall be entitled to appoint from
among the Lenders a successor L/C Issuer or Swing Line Lender hereunder;
provided, however, that no failure by the Borrower to appoint any such
successor shall affect the resignation of Bank of America as L/C Issuer or
Swing Line Lender, as the case may be. 
If Bank of America resigns as L/C Issuer, it shall retain all the rights
and obligations of the L/C Issuer hereunder with respect to all Letters of
Credit outstanding as of the effective date of its resignation as L/C Issuer
and all L/C Obligations with respect thereto (including the right to require
the Lenders to make Base Rate Loans or fund risk participations in Unreimbursed
Amounts pursuant to Section 2.03(c)). If Bank of America resigns
as Swing Line Lender, it shall retain all the rights of the Swing Line Lender
provided for hereunder with respect to Swing Line Loans made by it and
outstanding as of the effective date of such resignation, including the right
to require the Lenders to make Base Rate Committed Loans or fund risk
participations in outstanding Swing Line Loans pursuant to Section 2.04(c).  Upon the appointment of a successor L/C
Issuer and/or Swing Line Lender, (a) such successor shall succeed to and
become vested with all of the rights, powers, privileges and duties of the
retiring L/C Issuer or Swing Line Lender, as the case may be, and (b) the
successor L/C Issuer shall issue letters of credit in substitution for the
Letters of Credit, if any, outstanding at the time of such succession or make
other arrangements satisfactory to Bank of America to effectively assume the
obligations of Bank of America with respect to such Letters of Credit.

 

10.08                 Confidentiality.  Each of the
Administrative Agent and the Lenders agrees to maintain the confidentiality of
the Information (as defined below), except that Information may be disclosed (a) to
its and its Affiliates’ directors, officers, employees and agents, including
accountants, legal counsel and other advisors (it being understood that the
Persons to whom such disclosure is made will be informed of the confidential
nature of such Information and instructed to keep such Information
confidential); (b) to the extent requested by any regulatory authority; (c) to
the extent required by applicable laws or regulations or by any subpoena or
similar legal process; (d) to any other party to this Agreement; (e) in
connection with the exercise of any remedies hereunder or any suit, action or
proceeding relating to this Agreement or the enforcement of rights hereunder; (f) subject
to an agreement containing provisions substantially the same as those of this
Section, to (i) any Eligible Assignee of or Participant in, or any
prospective Eligible Assignee of or Participant in, any of its rights or
obligations under this Agreement or (ii) any direct or indirect
contractual counterparty or prospective counterparty (or such contractual
counterparty’s or prospective counterparty’s professional advisor) to any
credit derivative transaction relating to obligations of the Borrower; (g) with
the consent of the Borrower; (h) to the extent such Information (i) becomes
publicly available other than as a result of a breach of this Section or (ii) becomes
available to the Administrative Agent or any Lender on a nonconfidential basis
from a source other than the Borrower; or (i) to the National Association
of Insurance Commissioners or any other similar organization.  In addition, the Administrative Agent and the
Lenders may disclose the existence of this Agreement and information about this
Agreement to market data collectors, similar 

 

62

 

service providers to the lending industry,
and service providers to the Administrative Agent and the Lenders in connection
with the administration and management of this Agreement, the other Loan
Documents, the Commitments, and the Credit Extensions.  For purposes of this Section, “Information”
means all information received from the Borrower or any Subsidiary relating to
the Borrower or any Subsidiary or any of their respective businesses, other
than any such information that is available to the Administrative Agent, any
Lender or the L/C Issuer on a nonconfidential basis prior to disclosure by the
Borrower or any Subsidiary.  Any Person
required to maintain the confidentiality of Information as provided in this Section shall
be considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such Information
as such Person would accord to its own confidential information.

 

Each
of the Administrative Agent, the Lenders and the L/C Issuer acknowledges that (a) the
Information may include material non-public information concerning the Borrower
or a Subsidiary, as the case may be, (b) it has developed compliance
procedures regarding the use of material non-public information and (c) it
will handle such material non-public information in accordance with applicable
Law, including Federal and state securities Laws.

 

10.09                 Set-off.  In addition to
any rights and remedies of the Lenders provided by law, upon the occurrence and
during the continuance of any Event of Default, each Lender is authorized at
any time and from time to time, without prior notice to the Borrower, any such
notice being waived by the Borrower to the fullest extent permitted by law, to
set off and apply any and all deposits (general or special, time or demand,
provisional or final) at any time held by, and other indebtedness at any time owing
by, such Lender to or for the credit or the account of the Borrower against any
and all Obligations owing to such Lender hereunder or under any other Loan
Document, now or hereafter existing, irrespective of whether or not the
Administrative Agent or such Lender shall have made demand under this Agreement
or any other Loan Document and although such Obligations may be contingent or
unmatured or denominated in a currency different from that of the applicable
deposit or indebtedness.  Each Lender
agrees promptly to notify the Borrower and the Administrative Agent after any
such set-off and application made by such Lender; provided, however,
that the failure to give such notice shall not affect the validity of such
set-off and application.

 

10.10                 Interest Rate Limitation.  Notwithstanding
anything to the contrary contained in any Loan Document, the interest paid or
agreed to be paid under the Loan Documents shall not exceed the maximum rate of
non-usurious interest permitted by applicable Law (the “Maximum Rate”).  If the Administrative Agent or any Lender
shall receive interest in an amount that exceeds the Maximum Rate, the excess
interest shall be applied to the principal of the Loans or, if it exceeds such
unpaid principal, refunded to the Borrower. 
In determining whether the interest contracted for, charged, or received
by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person
may, to the extent permitted by applicable Law, (a) characterize any
payment that is not principal as an expense, fee, or premium rather than
interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize,
prorate, allocate, and spread in equal or unequal parts the total amount of
interest throughout the contemplated term of the Obligations hereunder.

 

To
the extent that the interest rate laws of the State of Texas are applicable to
the Loans for purposes of determining the “maximum rate” or the “maximum
amount,” then those terms mean the “weekly ceiling” from time to time in effect
under Texas Finance Code § 303.001, as limited by Texas Finance Code § 303.009,
and, to the extent that this Agreement is deemed an open end account as such
term is defined in Texas Finance Code Section 301.002(a)(14), the Lenders
retain the right to modify the interest rate in accordance with applicable law.

 

The
parties agree that Texas Finance Code, Chapter 346, which regulates certain
revolving loan accounts and revolving triparty accounts, shall not apply to any
revolving loan accounts created under this Agreement or the Notes or maintained
in connection therewith.

 

63

 

10.11                 Counterparts.  This Agreement
may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

 

10.12                 Integration.  This Agreement,
together with the other Loan Documents, comprises the complete and integrated
agreement of the parties on the subject matter hereof and thereof and
supersedes all prior agreements, written or oral, on such subject matter.  In the event of any conflict between the
provisions of this Agreement and those of any other Loan Document, the
provisions of this Agreement shall control; provided that the inclusion
of supplemental rights or remedies in favor of the Administrative Agent or the
Lenders in any other Loan Document shall not be deemed a conflict with this
Agreement.  Each Loan Document was
drafted with the joint participation of the respective parties thereto and
shall be construed neither against nor in favor of any party, but rather in
accordance with the fair meaning thereof.

 

10.13                 Survival of Representations and Warranties.  All representations and warranties made
hereunder and in any other Loan Document or other document delivered pursuant
hereto or thereto or in connection herewith or therewith shall survive the
execution and delivery hereof and thereof. 
Such representations and warranties have been or will be relied upon by
the Administrative Agent and each Lender, regardless of any investigation made
by the Administrative Agent or any Lender or on their behalf and
notwithstanding that the Administrative Agent or any Lender may have had notice
or knowledge of any Default at the time of any Credit Extension, and shall
continue in full force and effect as long as any Loan or any other Obligation
hereunder shall remain unpaid or unsatisfied or any Letter of Credit shall
remain outstanding.

 

10.14                 Severability.  If any
provision of this Agreement or the other Loan Documents is held to be illegal,
invalid or unenforceable, (a) the legality, validity and enforceability of
the remaining provisions of this Agreement and the other Loan Documents shall
not be affected or impaired thereby and (b) the parties shall endeavor in
good faith negotiations to replace the illegal, invalid or unenforceable
provisions with valid provisions the economic effect of which comes as close as
possible to that of the illegal, invalid or unenforceable provisions.  The invalidity of a provision in a particular
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

10.15                 Tax Forms.  (a)  (i) 
Each Lender that is not a “United States person” within the meaning of Section 7701(a)(30)
of the Code (a “Foreign Lender”) shall deliver to the Administrative
Agent, prior to receipt of any payment subject to withholding under the Code
(or upon accepting an assignment of an interest herein), two duly signed
completed copies of either IRS Form W-8BEN or any successor thereto
(relating to such Foreign Lender and entitling it to an exemption from, or
reduction of, withholding tax on all payments to be made to such Foreign Lender
by the Borrower pursuant to this Agreement) or IRS Form W-8ECI or any
successor thereto (relating to all payments to be made to such Foreign Lender
by the Borrower pursuant to this Agreement) or such other evidence satisfactory
to the Borrower and the Administrative Agent that such Foreign Lender is
entitled to an exemption from, or reduction of, U.S. withholding tax, including
any exemption pursuant to Section 881(c) of the Code.  Thereafter and from time to time, each such
Foreign Lender shall (A) promptly submit to the Administrative Agent such
additional duly completed and signed copies of one of such forms (or such
successor forms as shall be adopted from time to time by the relevant United
States taxing authorities) as may then be available under then current United
States laws and regulations to avoid, or such evidence as is satisfactory to the
Borrower and the Administrative Agent of any available exemption from or
reduction of, United States withholding taxes in respect of all payments to be
made to such Foreign Lender by the Borrower pursuant to this Agreement, (B) promptly
notify the Administrative Agent of any change in circumstances which would
modify or render invalid any claimed exemption or reduction, and (C) take
such steps as shall not be materially disadvantageous to it, in the reasonable
judgment of such Lender, and as may be reasonably necessary (including the
re-designation of its Lending Office) to avoid any requirement of applicable
Laws that the Borrower make any deduction or withholding for taxes from amounts
payable to such Foreign Lender.

 

64

 

(ii) Each Foreign Lender, to the extent
it does not act or ceases to act for its own account with respect to any
portion of any sums paid or payable to such Lender under any of the Loan
Documents (for example, in the case of a typical participation by such Lender),
shall deliver to the Administrative Agent on the date when such Foreign Lender
ceases to act for its own account with respect to any portion of any such sums
paid or payable, and at such other times as may be necessary in the determination
of the Administrative Agent (in the reasonable exercise of its discretion), (A) two
duly signed completed copies of the forms or statements required to be provided
by such Lender as set forth above, to establish the portion of any such sums
paid or payable with respect to which such Lender acts for its own account that
is not subject to U.S. withholding tax, and (B) two duly signed completed
copies of IRS Form W-8IMY (or any successor thereto), together with any
information such Lender chooses to transmit with such form, and any other
certificate or statement of exemption required under the Code, to establish
that such Lender is not acting for its own account with respect to a portion of
any such sums payable to such Lender.

 

(iii)                               The Borrower
shall not be required to pay any additional amount to any Foreign Lender under Section 3.01
(A) with respect to any Taxes required to be deducted or withheld on the
basis of the information, certificates or statements of exemption such Lender
transmits with an IRS Form W-8IMY pursuant to this Section 10.15(a) or
(B) if such Lender shall have failed to satisfy the foregoing provisions
of this Section 10.15(a); provided that if such Lender shall
have satisfied the requirement of this Section 10.15(a) on the
date such Lender became a Lender or ceased to act for its own account with
respect to any payment under any of the Loan Documents, nothing in this Section 10.15(a) shall
relieve the Borrower of its obligation to pay any amounts pursuant to Section 3.01
in the event that, as a result of any change in any applicable law, treaty or
governmental rule, regulation or order, or any change in the interpretation,
administration or application thereof, such Lender is no longer properly
entitled to deliver forms, certificates or other evidence at a subsequent date
establishing the fact that such Lender or other Person for the account of which
such Lender receives any sums payable under any of the Loan Documents is not
subject to withholding or is subject to withholding at a reduced rate.

 

(iv)                              The
Administrative Agent may, without reduction, withhold any Taxes required to be
deducted and withheld from any payment under any of the Loan Documents with
respect to which the Borrower is not required to pay additional amounts under
this Section 10.15(a).

 

(b)                                 Upon the
request of the Administrative Agent, each Lender that is a “United States
person” within the meaning of Section 7701(a)(30) of the Code shall
deliver to the Administrative Agent two duly signed completed copies of IRS Form W-9.  If such Lender fails to deliver such forms,
then the Administrative Agent may withhold from any interest payment to such
Lender an amount equivalent to the applicable back-up withholding tax imposed
by the Code, without reduction.

 

(c)                                  If any Governmental
Authority asserts that the Administrative Agent did not properly withhold or
backup withhold, as the case may be, any tax or other amount from payments made
to or for the account of any Lender, such Lender shall indemnify the
Administrative Agent therefore, including all penalties and interest, any taxes
imposed by any jurisdiction on the amounts payable to the Administrative Agent
under this Section, and costs and expenses (including Attorney Costs) of the
Administrative Agent.  The obligation of
the Lenders under this Section shall survive the termination of the
Aggregate Commitments, repayment of all other Obligations hereunder and the
resignation of the Administrative Agent.

 

10.16                 Replacement of Lenders.

 

If
any Lender requests compensation under Section 3.04, if the
Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 3.01,
if any Lender is a Defaulting Lender, or if any other circumstance exists hereunder
that gives the Borrower the right to replace a Lender as a party hereto, then
the Borrower may, at its sole 

 

65

 

expense and effort, upon notice to such
Lender and the Administrative Agent, require such Lender to assign and
delegate, without recourse (in accordance with and subject to the restrictions
contained in, and consents required by, Section 10.07), all of its
interests, rights and obligations under this Agreement and the related Loan
Documents to an assignee that shall assume such obligations (which assignee may
be another Lender, if a Lender accepts such assignment), provided that:

 

(a)                                  the Borrower
shall have paid to the Administrative Agent the assignment fee specified in Section 10.07(b);

 

(b)                                 such Lender
shall have received payment of an amount equal to the outstanding principal of
its Loans and L/C Advances, accrued interest thereon, accrued fees and all
other amounts payable to it hereunder and under the other Loan Documents
(including any amounts under Section 3.05) from the assignee (to
the extent of such outstanding principal and accrued interest and fees) or the
Borrower (in the case of all other amounts);

 

(c)                                  in the case of
any such assignment resulting from a claim for compensation under Section 3.04
or payments required to be made pursuant to Section 3.01, such
assignment will result in a reduction in such compensation or payments
thereafter; and

 

(d)                                 such assignment
does not conflict with applicable Laws.

 

A
Lender shall not be required to make any such assignment or delegation if,
prior thereto, as a result of a waiver by such Lender or otherwise, the
circumstances entitling the Borrower to require such assignment and delegation
cease to apply.

 

10.17                 Governing Law.

 

(a)                                  THIS AGREEMENT
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF
NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH
STATE;  PROVIDED THAT THE
ADMINISTRATIVE AGENT AND EACH LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER
FEDERAL LAW.

 

(b)                                 ANY LEGAL
ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE
BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN THE BOROUGH OF
MANHATTAN OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND BY
EXECUTION AND DELIVERY OF THIS AGREEMENT, THE BORROWER, THE ADMINISTRATIVE
AGENT AND EACH LENDER CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO
THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. 
THE BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER IRREVOCABLY
WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED
ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW
OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH
JURISDICTION IN RESPECT OF ANY LOAN DOCUMENT OR OTHER DOCUMENT RELATED
THERETO.  THE BORROWER, THE
ADMINISTRATIVE AGENT AND EACH LENDER WAIVES PERSONAL SERVICE OF ANY SUMMONS,
COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED
BY THE LAW OF SUCH STATE.

 

10.18                 No Advisory or Fiduciary Responsibility. In connection
with all aspects of each transaction contemplated hereby, the Borrower
acknowledges and agrees that: (i) the credit facility provided for
hereunder and any related arranging or other services in connection therewith
(including in connection with any amendment, waiver or other modification
hereof or of any other Loan Document) are

 

66

 

an
arm’s-length commercial transaction between the Borrower and its Affiliates, on
the one hand, and the Administrative Agent and the Arrangers, on the other
hand, and the Borrower is capable of evaluating and understanding and
understands and accepts the terms, risks and conditions of the transactions
contemplated hereby and by the other Loan Documents (including any amendment,
waiver or other modification hereof or thereof); (ii) in connection with
the process leading to such transaction, the Administrative Agent and the
Arrangers, each is and has been acting solely as a principal and is not the
financial advisor, agent or fiduciary, for the Borrower or any of its
Affiliates, stockholders, creditors or employees or any other Person; (iii) neither
the Administrative Agent nor any Arranger has assumed or will assume an
advisory, agency or fiduciary responsibility in favor of the Borrower with
respect to any of the transactions contemplated hereby or the process leading
thereto, including with respect to any amendment, waiver or other modification
hereof or of any other Loan Document (irrespective of whether the
Administrative Agent or any Arranger has advised or is currently advising the
Borrower or any of its Affiliates on other matters) and neither the Administrative
Agent nor any Arranger has any obligation to the Borrower or any of its
Affiliates with respect to the transactions contemplated hereby except those
obligations expressly set forth herein and in the other Loan Documents; (iv) the
Administrative Agent, the Arrangers and their respective Affiliates may be
engaged in a broad range of transactions that involve interests that differ
from those of the Borrower and its Affiliates, and neither the Administrative
Agent nor any Arranger has any obligation to disclose any of such interests by
virtue of any advisory, agency or fiduciary relationship; and (v) the
Administrative Agent and the Arranger(s) have not provided and will not
provide any legal, accounting, regulatory or tax advice with respect to any of
the transactions contemplated hereby (including any amendment, waiver or other
modification hereof or of any other Loan Document) and the Borrower has
consulted its own legal, accounting, regulatory and tax advisors to the extent
it has deemed appropriate.  The Borrower
hereby waives and releases, to the fullest extent permitted by law, any claims
that it may have against the Administrative Agent and the Arrangers with
respect to any breach or alleged breach of agency or fiduciary duty.

 

10.19      Waiver of Right
to Trial by Jury.  EACH PARTY
TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN
ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES
HERETO OR ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS
RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND
WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES
AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE
DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE
AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS
WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF
THEIR RIGHT TO TRIAL BY JURY.

 

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

 

10.21      Termination
of Commitments Under Existing Credit Agreement. 
The commitments of the Existing Lenders under the Existing Credit
Agreement shall terminate on the Closing Date. 
Execution of this Agreement by Lenders who are Existing Lenders shall
constitute a waiver of the notice provisions in Section 2.05 of the
Existing Credit Agreement.

 

67

 

10.22      Restructuring.

 

(a)           Subject to satisfaction of the conditions set forth in subsections
(b) or (c) below, as applicable, each of the
Administrative Agent, the L/C Issuer, the Swingline Lender and the Lenders
hereby consent, to the extent consent is or would be required pursuant to the
terms of this Agreement, to the Borrower’s implementation of the Restructuring
pursuant to the terms of either Restructuring Alternative No. 1 or
Restructuring Alternative No. 2, each as described on Schedule 10.22.  In the event that the Borrower chooses to
effectuate Restructuring Alternative No. 2, the parties hereto agree that
subject to satisfaction of the conditions set forth in Section 10.22(c),
New Parent Co. shall become the Borrower under this Agreement and shall assume
all of the obligations of the existing Borrower under this Agreement, and that
the existing Borrower shall no longer be the Borrower under this Agreement and
shall be released from all of its obligations hereunder.

 

(b)           As a condition precedent to Restructuring Alternative No. 1,
the Borrower shall have provided to the Administrative Agent, in form or
substance reasonably satisfactory to the Administrative Agent, the following:

 

(i) a certificate by
Responsible Officer of the Borrower certifying that (A) the Restructuring
has been completed upon the terms set forth in Schedule 10.22, (B) all
PUC and other material federal and state Authorizations required in connection
with such Restructuring and required in order to permit the Borrower to borrow
and obtain Letters of Credit hereunder have been obtained, or stating that no
such Authorizations are required, and listing any such PUC Authorizations
obtained and attaching true and correct copies thereof, and (C) immediately
before and immediately after giving effect to the Restructuring, (1) no
Default or Event of Default exists and is continuing and (2) the
representations and warranties contained in Article V
and the other Loan Documents are true and correct on and
as of the date thereof, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they are true
and correct as of such earlier date, and except that for purposes of this Section 10.22(b),
the representations and warranties contained in subsections (a) and
(b) of Section 5.04 shall be deemed to refer to the
most recent statements furnished pursuant to subsections (a) and (b),
respectively, of Section 6.01;  and

 

(ii) an opinion of
counsel (which may be internal counsel) to the Borrower stating
that all PUC and other material Authorizations of federal regulators and state
regulators in Pennsylvania and West Virginia (and in any other state, if any,
where the Borrower or any of its Subsidiaries is subject to PUC regulation)
required in connection with such Restructuring and required in order to permit
the Borrower to borrow and obtain Letters of Credit hereunder have been
obtained, or stating that no such Authorizations are required, and listing any
such PUC Authorizations obtained.

 

(c)           As a condition precedent to Restructuring Alternative No. 2,
the Borrower shall have provided to the Administrative Agent, in form or
substance reasonably satisfactory to the Administrative Agent, the following:

 

(i)            a certificate by Responsible Officer of New Parent Co.
certifying that (A) the Restructuring has been completed upon the terms
set forth in Schedule 10.22, (B) all PUC and other material federal
and state Authorizations required in connection with such Restructuring and
required in order to permit New Parent Co. to borrow and obtain Letters of
Credit hereunder have been obtained, or stating that no such Authorizations are
required, and listing any such PUC Authorizations obtained and attaching true
and correct copies thereof, and (C) immediately before and immediately
after giving effect to the Restructuring, and immediately before and
immediately after giving effect to the substitution of New Parent Co. as the
Borrower under this Agreement, (1) no Default or Event of Default exists
and is continuing and (2) the representations and warranties contained in Article V  and the other Loan Documents
are true and correct on and as of the date thereof, except to the
extent that such representations and warranties specifically refer to an
earlier date, in which case they are true and correct

 

68

 

as of such earlier date, and except that for
purposes of this Section 10.22(c), the representations and
warranties contained in subsections (a) and (b) of Section 5.04
shall be deemed to refer to the most recent statements furnished pursuant to subsections
(a) and (b), respectively, of Section 6.01;

 

(ii)           an opinion of counsel to the Borrower (which may be
internal counsel) stating that all PUC and other material
Authorizations of federal regulators and state regulators in Pennsylvania and
West Virginia (and in any other state, if any, where the Borrower, New Parent
Co., or any of their respective Subsidiaries is subject to PUC regulation)
required in connection with such Restructuring and required in order to permit
New Parent Co. to borrow and obtain Letters of Credit hereunder have been
obtained, or stating that no such Authorizations are required, and listing any
such PUC Authorizations obtained.

 

(iii) an Assignment and
Assumption Agreement and Amendment to Credit Agreement among
Equitable Resources, Inc., New Parent Co., the Administrative Agent, L/C
Issuer and Swingline Lender pursuant to which (A) Equitable Resources, Inc.
shall assign and New Parent Co. shall assume all of Equitable Resources, Inc.’s
rights and obligations under this Agreement (whether theretofore or thereafter
accrued), (B) Equitable Resources, Inc. shall be released from
further liability under this Agreement and shall not have the rights or
obligations of a borrower hereunder, and (C) this Agreement and the other
Loan Documents shall be amended to reflect New Parent Co. as the Borrower;

 

(iv) documents with
respect to New Parent Co. of the type delivered pursuant to Sections 4.01(a)(iii) and
4.01(a)(iv) with respect to Equitable Resources, Inc. on the
Closing Date;

 

(v) legal opinions with
respect to New Parent Co. substantially in the same form as those opinions
delivered pursuant to Section 4.01(a)(v) with respect to
Equitable Resources, Inc. on the Closing Date; and

 

(vi) a Note executed by
New Parent Co. in favor of each Lender requesting a Note.

 

10.23      ENTIRE
AGREEMENT.  THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL
AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG
THE PARTIES.

 

69

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date first above written.

 

	
   

  	
  EQUITABLE
  RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Philip P. Conti

  
	
   

  	
  Name:

  	
  Philip
  P. Conti

  
	
   

  	
  Title:

  	
  Vice
  President and Chief Financial Officer

  

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  BANK
  OF AMERICA, N.A.,

  
	
   

  	
  as
  Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Ronald E. McKaig

  
	
   

  	
  Name:

  	
  Ronald
  E. McKaig

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK
  OF AMERICA, N.A.,

  
	
   

  	
  as
  a Lender, an L/C Issuer, and Swing Line Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Ronald E. McKaig

  
	
   

  	
  Name:

  	
  Ronald
  E. McKaig

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  JPMorgan
  Chase Bank, N.A.

  
	
   

  	
  as
  a Lender and L/C Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert W. Traband

  
	
   

  	
  Name:

  	
  Robert
  W. Traband

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  The
  Bank of Tokyo-Mitsubishi UFJ, Ltd., Houston

  
	
   

  	
  Agency,
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Kelton Glasscock

  
	
   

  	
  Name:

  	
  Kelton
  Glasscock

  
	
   

  	
  Title:

  	
  Vice
  President & Manager

  

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  Citibank,
  N.A., as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Oscar Cragwell

  
	
   

  	
  Name:

  	
  Oscar
  Cragwell

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  PNC
  Bank, National Association,

  
	
   

  	
  as
  a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Thomas A. Majeski

  
	
   

  	
  Name:

  	
  Thomas
  A. Majeski

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  Barclays
  Bank PLC, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Nicholas A. Bell

  
	
   

  	
  Name:

  	
  Nicholas
  A. Bell

  
	
   

  	
  Title:

  	
  Director

  

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  BMO
  Capital Markets Financing, Inc.,

  
	
   

  	
  as
  a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Cahal B. Carmody

  
	
   

  	
  Name:

  	
  Cahal
  B. Carmody

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  Deutsche
  Bank AG New York Branch,

  
	
   

  	
  as
  a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Marcus Tarkington

  
	
   

  	
  Name:

  	
  Marcus
  Tarkington

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Rainer Meier

  
	
   

  	
  Name:

  	
  Rainer
  Meier

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  Lehman
  Brothers Bank, FSB, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Gary Taylor

  
	
   

  	
  Name:

  	
  Gary
  Taylor

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  SunTrust
  Bank, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Yann Pirio

  
	
   

  	
  Name:

  	
  Yann
  Pirio

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  Wachovia
  Bank, National Association,

  
	
   

  	
  as
  a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Henry R. Biedrzycki

  
	
   

  	
  Name:

  	
  Henry
  R. Biedrzycki

  
	
   

  	
  Title:

  	
  Director

  

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  BNP
  Paribas, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Douglas R. Liftman

  
	
   

  	
  Name:

  	
  Douglas
  R. Liftman

  
	
   

  	
  Title:

  	
  Managing
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Betsy Jocher

  
	
   

  	
  Name:

  	
  Betsy
  Jocher

  
	
   

  	
  Title:

  	
  Director

  

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  Mellon
  Bank, N.A., as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Thomas J. Tarasovich, Jr.

  
	
   

  	
  Name:

  	
  Thomas
  J. Tarasovich, Jr.

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  Citizens
  Bank of Pennsylvania, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Dwayne R. Finney

  
	
   

  	
  Name:

  	
  Dwayne
  R. Finney

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  Societe
  Generale, as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Yao Wang

  
	
   

  	
  Name:

  	
  Yao
  Wang

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  Wells
  Fargo Bank, National Association,

  
	
   

  	
  as
  a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Oleg Kogan

  
	
   

  	
  Name:

  	
  Oleg
  Kogan

  
	
   

  	
  Title:

  	
  Portfolio
  Manager

  

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

SCHEDULE 2.01

 

COMMITMENTS

AND PRO RATA SHARES

 

	
  Lender

  	
   

  	
  Commitment

  	
   

  	
  Percentage

  	
   

  
	
  Bank of America, N.A.

  	
   

  	
  $

  	
  142,500,000

  	
   

  	
  9.500000000

  	
  %

  
	
  JPMorgan Chase Bank, N.A.

  	
   

  	
  $

  	
  142,500,000

  	
   

  	
  9.500000000

  	
  %

  
	
  The Bank of Tokyo-Mitsubishi UFJ, Ltd.,
  Houston Agency

  	
   

  	
  $

  	
  115,000,000

  	
   

  	
  7.666666666

  	
  %

  
	
  Citibank, N.A.

  	
   

  	
  $

  	
  115,000,000

  	
   

  	
  7.666666666

  	
  %

  
	
  PNC Bank, National Association

  	
   

  	
  $

  	
  115,000,000

  	
   

  	
  7.666666666

  	
  %

  
	
  Barclays Bank PLC

  	
   

  	
  $

  	
  95,000,000

  	
   

  	
  6.333333333

  	
  %

  
	
  BMO Capital Markets Financing, Inc.

  	
   

  	
  $

  	
  95,000,000

  	
   

  	
  6.333333333

  	
  %

  
	
  Deutsche Bank AG New York Branch

  	
   

  	
  $

  	
  95,000,000

  	
   

  	
  6.333333333

  	
  %

  
	
  Lehman Brothers Bank, FSB

  	
   

  	
  $

  	
  95,000,000

  	
   

  	
  6.333333333

  	
  %

  
	
  SunTrust Bank

  	
   

  	
  $

  	
  95,000,000

  	
   

  	
  6.333333333

  	
  %

  
	
  Wachovia Bank, National Association

  	
   

  	
  $

  	
  95,000,000

  	
   

  	
  6.333333333

  	
  %

  
	
  BNP Paribas

  	
   

  	
  $

  	
  75,000,000

  	
   

  	
  5.000000000

  	
  %

  
	
  Mellon Bank, N.A.

  	
   

  	
  $

  	
  75,000,000

  	
   

  	
  5.000000000

  	
  %

  
	
  Citizens Bank of Pennsylvania

  	
   

  	
  $

  	
  50,000,000

  	
   

  	
  3.333333333

  	
  %

  
	
  Société Générale

  	
   

  	
  $

  	
  50,000,000

  	
   

  	
  3.333333333

  	
  %

  
	
  Wells Fargo Bank, National Association

  	
   

  	
  $

  	
  50,000,000

  	
   

  	
  3.333333333

  	
  %

  
	
  Total Commitments

  	
   

  	
  $

  	
  1,500,000,000.00

  	
   

  	
  100.00

  	
  %

  

 

 

SCHEDULE 10.02

 

ADMINISTRATIVE AGENT’S OFFICE,

CERTAIN ADDRESSES FOR NOTICES

 

BORROWER:

 

Equitable Resources, Inc.

225 North Shore Drive

Pittsburgh, PA 15212

Attention: Assistant Treasurer

Telephone: (412) 553-7869

Facsimile: (412) 553-7781

Electronic Mail: 
treasury@eqt.com

Website Address:                www.eqt.com

 

ADMINISTRATIVE AGENT:

 

Administrative Agent’s Office  

(for payments and Request for Credit Extensions):

Bank of America, N.A.

901 Main Street, 14th Floor

Dallas, TX  75202-3714

Attention:  Ms. Sandra
Gonzalez

Telephone:  (214) 209-2139

Facsimile:   (214) 672-8760

Electronic Mail: 
sandra.h.gonzalez@bankofamerica.com

 

Account No.:  1292000883

Ref:  Equitable
Resources, Inc.

ABA# 111000012

 

Other Notices as Administrative Agent:

 

Bank of America, N.A.

Agency Management Services

901 Main Street, 14th Floor

Dallas, TX  75202-3714

Attention:  Ms. Renita
Cummings

Telephone:  (214) 209-4130

Facsimile:   (214) 290-8371

Electronic Mail: 
renita.m.cummings@bankofamerica.com

 

 

with a copy to:

 

Bank of America, N.A.

TX4-213-08-14

700 Louisiana, 8th Floor

Houston, TX  77002

Attention:  Mr. Ronald E.
McKaig

Senior Vice President

Telephone:  (713) 247-7237

Facsimile:   (713) 247-7286

Electronic Mail: ronald.e.mckaig@bankofamerica.com

 

L/C ISSUER (Bank of America, N.A.):

 

Bank of America, N.A.

Trade Operations-Los Angeles #22621

333 S. Beaudry Avenue, 19th Floor

Mail Code:  CA9-703-19-23

Los Angeles, CA 90017-1466

Attention:  Sandra Leon

Vice President

Telephone:  (213) 345-5231

Facsimile:  (213) 345-6694

Electronic Mail: 
Sandra.Leon@bankofamerica.com

 

L/C ISSUER (JPMorgan Chase Bank, N.A.):

 

JPMorgan Chase Bank, N.A.

10420 Highland Manor Drive, 4fl Building 2

Tampa, FL 33610

Attention:  James Alonzo

Telephone:  (813) 432-6339

Fax:  (813) 432-5161

Electronic Mail: 
james.alonzo@chase.com

 

with a copy to:

 

JPMorgan Chase Bank, N.A.

10420 Highland Manor Drive 4fl Building 2

Tampa, FL 33610

Attention:  Gina M. Thomas

Telephone:  (813) 432-6356

Fax:  (813) 432-5161

Electronic Mail:  gina.m.thomas@jpmorgan.com

 

2

 

SCHEDULE 10.22

 

RESTRUCTURING TERMS AND ALTERNATIVES

 

Restructuring Alternative No. 1

 

The Borrower will form a new wholly-owned direct Subsidiary
(“HoldCoSub”) and a second new wholly-owned direct Subsidiary
(“GasCoSub”).  The Borrower’s Equitable Gas Company assets and liabilities
will be transferred to the GasCoSub.  The equity interests of GasCoSub
will subsequently be transferred to HoldCoSub.  Equitable Resources, Inc.
will remain the “Borrower” under this Credit Agreement and will remain the sole
obligor under the Existing Bond Debt.

 

Restructuring Alternative No. 2

 

The Borrower will form a new parent holding company as a new
wholly-owned direct Subsidiary (“NewParentCo”) and a second new wholly-owned
direct Subsidiary (“HoldCoSub”).  NewParentCo will form a new wholly-owned
direct Subsidiary (“MergerSub”) and a second new wholly-owned direct Subsidiary
(“GasCoSub”).  Shares of the Borrower will be exchanged for shares of NewParentCo
in connection with the merger of MergerSub into the Borrower with the Borrower
surviving.  The merger will result in NewParentCo directly owning the
Borrower and GasCoSub with the Borrower continuing to own the
Equitable Gas Company business, HoldCoSub and its other Subsidiaries, as
well as continuing as the obligor under the Existing Bond Debt and the Credit
Agreement.  Borrower will subsequently distribute all assets and
liabilities to NewParentCo (which would assume the same) other than the Equitable
Gas Company assets and liabilities.  The distribution will result in
NewParentCo also owning HoldCoSub and the other Subsidiaries, as well as
NewParentCo becoming the “Borrower” and sole obligor under this Credit
Agreement and becoming the sole obligor under the Existing Bond Debt.  The
Borrower (i.e. Equitable Resources, Inc.) will subsequently merge into
GasCoSub with GasCoSub surviving.  GasCoSub will subsequently be
transferred to HoldCoSub.

 

 

EXHIBIT
A-1

 

FORM OF COMMITTED LOAN NOTICE

 

Date: 
                      ,          

 

To:                              Bank of
America, N.A., as Administrative Agent

 

Ladies and Gentlemen:

 

Reference is made to that certain Revolving Credit Agreement, dated as
of October 27, 2006 (as amended, restated, extended, supplemented or
otherwise modified in writing from time to time, the “Agreement;” the
terms defined therein being used herein as therein defined), among Equitable
Resources, Inc., a Pennsylvania corporation (the “Borrower”), the
Lenders from time to time party thereto, Bank of America, N.A., as
Administrative Agent and an L/C Issuer, and the other agents and L/C Issuer
therein named.

 

The undersigned hereby requests (select one):

 

	
  o  A
  Borrowing of Committed Loans

  	
   

  	
  o  A conversion or continuation of Loans

  

 

1.             On                                                                       (a
Business Day).

 

2.             In
the amount of
$                                                 .

 

3.             Comprised
of                                                         .

[Type of Committed Loan requested]

 

4.             For Eurodollar Rate
Loans:  with an Interest Period of
    months.

 

The undersigned hereby certifies that the following statements will be
true on the date of the proposed before and after giving effect thereto and to
the application of the proceeds therefrom:

 

(a)           the representations
and warranties of the Borrower contained in Article V of the
Agreement are true and correct as of the date hereof (except such
representations and warranties which expressly refer to an earlier date, which
are true and correct as of such earlier date, and except for the
following:  [described any exceptions to
the representations and warranties in Section 5.04(c), 5.05
and 5.06 that have been disclosed to the Administrative Agent, and
identify when such disclosure was made and in what document]); and

 

(b)           no Default has
occurred and is continuing, or would result from the proposed Borrowing.

 

[The Committed Borrowing requested herein complies with the proviso to
the first sentence of Section 2.01 of the Agreement.]

 

	
   

  	
  EQUITABLE RESOURCES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

1

 

EXHIBIT A-2

 

FORM OF
SWING LINE LOAN NOTICE

 

Date: 
                      ,          

 

	
  To:

  	
  Bank of America, N.A., as Swing Line Lender

  
	
   

  	
  Bank of America, N.A., as Administrative
  Agent

  

 

Ladies and Gentlemen:

 

Reference is made to that certain Revolving Credit Agreement, dated as
of October 27, 2006 (as amended, restated, extended, supplemented or
otherwise modified in writing from time to time, the “Agreement;” the
terms defined therein being used herein as therein defined), among Equitable
Resources, Inc., a Pennsylvania corporation (the “Borrower”), the
Lenders from time to time party thereto, Bank of America, N.A., as
Administrative Agent, an L/C Issuer and Swing Line Lender and the other agents
and L/C Issuer therein named.

 

The undersigned hereby requests (select one):

 

	
  o  A
  Borrowing of Swing Line Loans

  	
   

  	
  o  A conversion of Swing Line Loans

  

 

1.             On                                                                       (a
Business Day).

 

2.             In
the amount of
$                                                 .

 

3.             Comprised
of                                                         .

[Type of Swing Line Loan requested]

 

The Swing Line Borrowing requested herein complies with the
requirements of the provisos to the first sentence of Section 2.04(a) of
the Agreement.

 

	
   

  	
  EQUITABLE RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

1

 

EXHIBIT B

 

FORM OF NOTE

 

 

 

FOR VALUE RECEIVED, the undersigned (the “Borrower”),
hereby promises to pay to
                                          
or registered assigns (the “Lender”), in accordance with the provisions
of the Agreement (as hereinafter defined), the principal amount of each Loan
from time to time made by the Lender to the Borrower under that certain
Revolving Credit Agreement, dated as of October 27, 2006 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to
time, the “Agreement;” the terms defined therein being used herein as
therein defined), among the Borrower, the Lenders from time to time party
thereto, Bank of America, N.A., as Administrative Agent and an L/C Issuer, and
the other agents and L/C Issuer therein named.

 

The Borrower promises to pay interest on the unpaid principal amount of
each Loan from the date of such Loan until such principal amount is paid in
full, at such interest rates and at such times as provided in the
Agreement.  All payments of principal and
interest shall be made to the Administrative Agent for the account of the
Lender in Dollars in immediately available funds at the Administrative Agent’s
Office.  If any amount is not paid in
full when due hereunder, such unpaid amount shall bear interest, to be paid
upon demand, from the due date thereof until the date of actual payment (and
before as well as after judgment) computed at the per annum rate set forth in
the Agreement.

 

This Note is one of the Notes referred to in the Agreement, is entitled
to the benefits thereof and may be prepaid in whole or in part subject to the
terms and conditions provided therein. 
Upon the occurrence and continuation of one or more of the Events of
Default specified in the Agreement, all amounts then remaining unpaid on this Note
shall become, or may be declared to be, immediately due and payable all as
provided in the Agreement.  Loans made by
the Lender shall be evidenced by one or more loan accounts or records
maintained by the Lender in the ordinary course of business. The Lender may
also attach schedules to this Note and endorse thereon the date, amount and
maturity of its Loans and payments with respect thereto.

 

This Note is a Loan Document and is subject to Section 10.10
of the Agreement, which is incorporated herein by reference the same as if set
forth herein verbatim.

 

The Borrower, for itself, its successors and assigns, hereby waives
diligence, presentment, protest and demand and notice of protest, demand,
dishonor and non-payment of this Note.

 

1

 

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
ENTIRELY WITHIN SUCH STATE; PROVIDED THAT THE ADMINISTRATIVE AGENT AND EACH
LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

 

 

	
   

  	
  EQUITABLE RESOURCES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

2

 

LOANS AND
PAYMENTS WITH RESPECT THERETO

 

	
  Date

  	
   

  	
  Type of Loan

  Made

  	
   

  	
  Amount of

  Loan Made

  	
   

  	
  End of

  Interest

  Period

  	
   

  	
  Amount of

  Principal or

  Interest Paid

  This Date

  	
   

  	
  Outstanding

  Principal

  Balance This

  Date

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

3

 

EXHIBIT C

 

FORM OF COMPLIANCE CERTIFICATE

 

Financial Statement Date:
                              ,       

 

To:                              Bank of
America, N.A., as Administrative Agent

 

Ladies and Gentlemen:

 

Reference is made to that certain Revolving Credit Agreement, dated as
of October 27, 2006 (as amended, restated, extended, supplemented or
otherwise modified in writing from time to time, the “Agreement;” the
terms defined therein being used herein as therein defined), among Equitable
Resources, Inc., a Pennsylvania corporation (the “Borrower”), the
Lenders from time to time party thereto, Bank of America, N.A., as
Administrative Agent and an L/C Issuer, and the other agents and L/C Issuer
therein named.

 

The undersigned Responsible Officer hereby
certifies as of the date hereof that he/she is the
                                                 of
the Borrower, and that, as such, he/she is authorized to execute and deliver
this Certificate to the Administrative Agent on the behalf of the Borrower, and
that:

 

[Use following paragraph 1 for fiscal year-end financial statements]

 

1.               Attached hereto
as Schedule 1 are the year-end audited financial statements required by Section 6.01(a) of
the Agreement for the fiscal year of the Borrower ended as of the above date,
together with the report and opinion of an independent certified public
accountant required by such section. 
Such financial statements fairly present the financial condition,
results of operations and cash flows of the Borrower and its Subsidiaries in
accordance with GAAP as at such date and for such period.

 

[select one]

 

[are attached hereto as Schedule 1]

 

—or—

 

[are available in electronic format and have been delivered pursuant to
Section 6.01 of the Agreement].

 

[Use following paragraph 1 for fiscal quarter-end financial statements]

 

1.             Attached hereto as Schedule
1 are the unaudited financial statements required by Section 6.01(b) of
the Agreement for the fiscal quarter of the Borrower ended as of the above
date.  Such financial statements fairly
present the financial condition, results of operations and cash flows of the
Borrower and its Subsidiaries in accordance with GAAP as at such date and for
such period, subject only to normal year-end audit adjustments and the absence
of footnotes.

 

[select one]

 

[are attached hereto as Schedule 1]

 

—or—

 

[are available in electronic format and have been delivered pursuant to
Section 6.01 of the Agreement].

 

2.             The undersigned has
reviewed and is familiar with the terms of the Agreement and has made, or has
caused to be made under his/her supervision, a detailed review of the
transactions and 

 

1

 

condition (financial or
otherwise) of the Borrower during the accounting period covered by the attached
financial statements.

 

3.               A review of the activities of the Borrower during such
fiscal period has been made under the supervision of the undersigned with a
view to determining whether during such fiscal period the Borrower performed
and observed all its Obligations under the Loan Documents, and

 

[select
one:]

 

[to the best knowledge of
the undersigned during such fiscal period, (a) the Borrower performed and
observed each covenant and condition of the Loan Documents applicable to it,
and (b) no Default exists.]

 

—or—

 

[the following covenants or
conditions have not been performed or observed [or: the following Default
exists] and the following is a list of each such Default and its nature and
status:]

 

4.             The representations and warranties of the Borrower
contained in Article V of the Agreement (except with respect to the
representations and warranties in Sections 5.04(c), 5.05 and 5.06,
to the extent disclosed herein), or which are contained in any document furnished
at any time under or in connection with the Loan Documents, are true and
correct on and as of the date hereof, except to the extent that such
representations and warranties specifically refer to an earlier date, in which
case they are true and correct as of such earlier date, and except that for
purposes of this Compliance Certificate, the representations and warranties
contained in subsections (a) and (b) of Section 5.04 of
the Agreement shall be deemed to refer to the most recent statements furnished pursuant
to clauses (a) and (b), respectively, of Section 6.01 of the
Agreement, including the statements in connection with which this Compliance
Certificate is delivered.

 

[the following is a
description of the nature and status of each event or circumstance which causes
the representations and warranties in Section[s] [5.04(c)], [5.05]
and [5.06], to be untrue on the date hereof:]

 

5.             The financial covenant analyses and information set
forth on Schedule 2 attached hereto are true and accurate on and as of
the date of this Certificate.

 

IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
                              ,
                    .

 

	
   

  	
  EQUITABLE
  RESOURCES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

2

 

SCHEDULE
1

 

Financial
Statements

 

3

 

For the
Quarter/Year ended

 

                                      (“Statement
Date”)

 

SCHEDULE 2
 to the Compliance Certificate

($ in 000’s)

 

Section 7.02
– Debt to Total Capital.

 

	
  I.

  	
  Consolidated Debt at Statement Date

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A.

  	
  Debt of the Borrower and its Subsidiaries on the Statement Date:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  Non-Recourse Debt of the Borrower and its Subsidiaries on the
  Statement Date:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  C.

  	
  Designated Hybrid Equity
  Securities on the Statement Date:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  D.

  	
  Consolidated Debt at Statement Date

  (Lines I.A. — I.B. — I.C.):

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
  Total Capital at Statement Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A.

  	
  Consolidated Debt at Statement Date 

  (Line I.D. above):

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  Shareholders’ Equity on the Balance Sheet:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  C.

  	
  Designated Hybrid Equity Securities on the Statement Date:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  D.

  	
  Any excess of the net book value of assets subject to Liens securing
  Non-Recourse Debt (including the total assets of Excluded Subsidiaries) over
  the amount of the related Non-Recourse Debt that is reflected in
  Shareholders’ Equity:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  E.

  	
  1.Either: Less the absolute value of accumulated other comprehensive
  income as determined in accordance with GAAP:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Or

  	
   

  	
   

  
	
   

  	
  E.

  	
  2.Plus the absolute value of accumulated other comprehensive loss as
  determined in accordance with GAAP:

  	
   

  	
  $

  

 

4

 

	
   

  	
  F.

  	
  Total Capital at Statement Date (Lines II.A. + II.B. + II.C. – II.D.
  and either –II.E1. (in the case of accumulated other comprehensive income) or
  +II.E2. (in the case of accumulated other comprehensive loss):

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  III.

  	
  Is Acquisition Period currently in effect?

  	
   

  	
  o  Yes

  o  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IV.

  	
  Consolidated Debt to Total Capital at Statement Date: (Line I.D.  ̧
  Line II.F.) (cannot exceed 0.65 during any period other than the Acquisition
  Period, and cannot exceed 0.70 during the Acquisition Period)

  	
   

  	
   

  

 

5

 

EXHIBIT D

 

FORM OF ASSIGNMENT AND ASSUMPTION

 

This Assignment and Assumption (this “Assignment and Assumption”)
is dated as of the Effective Date set forth below and is entered into by and
between [the] [each](1) Assignor identified in item 1 below ([the][each,
an] “Assignor”) and [the][each](2) Assignee identified in item 2
below ([the][each], an] “Assignee”).  [It
is understood and agreed that the rights and obligations of the [the
Assignors][the Assignees](3) hereunder are several and not
joint.](4) Capitalized terms used but not defined herein shall have the meanings
given to them in the Revolving Credit Agreement identified below (the “Credit
Agreement”), receipt of a copy of which is hereby acknowledged by the
Assignee.  The Standard Terms and
Conditions set forth in Annex 1 attached hereto are hereby agreed to and
incorporated herein by reference and made a part of this Assignment and
Assumption as if set forth herein in full.

 

For an agreed consideration, [the][each] the Assignor hereby
irrevocably sells and assigns to [the Assignee] [the respective Assignees], and
[the][each] Assignee hereby irrevocably purchases and assumes from the [the
Assignor][the respective Assignors], subject to and in accordance with the
Standard Terms and Conditions and the Credit Agreement, as of the Effective
Date inserted by the Administrative Agent as contemplated below (i) all of
[the Assignor’s] [the respective Assignors’] rights and obligations in [its
capacity as a Lender][their respective capacities as Lenders] under the Credit
Agreement and any other documents or instruments delivered pursuant thereto to
the extent related to the amount and percentage interest identified below of
all of such outstanding rights and obligations of [the Assignor] [the
respective Assignors] under the revolving credit facility established pursuant
to the Credit Agreement (including, without limitation, Letters of Credit and
Swing Line Loans) and (ii) to the extent permitted to be assigned under
applicable law, all claims, suits, causes of action and any other right of [the
Assignor (in its capacity as a Lender)] [the respective Assignors (in their
respective capacities as Lenders)] against any Person, whether known or
unknown, arising under or in connection with the Credit Agreement, any other
documents or instruments delivered pursuant thereto or the loan transactions
governed thereby or in any way based on or related to any of the foregoing,
including, but not limited to, contract claims, tort claims, malpractice
claims, statutory claims and all other claims at law or in equity related to
the rights and obligations sold and assigned pursuant to clause (i) above
(the rights and obligations sold and assigned by [the][any] Assignor to
[the][any] Assignee pursuant to clauses (i) and (ii) above being
referred to herein collectively as [the][an] “Assigned Interest”).  Each such sale and assignment is without
recourse to [the][any] Assignor and, except as expressly provided in this
Assignment and Assumption, without representation or warranty by
[the][any]Assignor.

 

1.             Assignor[s]:                                       

 

2.             Assignee[s]:
                                               [for
each Assignee, indicate [Affiliate] [Approved Fund] of [identify
Lender]]

 

3.             Borrower:                    Equitable
Resources, Inc.

 

(1) For bracketed language here and elsewhere in this form
relating to the Assignor(s), if the assignment is from a single Assignor,
choose the first bracketed language.  If
the assignment is from multiple Assignors, choose the second bracketed language.

(2) For bracketed language here and elsewhere in this form
relating to the Assignor(s), if the assignment is to a single Assignor, choose
the first bracketed language.  If the
assignment is from multiple Assignors, choose the second bracketed language.

(3) Select as appropriate.

(4) Include bracketed language if there are either multiple
Assignors or multiple Assignees.

 

1

 

	
  4.

  	
   

  	
  Administrative
  Agent:

  	
  Bank
  of America, N.A., as the administrative agent under the Credit Agreement

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Credit
  Agreement:

  	
  The
  Revolving Credit Agreement, dated as of October 27, 2006, among
  Equitable Resources, Inc., the Lenders parties thereto, Bank of America,
  N.A., as Administrative Agent, Swing Line Lender and an L/C Issuer, and the
  other agents and L/C Issuer therein named.

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Assigned Interest:

  	
   

  

 

	
  Assignor[s](5)

  	
   

  	
  Assignee[s](6)

  	
   

  	
  Aggregate

  Amount of

  Commitment/Loans

  for all Lenders

  	
   

  	
  Amount of

  Commitment/Loans

  Assigned

  	
   

  	
  Percentage

  Assigned of

  Commitment/Loans(7)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
   

  	
  %

  

 

	
   

  	
   

  	
  [7.            Trade Date:           ](8)

  

 

Effective Date:
                                    ,
20     [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH
SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER
THEREFOR.]

 

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

 

	
   

  	
  ASSIGNOR

  
	
   

  	
   

  
	
   

  	
  [NAME
  OF ASSIGNOR]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ASSIGNEE

  
	
   

  	
   

  	
   

  
	
   

  	
  [NAME
  OF ASSIGNEE]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  

 

(5) List Assignor, as appropriate.

(6) List each Assignee, as appropriate.

(7) Set forth, to at least 9 decimals,
as a percentage of the Commitment of all Lenders thereunder.

(8) To be completed if the Assignor and
the Assignee intend that the minimum assignment amount is to be determined as
of the Trade Date.

 

2

 

[Consented
to and] Accepted:

 

[NAME
OF ADMINISTRATIVE AGENT], as

  Administrative Agent

 

	
  By:

  	
   

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  [Consented
  to:]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Title:

  	
   

  
				

 

3

 

ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

 

STANDARD TERMS AND CONDITIONS
FOR

 

ASSIGNMENT AND ASSUMPTION

 

1.         Representations
and Warranties.

 

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

 

1.2.      Assignee.  [The][Each] Assignee (a) represents and
warrants that (i) it has full power and authority, and has taken all
action necessary, to execute and deliver this Assignment and Assumption and to
consummate the transactions contemplated hereby and to become a Lender under
the Credit Agreement, (ii) it meets all the requirements to be an assignee
under section 10.0(7)(b)(iii),(v) and (vi) of the Credit Agreement
(subject to such consents, if any, as may be required under section
10.07(b)(iii) of the Credit Agreement), (iii) from and after the
Effective Date, it shall be bound by the provisions of the Credit Agreement as
a Lender thereunder and, to the extent of [the][relevant] Assigned Interest,
shall have the obligations of a Lender thereunder, (iv) it is
sophisticated with respect to decisions to acquire assets of the type
represented by [the][such] Assigned Interest and either it, or the Person
exercising discretion in making its decision to acquire [the][such] Assigned
Interest, is experienced in acquiring assets of such type, (v) it has
received a copy of the Credit Agreement, and has received or has been accorded
the opportunity to receive copies of the most recent financial statements
delivered pursuant to Section 6.01 thereof, as applicable, and such other
documents and information as it deems appropriate to make its own credit
analysis and decision to enter into this Assignment and Assumption and to
purchase [the][such] Assigned Interest, (vi) it has independently and
without reliance upon the Administrative Agent or any other Lender, and based
on such documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Assignment and Assumption and
to purchase [the][such]  Assigned
Interest, and (vii) if it is a Foreign Lender, attached hereto is any documentation
required to be delivered by it pursuant to the terms of the Credit Agreement,
duly completed and executed by [the][such] Assignee; and (b) agrees that
(i) it will, independently and without reliance upon the Administrative
Agent, [the][any] the Assignor or any other Lender, and based on such documents
and information as it shall deem appropriate at the time, continue to make its
own credit decisions in taking or not taking action under the Loan Documents,
and (ii) it will perform in accordance with their terms all of the
obligations which by the terms of the Loan Documents are required to be
performed by it as a Lender.

 

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

 

4

 

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

 

5

 

EXHIBIT E-1

 

FORM OF OPINION OF REED SMITH LLP

 

October [     ],
2006

 

To Bank of America, N.A., as

Administrative Agent, and the Lenders

and the other Agents Parties to the

Credit Agreement Referred to Below

 

Ladies and Gentlemen:

 

We have participated in the preparation of the Revolving Credit
Agreement (the “Credit Agreement”) dated as of October 27, 2006 among
Equitable Resources, Inc., a Pennsylvania corporation (the “Borrower”),
the Lenders named therein, Bank of America, N.A., as Administrative Agent and
an L/C Issuer, and the other agents and L/C Issuer named therein, and have
acted as special counsel for the Borrower for the purpose of rendering this
opinion pursuant to Section 4.01(a)(v) of the Credit Agreement.  Capitalized terms used herein which are defined
in the Credit Agreement are used herein as therein defined.

 

We have examined originals or copies, certified or otherwise identified
to our satisfaction, of such documents, corporate records, certificates of
public officials and other instruments and have conducted such other
investigations of law as we have deemed necessary or advisable for purposes of
this opinion.  We have assumed, with
respect to all documents which we have examined:  the genuineness of all signatures thereon,
the authenticity of all documents submitted to us as originals, the conformity
to the originals of all documents submitted to us as copies, and the
authenticity of the originals of such copies.

 

In rendering this opinion we have assumed with your permission that
(i) the Credit Agreement has been duly authorized, executed and delivered
by Administrative Agent and each Lender, (ii) the Borrower has been duly
incorporated and is validly existing as a corporation under the laws of the
Commonwealth of Pennsylvania, (iii) the Borrower has duly authorized,
executed and delivered the Credit Agreement and the Notes, and (iv) the
execution and delivery by the Borrower of the Credit Agreement and the Notes
require no consent or approval by any governmental body, agency or official or
any filing with the public utility commissions of Kentucky, Pennsylvania, or
West Virginia.  We understand you have
relied on the opinion of the Borrower’s General Counsel of even date herewith
with respect to these issues regarding the Borrower.

 

Upon the basis of the foregoing, we are of the opinion that the Credit
Agreement constitutes a legal, valid and binding agreement of the Borrower and
each Note constitutes a legal, valid and binding obligation of the Borrower, in
each case enforceable in accordance with its terms, except as the same may be
limited by applicable bankruptcy, insolvency, fraudulent conveyance, fraudulent
transfer, reorganization, receivership, moratorium or similar laws relating to
or affecting creditors’ rights generally and by general principles of equity,
whether enforcement is sought in a proceeding in equity or at law.  The enforceability of the respective
obligations of the parties to the Credit Agreement and the Note, and the
availability of certain rights and remedies provided for therein, may be
limited by applicable state and federal laws and judicial decisions, but the
remedies provided for in the Credit Agreement are adequate for the practical
realization of the benefits provided thereby, except for the consequences of
any procedural delay which may result therefrom.

 

We express no opinion as to the enforceability of any provisions of the
Credit Agreement or any Note providing for the indemnification or exculpation
of any Agent or any Lender (A) in violation of 

 

1

 

public policy, (B) to the extent precluded by federal or state
securities laws, or (C) purporting to indemnify or exculpate any Agent or
any Lender from the consequences of its own gross negligence, willful
misconduct or strict liability.

 

We are members of the Bar of the State of New York and of the
Commonwealth of Pennsylvania and the foregoing opinion is limited to the laws
of the Commonwealth of Pennsylvania and of the State of New York and the
applicable federal laws of the United States of America.  In giving the foregoing opinion, we express
no opinion as to the effect (if any) of any law of any jurisdiction (except the
Commonwealth of Pennsylvania and the State of New York) in which any Lender is
located which limits the rate of interest that such Lender may charge or
collect.  Our opinion is qualified to the extent, if
any, of the applicability to this transaction of Section 911(b) of
the Pennsylvania Crimes Code (the “Crimes Code”), Act of December 6, 1972,
P.L. 1482, No. 334, as amended, 18 Pa.C.S. §911(b), which prohibits the
use or investment of income derived from a pattern of “racketeering activity”
in the establishment or operation of any enterprise.  “Racketeering activity,” as defined in the
Crimes Code, includes the collection of money or other property in full or
partial satisfaction of a debt which arose as the result of the lending of
money or other property at a rate of interest exceeding 25% per annum “when not
otherwise authorized by law”.

 

This opinion is rendered solely to you and to Eligible Assignees in
connection with the above matter.  This
opinion may not be relied upon by you or Assignees for any other purpose or
relied upon by any other person without our prior written consent.  The opinions expressed herein are rendered
and speak only as of the date hereof, and we specifically disclaim any
responsibility to update such opinions or to advise you of subsequent
developments affecting such opinions that hereafter may come to our attention.

 

Very truly yours,

 

 

AEL:la

 

2

 

EXHIBIT E-2

 

FORM OF OPINION OF DEPUTY GENERAL
COUNSEL

OF EQUITABLE RESOURCES, INC.

 

October [      ],
2006

 

To Bank of America, N.A., as

Administrative Agent and the Lenders and the

other Agents Parties to the Credit

Agreement Referred to Below

 

Ladies and Gentlemen:

 

I am Deputy General Counsel of Equitable Resources, Inc. (the
“Borrower”) and have acted as internal counsel for the Borrower in connection
with the Revolving Credit Agreement (the “Credit Agreement”) dated as of October 27,
2006 among the Borrower, the Lenders parties thereto, Bank of America, N.A., as
Administrative Agent and an L/C Issuer, and the other agents and L/C Issuer
named therein.  Capitalized terms which
are defined in the Credit Agreement are used herein as therein defined.  This opinion is being rendered to you at the
request of my client pursuant to Section 4.01(a)(v) of the Credit
Agreement.

 

For purposes of rendering this opinion, I have examined the following:

 

1.             the Credit
Agreement;

 

2.             the Notes;

 

3.             the Certificate of
Incorporation and Bylaws of the Borrower;

 

4.             a Certificate of
Good Standing of the Borrower, certified by the Secretary of the Commonwealth
of Pennsylvania on
                          ,
2006; and

 

5.             Minutes of the
meeting of the Board of Directors of the Borrower
on                  
    ,         .

 

For
purposes of rendering this opinion I have relied without independent
investigation upon statements of officers and employees of the Borrower as to
certain factual matters relevant to this opinion.  I have assumed, with respect to all documents
which I have examined:  the genuineness
of all signatures thereon (other than signatures of officers of the Borrower),
the authenticity of all documents submitted to me as originals, the conformity
to the originals of all documents submitted to me as copies, and the
authenticity of the originals of such copies.

 

Upon
the basis of the foregoing, I am of the opinion that:

 

1.             The Borrower is a corporation duly
incorporated, validly existing and in good standing under the laws of
Pennsylvania and has all corporate powers and authority and all material
governmental licenses, authorizations, consents and approvals required to carry
on its business as now conducted and execute, deliver and perform its obligations
under the Credit Agreement and Notes.

 

2.             The execution, delivery and
performance by the Borrower of the Credit Agreement and the Notes (a) are
within the corporate powers of the Borrower, (b) have been duly authorized
by all necessary corporate action, (c) require no consent or approval by,
or filing with, the public utility 

 

1

 

commissions
of Kentucky, Pennsylvania, or West Virginia, or any other Governmental
Authority of the Commonwealth of Pennsylvania or of the Federal government of
the United States, (d) do not contravene, or constitute a default under,
the articles of incorporation or by-laws of the Borrower, (e) do not
contravene, or constitute a default under, any agreement, judgment, injunction,
order, decree, or other instrument, in each case under this clause (e) of
which I have actual knowledge, binding upon the Borrower or any of its
Subsidiaries, or (f) result in the creation or imposition of any Lien on
any asset of the Borrower or any of its Subsidiaries.  The Credit Agreement has been duly executed
and delivered by the Borrower.  The
execution and delivery of the Credit Agreement, and the making and repayment of
the Loans or other payment obligations, do not violate any applicable Law of
Pennsylvania or the United States.

 

3.             There is no action, suit or
proceeding pending against, or to the best of my actual knowledge threatened
against, the Borrower or any of its Subsidiaries before any court or arbitrator
or any governmental body, agency or official, in which there is a reasonable
possibility of an adverse decision which could materially adversely affect the
business, consolidated financial position or consolidated results of operations
of the Borrower and its Consolidated Subsidiaries, considered as a whole, or
which in any manner draws into question the validity of the Credit Agreement or
the Notes.

 

4.             Each of the
Borrower’s corporate Subsidiaries is a corporation validly existing, and has
all corporate powers and all material governmental licenses, authorizations,
consents and approvals required to carry on its business as now conducted.

 

5.             None of the
Borrower, any Person Controlling the Borrower, or any Subsidiary is or is
required to be registered as an “investment company” under the Investment
Company Act of 1940.

 

I am a member of the Bar of the Commonwealth of Pennsylvania and the
foregoing opinion is limited (i) to the laws of the Commonwealth of
Pennsylvania, (ii) to the applicable federal laws of the United States of
America, (iii) to the extent set forth in paragraph 2 above, to the public
utility laws of the Commonwealth of Kentucky and the State of West Virginia and
(iv) to the extent set forth in paragraph 4 above, to the general
corporation laws of the applicable States of the United States under which the
Borrower’s Subsidiaries are organized.

 

This opinion is rendered solely to you and to Eligible Assignees in
connection with the Credit Agreement. 
This opinion may not be relied upon by you or Eligible Assignees for any
other purpose or relied upon by any other person without my prior written
consent.  The opinions expressed herein
are rendered and speak only as of the date hereof, and I specifically disclaim
any responsibility to update such opinions or to advise you of subsequent
developments affecting such opinions that hereafter may come to my attention.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Deputy General Counsel

  

 

2Exhibit
10.1

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (“Agreement”) is dated April 3, 2009 by
and between DineEquity, Inc. f/k/a IHOP Corp., a Delaware corporation (the
“Company”), and John F. Tierney (the “Executive”).

 

WHEREAS, the Company believes it to be in its best interest to
provide for continuity of management and to provide protection for its valuable
trade secrets and confidential information; and

 

WHEREAS, the Company desires to employ the Executive and the
Executive is willing to render services to the Company on the terms and
conditions with respect to such employment hereinafter set forth.

 

NOW, THEREFORE, in consideration of premises and the mutual terms and
conditions hereof, the Company and the Executive hereby agree as follows:

 

1.                                       Employment.  The Company
hereby employs the Executive and the Executive hereby accepts employment with
the Company upon the terms and conditions hereinafter set forth.

 

2.                                       Exclusive Services.  The Executive
shall devote all necessary working time, ability and attention to the business
of the Company during the term of this Agreement and shall not, directly or
indirectly, render any material services to any business, corporation, or
organization whether for compensation or otherwise, without the prior knowledge
and written consent of the Board of Directors of the Company (hereinafter
referred to as the “Board”).  During the
Employment Period, the Executive may (A) serve on corporate, civic or
charitable boards or committees, (B) deliver lectures, fulfill speaking
engagements or teach at educational institutions and (C) manage personal
investments, so long as such activities do not significantly interfere with the
performance of the Executive’s responsibilities as an employee of the Company
in accordance with this Agreement and any service on public company boards of
directors is approved in advance by the Board. It is expressly understood and
agreed that to the extent that any such activities have been conducted by the
Executive prior to the effective date of this Agreement, the continued conduct
of such activities (or the conduct of activities similar in nature and scope
thereto) subsequent to the effective date of this Agreement shall not thereafter
be deemed to interfere with the performance of the Executive’s responsibilities
to the Company.

 

3.                                       Duties.  The Executive
is hereby employed as the Chief Financial Officer of the Company and shall
render services at the principal business offices of the Company, as such may
be located from time to time, unless otherwise agreed in writing between the
Board and the Executive.  The Executive
shall have such authority and shall perform such duties as are described in Exhibit A
attached hereto.

 

4.                                       Term.  This Agreement
shall have an initial term of three (3) years commencing as of February 23,
2009.  This Agreement will automatically
renew at the end of the initial term and at the end of each subsequent term,
for a subsequent term of one (1) year unless either party gives written
notice of non-renewal to the other at least ninety (90) days prior to the
expiration of 

 

 

the then current term. 
Such notice may be given for any or no reason.   This Agreement is subject to earlier
termination as hereinafter provided.

 

5.                                       Compensation.  As
compensation for services rendered under this Agreement, the Executive shall be
entitled to receive the following:

 

a.                                       Base Salary.  The executive
shall be paid a base salary of at least $400,000 per year, payable in 24 equal
semi-monthly installments during the term of this Agreement, prorated for any
partial employment month.  Such base
salary (“Base Salary”) shall be reviewed by the
Compensation Committee of the Board (the “Compensation Committee”) no less
frequently than annually.  The Base
Salary may be increased by the Compensation Committee in its discretion,
subject to ratification by the Board. 
The Base Salary may not be decreased, except in the event of an across
the board salary reduction approved by the Board affecting employees of the Company
at the Chief Officer Level (as defined in Section 6(a), below).

 

b.                                      Additional Compensation.  The Executive
shall be paid such additional compensation and bonuses as may be determined and
authorized in the discretion of the Compensation Committee, subject to
ratification by the Board.  The Executive’s
target bonus, to be payable under the Company’s annual incentive plan, shall be
75% of the Executive’s Base Salary.

 

6.                                       Benefits.  In addition to
the compensation to be paid to the Executive pursuant to Section 5 hereof,
the Executive shall further be entitled to receive the following:

 

a.                                       Participation in Employee
Plans. 
The Executive shall be entitled to participate in any health,
disability, group term life insurance plan, any pension, retirement, or profit
sharing plan, any executive bonus plan, long term incentive plan, deferred
compensation plan or any other perquisites and fringe benefits that may be
extended generally from time to time to employees of the Company at the Chief
Officer Level.  For purposes of this
Agreement, employees of the Company at the “Chief
Officer Level” shall mean the CEO, the Chief Financial Officer, the
Chief Restaurant Support Officer and such other employees of the Company as may
from time to time be designated as being at the Chief Officer Level by the
Board.

 

b.                                      Vacation.  The Executive
shall be entitled to vacation as in accordance with the Company’s Vacation
Policy for Restaurant Support Center and Field Office Employees.

 

c.                                       Equity Awards.  The Executive
shall be entitled to equity-based compensation awards that may be extended
generally from time to time to employees of the Company at the Chief Officer
Level, as approved by the Compensation Committee or the Board, subject to the
terms and conditions of the respective equity-based compensation plans and award
agreements and the provisions of this Agreement.

 

7.                                       Reimbursement of Expenses.  Subject to
such rules and procedures as from time to time are specified by the
Company, the Company shall reimburse the Executive on a monthly 

 

2

 

basis for reasonable business expenses incurred in the
performance of the Executive’s duties under this Agreement.

 

8.                                       Confidentiality/Trade
Secrets.  The Executive acknowledges that the Executive’s
position with the Company is one of the highest trust and confidence both by
reason of the Executive’s position and by reason of the Executive’s access to
and contact with the trade secrets and confidential and proprietary business
information of the Company.  Both during
the term of this Agreement and thereafter, the Executive covenants and agrees
as follows:

 

a.                                       The Executive shall use best efforts and exercise
reasonable diligence to protect and safeguard the trade secrets and
confidential and proprietary information of the Company, including but not
limited to any non-public strategies, business plans, marketing and advertising
plans, the identity of its customers and suppliers, its arrangements with
customers and suppliers, and its technical and financial data, records,
compilations of information, processes, recipes and specifications relating to
its customers, suppliers, products and services;

 

b.                                      The Executive shall not disclose any of such trade
secrets and confidential and proprietary information, except as may be required
in the course of the Executive’s employment with the Company or by law; and

 

c.                                       The Executive shall not use, directly or indirectly,
for the Executive’s own benefit or for the benefit of another, any of such
trade secrets and confidential and proprietary information.

 

All original and any copies of files, records, documents, emails,
drawings, specifications, memoranda, notes, or other documents relating to the
business of the Company, including printed, electronic or digital copies
thereof, whether prepared by the Executive or otherwise coming into the
Executive’s possession, shall be the exclusive property of the Company and
shall be delivered to the Company and not retained by the Executive upon
termination of the Executive’s employment for any reason whatsoever or at any
other time upon request of the Company’s General Counsel or the Board.

 

9.                                       Discoveries.  The Executive
covenants and agrees to fully inform the Company of and disclose to the Company
all inventions, designs, improvements, discoveries, and processes (“Discoveries”) that the Executive has now or may hereafter
have during the Executive’s employment with the Company and that pertain or
relate to the business of the Company, including but not limited to the
operation and franchising of restaurants, or to any experimental work,
products, services, or processes of the Company in progress or planned for the
future, whether conceived by the Executive alone or with others, and whether or
not conceived during regular working hours or in conjunction with the use of
any Company assets.  All such Discoveries
shall be the exclusive property of the Company whether or not patent or
trademark applications are filed thereon. 
The Executive shall assist the Company, at any time during or after the
Executive’s employment, in obtaining patents on all such Discoveries deemed
patentable by the Company and shall execute all documents and do all things
necessary to obtain letters patent, vest the Company with full and exclusive
title thereto, and protect the same against infringement by others, all at the
expense of the Company.

 

3

 

10.                                 Non-Competition.  The Executive
covenants and agrees that during the period of the Executive’s employment, the
Executive shall not, without the prior written consent of the CEO or the Board,
directly or indirectly, as an employee, employer, consultant, agent, principal,
partner, shareholder, corporate officer, director, or through any other kind of
ownership (other than ownership of securities of publicly held corporations of
which the Executive owns less than five percent 5% of any class of outstanding
securities) or in any other representative or individual capacity, engage in or
render any services to any business in North America engaged in the casual
dining restaurant industry, the family dining restaurant industry, or in any
other segment of the restaurant industry in which the Company or any subsidiary
of the Company may become involved after the date hereof and prior to the date
of termination of the Executive’s employment. 
For purposes of this Agreement “casual dining restaurant industry”
consists of “sit down table service” restaurants serving alcoholic beverages,
with a per guest average guest check within the United States of under $20.00
(adjusted upward each year to recognize Company menu price increases). For
purposes of this Agreement “family dining restaurant industry” consists of “sit
down table service” restaurants, with a per guest average guest check within
the United States of under $15.00 (adjusted upward each year to recognize
Company menu price increases).

 

11.                                 Nonsolicitation.  The Executive
agrees that during the period of the Executive’s employment, and for a period
of 24 months following the effective date of the termination of the Executive’s
employment for any reason prior to a Change in Control and 24 months following
the effective date of the termination after a Change in Control, the Executive
will not, either directly or indirectly, for the Executive or for any third party,
except as otherwise agreed to in writing by the then CEO, solicit, induce,
recruit, or cause any other person who is then employed by the Company to
terminate his/her employment for the purpose of joining, associating, or
becoming employed with any business or activity that is engaged in the casual
dining restaurant industry, the family dining restaurant industry or any other
segment of the restaurant industry in which the Company may become involved
after the date hereof and prior to the date of any termination of employment.

 

12.                                 Remedies for Breach of
Covenants of the Executive.

 

a.                                       The Company and the Executive
specifically acknowledge and agree that the foregoing covenants of the
Executive in Sections 8, 9, 10 and 11 are reasonable in content and scope and
are given by the Executive for adequate consideration.  The Company and the Executive further
acknowledge and agree that, if any court of competent jurisdiction or other
appropriate authority shall disagree with the parties’ foregoing agreement as
to reasonableness, then such court or other authority shall reform or otherwise
the foregoing covenants as reason dictates.

 

b.                                      The covenants set forth in Sections 8, 9,
and 11 of this Agreement, as provided in Section 13 or 14, shall continue
to be binding upon the Executive, notwithstanding the termination of the
Executive’s employment with the Company for any reason whatsoever.  Such covenants shall be deemed and construed
as separate agreements independent of any other provisions of this Agreement
and any other agreement between the Company and the Executive.  The existence of any claim or cause of action
by the Executive against the Company, unless predicated on this Agreement, 

 

4

 

shall not
constitute a defense to the enforcement by the Company of any or all such
covenants.  It is expressly agreed that
the remedy at law for the breach of any such covenant is inadequate and
injunctive relief and specific performance shall be available to prevent the
breach or any threatened breach thereof.

 

c.                                       If the Executive breaches any of the
covenants set forth in Sections 8, 9, 10 and 11 of this Agreement, the
Executive shall reimburse the Company for (i) any equity-based
compensation received by the Executive from the Company during the twelve (12)
month period preceding the breach, and (ii) any profits realized from the
sale of securities of the Company during such twelve (12) month period.

 

13.                                 Termination.  This Agreement
(other than Sections 8, 9, and 11, as provided in Section 13 or 14, which
shall survive any termination hereof for any reason, including the expiration
hereof due to non-renewal (an “Expiration”)) may be terminated as follows:

 

a.                                       The Company may terminate this Agreement
and the Executive’s employment hereunder at any time, with or without Cause,
upon written notice to the Executive. 
The Executive may terminate this Agreement and the Executive’s
employment hereunder, at any time, with or without Good Reason.

 

b.                                      In the event of termination by the
Company without Cause or by the Executive for Good Reason, (i) the
effective date thereof shall be stated in a written notice to the Executive
from the Board, which shall not be earlier than 30 days from the date such
written notice is delivered to the Executive, (ii) the Executive shall be
entitled to receive all Severance Payments under Section 13(f), (iii) any
unvested stock options, stock appreciation rights, and any other equity-based
awards subject to service or time vesting conditions held by the Executive that
would have vested during the twelve (12) month period following the Executive’s
termination will vest as of the day immediately preceding the effective date of
termination, (iv) any unvested equity-based awards subject to any
performance-based vesting conditions held by the Executive will vest on a pro rata
basis, based on the number of days of the Executive’s employment during the
applicable performance period, as of the day immediately preceding the effective date
of termination and shall be paid based on actual performance during the
applicable performance period through the date of the Executive’s termination
of employment, and (v) any stock options or stock appreciation rights held
by the Executive shall remain exercisable until the earlier of 24 months after
the date of termination or their original expiration date.

 

c.                                       In the event of termination by the
Company with Cause, the Executive shall be entitled to receive only the
Executive’s salary through such date of termination, the reimbursement of
properly documented reasonable business expenses incurred through such date of
termination, and any bonus amounts as may be payable pursuant to the terms of
any written plans in which the Executive was a participant immediately prior to
the effective date of the termination. 
The Executive shall also be entitled to exercise the Executive’s rights
under COBRA at the Executive’s expense.

 

d.                                      The following shall constitute “Cause”:

 

5

 

(i)                                     The willful failure by the Executive to
substantially perform the Executive’s duties with the Company (other than any
such failure resulting from the Executive’s incapacity due to physical or
mental illness), after a written demand for substantial performance is delivered
to the Executive by the Board, which demand specifically identifies the manner
in which the Board believes that the Executive has not substantially performed
the Executive’s duties; or

 

(ii)                                  The Executive’s willful misconduct that
is demonstrably and materially injurious to the Company, monetarily or
otherwise; or

 

(iii)                               The Executive’s commission of such acts
of dishonesty, fraud, misrepresentation or other acts of moral turpitude as
would prevent the effective performance of the Executive’s duties; or

 

(iv)                              The Executive’s conviction or plea of no contest to a felony
or a crime of moral turpitude.

 

For purposes of this subsection d., no act, or failure to act, on the
Executive’s part shall be deemed “willful” unless done, or omitted to be done,
by the Executive not in good faith and without the reasonable belief that the
Executive’s action or omission was in the best interest of the Company.  Notwithstanding the foregoing, the Executive
shall not be deemed to have been terminated for Cause unless and until there
shall have been delivered to the Executive a copy of a resolution duly adopted
by the affirmative vote of a majority of the non-employee members of the Board
at a meeting of such members (after reasonable notice to the Executive and an
opportunity for the Executive, together with the Executive’s counsel, to be
heard before such members of the Board), finding that the Executive has engaged
in the conduct set forth above in this subsection d. and specifying the
particulars thereof in detail.

 

e.                                       The Executive shall have “Good Reason” to
effect a termination in the event that the Company (i) breaches its
obligations to pay any salary, benefit or bonus due hereunder, or (ii) requires
the Executive to relocate more than 50 miles from the Company’s headquarters
[or other current location if not now located at headquarters], (iii) assigns
to the Executive any duties inconsistent with the Executive’s position with the
Company or significantly and adversely alters the nature or status of the
Executive’s responsibilities or the conditions of the Executive’s employment,
or (iv) reduces the Executive’s base salary and/or bonus opportunity,
except for across-the-board reductions similarly affecting all management
personnel of the Company and all management personnel of any corporation or
other entity which is in control of the Company; and in the event of any of
(i), (ii), (iii) or (iv), the Executive has given written notice to the
Board as to the details of the basis for such Good Reason within thirty (30)
days following the date on which the Executive alleges the event giving rise to
such Good Reason occurred, the Company has failed to provide a reasonable cure
within thirty (30) days after its receipt of such notice and the effective date
of the termination for Good Reason occurs within 180 days after the initial
existence of the facts or circumstances 

 

6

 

constituting Good Reason.  In the event of a termination by the
Executive with Good Reason, the Executive will be entitled to all Severance
Payments under Section 13(f).

 

f.                                         The “Severance Payments” consist of the
following and, subject to subsection h. of Section 20, shall be paid as
follows:  (i) an amount paid on the
tenth business day following the effective date of such termination in one lump
sum equal to one (1) times the sum of (A) the Executive’s annual Base
Salary, at the then current effective annual rate, plus (B) the average of
the Executive’s actual bonus attributable to each of the preceding three (3) fiscal
years; (ii) the reimbursement of properly documented reasonable business
expenses incurred through the date of termination which shall be paid on the
tenth business day following the effective date of such termination; and (iii) the
payment by the Company of premiums on behalf of the Executive, for coverage
substantially similar to that provided under the Company’s health, disability
and group term life insurance plans, at the same cost to the Executive as was
effective immediately prior to termination, and for so long as the Executive
elects to continue such coverage up to a 12 month period.  To the extent that substantially similar
health and welfare benefits become available to the Executive from a subsequent
employer, the Company will set off against the benefits payable hereunder any
benefits received by the Executive from any other source.  The Executive agrees to notify the Company
within 30 days after substantially similar health and welfare benefits become
available to her from a subsequent employer.

 

g.                                      In the event of any termination of the
Executive other than by the Executive for Good Reason or by the Company without
Cause, participation by the Executive in all compensation and benefit plans of
the Company will cease upon the effective termination date and all unvested
bonuses, equity awards and other like items will immediately lapse.  In the event of any termination of the
Executive, all amounts owed by the Executive to the Company for any reasons whatsoever
will become immediately due and payable and the Company will transfer to the
Executive any term life insurance policy maintained by the Company for the
Executive’s benefit.

 

14.                                 Termination After Change
in Control.  If within 24 months following a Change in
Control, as defined below, the employment of the Executive is terminated by the
Company without Cause or by the Executive for Good Reason then the provisions
of Section 13 shall not apply and the following shall occur:

 

                                                                                                a.                                       Subject to subsection h. of Section 20, on the
tenth business day following the effective date of such termination, the
Executive shall receive the following: (i) a lump sum payment equal to two
(2) times the sum of (A) the Executive’s Base Salary in effect
immediately prior to the change in control, plus (B) the average of the
Executive’s actual bonus attributable to each of the preceding three (3) fiscal
years; and (ii) an amount paid in one lump sum equal to the Executive’s
prorated bonus for the then current fiscal year based on actual performance
prior to the date of termination.

 

                                                                                                b.                                      The Company shall pay premiums on behalf of the
Executive, for coverage substantially similar to that provided under the
Company’s health, disability and group term life insurance plans, at the same
cost to the Executive as was effective immediately prior to termination, and
for so long as the Executive elects to continue such coverage up to a 24

 

7

 

month period.  To the extent that substantially similar
health and welfare benefits become available to the Executive from a subsequent
employer, the Company will set off against the benefits payable hereunder any
benefits received by the Executive from any other source.

 

c.                                       Any unvested stock options, stock
appreciation rights, and other equity-based awards held by the Executive will
vest as of the day immediately preceding the effective date of termination, all
unvested Restricted Share awards held by the Executive will vest as of the day
immediately preceding the effective date of termination and all restrictions
will immediately be removed and deemed to have been satisfied, and any stock
options or stock appreciation rights held by the Executive shall remain
exercisable until the earlier of 24 months after the date of termination or
their original expiration date.

 

                                                                                                d.                                      The Executive shall be bound by the nonsolicitation
provisions of Section 11, which shall remain in full force and effect for
a period of 24  months following the effective
date of Executive’s termination.

 

15.                                 Definition of Change in
Control.  A “Change in Control”
shall be deemed to have occurred if:

 

a.                                       any “person,”
as such term is used in Sections 13(d) and 14(d) of the “Exchange Act
(other than the Company; any trustee or other fiduciary holding securities
under an employee benefit plan of the Company; or any company owned, directly
or indirectly, by the stockholders of the Company in substantially the same
proportions as their ownership of Stock of the Company) is or becomes after the
Effective Date the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company (not
including in the securities beneficially owned by such person any securities
acquired directly from the Company or its affiliates) representing 40% or more
of the combined voting power of the Company’s then outstanding securities; or

 

b.                                      during any
period of two consecutive years (not including any period prior to the
Effective Date), individuals who at the beginning of such period constitute the
Board, and any new director (other than a director designated by a person who
has entered into an agreement with the Company to effect a transaction
described in subsections a., c. or d. of this Section 15 whose election by
the Board or nomination for election by the Company’s stockholders was approved
by a vote of at least two-thirds ( 2/3) of the directors then still in office
who either were directors at the beginning of the period or whose election or
nomination for election was previously so approved, cease for any reason to
constitute at least a majority thereof; or

 

c.                                       the
consummation of a merger or consolidation of the Company with any other
corporation, other than (A) a merger or consolidation which would result
in the voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity), in combination with the
ownership of any trustee or other fiduciary holding securities under an
employee benefit plan of the Company, at least 75% of the combined voting power
of the voting securities of the Company or such surviving entity outstanding immediately
after such merger or 

 

8

 

consolidation or (B) a merger or
consolidation effected to implement a recapitalization of the Company (or
similar transaction) in which no person acquires more than 50% of the combined
voting power of the Company’s then outstanding securities; or

 

d.                                      the
stockholders of the Company approve a plan of complete liquidation of the
Company or an agreement for the sale or disposition by the Company of all or
substantially all of the Company’s assets;

 

provided, that with respect to any non-qualified deferred compensation
that becomes payable on account of the Change in Control, the transaction or
event described in subsection a., b., c. or d. also constitutes a “change in
control event,” as defined in Treasury Regulation §1.409A-3(i)(5) if
required in order for the payment not to violate Section 409A of the
Code..

 

16.                                 Parachute Payment Matters.

 

Notwithstanding any other
provision of this Agreement, if by reason of Section 280G of the Code any
payment or benefit received or to be received by the Executive in connection
with a Change in Control or the termination of the Executive’s employment
(whether payable pursuant to the terms of this Agreement (“Contract Payments”)
or any other plan, arrangements or agreement with the Company or an Affiliate
(as defined below) (collectively with the Contract Payments, “Total Payments”))
would not be deductible (in whole or part) by the Company, an Affiliate or
other person making such payment or providing such benefit, then the Contract
Payments shall be reduced and, if Contract Payments are reduced to zero, other
Total Payments shall be reduced until no portion of the Total Payments is not
deductible by reason of Section 280G of the Code, provided,
however, that no such reduction shall be made unless the net after-tax benefit
received by the Executive after such reduction would exceed the net after-tax
benefit received by the Executive if no such reduction was made.  The foregoing determination and all
determinations under this Section 16 shall be made by the Accountants (as
defined below).  For purposes of this
section, “net after-tax benefit” shall mean (i) the Total Payments that
would constitute “parachute payments” within the meaning of Section 280G
of the Code, less (ii) the amount of all federal, state and local income
taxes payable with respect to such payments calculated at the maximum marginal
income tax rate for each year in which the foregoing shall be paid to the
Executive (based on the rate in effect for such year as set forth in the Code
as in effect at the time of the first payment of the foregoing), less (iii) the
amount of excise taxes imposed with respect to the payments and benefits
described in (i) above by Section 4999 of the Code.  For purposes of the foregoing determinations,
(a) no portion of the Total Payments the receipt or enjoyment of which the
Executive shall have effectively waived in writing prior to the date of payment
of any Contract Payment shall be taken into account; (b) no portion of the
Total Payments shall be taken into account which in the opinion of the
Accountants does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of
the Code (without regard to subsection (A)(ii) thereof); (c) the
Contract Payments (and, thereafter, other Total Payments) shall be reduced only
to the extent necessary so that the Total Payments in their entirety constitute
reasonable compensation for services actually rendered within the meaning of Section 280G(b)(4) of
the Code, in the opinion of the Accountants; 
and (d) the value of any non-cash benefit or any deferred payment
or benefit included in the Total Payments shall be determined by the
Accountants in accordance with the principles of Sections 280G(d)(3) and (4) of
the Code.  For purposes of this Section 16,
the term 

 

9

 

“Affiliate” means the Company’s successors,
any Person whose actions result in a Change in Control or any company
affiliated (or which, as a result of the completion of the transactions causing
a Change in Control shall become affiliated) with the Company within the
meaning of Section 1504 of the Code and “Accountants” shall mean the Company’s independent
certified public accountants serving immediately prior to the Change in
Control, unless the Accountants are also serving as accountant or auditor for
the individual, entity or group effecting the Change in Control, in which case
the Company shall appoint another nationally recognized public accounting firm
to make the determinations required hereunder (which accounting firm shall then
be referred to as the Accountants hereunder). 
For purposes of making the determinations and calculations required herein,
the Accountants may make reasonable assumptions and approximations concerning
applicable taxes and may rely on reasonable, good faith interpretations
concerning the application of Sections 280G and 4999 of the Code, provided that
the Accountant’s determinations must be made on the basis of “substantial
authority” (within the meaning of Section 6662 of the Code).  All fees and expenses of the Accountants
shall be borne solely by the Company.

 

17.                                 Arbitration of Disputes.

 

a.                                       Any dispute or claim arising out of or
relating to this Agreement or any termination of the Executive’s employment,
other than with respect to Sections 8 through 12, shall be settled by final and
binding arbitration in the greater Los Angeles metropolitan area in accordance
with the Commercial Arbitration rules of the American Arbitration
Association, and judgment upon the award rendered by the arbitrators may be
entered in any court having jurisdiction thereof.

 

b.                                      Except as provided by applicable law, the
fees and expenses of the arbitration panel shall be shared equally by the
Executive and the Company.

 

c.                                       Except as provided by applicable law, the
prevailing party in any arbitration brought hereunder shall be entitled to an
award of its costs (including expenses and attorneys’ fees), incurred in such
arbitration.

 

18.                                 No Mitigation.  The Executive
shall have no duty to attempt to mitigate the level of benefits payable by the
Company to the Executive hereunder, by seeking other employment or
otherwise.  To the extent that
substantially similar health and welfare benefits become available to the
Executive from a subsequent employer, the Company will discontinue the
Executive’s coverage; otherwise, the Company shall not be entitled to set off
against the amounts payable hereunder any amounts received by the Executive
from any other source, including any subsequent employer.

 

19.                                 Notices.  Any notices to
be given hereunder by either party to the other may be effected either by
personal delivery in writing or by mail, registered or certified, postage
prepaid, with return receipt requested. 
Mailed notices shall be addressed as follows:

 

10

 

a.                                       If to the Company:

 

IHOP Corp.

450 N. Brand Boulevard

Glendale, CA 91410

Attn:  General
Counsel

 

b.                                      If to the Executive:

 

Mr. John F. Tierney

7131 East Berneil Lane

Paradise Valley, AZ 85253

 

Either party may change its address for notice by giving notice in
accordance with the terms of this Section 18.

 

20.                                 General Provisions.

 

a.                                       Law Governing.  This Agreement
shall be governed by and construed in accordance with the laws of the State of
California.

 

b.                                      Invalid Provisions.  If any
provision of this Agreement is held to be illegal, invalid, or unenforceable,
then such provision shall be fully severable and this Agreement shall be
construed and enforced as if such illegal, invalid, or unenforceable provision
had never comprised a part hereof; and the remaining provisions hereof shall
remain in full force and effect and shall not be affected by the illegal,
invalid, or unenforceable provision or by its severance herefrom.  Furthermore, in lieu of such illegal,
invalid, or unenforceable provision there shall be added automatically as a
part of this Agreement a provision as similar in terms to such illegal, invalid,
or unenforceable provision as may be possible and still be legal, valid or
enforceable.

 

c.                                       Entire Agreement.  This Agreement
sets forth the entire understanding of the parties and supersedes all prior
agreements or understandings, whether written or oral, with respect to the
subject matter hereof and all agreements, acknowledgments, designations and
directions of the Executive made or given under any Company policy statement or
benefit program.  No terms, conditions,
warranties, other than those contained herein, and no amendments or modifications
hereto shall be binding unless made in writing and signed by the parties
hereto.

 

d.                                      Binding Effect.  This Agreement
shall extend to and be binding upon and inure to the benefit to the parties
hereto, their respective heirs, representatives, successors and assigns.  This Agreement may not be assigned by the
Executive, but may be assigned by the Company to any person or entity that
succeeds to the ownership or operation of the business in which the Executive is
primarily employed by the Company.

 

e.                                       Waiver.  The waiver by
either party hereto of a breach of any term or provision of this Agreement
shall not operate or be construed as a waiver of a subsequent 

 

11

 

breach of the same provision by any party or of the
breach of any other term or provision of this Agreement.

 

f.                                         Titles.  Titles of the
paragraphs herein are used solely for convenience and shall not be used for
interpretation or construing any work, clause, paragraph, or provision of this
Agreement.

 

g.                                      Counterparts.  This Agreement
may be executed in two or more counterparts, each of which shall be deemed an
original, but which together shall constitute one and the same instrument.

 

h.                                      Compliance with IRC Section 409A.  
The following provisions shall apply to this Agreement with respect to Section 409A
of the Code:

 

(i)                                     The lump sum cash severances payments
which are payable under clause (i) of subsection f. of Section 14 and
under subsection a. of Section 14 are intended to satisfy the short-term
deferral exemption under Treasury Regulation Section 1.409A-1(b)(4) and
shall be made not later than the last day of the applicable two and one-half
month period with respect to such payment, within the meaning of Treasury
Regulation Section 1.409A-1(b)(4).

 

(ii)  If any provision
of this Agreement (or of any award of compensation, including equity
compensation or benefits) would cause Executive to incur any additional tax or
interest under Section 409A of the Code or any regulations or Treasury
guidance promulgated thereunder, the Company shall, after consulting with
Executive, reform such provision to comply with Section 409A of the Code,
provided that the Company agrees to maintain, to the maximum extent
practicable, the original intent and economic benefit Executive of the
applicable provision without violating the provisions of Section 409A of
the Code.

 

(iii)  Notwithstanding any provision to the
contrary in this subsection h., if Executive is deemed on the Termination Date
to be a “specified employee” within the meaning of that term under Section 409A(a)(2)(B) of
the Code, then with regard to any payment or the provision of any benefit that
is required to be delayed in compliance with section 409A(a)(2)(B) of the
Code such payment or benefit shall not be made or provided (subject to the last
sentence hereof) prior to the earlier of (A) the expiration of the six
(6)-month period measured from the date of the Executive’s “separation from
service” (as such term is defined under Section 409A of the Code) or (B) the
date of the Executive’s death (the “Delay Period”).  Upon the expiration of the Delay Period, all
payments and benefits delayed pursuant to this section (whether they would have
otherwise been payable in a single sum or in installments in the absence of
such delay) shall be paid or reimbursed Executive in a lump sum, and any
remaining payments and benefits due under this Agreement shall be paid or
provided in accordance with the normal payment dates specified for them herein.  Notwithstanding the foregoing, to the extent
that the foregoing applies to the provision of any ongoing welfare benefits to
Executive that would not be required to be delayed if the premiums therefore
were paid by Executive, Executive shall pay the full cost of premiums for such
welfare benefits during the Delay Period and the Company shall pay Executive an
amount equal to the amount of such premiums paid by Executive during the Delay
Period promptly after its conclusion.

 

12

 

IN WITNESS WHEREOF, the Company and the Executive have executed this
Agreement as of the date and year first above written.

 

THIS AGREEMENT CONTAINS AN ARBITRATION CLAUSE.

 

 

	
  EXECUTIVE:

  	
   

  	
  DineEquity, Inc.:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ John F. Tierney

  	
   

  	
  By:

  	
  /s/ John Jakubek

  
	
   

  	
   

  	
   

  	
  John Jakubek

  
	
   

  	
   

  	
   

  	
  Senior Vice President, Human Resources

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Mark D. Weisberger

  
	
   

  	
   

  	
   

  	
  Mark D. Weisberger

  
	
   

  	
   

  	
   

  	
  Vice President - Legal 

  
	
   

  	
   

  	
   

  	
  Secretary and General Counsel

  

 

13

 

Exhibit A – Executive’s Authorities
and Duties

 

During the Employment Period, (A) the Executive shall serve as
Chief Financial Officer of the Company, reporting directly to the CEO, with
duties, authorities and responsibilities commensurate with such title and
office and (B) the Executive’s services shall be performed at the Company’s
headquarters Glendale, California.

 

Executive will lead all aspects of the Finance function. He will be
expected to:

 

·                                          Maintain the company’s fiscal integrity.

 

·                                          Build and direct a first-class finance
team utilizing the requisite systems and processes to support both corporate
and business unit activities. This will include selection, development,
appraisal, and compensation of all finance employees.

 

·                                          Oversee a forward-looking financial
planning and analysis capability throughout the corporation, with regular
communication between operating leaders and the finance team.

 

·                                          Provide strong oversight of financial
controls, measurements, and systems.

 

·                                          Serve as a key participant/principal
thinker in charting and implementing the company’s strategic plan, including
continued domestic and international growth.

 

·                                          Partner with the Chief Executive Officer
and other senior officers of the Executive Team.

 

·                                          In concert with the Chief Executive
Officer and Executive Team, act as a catalyst for the cultural change necessary
to support the change initiatives of the company.

 

·                                          Develop and prioritize capitalization
strategies and manage the overall balance sheet.

 

·                                          Interface with the Institutional and
Capital Markets.

 

·                                          Interface with the Audit Committee on a
required basis and as needed, the Board of Directors.

 

·                                          Partner with the CEO for regular
interaction with Wall Street.

 

·                                          Provide support to the franchisees in
each business unit (i.e., analytics, financing, etc.).

 

14

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