Document:

exv10w69

 

EXHIBIT 10.69

ATRIUM CORPORATION,

as Issuer

AND

U.S. Bank National Association,

as successor Trustee

FIRST SUPPLEMENTAL INDENTURE

DATED AS OF May 5, 2003

TO THE

AMENDED AND RESTATED INDENTURE

DATED AS OF JUNE 29, 2001

$39,237,500

15% SENIOR PAY-IN-KIND NOTES DUE 2010, SERIES B

 

 

FIRST SUPPLEMENTAL INDENTURE, dated as of May 5, 2003 (the “First Supplement”),
by and between ATRIUM CORPORATION (the “Company”), as Issuer, and U.S. Bank,
National Association as successor to STATE STREET BANK AND TRUST COMPANY, as
Trustee (the “Trustee”).

Capitalized terms not otherwise defined herein shall have the meanings set
forth in the Amended and Restated Indenture, dated as of June 29, 2001 (the
“Indenture”), by and between the Company and the State Street Bank and Trust
Company as original Trustee.

RECITALS:

WHEREAS, pursuant to Section 9.02 of the Indenture, the Company desires to
amend the Indenture to permit the repurchase of certain equity securities of
the Company from officers, directors and employees of the Company.

NOW THEREFORE:

	1.	 	Pursuant to Section 9.02 of the Indenture, the parties hereby agree to
amend Section 10.14(b)(iii) of the Indenture by deleting the text thereof
in its entirety and substituting the following in its place:

			
	 	(iii)	so long as no Default has occurred and is continuing and would
result therefrom, payment (A) in amounts and at the times necessary to
permit the Company to purchase, redeem, acquire, cancel or otherwise
retire for value Capital Stock of the Company, in each case held by
officers, directors or employees of the Company or any of its
Subsidiaries, upon, in connection with or following death, disability,
retirement, severance or termination of employment or service or pursuant
to any agreement under which such Capital Stock was issued, (B) to enable
the Company to redeem or repurchase stock purchase or similar rights in
respect of its Capital Stock or (C) to enable the Company to make cash
payments to holders of its Capital Stock in lieu of the issuance of
fractional shares of its Capital Stock; PROVIDED, HOWEVER, that the
amount of such payments pursuant to subclauses (A), (B) and (C) of this
clause (iii) after the Issue Date does not exceed $7.5. million.

	2.	 	Nothing contained herein shall be deemed or construed to relieve any
party to the Indenture of its obligations thereunder as in effect
immediately prior to the effectiveness of this First Supplement or the
impair any of such obligations in any way and, except to the extent the
Indenture is amended hereby, the Indenture shall remain in full force and
effect and each of the parties hereto hereby confirms all the terms and
provisions of the Indenture as amended hereby.
	 
	3.	 	This First Supplement may be executed in counterparts, each of which
shall be deemed an original, but all of which shall together constitute
one and the same instrument.
	 
	4.	 	This First Supplement shall be governed by, and construed in accordance
with, the laws of the State of New York, without giving effect to
applicable principles of conflict of laws thereunder.

1

 

	5.	 	The recitals contained in this First Supplemental Indenture shall be
taken as the statements of the Company and the Guarantors, and the Trustee
assumes no responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this First
Supplemental Indenture.

IN WITNESS WHEREOF, the parties have caused this First Supplement to the
Indenture to be duly executed and attested as of the date and year first
written above.

	 	 	 	 	 
	 	 	ATRIUM CORPORATION
	 	 	 	 	 
	 	 	 	 	 
	 	 	
By:
	 	/s/ Jeff L. Hull
	 	 	 	 	

	 	 	 	 	Name: Jeff L. Hull

Title: President and Chief Executive Officer

[SIGNATURE PAGE FOLLOWS]

2

 

	 	 	 	 	 
	 	 	US BANK, NATIONAL ASSOCIATION, as successor Trustee
	 	 	 	 	 
	 	 	 	 	 
	 	 	
By:
	 	/s/ Mark Forgetta
	 	 	 	 	

	 	 	 	 	Name: Mark Forgetta

Title: Vice-President

3exv4w01

Table of Contents

EXHIBIT 4.01

CREDIT AGREEMENT

among

NORTHERN STATES POWER COMPANY;

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Administrative Agent;

BANK ONE, NA,

as Syndication Agent;

and

THE OTHER FINANCIAL INSTITUTIONS PARTY HERETO

Closing Date: May 16, 2003

$275,000,000 Revolving Credit Facility

WELLS FARGO BANK, NATIONAL ASSOCIATION

and

BANC ONE CAPITAL MARKETS, INC.,

Co-Lead Arrangers

 

TABLE OF CONTENTS

									
	ARTICLE I Definitions
		Section 1.1 Definitions
		Section 1.2 Times
	ARTICLE II Amount and Terms of the Loans and Letters of Credit
		Section 2.1 Committed Advances
		Section 2.2 Procedure for Making Advances
		Section 2.3 Interest
		Section 2.4 Limitation of Outstandings
		Section 2.5 Principal and Interest Payment Dates
		Section 2.6 Level Status and Margins
		Section 2.7 Letters of Credit
		Section 2.8 Facility and Utilization Fees
		Section 2.9 Other Fees
		Section 2.10 Termination or Reduction of the Commitment
		Section 2.11 Voluntary Prepayments
		Section 2.12 Computation of Interest and Fees
		Section 2.13 Payments
		Section 2.14 Payment on Nonbusiness Days
		Section 2.15 Use of Advances and Letters of Credit
		Section 2.16 Yield Protection; Funding Indemnification
		Section 2.17 Taxes
		Section 2.18 Capital Adequacy
		Section 2.19 Extension of Termination Date
		Section 2.20 Mandatory Assignment of Bank’s Interest
	ARTICLE III Conditions Precedent
		Section 3.1 Conditions to Effectiveness
		Section 3.2 Initial Conditions Precedent
	ARTICLE IV Representations and Warranties
		Section 4.1 Corporate Existence and Power
		Section 4.2 Authorization of Borrowing; No Conflict as to Law or Agreements
		Section 4.3 Legal Agreements
		Section 4.4 Subsidiaries
		Section 4.5 Financial Condition
		Section 4.6 Adverse Change
		Section 4.7 Litigation
		Section 4.8 Hazardous Substances
		Section 4.9 Regulation U
		Section 4.10 Taxes
		Section 4.11 Burdensome Restrictions
		Section 4.12 Titles and Liens
		Section 4.13 ERISA
		Section 4.14 Securities Law Matters
		Section 4.15 Investment Company Act
		Section 4.16 Public Utility Holding Company Act
		Section 4.17 Indenture
		Section 4.18 Authentication of Bonds
		Section 4.19 Solvency
		Section 4.20 Swap Obligations
		Section 4.21 Insurance
		Section 4.22 Compliance With Laws
	ARTICLE V Affirmative Covenants of the Borrower
		Section 5.1 Financial Statements
		Section 5.2 Books and Records; Inspection and Examination
		Section 5.3 Compliance with Laws
		Section 5.4 Payment of Taxes and Other Claims
		Section 5.5 Maintenance of Properties
		Section 5.6 Insurance
		Section 5.7 Preservation of Corporate Existence
		Section 5.8 Delivery of Information
		Section 5.9 Use of Proceeds
	ARTICLE VI Negative Covenants
		Section 6.1 Liens
		Section 6.2 Dividends
		Section 6.3 Sale of Assets
		Section 6.4 Consolidation and Merger
		Section 6.5 Hazardous Substances
		Section 6.6 Restrictions on Nature of Business
		Section 6.7 Transactions with Affiliates
		Section 6.8 Ratio of Funded Debt to Total Capital
		Section 6.9 Interest Coverage Ratio
		Section 6.10 Securities Laws
	ARTICLE VII Events of Default, Rights and Remedies
		Section 7.1 Events of Default
		Section 7.2 Rights and Remedies
		Section 7.3 Pledge of Cash Collateral Account
	ARTICLE VIII The Agent
		Section 8.1 Authorization
		Section 8.2 Distribution of Payments and Proceeds
		Section 8.3 Expenses
		Section 8.4 Payments Received Directly by Banks
		Section 8.5 Indemnification
		Section 8.6 Exculpation
		Section 8.7 Agent and Affiliates
		Section 8.8 Credit Investigation
		Section 8.9 Resignation
		Section 8.10 Assignments
		Section 8.11 Participations
		Section 8.12 Limitation on Assignments and Participations
		Section 8.13 Disclosure of Information
		Section 8.14 Titles
		Section 8.15 Agent not Offering Bonds
	ARTICLE IX Miscellaneous
		Section 9.1 No Waiver; Cumulative Remedies
		Section 9.2 Amendments, Etc
		Section 9.3 Notice
		Section 9.4 Costs and Expenses
		Section 9.5 Indemnification by Borrower
		Section 9.6 Execution in Counterparts
		Section 9.7 Binding Effect, Assignment
		Section 9.8 Governing Law
		Section 9.9 Severability of Provisions
		Section 9.10 Consent to Jurisdiction
		Section 9.11 Waiver of Jury Trial
		Section 9.12 Prior Agreements
		Section 9.13 General Release
		Section 9.14 Recalculation of Covenants Following Accounting Practices Change
		Section 9.15 Headings
		Section 9.16 Nonliability of Banks
	EX-4.01 Credit Agreement
	EX-4.02 Credit Agreement
	EX-4.03 Credit Agreement
	EX-4.04 Credit Agreement
	EX-31.01 Certification to Sec. 302 - NSP-Minnesota
	EX-31.02 Certification to Sec. 302 - NSP-Wisconsin
	EX-31.03 Certification to Sec. 302 - PSCo
	EX-31.04 Certification to Sec. 302 - SPS
	EX-32.01 Certification to Sec. 906 - NSP-Minnesota
	EX-32.02 Certification to Sec. 906 - NSP-Wisconsin
	EX-32.03 Certification to Sec. 906 - PSCo
	EX-32.04 Certification to Sec. 906 - SPS
	EX-99.01 Statement-Securities Litigation Reform

Table of Contents

TABLE OF CONTENTS

	 	 	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	 	Section 1.1 Definitions
	 	 	1	 
	 	Section 1.2 Times
	 	 	13	 
	ARTICLE II AMOUNT AND TERMS OF THE LOANS AND LETTERS OF CREDIT
	 	 	13	 
	 	Section 2.1 Committed Advances
	 	 	13	 
	 	Section 2.2 Procedure for Making Advances
	 	 	13	 
	 	Section 2.3 Interest
	 	 	14	 
	 	Section 2.4 Limitation of Outstandings
	 	 	15	 
	 	Section 2.5 Principal and Interest Payment Dates
	 	 	16	 
	 	Section 2.6 Level Status and Margins
	 	 	16	 
	 	Section 2.7 Letters of Credit
	 	 	17	 
	 	Section 2.8 Facility and Utilization Fees
	 	 	19	 
	 	Section 2.9 Other Fees
	 	 	20	 
	 	Section 2.10 Termination or Reduction of the Commitment
	 	 	20	 
	 	Section 2.11 Voluntary Prepayments
	 	 	20	 
	 	Section 2.12 Computation of Interest and Fees
	 	 	20	 
	 	Section 2.13 Payments
	 	 	20	 
	 	Section 2.14 Payment on Nonbusiness Days
	 	 	21	 
	 	Section 2.15 Use of Advances and Letters of Credit
	 	 	21	 
	 	Section 2.16 Yield Protection; Funding Indemnification
	 	 	21	 
	 	Section 2.17 Taxes.
	 	 	22	 
	 	Section 2.18 Capital Adequacy
	 	 	24	 
	 	Section 2.19 Extension of Termination Date
	 	 	25	 
	 	Section 2.20 Mandatory Assignment of Bank’s Interest
	 	 	26	 
	ARTICLE III CONDITIONS PRECEDENT
	 	 	26	 
	 	Section 3.1 Initial Conditions Precedent
	 	 	27	 
	 	Section 3.2 Conditions Precedent to All Advances and Letters of Credit
	 	 	28	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES
	 	 	28	 
	 	Section 4.1 Corporate Existence and Power
	 	 	28	 
	 	Section 4.2 Authorization of Borrowing; No Conflict as to Law or Agreements
	 	 	28	 
	 	Section 4.3 Legal Agreements
	 	 	29	 
	 	Section 4.4 Subsidiaries
	 	 	30	 
	 	Section 4.5 Financial Condition
	 	 	30	 
	 	Section 4.6 Adverse Change
	 	 	30	 
	 	Section 4.7 Litigation
	 	 	30	 
	 	Section 4.8 Hazardous Substances
	 	 	30	 
	 	Section 4.9 Regulation U
	 	 	31	 
	 	Section 4.10 Taxes
	 	 	31	 
	 	Section 4.11 Burdensome Restrictions
	 	 	31	 
	 	Section 4.12 Titles and Liens
	 	 	31	 
	 	Section 4.13 ERISA
	 	 	32	 

 

Table of Contents

	 	 	 	 	 	 
	 	Section 4.14 Securities Law Matters
	 	 	32	 
	 	Section 4.15 Investment Company Act
	 	 	33	 
	 	Section 4.16 Public Utility Holding Company Act
	 	 	33	 
	 	Section 4.17 Indenture
	 	 	33	 
	 	Section 4.18 Authentication of Bonds
	 	 	34	 
	 	Section 4.19 Solvency
	 	 	34	 
	 	Section 4.20 Swap Obligations
	 	 	34	 
	 	Section 4.21 Insurance
	 	 	34	 
	 	Section 4.22 Compliance With Laws
	 	 	34	 
	ARTICLE V AFFIRMATIVE COVENANTS OF THE BORROWER
	 	 	34	 
	 	Section 5.1 Financial Statements
	 	 	34	 
	 	Section 5.2 Books and Records; Inspection and Examination
	 	 	36	 
	 	Section 5.3 Compliance with Laws
	 	 	37	 
	 	Section 5.4 Payment of Taxes and Other Claims
	 	 	37	 
	 	Section 5.5 Maintenance of Properties
	 	 	37	 
	 	Section 5.6 Insurance
	 	 	37	 
	 	Section 5.7 Preservation of Corporate Existence
	 	 	37	 
	 	Section 5.8 Delivery of Information
	 	 	38	 
	 	Section 5.9 Use of Proceeds
	 	 	38	 
	ARTICLE VI NEGATIVE COVENANTS
	 	 	38	 
	 	Section 6.1 Liens
	 	 	38	 
	 	Section 6.2 Dividends
	 	 	40	 
	 	Section 6.3 Sale of Assets
	 	 	40	 
	 	Section 6.4 Consolidation and Merger
	 	 	40	 
	 	Section 6.5 Hazardous Substances
	 	 	41	 
	 	Section 6.6 Restrictions on Nature of Business
	 	 	41	 
	 	Section 6.7 Transactions with Affiliates
	 	 	41	 
	 	Section 6.8 Ratio of Funded Debt to Total Capital
	 	 	42	 
	 	Section 6.9 Interest Coverage Ratio
	 	 	42	 
	 	Section 6.10 Securities Laws
	 	 	42	 
	ARTICLE VII EVENTS OF DEFAULT, RIGHTS AND REMEDIES
	 	 	42	 
	 	Section 7.1 Events of Default
	 	 	42	 
	 	Section 7.2 Rights and Remedies
	 	 	45	 
	 	Section 7.3 Pledge of Cash Collateral Account
	 	 	46	 
	ARTICLE VIII THE AGENT
	 	 	47	 
	 	Section 8.1 Authorization
	 	 	47	 
	 	Section 8.2 Distribution of Payments and Proceeds
	 	 	47	 
	 	Section 8.3 Expenses
	 	 	48	 
	 	Section 8.4 Payments Received Directly by Banks
	 	 	48	 
	 	Section 8.5 Indemnification
	 	 	48	 
	 	Section 8.6 Exculpation
	 	 	49	 
	 	Section 8.7 Agent and Affiliates
	 	 	49	 
	 	Section 8.8 Credit Investigation
	 	 	50	 

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Table of Contents

	 	 	 	 	 	 
	 	Section 8.9 Resignation
	 	 	50	 
	 	Section 8.10 Assignments
	 	 	50	 
	 	Section 8.11 Participations
	 	 	54	 
	 	Section 8.12 Limitation on Assignments and Participations
	 	 	54	 
	 	Section 8.13 Disclosure of Information
	 	 	54	 
	 	Section 8.14 Titles
	 	 	55	 
	 	Section 8.15 Agent not Offering Bonds
	 	 	55	 
	ARTICLE IX MISCELLANEOUS
	 	 	55	 
	 	Section 9.1 No Waiver; Cumulative Remedies
	 	 	55	 
	 	Section 9.2 Amendments, Etc.
	 	 	56	 
	 	Section 9.3 Notice
	 	 	57	 
	 	Section 9.4 Costs and Expenses
	 	 	57	 
	 	Section 9.5 Indemnification by Borrower
	 	 	57	 
	 	Section 9.6 Execution in Counterparts
	 	 	58	 
	 	Section 9.7 Binding Effect, Assignment
	 	 	58	 
	 	Section 9.8 Governing Law
	 	 	58	 
	 	Section 9.9 Severability of Provisions
	 	 	58	 
	 	Section 9.10 Consent to Jurisdiction
	 	 	58	 
	 	Section 9.11 Waiver of Jury Trial
	 	 	59	 
	 	Section 9.12 Prior Agreements
	 	 	59	 
	 	Section 9.13 General Release
	 	 	59	 
	 	Section 9.14 Recalculation of Covenants Following Accounting Practices Change
	 	 	59	 
	 	Section 9.15 Headings
	 	 	59	 
	 	Section 9.16 Nonliability of Banks
	 	 	60	 

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Table of Contents

CREDIT AGREEMENT

Dated as of May 16, 2003

Northern States Power Company, a Minnesota corporation; the Banks, as defined
below; and Wells Fargo Bank, National Association, a national banking
association, as administrative agent for the Banks; agree as follows:

ARTICLE I

Definitions

Section 1.1 Definitions.

For all purposes of this Agreement, except as otherwise expressly provided or
unless the context otherwise requires, the terms defined in this Article have
the meanings assigned to them in this Article, and include the plural as well
as the singular.

		
	 	     “Accounting Practices Change” means any change in the Borrower’s
accounting practices that is permitted or required under the standards of
the Financial Accounting Standards Board.

		
	 	     “Acquisition Target” means any Person becoming a Subsidiary of the
Borrower after the date hereof; any Person that is merged into or
consolidated with the Borrower or any Subsidiary of the Borrower after
the date hereof; or any Person with respect to whom all or a substantial
part of that Person’s assets are acquired by the Borrower or any
Subsidiary of the Borrower after the date hereof.

		
	 	     “Act” means the Securities Act of 1933, as amended.
	 
	 	     “Additional Bank” means a financial institution that becomes a Bank
pursuant to the procedures set forth in Section 8.10.
	 
	 	     “Advance” means an advance by the Banks to the Borrower pursuant to
Article II.
	 
	 	     “Affiliate” means, with respect to any Person, any other Person
directly or indirectly controlling, controlled by, or under common
control with such Person. A Person shall be deemed to control another
Person if the controlling Person owns 25% or more of the voting
securities (or other ownership interests) of the controlled Person or
possesses, directly or indirectly, the power to direct or cause the
direction of the management or policies of the controlled Person, whether
through ownership of stock, by contract or otherwise.
	 
	 	     “Agent” means Wells Fargo acting in its capacity as administrative
agent for itself and the other Banks hereunder.

 

Table of Contents

		
	 	     “Agreement” means this Credit Agreement, as it may be amended,
modified or restated from time to time in accordance with Section 9.2.
	 
	 	     “Assignment Certificate” has the meaning set forth in Section 8.10.
	 
	 	     “Authorizing Order” means any order of the MPUC or any other
regulatory body having jurisdiction over the Borrower or the Parent
authorizing and/or restricting the indebtedness that may be created from
time to time hereunder (whether on account of Advances, Letters of Credit
or otherwise) or under the Bonds.
	 
	 	     “Banks” means Wells Fargo, acting on its own behalf and not as
Agent, each of the undersigned banks and any financial institution that
becomes a Bank pursuant to the procedures set forth in Section 8.10,
collectively.
	 
	 	     “Base Rate” means, at any time, the greater of:

	 	(a)	 	the Prime Rate,
	 
	 	or	 	 
	 
	 	(b)	 	the Federal Funds Rate, plus 50 basis points (0.50%).

		
	 	     “Bonds” means the First Mortgage Bonds, Series due 2004, extendible
through 2006, issued under the First Mortgage Indenture.
	 
	 	     “Borrower” means Northern States Power Company, a Minnesota
corporation and a party to this Agreement.
	 
	 	     “Borrowing” means a borrowing under Article II consisting of
Advances made to the Borrower at the same time by each of the Banks
severally.
	 
	 	     “Business Day” means (i) with respect to any borrowing, payment or
rate selection of Eurodollar Rate Fundings, a day (other than a Saturday
or Sunday) on which banks generally are open in Minnesota and New York
for the conduct of substantially all of their commercial lending
activities, interbank wire transfers can be made on the Fedwire system
and dealings in United States dollars are carried on in the London
interbank market and (ii) for all other purposes, a day (other than a
Saturday or Sunday) on which banks generally are open in Minnesota and
New York for the conduct of substantially all of their commercial lending
activities and interbank wire transfers can be made on the Fedwire
system.
	 
	 	     “Capitalized Lease” means any lease that in accordance with GAAP
should be capitalized on the balance sheet of the lessee thereunder.
	 
	 	     “Cash Collateral Account” means an interest-bearing account
maintained with the Agent in which funds are deposited pursuant to
Section 2.7(g) or Section 7.2(c).

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	 	     “Change of Control” means, with respect to any corporation, either
(i) the acquisition by any “person” or “group” (as those terms are used
in Sections 13(d) and 14(d) of the Exchange Act) of beneficial ownership
(as defined in Rules 13d-3 and 13d-5 of the SEC, except that a Person
shall be deemed to have beneficial ownership of all securities that such
Person has the right to acquire, whether such right is exercisable
immediately or only after the passage of time), directly or indirectly,
of 25% or more of the then-outstanding voting capital stock of such
corporation; or (ii) a change in the composition of the board of
directors of such corporation or any corporate parent of such corporation
such that continuing directors cease to constitute more than 50% of such
board of directors. As used in this definition, “continuing directors”
means, as of any date, (i) those members of the board of directors of the
applicable corporation who assumed office prior to such date, and (ii)
those members of the board of directors of the applicable corporation who
assumed office after such date and whose appointment or nomination for
election by that corporation’s shareholders was approved by a vote of at
least 50% of the directors of such corporation in office immediately
prior to such appointment or nomination.
	 
	 	     “Commitment” means, with respect to each Bank, that Bank’s
commitment to make Advances and participate in Letters of Credit pursuant
to Article II.
	 
	 	     “Commitment Amount” means, with respect to each Bank, the amount set
forth opposite that Bank’s name in Exhibit A or on any Assignment
Certificate, unless said amount is reduced pursuant to Section 2.10 or
2.19, in which event it means the amount to which said amount is reduced.
	 
	 	     “Commitment Termination Date” means May 14, 2004, or such later date
as may be established pursuant to Section 2.19, or the earlier date of
termination in whole of the Commitments pursuant to Section 2.10 or 7.2;
provided, however, that the Commitment Termination Date of any declining
Bank under Section 2.19 shall be the Commitment Terminate Date in effect
at the time of any extension request pursuant to such section.
	 
	 	     “Compliance Certificate” means a certificate in substantially the
form of Exhibit C, or such other form as the Borrower and the Banks may
from time to time agree upon in writing, executed by the chief financial
officer or treasurer of the Borrower, (i) setting forth relevant facts in
reasonable detail the computations as to whether or not the Borrower is
in compliance with the requirements set forth in Sections 6.8 and 6.9,
(ii) stating that the financial statements delivered therewith have been
prepared in accordance with GAAP, subject, in the case of interim
financial statements, to year-end audit adjustments, and (iii) stating
whether or not such officer has knowledge of the occurrence of any
Default or Event of Default hereunder not theretofore reported or
remedied and, if so, stating in reasonable detail the facts with respect
thereto.

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	 	     “Default” means an event that, with the giving of notice, the
passage of time or both, would constitute an Event of Default.
	 
	 	     “EBIT” means, with respect to any period:

	 	 	 	 	 
	 	(i)	 	 	(A) the after-tax net income of the Borrower and
its Subsidiaries for such period, determined on a consolidated
basis in accordance with GAAP, excluding (B) non-operating
gains and losses (including extraordinary or unusual gains and
losses, gains and losses from discontinuance of operations,
gains and losses arising from the sale of assets other than
inventory, and other non-recurring gains and losses)
	 	 	 	 	 
	 	
plus	 	 	 
	 	 	 	 	 
	 	(ii)	 	 	the sum of the following to the extent deducted
in arriving at the after-tax net income determined in clause
(i)(A) of this definition (but without duplication for any
item):

	 	 	 	 	 
	 	 	
(A)
	 	Interest Expense, and
	 	 	 	 	 
	 	 	
(B)
	 	income tax expense of the Borrower
and its Subsidiaries.

		
	 	     “Effective Date” means the first date on or after the date hereof on
which all conditions set forth in Section 3.1 have been satisfied.
	 
	 	     “Eligible Lender” means (a) a financial institution organized under
the laws of the United States, or any state thereof, and having a
combined capital and surplus of at least $250,000,000; (b) a commercial
bank organized under the laws of any other country which is a member of
the Organization for Economic Cooperation and Development, or a political
subdivision of any such country, and having a combined capital and
surplus of at least $250,000,000, provided that such bank is acting
through a branch or agency located in the United States; or (c) a person
controlled by, controlling, or under common control with any entity
identified in clause (a) or (b) above.
	 
	 	     “Environmental Law” means the Comprehensive Environmental Response,
Compensation and Liability Act, 42 U.S.C. § 9601 et seq., the Resource
Conservation and Recovery Act, 42 U.S.C. § 6901 et seq., the Hazardous
Materials Transportation Act, 49 U.S.C. § 1802 et seq., the Toxic
Substances Control Act, 15 U.S.C. § 2601 et seq., the Federal Water
Pollution Control Act, 33 U.S.C. § 1252 et seq., the Clean Water Act, 33
U.S.C. § 1321 et seq., the Clean Air Act, 42 U.S.C. § 7401 et seq., and
any other federal, state, county, municipal, local or other statute, law,
ordinance or regulation which may relate to or deal with human health or
the environment, all as may be from time to time amended.

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Table of Contents

		
	 	     “ERISA” means the Employee Retirement Income Security Act of 1974,
as amended.
	 
	 	     “ERISA Affiliate” means any trade or business (whether or not
incorporated) that is, along with the Borrower, a member of a controlled
group of corporations or a controlled group of trades or businesses, as
described in sections 414(b) and 414(c), respectively, of the Internal
Revenue Code of 1986, as amended.
	 
	 	     “Eurodollar Base Rate” means, with respect to any Interest Period,
the rate per annum which appears on Reuters Screen FRBD as of
approximately 11:00 a.m. London time on the date two Business Days before
the commencement of such Interest Period as the rate at which dollar
deposits in immediately available funds are offered on the London
interbank dollar market; provided, however, that if such page is no
longer available, the Eurodollar Base Rate shall be determined by the
Agent on the basis of a substantially comparable source selected by the
Agent and acceptable to the Required Banks.
	 
	 	     “Eurodollar Rate” means the annual rate equal to the sum of (i) the
rate obtained by dividing (a) the applicable Eurodollar Base Rate
(rounded up to the nearest 1/8 of 1%) for funds to be made available on
the first day of any Interest Period in an amount approximately equal to
the amount for which a Eurodollar Rate has been requested and maturing at
the end of such Interest Period, by (b) a percentage equal to 100% minus
the Federal Reserve System reserve requirement (expressed as a
percentage) imposed under Regulation D on Eurocurrency liabilities, and
(ii) the Eurodollar Rate Margin.
	 
	 	     “Eurodollar Rate Funding” means any Borrowing, or any portion of the
principal balance of the Notes, bearing interest at a Eurodollar Rate.
	 
	 	     “Eurodollar Rate Margin” means a percentage, determined as set forth
in Section 2.6.
	 
	 	     “Event of Default” has the meaning specified in Section 7.1.
	 
	 	     “Exchange Act” means the Securities Exchange Act of 1934, as
amended.
	 
	 	     “Facility Fee Rate” means a percentage, determined as set forth in
Section 2.6.
	 
	 	     “Federal Funds Rate” means at any time an interest rate per annum
equal to the weighted average of the rates for overnight federal funds
transactions with members of the Federal Reserve System arranged by
federal funds brokers, as published for such day by the Federal Reserve
Bank of New York, or, if such rate is not so published for any day which
is a Business Day, the average of the quotations for such day for such
transactions received by the Agent from three federal funds brokers of
recognized standing selected by it, it being understood that the Federal

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	 	Funds Rate for any day which is not a Business Day shall be the Federal Funds Rate
for the next preceding Business Day.
	 
	 	     “Fee Letters” means one or more separate agreements between the
Borrower and the Agent, setting forth the terms of certain fees to be
paid by the Borrower to the Agent for the Agent’s own behalf or for the
benefit of the Banks, as more fully set forth therein.
	 
	 	     “First Mortgage Bonds” means any bonds issued pursuant to the First
Mortgage Indenture.
	 
	 	     “First Mortgage Indenture” or “Indenture” means the First Mortgage
Bond Indenture dated as of February 1, 1937 between the Borrower (by
assignment from the Parent) and the Trustee, as previously amended and
supplemented (including by the Restated Indenture and by the Supplemental
Trust Indenture dated as of May 1, 2003) and as it may be amended and/or
supplemented from time to time.
	 
	 	     “Floating Rate” means an annual rate equal to the Base Rate, plus
the Floating Rate Margin, which rate shall change when and as the Base
Rate or any component of the Floating Rate Margin changes.
	 
	 	     “Floating Rate Funding” means any Borrowing, or any portion of the
principal balance of the Notes, bearing interest at the Floating Rate.
	 
	 	     “Floating Rate Margin” means a percentage, determined as set forth
in Section 2.6.
	 
	 	     “Funded Debt” of any Person means (without duplication) (i) all
indebtedness of such Person for borrowed money; (ii) the deferred and
unpaid balance of the purchase price owing by such Person on account of
any assets or services purchased (other than trade payables and other
accrued liabilities incurred in the ordinary course of business that are
not overdue by more than 180 days unless being contested in good faith)
if such purchase price is (A) due more than nine months from the date of
incurrence of the obligation in respect thereof or (B) evidenced by a
note or a similar written instrument; (iii) all Capitalized Lease
obligations; (iv) all indebtedness secured by a Lien on any property
owned by such Person, whether or not such indebtedness has been assumed
by such Person or is nonrecourse to such Person; (v) notes payable and
drafts accepted representing extensions of credit whether or not
representing obligations for borrowed money (other than such notes or
drafts for the deferred purchase price of assets or services to the
extent such purchase price is excluded from clause (ii) above); (vi)
indebtedness evidenced by bonds, notes or similar written instrument;
(vii) the face amount of all letters of credit and bankers’ acceptances
issued for the account of such Person, and without duplication, all
drafts drawn thereunder (other than such letters of credit, bankers’
acceptances and drafts for the deferred purchase price of assets or
services to the extent such purchase price is excluded from clause (ii)
above); (viii) net obligations of such Person under Swap

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	 	Contracts which constitute interest rate agreements or currency
agreements; (ix) guaranty obligations of such Person with respect to
indebtedness for borrowed money of another Person (including Affiliates);
(x) Off-Balance Sheet Liabilities; and (xi) in the case of the Borrower,
any amounts due under the TOPrS; provided, however, that in no event
shall any calculation of Funded Debt of the Borrower include (y) deferred
taxes, or (z) so long as the Bonds are held as security under the Pledge
Agreement and have not been sold or otherwise disposed of by foreclosure,
any obligation of the Borrower under the Bonds.
	 
	 	     “GAAP” means generally accepted accounting principles as in effect
from time to time applied on a basis consistent with the accounting
practices applied in the financial statements of the Borrower referred to
in Section 4.5, except for changes concurred in by Borrower’s independent
public accountants and disclosed in Borrower’s financial statements or
the notes thereto.
	 
	 	     “Hazardous Substance” means any asbestos, urea-formaldehyde,
polychlorinated biphenyls (“PCBs”), nuclear fuel or material, chemical
waste, radioactive material, explosives, known carcinogens, petroleum
products and by-products and other dangerous, toxic or hazardous
pollutants, contaminants, chemicals, materials or substances listed or
identified in, or regulated by, any Environmental Law.
	 
	 	     “Interest Coverage Ratio” means, as of the end of any fiscal quarter
of the Borrower, the ratio of (i) EBIT during the 4-quarter period ending
on that quarter-end, to (ii) Interest Expense during such period.
	 
	 	     “Interest Expense” means, with respect to any period, the aggregate
interest expense (including capitalized interest) of the Borrower and its
Subsidiaries (determined on a consolidated basis) for such period,
including but not limited to the interest portion of any Capitalized
Lease and interest expenses associated with the TOPrS; provided, however,
that the foregoing shall be adjusted to reflect only the net effect of
any interest rate swap, interest hedging transaction or other similar
arrangement entered into by the Borrower or any Subsidiary to reduce or
eliminate variations in its interest expenses.
	 
	 	     “Interest Period” means, with respect to any Advance bearing
interest at a Eurodollar Rate, a period of one, two, three or six months
beginning on a Business Day, as elected by the Borrower.
	 
	 	     “Investment Company Act” means the Investment Company Act of 1940,
as amended.
	 
	 	     “Issuing Bank” means Wells Fargo, acting as the Bank issuing Letters
of Credit.

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	 	     “L/C Amount” means the sum of (i) the aggregate face amount of any
issued and outstanding Letters of Credit, plus (ii) amounts drawn under
Letters of Credit for which the Banks have neither been reimbursed nor
made any Advance.
	 
	 	     “L/C Sublimit” means $50,000,000.
	 
	 	     “Letter of Credit” has the meaning set forth in Section 2.7.
	 
	 	     “Level Status” means Level I, Level II, Level III, Level IV or Level
V, each as determined pursuant to Section 2.6(a).
	 
	 	     “Lien” means any mortgage, deed of trust, lien, pledge, security
interest or other charge or encumbrance, of any kind whatsoever,
including but not limited to the interest of the lessor or titleholder
under any Capitalized Lease, title retention contract or similar
agreement.
	 
	 	     “Loan Documents” means this Agreement, the Notes, the Fee Letters
and the Pledge Agreement.
	 
	 	     “Material Adverse Change” means a material adverse change in the
business, condition (financial or otherwise), or operations of the
Borrower and its Subsidiaries taken as a whole.
	 
	 	     “Moody’s” means Moody’s Investors Service, Inc.
	 
	 	     “MPUC” means the Minnesota Public Utilities Commission.
	 
	 	     “Multiemployer Plan” means a “multiemployer plan” as defined in
Section 4001(a)(3) of ERISA.
	 
	 	     “Note” has the meaning set forth in Section 2.1.
	 
	 	     “Obligations” means each and every debt, liability and obligation of
every type and description arising under any of the Loan Documents which
the Borrower may now or at any time hereafter owe to any Bank or the
Agent, whether such debt, liability or obligation now exists or is
hereafter created or incurred, whether it is direct or indirect, due or
to become due, absolute or contingent, primary or secondary, liquidated
or unliquidated, or sole, joint, several or joint and several, including
but not limited to principal of and interest on the Notes and all fees
due under this Agreement, any Fee Letter or any other Loan Document.
	 
	 	     “Off-Balance Sheet Liability” of a Person means (i) any repurchase
obligation or liability of such Person with respect to accounts or notes
receivable sold by such Person, (ii) any liability under any Sale and
Leaseback Transaction which is not a Capitalized Lease, and (iii) all
Synthetic Lease Obligations of such Person.

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	 	     “Operating Lease” of a Person means any lease of Property (other
than a Capitalized Lease) by such Person as lessee.
	 
	 	     “Organizational Documents” means, (i) with respect to any
corporation, the articles of incorporation and bylaws of such
corporation, (ii) with respect to any partnership, the partnership
agreement of such partnership, (iii) with respect to any limited
liability company, the articles of organization and operating agreement
of such company, and (iv) with respect to any entity, any and all other
shareholder, partner or member control agreements and similar
organizational documents relating to such entity.
	 
	 	     “Outstandings” means, at any time, an amount equal to the sum of (i)
the aggregate principal balance of the Notes then outstanding, and (ii)
the L/C Amount then outstanding.
	 
	 	     “Outstandings Percentage” means, at any time, the ratio (expressed
as a percentage) of the aggregate Outstandings to the aggregate
Commitment Amounts.
	 
	 	     “Parent” means Xcel Energy Inc., a Minnesota corporation.
	 
	 	     “Participating Affiliate” means, (a) with respect to any Bank, (i)
an Affiliate of such Bank or (ii) any entity (whether a corporation,
partnership, trust or otherwise) that is engaged in making, purchasing,
holding or otherwise investing in bank loans and similar extensions of
credit in the ordinary course of its business and is administered or
managed by a Bank or an Affiliate of such Bank and (b) with respect to
any Bank that is a fund which invests in bank loans and similar
extensions of credit, any other fund that invests in bank loans and
similar extensions of credit and is managed by the same investment
advisor as such Bank or by an Affiliate of such investment advisor.
	 
	 	     “Percentage” means, with respect to each Bank, the ratio of (i) that
Bank’s Commitment Amount, to (ii) the aggregate Commitment Amounts of all
of the Banks. For purposes of this definition only, following the
Commitment Termination Date, each Bank’s Commitment Amount shall be
deemed to be the principal balance outstanding of that Bank’s Note.
	 
	 	     “Permitted Swap Obligations” means all obligations (contingent or
otherwise) of the Borrower or any Subsidiary thereof existing or arising
under Swap Contracts, provided that each of the following criteria is
satisfied: (a) such obligations are (or were) entered into by such
Person or its Subsidiaries in the ordinary course of business for the
purpose of directly mitigating risks associated with liabilities,
commitments or assets held or to be held by such Person, changes in the
value of securities issued by such Person or its Subsidiaries in
conjunction with a securities repurchase program not otherwise prohibited
hereunder, and not for purposes of speculation or taking a “market view;”
and (b) such Swap Contracts do not contain

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	 	any provision (“walk-away” provision) exonerating the non-defaulting
party from its obligations to make payments on outstanding transactions
to the defaulting party.
	 
	 	     “Person” means any individual, corporation, partnership, limited
liability company, joint venture, association, joint-stock company,
trust, unincorporated organization or government or any agency or
political subdivision thereof.
	 
	 	     “Plan” means an employee benefit plan or other plan established or
maintained by the Borrower or any Subsidiary or ERISA Affiliate and
covered by Title IV of ERISA.
	 
	 	     “Pledge Agreement” means the Borrower’s Security Agreement of even
date herewith, granting the Agent a security interest in the Bonds and
all proceeds thereof to secure the payment of the Notes and all other
present and future obligations of the Borrower to the Agent and the Banks
arising under or pursuant to this Agreement, together with all
amendments, modifications and restatements of such Security Agreement.
	 
	 	     “Prime Rate” means, at any time, the rate of interest most recently
announced within the Agent at its principal office as its “prime rate”
or, if the Agent ceases to announce a rate so designated, any similar
successor rate designated by the Agent. Such rate is one of the Agent’s
base rates and serves as the basis upon which effective rates of interest
are calculated for those loans making reference thereto, and is evidenced
by the recording thereof in such internal publication or publications as
the Agent may designate.
	 
	 	     “Prior Credit Agreement” means the Credit Agreement dated August 15,
2002 among the Borrower; the Agent; Bank of Montreal, The Bank of New
York and U.S. Bank National Association, as Co-Agents thereunder; and the
other “Banks” named therein, together with all amendments, modifications
and restatements thereof.
	 
	 	     “Reportable Event” means (i) a “reportable event,” described in
Section 4043 of ERISA and the regulations issued thereunder, in respect
of any Plan, (ii) a withdrawal from any Plan, as described in Section
4063 of ERISA, (iii) an action to terminate a Plan for which a notice is
required to be filed under Section 4041 of ERISA, (iv) any other event or
condition that could reasonably be expected to constitute grounds for
termination by the Pension Benefit Guaranty Corporation of, or the
appointment by the appropriate United States District Court of a trustee
to administer, any Plan, or (v) a complete or partial withdrawal from a
Multiemployer Plan as described in Sections 4203 and 4205 of ERISA.
	 
	 	     “Required Banks” means one or more Banks (including, where relevant,
Additional Banks) having an aggregate Percentage greater than 50%.
	 
	 	     “Restated Indenture” means the Supplemental and Restated Trust
Indenture between the Borrower and the Trustee dated May 1, 1988.

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	 	     “Restricted Subsidiary” means a Subsidiary any of whose debts,
liabilities or obligations (i) have been guarantied by the Borrower, (ii)
with respect to which the Borrower is in any other manner obligated for
the payment of money or otherwise to provide financial support, or (iii)
are secured in whole or in part by any property of the Borrower.
	 
	 	     “S&P” means Standard & Poors Ratings Group, a division of
McGraw-Hill Corporation.
	 
	 	     “SEC” means the Securities and Exchange Commission.
	 
	 	     “Sale and Leaseback Transaction” means any arrangement, directly or
indirectly, with any Person whereby a seller or transferor shall sell or
otherwise transfer any real or personal property and concurrently
therewith lease, or repurchase under an extended purchase contract,
conditional sales or other title retention agreement, the same or
substantially similar property.
	 
	 	     “Solvent” means, with respect to any Person, that as of the date of
determination (i) the fair market value of the property of such Person is
(A) greater than the total liabilities (including contingent liabilities)
of such Person, and (B) not less than the amount that will be required to
pay the probable liabilities on such Person’s debts as they come due,
considering all financing alternatives and potential asset sales
reasonably available to such Person; (ii) such Person’s capital is not
unreasonably small in relation to its business or any contemplated or
undertaken transaction; (iii) such Person does not intend to incur, or
believe (nor should it reasonably believe) that it will incur, debts
beyond its ability to pay such debts as they become due; and (iv) such
Person is “solvent” within the meaning given that term and similar terms
under applicable laws relating to fraudulent transfers and conveyances.
For purposes of this definition, the amount of any contingent liability
at any time shall be computed as the amount that, in light of all of the
facts and circumstances existing at such time, represents the amount that
would reasonably be expected to become an actual or matured liability.
	 
	 	     “Subsidiary” means (i) any corporation of which more than 50% of the
outstanding shares of capital stock having general voting power under
ordinary circumstances to elect a majority of the board of directors of
such corporation, irrespective of whether or not at the time stock of any
other class or classes shall have or might have voting power by reason of
the happening of any contingency, is at the time directly or indirectly
owned by the Borrower, by the Borrower and one or more other
Subsidiaries, or by one or more other Subsidiaries, (ii) any partnership
of which more than 50% of the partnership interest therein are directly
or indirectly owned by the Borrower, by the Borrower and one or more
other Subsidiaries, or by one or more other Subsidiaries, and (iii) any
limited liability company or other form of business organization the
effective control of which is held by the Borrower, the Borrower and one
or more other Subsidiaries, or by one or more other Subsidiaries.

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	 	     “Swap Contracts” means any agreement, whether or not in writing,
relating to any transaction that is a rate swap, basis swap, forward rate
transaction, commodity swap, commodity option, equity or equity index
swap or option, bond, note or bill option, interest rate option, forward
foreign exchange transaction, cap, collar or floor transaction, currency
swap, cross-currency rate swap, swaption, currency option or any other
similar transaction (including any option to enter into any of the
foregoing) or any combination of the foregoing, and, unless the context
otherwise clearly requires, any master agreement relating to or governing
any or all of the foregoing.
	 
	 	     “Synthetic Lease Obligation” means the monetary obligation of a
Person under (i) a so-called synthetic or off-balance sheet or tax
retention lease or (ii) an agreement for the use or possession of
property creating obligations that do not appear on the balance sheet of
such Person but which, upon the insolvency or bankruptcy of such Person,
would be characterized as indebtedness of such Person (without regard to
accounting treatment). The amount of Synthetic Lease Obligations of any
Person under any such lease or agreement shall be the amount which would
be shown as a liability on a balance sheet of such Person prepared in
accordance with GAAP if such lease or agreement were accounted for as a
Capitalized Lease.
	 
	 	     “Tangible Net Worth” means shareholders’ equity (including preferred
stock), less intangible assets included in calculating such shareholders’
equity, all determined in accordance with GAAP. For purposes of the
foregoing calculation, intangible assets shall include but not be limited
to the value of patents, trademarks, trade names, copyrights, licenses,
premiums paid on indebtedness, good will, prepaid expenses, deferred
charges and treasury stock. Tangible Net Worth with respect to the
Borrower shall at all times be determined with respect to the Borrower
and its Subsidiaries on a consolidated basis.
	 
	 	     “TOPrS” means 8,000,000 shares of 7.875 percent Trust Originated
Preferred Securities issued and sold on January 31, 1997 through NSP
Financing I, a statutory business trust formed under Delaware law the
equity securities of which are wholly owned by the Borrower.
	 
	 	     “Total Capital” means the sum of (A) stockholders’ equity, which is
the sum of common stock, premium on common stock and retained earnings
and which excludes the TOPrS to the extent included in Funded Debt, and
(B) Funded Debt, all determined with respect to the Borrower and its
Subsidiaries on a consolidated basis in accordance with GAAP.
	 
	 	     “Trustee” means BNY Midwest Trust Company, as successor trustee
under the Indenture, or any successor trustee thereunder.
	 
	 	     “Trust Indenture Act” means the Trust Indenture Act of 1939, as
amended.
	 
	 	     “Welfare Plan” means a “welfare plan” as defined in Section 3(1) of
ERISA.

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	 	     “Wells Fargo” means Wells Fargo Bank, National Association, a
national banking association and a party to this Agreement.
	 
	 	     “Utilization Fee Rate” means a percentage, determined as set forth
in Section 2.8.

Section 1.2 Times

All references to times of day in this Agreement shall be references to
Minneapolis, Minnesota time unless otherwise specifically provided.

Section 1.3 Accounting Terms and Determinations

Unless otherwise specified herein, all accounting terms used herein shall be
interpreted, all accounting determinations hereunder shall be made, and all
financial statements required to be delivered hereunder shall be prepared in
accordance with GAAP; provided that in the event of any Accounting Practices
Change, then the Borrower’s compliance with the covenants set forth in Sections
6.8 and 6.9 shall be determined on the basis of generally accepted accounting
principles in effect immediately before giving effect to the Accounting
Practices Change, until such covenants are amended in a manner satisfactory to
the Borrower and the Required Banks in accordance with Section 9.14 hereof.

ARTICLE II

Amount and Terms of the Loans and Letters of Credit

Section 2.1 Committed Advances.

Each Bank agrees, severally but not jointly, on the terms and subject to the
conditions hereinafter set forth, to make Advances to the Borrower from time to
time during the period from the date hereof to and including the Commitment
Termination Date in an aggregate amount not to exceed at any time outstanding
that Bank’s Commitment Amount, less that Bank’s Percentage of the sum of the
then-outstanding L/C Amount. Within the limits of each Bank’s Commitment
Amount, the Borrower may borrow, prepay pursuant to Section 2.11 and reborrow
under this Section 2.1. The Advances made by each Bank under this Section 2.1
shall be evidenced by and repayable with interest in accordance with a single
promissory note of the Borrower (each, a “Note”) payable to the order of that
Bank, substantially in the form of Exhibit B hereto, dated the date hereof. The
Notes shall bear interest on the unpaid principal amount thereof from the date
thereof until paid as set forth in Section 2.3.

Section 2.2 Procedure for Making Advances.

Each Borrowing under Section 2.1 shall occur following written notice from the
Borrower to the Agent or telephonic request from any person purporting to be
authorized to request Advances on behalf of the Borrower. Each such notice or
request shall specify (i) the date of the requested Borrowing, (ii) the amount
thereof, and (iii) if any portion of such Borrowing will bear interest at a
Eurodollar Rate, the Interest Period selected by the Borrower with

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respect thereto. Such notice or request must be received by the Agent not later
than 10:00 a.m. on the day on which such Borrowing is to occur or, if all or
any portion of the Borrowing will bear interest at a Eurodollar Rate, not later
than three Business Days prior to the date on which such Borrowing is to occur.
Concurrent with any such notice or request, the Borrower shall deliver to the
Agent in writing (which may be by facsimile transmission) the certificate
required by Section 3.3(b). Upon receiving a request for a Borrowing under
Section 2.1, and in any event not later than 1:30 p.m. on the date that the
requested Borrowing is to occur, or, if the requested Borrowing is to bear
interest at a Eurodollar Rate, the close of business on the day that the
request is received, the Agent will notify the Banks of the amount of the
requested Borrowing, the amount of each Bank’s Advance with respect thereto,
and, if applicable, the fact that the Borrower has elected a Eurodollar Rate
and the Interest Period selected by the Borrower. Upon fulfillment of the
applicable conditions set forth in Article III, each Bank shall remit its
Percentage of the requested Borrowing to the Agent in immediately available
funds. So long as a Bank receives notice of the requested Borrowing prior to
1:30 p.m. on the date that the requested Borrowing is to occur, or, if the
requested Borrowing is to bear interest at a Eurodollar Rate, the close of
business on the day that the request is received, that Bank will make its
Advance with respect to that Borrowing available to the Agent by wire transfer
of immediately available funds to the Agent not later than 4:00 p.m. on the
date called for in such notice. Prior to the close of business on the day of
the requested Borrowing, the Agent shall disburse such funds by crediting the
same to the Borrower’s demand deposit account maintained with the Agent or in
such other manner as the Agent and the Borrower may from time to time agree.
The Agent shall have no obligation to disburse the requested Borrowing if any
condition set forth in Article III has not been satisfied on the day of the
requested Borrowing. Each Borrowing shall be in the amount of $1,000,000 or an
integral multiple thereof; provided, however, that any portion of such
Borrowing bearing interest at a Eurodollar Rate must be in the amount of
$5,000,000 or an integral multiple of $1,000,000 greater than $5,000,000. The
Borrower shall promptly confirm each telephonic request for an Advance by
executing and delivering an appropriate confirmation certificate to the Agent.
However, the Borrower shall be obligated to repay all Advances for which it
actually received the moneys (including but not limited to all Advances the
proceeds of which were deposited in any account of the Borrower) or in respect
of which the Agent reasonably believed the person requesting the same to be
authorized to do so, notwithstanding the fact that the person requesting the
same was not in fact authorized so to do. Any request for an Advance shall be
deemed to be a representation that the statements set forth in Section 3.3 are
correct.

Section 2.3 Interest

		
	 	     (a) The Notes shall bear interest on the unpaid principal amount
thereof from the date thereof until paid as set forth in this Section
2.3.
	 
	 	     (b) Unless the Borrower elects a Eurodollar Rate pursuant to this
Section, the principal balance of each Note shall bear interest at the
Floating Rate.

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	 	     (c) At the election of the Borrower, which may be exercised from
time to time, the Borrower may request in writing or by telephone that a
Eurodollar Rate be applicable for the portion of the outstanding
principal balance of the Notes (including any Advance requested or to be
requested) and for the Interest Period indicated by the Borrower in its
request. The portion of the outstanding balance of the Notes for which a
Eurodollar Rate is requested (i) must be in the amount (as to all Notes
combined) of $5,000,000 or an integral multiple of $1,000,000 greater
than $5,000,000, and (ii) if such request relates to Advances already
outstanding, must, on the first day of the applicable Interest Period,
either (1) bear interest at the Floating Rate, or (2) bear interest at a
Eurodollar Rate with respect to which the Interest Period expires on such
first day. In no event may the Borrower select an Interest Period
extending beyond the Commitment Termination Date. A request for a
Eurodollar Rate (i) must be received by the Agent before 10:00 a.m. on
the day three Business Days before the first day of the proposed Interest
Period (and the Agent shall give the Banks prompt notice thereof), and
(ii) may not be rescinded by the Borrower after such request has been
made. Subject to the terms and conditions set forth herein, the
applicable Eurodollar Rate shall (subject to fluctuations in the
applicable Eurodollar Rate Margin) be the interest rate applicable for
the proposed Interest Period to the portion of the outstanding principal
balance of the Note to which the Eurodollar Rate request related (and the
remaining part of the principal balance of the Note, if any, shall
continue to bear interest at the rate or rates previously applicable to
such amounts). At the termination of such Interest Period, the interest
rate applicable to the portion of the principal balance of the Note to
which the Eurodollar Rate request was applicable shall revert to the
Floating Rate unless a new Eurodollar Rate request is made by the
Borrower in accordance with this Agreement. Notwithstanding anything to
the contrary in this Section, (i) the Agent shall have no obligation to
permit the application of a Eurodollar Rate for any Interest Period if
any Bank, in its sole discretion, determines that deposits in amounts
equal to the requested amount and maturing at the end of the proposed
Interest Period are not readily available to such Bank from major banks
in the London interbank market and (ii) without the consent of the
Required Banks, the Agent will not permit the application of a Eurodollar
Rate for any interest period if a Default or Event of Default has
occurred and is continuing when the request for the Eurodollar Rate is
made. Absent manifest error, the records of the Agent shall be
conclusive evidence as to the amount of the Note bearing interest at a
Eurodollar Rate, the applicable Eurodollar Rate and the date on which the
Interest Period applicable to such Eurodollar Rate expires.

Section 2.4 Limitation of Outstandings.

In no event shall the aggregate Outstandings at any time exceed the aggregate
amount of the Commitments.

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Section 2.5 Principal and Interest Payment Dates.

		
	 	     (a) Interest. Interest accruing on the principal balance of the
Notes shall be due and payable on the last day of each March, June,
September and December and on the Commitment Termination Date. Interest
accruing at a Eurodollar Rate shall be due and payable on the last day of
the applicable Interest Period or, if an Interest Period is in excess of
three months, on the date that is three months after the beginning of the
Interest Period and after each such interest payment date thereafter, and
on the last day of the Interest Period and on the Commitment Termination
Date.

		
	 	     (b) Principal. The principal balance of the Notes shall be due and
payable in full on the Commitment Termination Date.

Section 2.6 Level Status and Margins.

		
	 	     (a) The Borrower’s Level Status shall be determined on the basis of
the rating accorded the Borrower’s First Mortgage Bonds by S&P and
Moody’s, in accordance with the following table:

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Level I	 	Level II	 	Level III	 	Level IV	 	Level V
	 	 	
	 	
	 	
	 	
	 	

	S&P	 	
A- or better
	 	BBB+ or better, but

less than A-

	 	BBB or better, but

less than BBB+

	 	BBB- or better, but

less than BBB

	 	Less than BBB-
	Moody’s	 	
A3 or better
	 	Baa1 or better, but less than A3
	 	Baa2 or better, but less than Baa1
	 	Baa3 or better, but less than Baa2
	 	Less than Baa3

	 	 	If the ratings applied by S&P and Moody’s differ such that they do not
fall within a single column in the table set forth above, (i) if the
applicable columns are adjacent to each other, the Level Status in effect
shall be based on the rightmost of the applicable columns, (ii) if the
applicable columns are separated by a single column, the Level Status in
effect shall be based on the column between those two columns, and (iii)
if the applicable columns are separated by two or more columns, the Level
Status in effect shall be based on the column to the immediate left of
the rightmost applicable column.

	 	(b)	 	In making the determinations under paragraph (a):
	 
	 	(i)	 	If either S&P or Moody’s changes the meaning or
designation for its ratings referenced in paragraph (a), the
criteria for Level Status in the table in paragraph (a) shall
be adjusted in such manner as the Required Banks may
reasonably determine to correspond with the applicable

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	 	 	 	rating designations used by S&P or Moody’s, as the case may
be, in effect on the date hereof.
	 
	 	(ii)	 	If either S&P or Moody’s, but not both of them,
ceases to rate the Borrower’s First Mortgage Bonds, the
determination in paragraph (a) shall be made on the basis of
the rating accorded by whichever one continues to rate such
debt.
	 
	 	(iii)	 	If neither S&P nor Moody’s rates the Borrower’s
First Mortgage Bonds, the Borrower shall be deemed to be at
Level Status V.

		
	 	     (c) The Floating Rate Margin, Eurodollar Rate Margin and Facility
Fee Rate at any time shall be determined from time to time on the basis
of the Borrower’s Level Status, in accordance with the following table:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Level I	 	Level II	 	Level III	 	Level IV	 	Level V
	 	 	
	 	
	 	
	 	
	 	

	Floating Rate Margin
	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0.125	%	 	 	0.650	%
	Eurodollar Rate
Margin
	 	 	0.750	%	 	 	0.850	%	 	 	0.950	%	 	 	1.125	%	 	 	1.650	%
	Facility Fee Rate
	 	 	0.125	%	 	 	0.150	%	 	 	0.175	%	 	 	0.250	%	 	 	0.350	%

		
	 	     (d) Upon the occurrence of any Event of Default, and so long as such
Event of Default continues without written waiver thereof by the Banks, a
default increment equal to 200 basis points (2.00%) shall be added to the
Floating Rate Margin, Eurodollar Rate Margin and Facility Fee Rate.
Inclusion of such default increment in calculating the Floating Rate
Margin, Eurodollar Rate Margin and Facility Fee Rate shall not be deemed
a waiver or excuse of any such Event of Default.

Section 2.7 Letters of Credit.

		
	 	     (a) The Borrower may from time to time request that the Issuing Bank
issue one or more irrevocable standby letters of credit (each, a “Letter
of Credit”) for the account of the Borrower. No Letter of Credit shall
be issued if (i) the face amount of that Letter of Credit, together with
the sum of the then-applicable L/C Amount and the aggregate principal
balance of the Notes then outstanding, would exceed the aggregate
Commitment Amounts, or (ii) the face amount of that Letter of Credit,
together with the then-applicable L/C Amount, would exceed the L/C
Sublimit.

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	 	     (b) At least three days prior to the issuance of each Letter of
Credit, the Borrower shall execute a letter of credit application and
reimbursement agreement in the Issuing Bank’s standard form, as required
by the Issuing Bank.

		
	 	     (c) Each Letter of Credit shall be issued in a form acceptable to
the Issuing Bank. Unless otherwise approved by all of the Banks, no
Letter of Credit shall have an initial or any renewal term ending more
than one year after the date of issuance.
	 
	 	     (d) A fee shall be due and payable to the Agent for the benefit of
the Banks upon issuance of each Letter of Credit, computed at an annual
rate equal to the Eurodollar Rate Margin applied to the face amount of
that Letter of Credit outstanding from time to time, from and including
the date of issuance of that Letter of Credit until the expiration
thereof, payable in arrears on the last day of each calendar quarter and
on the Commitment Termination Date and, if later, the expiration date of
such Letter of Credit. In addition, the Borrower shall pay or reimburse
the Issuing Bank for such additional fees as are specified in the Fee
Letters and for such normal and customary costs and expenses as are
incurred or charged by the Issuing Bank in issuing, effecting payment
under, amending or otherwise administering any Letter of Credit.
	 
	 	     (e) The Borrower shall pay the amount of each draft drawn under any
Letter of Credit to the Issuing Bank on demand (or, if demand is not
earlier made, on the Commitment Termination Date), together with interest
at the Floating Rate from the date that such draft is paid by the Issuing
Bank until payment of such amount in full. The Issuing Bank shall
provide notice to the Borrower of payment of the draft within one
Business Day of such payment. The Issuing Bank may (at its option)
charge any deposit account maintained by the Borrower with the Issuing
Bank for the amount of any draft drawn under a Letter of Credit.
	 
	 	     (f) Each Bank shall be deemed to hold a participation interest in
each Letter of Credit equal to that Bank’s Percentage of the face amount
of that Letter of Credit. If the Issuing Bank makes any payment pursuant
to the terms of any Letter of Credit and is not promptly reimbursed, the
Issuing Bank may request that each other Bank pay such Bank’s Percentage
of the unreimbursed amount. Upon receipt of any such request prior to
1:30 p.m. on a Business Day, the recipient shall be unconditionally and
irrevocably obligated to pay its Percentage of the unreimbursed amount to
the Issuing Bank in immediately available funds prior to 3:00 p.m. on
such date. Notices received after 1:30 p.m. shall be deemed to have been
received on the following Business Day. If payment is not made by a Bank
when due hereunder, interest on the unpaid amount shall accrue from and
including the date of the Issuing Bank’s request to the date of payment
at the Federal Funds Rate. After making any payment to the Issuing Bank
under this subsection in connection with a particular Letter of Credit, a
Bank shall be entitled to participate to the extent of its Percentage in
the related reimbursements received by the Issuing Bank from the Borrower
or otherwise. Upon receiving any such reimbursement, the Issuing Bank
will distribute

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	 	to each Bank its Percentage of such reimbursement. At the option of
the Agent, payment by the Banks hereunder may be deemed an Advance in
accordance with Section 2.1 and payable under the Notes.
	 
	 	     (g) Unless otherwise agreed by each Bank in writing, the Borrower
shall deposit in the Cash Collateral Account, on the fifth Business Day
preceding the Commitment Termination Date, an amount equal to the
then-applicable L/C Amount, less the balance (if any) then outstanding in
the Cash Collateral Account.

Section 2.8 Facility and Utilization Fees.

		
	 	     (a) The Borrower shall pay to the Agent, for the benefit of the
Banks, a facility fee at an annual rate equal to the then-applicable
Facility Fee Rate applied to the aggregate amount of the Commitments
outstanding hereunder from the Effective Date through the Commitment
Termination Date.
	 
	 	     (b) The Borrower shall pay to the Agent, for the benefit of the
Banks, a utilization fee at an annual rate equal to the then-applicable
Utilization Fee Rate applied to the average daily Outstandings. The
Utilization Fee Rate in effect on any day shall be an annual rate
determined on the basis of the Outstandings Percentage and Level Status
on that day, in accordance with the following table:

	 	 	 	 	 	 	 	 	 
	Outstandings	 	 	 	 	 	 	 	 
	Percentage/ Level	 	 	 	 	 	 	 	 
	Status	 	33% or less	 	More than 33%
	
	 	
	 	

	Level I
	 	 	0	%	 	 	0.125	%
	Level II
	 	 	0	%	 	 	0.125	%
	Level III
	 	 	0	%	 	 	0.125	%
	Level IV
	 	 	0	%	 	 	0.250	%
	Level V
	 	 	0	%	 	 	0.500	%

		
	 	     (c) The facility fee and utilization fee set forth in this Section
shall be due and payable quarterly in arrears on the last day of each
March, June, September and December during the term of the Commitments.
Any facility and utilization fees remaining unpaid on the Commitment
Termination Date shall be due and payable on that date.

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Section 2.9 Other Fees.

The Borrower shall pay to the Agent (i) for the benefit of the Banks, the
upfront fee set forth in one of the Fee Letters, and (ii) for the Agent’s own
account and not for the benefit of the Banks, certain additional fees in the
amounts set forth in the Fee Letters.

Section 2.10 Termination or Reduction of the Commitment.

The Borrower shall have the right at any time and from time to time upon three
Business Days’ prior notice to the Agent (which shall promptly notify the
Banks) permanently to terminate the Commitments in whole or permanently to
reduce the Commitment Amounts in part, without penalty or premium, provided
that (i) the Commitments may not be terminated while any Advance or L/C Amount
remains outstanding, (ii) each partial reduction shall be in the aggregate
amount of $5,000,000 or a multiple thereof, (iii) any partial reduction of the
Commitment Amounts shall be pro rata as to each Bank in accordance with that
Bank’s Percentage, and (iv) no reduction shall reduce the Commitment Amounts to
an amount less than the sum of the aggregate Advances and the L/C Amount
outstanding (after giving effect to any prepayments of Advances to be made on
or prior to the effective date of such reduction) at the time.

Section 2.11 Voluntary Prepayments.

The Borrower may prepay the Notes in whole or in part, without penalty or
premium, at any time and from time to time; provided that (i) any prepayment by
the Borrower hereunder shall be applied pro rata to the prepayment of each
Bank’s Note, (ii) any prepayment of the full amount of Notes shall include
accrued interest thereon, (iii) any prepayment of any portion of the principal
balance of the Notes which, at the time of such prepayment, bears interest at a
Eurodollar Rate shall be accompanied by compensation as specified in Section
2.16(b), and (iv) each prepayment of the Notes (other than prepayment of the
Notes in full) shall be in the principal amount of $1,000,000 or more, except
that no prepayment of any portion of the Notes bearing interest at a Eurodollar
Rate may be made in a principal amount less than $5,000,000. Each partial
prepayment of principal on the Notes shall be applied, first, to that portion
of such Notes bearing interest at the Floating Rate, and, second, to that
portion of such Notes bearing interest at a Eurodollar Rate.

Section 2.12 Computation of Interest and Fees.

All interest on Floating Rate Fundings accruing based on the Prime Rate will be
calculated based on the actual days elapsed in a year of 365 or 366 days, as
the case may be. All other interest and all fees hereunder shall be computed on
the basis of actual number of days elapsed in a year of 360 days.

Section 2.13 Payments.

All payments of principal and interest under the Notes and L/C Amounts and of
the fees hereunder shall be made to the Agent in immediately available funds,
without setoff or

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counterclaim. Payments received after noon on any day shall
be deemed received on the next succeeding Business Day. The Borrower agrees
that the amount shown on the books and records of each Bank as being the
principal balance of that Bank’s Note, if any, shall be prima facie evidence of
such principal balance. The Borrower hereby authorizes the Agent to charge
against the Borrower’s account with the Agent an amount equal to the accrued
interest and fees from time to time due and payable to the Agent and the Banks
under the
Notes or hereunder, or (at the Banks’ option) to effect a Borrowing in such
amount, all without receipt of any request for such charge or Borrowing.

Section 2.14 Payment on Nonbusiness Days.

Whenever any payment to be made hereunder or under the Notes shall be stated to
be due on a day other than a Business Day, such payment may be made on the next
succeeding Business Day, and such extension of time shall in each case be
included in the computation of payment of interest on such Note or the fees
hereunder, as the case may be.

Section 2.15 Use of Advances and Letters of Credit.

The proceeds of each Borrowing, and each Letter of Credit, shall be used by the
Borrower for its general corporate purposes (including commercial paper
backup). Notwithstanding the foregoing, in no event shall the proceeds of any
Borrowing or any Letter of Credit be used by the Borrower to finance the
acquisition of 5% or more of any class of the capital stock of any corporation
unless, prior to making such acquisition, the Borrower has obtained written
approval for such acquisition from the board of directors of such corporation.
The limitation set forth in the preceding sentence is in addition to, and not
in lieu of, the restriction set forth in Section 4.9.

Section 2.16 Yield Protection; Funding Indemnification.

In addition to any interest payable on Advances made hereunder and any fees or
other amounts payable hereunder, the Borrower agrees:

		
	 	     (a) If at any time after the date hereof any adoption of or change
in any applicable law, rule or regulation or the interpretation or
administration thereof by any governmental authority (including, without
limitation, Regulation D of the Federal Reserve Board):

	 	(i)	 	shall subject any Bank to any tax, duty or other
charges with respect to this Agreement, or shall materially
change the basis of taxation of payments to any Bank of the
principal of or interest on any portion of the principal
balance of that Bank’s Note bearing interest at a Eurodollar
Rate (except for the imposition of or changes in the rate of
Excluded Taxes (as defined in Section 2.17 of this
Agreement)); or
	 
	 	(ii)	 	shall impose or deem applicable or increase any
reserve, special deposit or similar requirement against assets
of, deposits with or for the 

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account of, or credit extended by
any Bank (other than reserves and assessments described in
clause (i)(b) of the definition of “Eurodollar Rate” and taken
into account in determining the applicable Eurodollar Rate)
because of any portion of the principal balance of that Bank’s
Note bearing interest at a Eurodollar Rate and the result of
any of the foregoing would be to increase the cost to that
Bank of making or maintaining any such portion or to reduce any sum received or
receivable by that Bank with respect to such portion;

	 

	 	
then, within 30 days after demand by any Bank the Borrower shall pay that
Bank such additional amount or amounts as will compensate that Bank for
such increased cost or reduction. A Bank shall not make demand hereunder
unless that Bank is generally imposing such increased costs on its
similarly situated customers. No Bank may demand such compensation more
than 90 days following the end of the Interest Period with respect to
which such demand is made; provided, however, that the foregoing shall in
no way limit the right of any Bank to demand compensation to the extent
that such compensation relates to the retroactive application of any law,
rule or regulation if such demand is made within 90 days after the
adoption of or change in such law, rule or regulation. A certificate in
reasonable detail of that Bank setting forth the basis for the
determination of such additional amount or amounts shall be promptly
submitted by that Bank to the Borrower and shall, in the absence of
manifest error, be conclusive and binding as to such amount or amounts.

		
	 	     (b) The Borrower shall also compensate any Bank, upon written
request by that Bank (which request shall set forth the basis for
requesting such amounts), for all losses and expenses in respect of any
interest or other consideration paid by that Bank to lenders of funds
borrowed by it or deposited with it to maintain any portion of the
principal balance of the Note at a Eurodollar Rate which that Bank may
sustain to the extent not otherwise compensated for hereunder and not
mitigated by the reemployment of such funds if any prepayment of any such
portion occurs on a date that is not the expiration date of the relevant
Interest Period or if a Borrowing or prepayment in whole or in part of an
Advance bearing interest at a Eurodollar Rate fails to occur. A
certificate as to any such loss or expense (including calculations, in
reasonable detail, showing how that Bank computed such loss or expense)
shall be promptly submitted by that Bank to the Borrower and shall, in
the absence of manifest error, be conclusive and binding as to the amount
thereof. Such loss or expense may be computed as though that Bank
acquired deposits in the London interbank market to fund that portion of
the principal balance whether or not that Bank actually did so.

Section 2.17 Taxes.

		
	 	     (a) All payments made by the Borrower to the Agent or any Bank
(herein any “Payee”) under or in connection with this Agreement or the
Notes shall be made without any setoff or other counterclaim, and free
and clear of and without deduction

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	 	for or on account of any present or
future taxes now or hereafter imposed by any governmental or other
authority, except to the extent that such deduction or withholding is
compelled by law. As used herein, the term “Taxes” shall include all
income, excise and other taxes of whatever nature (other than taxes based
on or measured by the net income of the Payee (or franchise taxes in lieu
thereof) and imposed by the government or other authority of the country,
state or political
subdivision in which such Payee is incorporated or in which its
principal executive office or the office through which the Payee is
acting is located (“Excluded Taxes”)) as well as all levies, imposts,
duties, charges, or fees of whatever nature. If the Borrower is
compelled by law to make any such deductions or withholdings it will:

	 	(i)	 	pay to the relevant authorities the full amount
required to be so withheld or deducted;
	 
	 	(ii)	 	except to the extent that such deduction or
withholding results from a breach by any Payee of the
representations and covenants contained in Section 2.17(b) or
the relevant Assignment Certificate, pay such additional
amounts (including, without limitation, any penalties,
interest or expenses) as may be necessary in order that the
net amount received by each Payee after such deductions or
withholdings (including any required deduction or withholding
on such additional amounts) shall equal the amount such Payee
would have received had no such deductions or withholdings
been made; and
	 
	 	(iii)	 	promptly forward to the Agent (for delivery to
such Payee) an official receipt or other documentation
reasonably satisfactory to the Agent evidencing such payment
to such authorities.

		
	 	     (b) If any Taxes otherwise payable by the Borrower pursuant to
Section 2.17(a) are directly asserted against any Payee, such Payee may
pay such Taxes and the Borrower promptly shall reimburse such Payee to
the full extent otherwise required by such paragraph. The obligations of
the Borrower under this Section 2.17 shall survive any termination of
this Agreement. Each Bank by its execution of this Agreement represents
(and each additional Bank by its execution of any Assignment Certificate
pursuant to Section 8.10 shall be deemed to represent) to each other
Bank, the Agent and the Borrower that if such Bank or additional Bank is
organized under the laws of any jurisdiction other than the United States
or any state thereof, such Bank or additional Bank has furnished to the
Agent and the Borrower either U.S. Internal Revenue Service Form W-8BEN,
or U.S. Internal Revenue Service Form W-8ECI, as applicable (wherein such
Bank claims entitlement to complete exemption from U.S. Federal
withholding tax on all interest payments hereunder).

		
	 	     (c) The amount that the Borrower shall be required to pay to any
Bank pursuant to Section 2.17(a) or 2.17(b) shall be reduced by the
amount of any offsetting tax benefit which such Bank receives as a result
of the Borrower’s payment

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	 	to the relevant authorities as reasonably
determined by such Bank; provided, however, that (i) such Bank shall be
the sole judge of the amount of such tax benefit and the date on which it
is received, (ii) no Bank shall be obliged to disclose information
regarding its tax affairs or tax computations, (iii) nothing herein shall
interfere with a Bank’s right to manage its tax affairs in whatever
manner it sees fit, and (iv) if such Bank shall subsequently determine
that it has lost the benefit of all or
a portion of such tax benefit, the Borrower shall promptly remit to
such Bank the amount certified by such Bank to be the amount necessary to
restore such Bank to the position it would have been in if no payment had
been made pursuant to this Section 2.17(c).

		
	 	     (d) If the U.S. Internal Revenue Service or any other governmental
authority of the United States or any other country or any political
subdivision thereof asserts a claim that the Agent or the Borrower did
not properly withhold tax from amounts paid to or for the account of any
Bank (because the appropriate form was not delivered or properly
completed, because such Bank failed to notify the Agent or the Borrower
of a change in circumstances which rendered its exemption from
withholding ineffective, or for any other reason), such Bank shall
indemnify the Agent or the Borrower, as applicable, fully for all amounts
paid, directly or indirectly, by the Agent or the Borrower, as
applicable, as tax, withholding therefor, or otherwise, including
penalties and interest, and including taxes imposed by any jurisdiction
on amounts payable to the Agent or the Borrower, as applicable, under
this subsection, together with all costs and expenses related thereto
(including attorneys fees and time charges of attorneys for the Agent or
the Borrower, as applicable, which attorneys may be employees of the
Agent or the Borrower, as applicable). The obligations of the Bank under
this Section 2.17(d) shall survive the payment of the Obligations and
termination of this Agreement.

Section 2.18 Capital Adequacy.

If any Bank determines at any time that its Return has been reduced as a result
of any Capital Adequacy Rule Change, that Bank may require the Borrower to pay
it the amount necessary to restore its Return to what it would have been had
there been no Capital Adequacy Rule Change. For purposes of this Section:

		
	 	     (a) “Return”, for any period, means the percentage determined by
dividing (i) the sum of interest and ongoing fees earned by a Bank under
this Agreement during such period, by (ii) the average capital that Bank
is required to maintain during such period as a result of its being a
party to this Agreement, as determined by that Bank based upon its total
capital requirements and a reasonable attribution formula that takes
account of the Capital Adequacy Rules then in effect. Return may be
calculated for each calendar quarter and for the shorter period between
the end of a calendar quarter and the date of termination in whole of
this Agreement.

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	 	     (b) “Capital Adequacy Rule” means any law, rule, regulation or
guideline regarding capital adequacy that applies to any Bank, or the
interpretation thereof by any governmental or regulatory authority.
Capital Adequacy Rules include rules requiring financial institutions to
maintain total capital in amounts based upon percentages of outstanding
loans, binding loan commitments and letters of credit.
	 
	 	     (c) “Capital Adequacy Rule Change” means any change in any Capital
Adequacy Rule occurring after the date of this Agreement, but the term
does not
include any changes in applicable requirements that at the date
hereof are scheduled to take place under the existing Capital Adequacy
Rules or any increases in the capital that any Bank is required to
maintain to the extent that the increases are required due to a
regulatory authority’s assessment of the financial condition of that
Bank.
	 
	 	     (d) “Bank” includes (but is not limited to) the Banks, as defined
elsewhere in this Agreement; any participant in the loans made hereunder
(to the extent provided in Section 8.11 only); and any bank holding
company with respect to any of the foregoing.

The initial notice sent by a Bank shall be sent as promptly as practicable
after that Bank learns that its Return has been reduced, shall include a demand
for payment of the amount necessary to restore that Bank’s Return for the
quarter in which the notice is sent and, if applicable, the preceding quarter,
and shall state in reasonable detail the cause for the reduction in its Return
and its calculation of the amount of such reduction. Thereafter, that Bank may
send a new notice with respect to each calendar quarter setting forth the
calculation of the reduced Return for that quarter and including a demand for
payment of the amount necessary to restore its Return for that quarter. In such
event, the Borrower shall pay the Bank such amount within 30 days after demand
by such Bank. A Bank’s calculation in any such notice shall be conclusive and
binding absent demonstrable error. A Bank shall not make demand hereunder
unless that Bank is generally imposing such increased costs on its similarly
situated customers. No Bank may demand any compensation hereunder more than 45
days following the end of the quarter for which compensation is sought.

Section 2.19 Extension of Termination Date

At least 60 but not more than 90 days prior to the then current Commitment
Termination Date, the Borrower may request that the Banks, by written notice to
the Agent, consent to a 364-day extension of the Commitment Termination Date.
The Agent shall transmit such request to the Banks within one Business Day.
Each Bank shall, in its sole discretion, determine whether to consent to such
request and shall notify the Agent of its determination within 30 days of the
Borrower’s request. Any Bank not responding within 30 days shall be deemed to
have declined the request. At the option of the Borrower, any declining Bank’s
Commitment may be assumed, in whole or in part, by one or more existing Banks
or other lenders acceptable to the Borrower and the Agent, upon compliance with
Section 8.10. If any such Commitment is not so replaced within 30 days of the
declining Bank’s response, the extension contemplated by this Section may
nonetheless occur with respect to the consenting

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Banks, provided that any such extension shall be
conditioned upon an agreement to such extension by Banks with at least 66 2/3%
of the aggregate Commitment Amounts. If Banks with at least 66 2/3% of the
aggregate Commitment Amounts do not so agree, then the Commitments shall
terminate on the then current Commitment Termination Date. If such request
shall have been consented to by the Agent and Banks with at least 66 2/3% of
the aggregate Commitment Amounts, or any declining Bank shall have been
replaced, the extension shall become effective upon the delivery by the
Borrower to the Agent, on or prior to the then current Commitment Termination
Date, of (i) a certificate of a duly authorized officer of the Borrower, dated
such date, as to the accuracy, both before and after giving effect to such
proposed extension, of the representations and warranties set forth in Article
IV and as to the absence, both before and after giving effect to such proposed
extension, of any Default or Event of Default, (ii) certified copies of all
corporate and governmental approvals, if any, required to be obtained by the
Borrower in connection with such extension and (iii) an opinion or opinions of
counsel to the Borrower as to the matters set forth in Exhibit D after giving
effect to such extension. Upon extension of the Commitment Termination Date
pursuant to this Section, the participation of any declining Bank in any
Letters of Credit outstanding hereunder shall, to the extent that such
declining Bank’s interest has not been assigned and assumed pursuant to Section
8.10, be automatically deemed assumed by the remaining Banks ratably in
accordance with their respective Percentages after giving effect to such
extension.

Section 2.20 Mandatory Assignment of Bank’s Interest.

If any Bank delivers to the Borrower a demand for compensation pursuant to
Section 2.16(a), a demand for payment pursuant to Section 2.17 or 2.18 or does
not consent to an extension request pursuant to Section 2.19, the Borrower may
(so long as no Default or Event of Default has occurred and is continuing) at
its expense require such Bank to assign, in whole and in accordance with
Section 8.10 (including the execution of an Assignment Certificate and all
other applicable documents, and the payment of any fees required under Section
8.10), all of its rights and obligations hereunder and under such Bank’s Note,
including but not limited to such Bank’s Commitment, to an Eligible Lender
identified by the Borrower and willing to become a Bank hereunder. Such Bank
may be an existing Bank hereunder. Notwithstanding the foregoing, the Borrower
may not compel the resignation of any Bank as the Agent except as provided in
Section 8.9.

ARTICLE III

Conditions Precedent

Section 3.1 Conditions to Effectiveness.

Sections 2.1 and 2.7 of this Agreement shall become effective only upon
delivery to the Agent, on or before May 22, 2003, of each of the following,
each in form and substance satisfactory to each Bank:

		
	 	     (a) This Agreement, duly executed by the Borrower, the Agent and
each of the Banks.

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	 	     (b) The Notes, dated the date hereof, properly executed on behalf of
the Borrower.

		
	 	     (c) Evidence that concurrently with the making of the initial
Advance, all amounts payable under the Prior Credit Agreement will be
paid and the Commitments thereunder will be terminated.

Section 3.2 Initial Conditions Precedent.

The obligation of the Banks to make any Advance or issue any Letter of Credit
is subject to the further condition precedent that the Agent shall have
received on or before the day of the first Advance or Letter of Credit (and, in
any event, not later than May 22, 2003) all of the following, in form and
substance satisfactory to each Bank:

		
	 	     (a) This Agreement, duly executed by the Borrower, the Agent and
each of the Banks.

		
	 	     (b) The Notes, dated the date hereof, properly executed on behalf of
the Borrower.

		
	 	     (c) The Pledge Agreement, properly executed on behalf of the
Borrower.

		
	 	     (d) The Bonds, properly issued by the Borrower.

		
	 	     (e) The Fee Letters, properly executed on behalf of the Borrower.

		
	 	     (f) A certificate of the secretary or an assistant secretary of the
Borrower (i) certifying that the execution, delivery and performance of
the Loan Documents and other documents contemplated hereunder have been
duly approved by all necessary action of the Board of Directors of the
Borrower, and attaching true and correct copies of the applicable
resolutions granting such approval, (ii) certifying that attached to such
certificate are true and correct copies of the Organizational Documents
of the Borrower, together with such copies, and (iii) certifying the
names of the officers of the Borrower that are authorized to sign the
Loan Documents and other documents contemplated hereunder, together with
the true signatures of such officers.

		
	 	     (g) A certificate of good standing of the Borrower, dated not more
than ten days before such date.

		
	 	     (h) A signed copy of an opinion of counsel for the Borrower,
addressed to the Banks in substantially the form of Exhibit D hereto.
	 
	 	     (i) All fees required to be paid as of the date hereof under this
Agreement or any Fee Letter.

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	 	     (j) Such other documents as the Agent or the Required Banks may deem
necessary or advisable in connection with the issuance of the Bonds.

Section 3.3 Conditions Precedent to All Advances and Letters of Credit.

The obligation of the Banks to make any Advance (including the initial Advance)
or to issue any Letter of Credit shall be subject to the further conditions
precedent that on the date of such Advance or Letter of Credit:

		
	 	     (a) The representations and warranties contained in Article IV are
correct on and as of the date of such Advance or Letter of Credit as
though made on and as of such date, except to the extent that such
representations and warranties relate solely to an earlier date.

		
	 	     (b) The Borrower has delivered to the Agent a certificate in the
form of Exhibit F hereto, duly executed by the chief financial officer,
treasurer, secretary, assistant secretary, general counsel or deputy
general counsel of the Borrower, specifically confirming the Borrower’s
legal authority to obtain such Advance or Letter of Credit.

		
	 	     (c) No event has occurred and is continuing, or would result from
such Advance or Letter of Credit, which constitutes a Default or an Event
of Default.

ARTICLE IV

Representations and Warranties

The Borrower represents and warrants to the Banks as follows:

Section 4.1 Corporate Existence and Power.

The Borrower and its Subsidiaries are each corporations duly incorporated,
validly existing and in good standing under the laws of their respective
jurisdictions of incorporation, and are each duly licensed or qualified to
transact business in all jurisdictions where the character of the property
owned or leased or the nature of the business transacted by them makes such
licensing or qualification necessary, except where the failure to be so
licensed or qualified (i) will not permanently preclude the Borrower or any
Subsidiary from maintaining any material action in any such jurisdiction even
though such action arose in whole or in part during the period of such failure,
and (ii) will not result in any other Material Adverse Change. The Borrower
has all requisite power and authority, corporate or otherwise, to conduct its
business, to own its properties and to execute and deliver, and to perform all
of its obligations under, the Loan Documents, the Bonds and the First Mortgage
Indenture.

Section 4.2 Authorization of Borrowing; No Conflict as to Law or Agreements.

		
	 	     (a) The execution, delivery and performance by the Borrower of the
Loan Documents, the First Mortgage Indenture and the Bonds, the
borrowings from time to 

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	 	time hereunder, the issuance of the Bonds, and
the consummation of the transactions herein and therein contemplated,
have been duly authorized by all necessary corporate action and do not
and will not (i) require any consent or approval of the stockholders of
the Borrower, or any authorization, consent, approval, order, filing,
registration or qualification by or with any governmental department,
commission, board, bureau, agency or instrumentality, domestic or
foreign, other than those consents described in Schedule 4.2, each of
which has been obtained and is in full force and effect, (ii) violate any
provision of any law, rule or regulation (including, without limitation,
Regulation X of the Board of Governors of the Federal Reserve System and
Section 7 of the Exchange Act or any regulation promulgated thereunder)
or of any order, writ, injunction or decree presently in effect having
applicability to the Borrower or of the Organizational Documents of the
Borrower, (iii) result in a breach of or constitute a default under any
indenture or loan or credit agreement or any other material agreement,
lease or instrument to which the Borrower or any Subsidiary is a party or
by which it or its properties may be bound or affected, or (iv) result
in, or require, the creation or imposition of any Lien or other charge or
encumbrance of any nature (other than the Liens created under the Pledge
Agreement and the Indenture) upon or with respect to any of the
properties now owned or hereafter acquired by the Borrower or any
Subsidiary.

		
	 	     (b) The MPUC has issued its Authorizing Order authorizing the
issuance of the Bonds and the incurrence by the Borrower of short-term
debt so long as the aggregate principal amount of short-term debt
outstanding does not exceed 15% of Borrower’s total capitalization
(including but not limited to common equity, TOPrS, long-term debt and
short-term debt). All Obligations incurred hereunder will constitute
short-term debt for purposes of such Authorizing Order. As of the date
hereof, the aggregate principal amount of Borrower’s short-term debt
outstanding (excluding indebtedness under the Prior Credit Agreement but
including assumed Advances hereunder in an aggregate amount equal to the
aggregate Commitment Amounts) does not exceed 15% of Borrower’s total
capitalization.

Section 4.3 Legal Agreements.

This Agreement, the other Loan Documents, the Bonds and the Indenture
constitute the legal, valid and binding obligations of the Borrower enforceable
against the Borrower in accordance with their respective terms, except to the
extent that such enforcement may be limited by bankruptcy, insolvency or
similar laws affecting the enforcement of creditors’ rights generally or by
general equitable principles. Without limiting the generality of the foregoing,
the Bonds have been duly executed, issued and delivered by the Borrower and
duly authenticated by the Trustee, and the Bonds will be entitled to the
benefits provided by the Indenture.

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Section 4.4 Subsidiaries.

Schedule 4.4 hereto is a complete and correct list of all Subsidiaries as of
the date of this Agreement and of the percentage of the ownership of the
Borrower or any other Subsidiary in each as of the date of this Agreement. The
Borrower has no Restricted Subsidiaries as of the date hereof except as
designated on Schedule 4.4. Except as otherwise indicated in that Schedule, all
shares of each Subsidiary owned by the Borrower or by any such other Subsidiary
are validly issued and fully paid and nonassessable.

Section 4.5 Financial Condition.

The Borrower has heretofore furnished to the Banks the audited consolidated
financial statements of the Borrower and its Subsidiaries for the year ended
and as of December 31, 2002. Those financial statements fairly present in all
material respects the financial condition of the Borrower on the date thereof
and the results of its operations and cash flows for the period then ended, and
was prepared in accordance with GAAP. The information, exhibits and reports
furnished by the Borrower to the Agent and the Banks, taken as a whole, in
connection with the negotiation of or compliance with the Loan Documents did
not contain any material misstatement of fact or omit to state a material fact
or any fact necessary to make the statements contained therein not misleading.

Section 4.6 Adverse Change.

There has been no Material Adverse Change since December 31, 2002.

Section 4.7 Litigation.

Except as set forth in Schedule 4.7, there are no actions, suits or proceedings
pending or, to the knowledge of the Borrower, threatened against or affecting
the Borrower or any Subsidiary or the properties of the Borrower or any
Subsidiary before any court or governmental department, commission, board,
bureau, agency or instrumentality, domestic or foreign, which could reasonably
be expected to effect a Material Adverse Change. Other than any liability
incident to any litigation, arbitration or proceeding which could not
reasonably be expected to have a Material Adverse Effect, the Borrower has no
material contingent obligations not provided for or disclosed in the financial
statements referred to in Section 4.5.

Section 4.8 Hazardous Substances.

Except as set forth in Schedule 4.8, to the best of the Borrower’s knowledge
after reasonable inquiry, (i) neither the Borrower nor any Subsidiary or other
Person has ever caused or permitted any Hazardous Substance to be disposed of
on, under or at any real property which is operated by the Borrower or any
Subsidiary or in which the Borrower or any Subsidiary has any interest, except
to the extent that such disposal can not reasonably be expected to result in a
Material Adverse Change; and (ii) no such real property has ever been used
(either by the Borrower or by any Subsidiary or other Person) as a dump site or
permanent or

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temporary storage site for any Hazardous Substance in a manner that could
reasonably be expected to result in a Material Adverse Change.

Section 4.9 Regulation U.

Neither the Borrower nor any Subsidiary is engaged in the business of extending
credit for the purpose of purchasing or carrying margin stock (within the
meaning of Regulation U of the Board of Governors of the Federal Reserve
System), and no part of the proceeds of any Advance will be used to purchase or
carry any margin stock or to extend credit to others for the purpose of
purchasing or carrying any margin stock.

Section 4.10 Taxes.

The Borrower and its Subsidiaries have each paid or caused to be paid to the
proper authorities when due all federal, state and local taxes required to be
withheld and paid by them. The Borrower and its Subsidiaries have each filed
all federal, state and local tax returns which to the knowledge of the officers
of the Borrower or any Subsidiary are required to be filed, and the Borrower
and its Subsidiaries have each paid or caused to be paid to the respective
taxing authorities all taxes as shown on said returns or on any assessment
received by it to the extent such taxes have become due, other than taxes whose
amount, applicability or validity is being contested in good faith by
appropriate proceedings and for which the Borrower or applicable Subsidiary has
provided adequate reserves in accordance with GAAP.

Section 4.11 Burdensome Restrictions.

Neither the Borrower nor any Subsidiary is a party to or bound by any
agreement, or subject to any restriction in any Organizational Document, or any
requirement of law, which would reasonably be expected to effect a Material
Adverse Change.

Section 4.12 Titles and Liens.

The Borrower or one of its Subsidiaries has good title to each of the
properties and assets material to the operations of the Borrower and its
Subsidiaries, taken as a whole, which it purports to own or which are reflected
as owned on its books and records, and the Borrower has good and valid title to
all real and fixed property and leasehold rights described or enumerated in the
Indenture (except such properties as have been released from the Lien thereof
in accordance with the terms thereof), in each case free and clear of all Liens
and encumbrances, except for Liens and encumbrances permitted by Section 6.1
and covenants, restrictions, rights, easements and minor irregularities in
title which do not materially interfere with the business or operations of the
Borrower and its Subsidiaries taken as a whole.

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Section 4.13 ERISA.

No Plan will have an accumulated funding deficiency (as such term is defined in
Section 302 of ERISA) in excess of $50,000,000 as of the last day of the most
recent fiscal year of such Plan ended prior to the date hereof, and no
liability to the Pension Benefit Guaranty Corporation or the Internal Revenue
Service in excess of such amount has been, or is expected by the Borrower or
any Subsidiary or ERISA Affiliate to be, incurred with respect to any Plan that
could become a liability of the Borrower or any Subsidiary. Except as
disclosed in Borrower’s financial statements, neither the Borrower nor any
Subsidiary has any contingent liability with respect to any post-retirement
benefit under a Welfare Plan in excess of $50,000,000, other than liability for
continuation coverage described in Part 6 of Subtitle B of Title I of ERISA.

Section 4.14 Securities Law Matters.

		
	 	     (a) When the Bonds are issued and delivered pursuant to this
Agreement and the Indenture, the Bonds will not be of the same class
(within the meaning of Rule 144A under the Act) as securities which are
listed on a national securities exchange registered under Section 6 of
the Exchange Act or quoted in a U.S. automated inter-dealer quotation
system.

		
	 	     (b) The Borrower is subject to Section 13 or 15(d) of the Exchange
Act.

		
	 	     (c) Neither the Borrower, nor any person acting on its behalf, has
offered or sold (nor will offer or sell prior to the delivery of the
Bonds to the Agent) the Bonds by means of any general solicitation or
general advertising within the meaning of Rule 502(c) under the Act.

		
	 	     (d) Within the six months preceding the date hereof, neither the
Borrower nor any other person acting on behalf of the Borrower has
offered or sold to any person any Bonds, or any securities of the same or
a similar class as the Bonds, other than Bonds delivered to the Agent
hereunder. The Borrower will take reasonable precautions designed to
insure that any offer or sale, direct or indirect, in the United States
or to any U.S. person (as defined in Rule 902 under the Act) of any Bonds
or any substantially similar security issued by the Borrower, within six
months subsequent to the delivery of the Bonds to the Agent, is made
under restrictions and other circumstances reasonably designed not to
affect the status of the offer and sale of the Bonds contemplated by this
Agreement as a transaction exempt from the registration provisions of the
Act.

		
	 	     (e) No registration of the Bonds under the Act is required for the
offer and sale of the Bonds to the Agent in the manner contemplated by
this Agreement.

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Section 4.15 Investment Company Act.

The Borrower is not, and after giving effect to the offer and sale of the
Bonds, will not be an “investment company,” as such term is defined in the
Investment Company Act.

Section 4.16 Public Utility Holding Company Act.

The Borrower is subject to the Public Utility Holding Company Act of 1935, as
amended (“PUHCA”), as a “subsidiary” of a registered “holding company” within
the meaning of PUHCA. However, the transactions contemplated by this Agreement
are exempt from any requirement for SEC approval under PUHCA.

Section 4.17 Indenture.

		
	 	     (a) All conditions precedent set forth in the Indenture with respect
to the Assignment and Assumption Agreement dated as of August 18, 2000
between the Parent and Borrower (the “Assignment”) have been satisfied,
and the Lien of the Indenture has similar force, effect and standing as
the Lien of the Indenture would have had if the Indenture had not been
assigned to the Borrower. Substantially all of the assets of the Parent
(other than stock of the Parent’s Subsidiaries) were conveyed to the
Borrower pursuant to the Assignment.

		
	 	     (b) The aggregate principal amount of bonds outstanding under the
Indenture (excluding the Bonds) is $1,153,835,000.

		
	 	     (c) There has been no discharge of the Indenture with respect to the
Parent or, following the Assignment, with respect to the Borrower.

		
	 	     (d) Substantially all of the property, whether real, personal or
mixed, of the Borrower is subject to the Lien of the Indenture.

		
	 	     (e) True and complete copies of all amendments and supplements to
and restatements of the Indenture have been delivered to counsel for the
Agent.

		
	 	     (f) In connection with the issuance and delivery of the Bonds to the
Agent as contemplated by this Agreement and the Pledge Agreement, the
Indenture is not required to be qualified under the Trust Indenture Act.

		
	 	     (g) The Effective Date (as defined in the Restated Indenture) has
not yet occurred.

		
	 	     (h) The rights, powers, duties and obligations of the trustee under
the Indenture were transferred from Harris Trust and Savings Bank to BNY
Midwest Trust Company in accordance with the terms of the Indenture.

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Section 4.18 Authentication of Bonds.

All covenants and conditions precedent to the authentication and delivery of
the Bonds have been complied with, and there has been no change in the facts
and circumstances set forth in the application to the Trustee for
authentication of the Bonds (and the documents submitted therewith) from the
date of such application to the date hereof.

Section 4.19 Solvency.

The Borrower is and, upon the making of any Advance and the issuance of any
Letter of Credit, will be, Solvent.

Section 4.20 Swap Obligations.

Neither the Borrower nor any of its Subsidiaries has incurred any outstanding
obligations under any Swap Contracts, other than Permitted Swap Obligations.

Section 4.21 Insurance.

The properties of the Borrower and its Subsidiaries are insured with
financially sound and reputable insurance companies not Affiliates of the
Borrower, in such amounts, with such deductibles and covering such risks as are
customarily carried by companies engaged in similar businesses and owning
similar properties in localities where the Borrower and such Subsidiaries
operate.

Section 4.22 Compliance With Laws.

Except as disclosed in Schedule 4.22, The Borrower and its Subsidiaries have
complied in all material respects with all applicable statutes, rules,
regulations, orders and restrictions of any domestic or foreign government or
any instrumentality or agency thereof having jurisdiction over the conduct of
their respective businesses or the ownership of their respective properties,
assets and rights.

ARTICLE V

Affirmative Covenants of the Borrower

So long as any Note shall remain unpaid or any Commitment or L/C Amount shall
be outstanding, the Borrower will comply with the following requirements,
unless the Required Banks shall otherwise consent in writing:

Section 5.1 Financial Statements.

The Borrower will deliver to the Agent and each Bank:

		
	 	     (a) As soon as available, and in any event within 100 days after the
end of each fiscal year of the Borrower, a copy of the annual audit
report of the Borrower and its Subsidiaries prepared by nationally
recognized independent certified public

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	 	accountants, which annual report shall include the balance sheet of
the Borrower and its Subsidiaries as at the end of such fiscal year and
the related statements of income, shareholders’ equity and cash flows of
the Borrower and its Subsidiaries for the fiscal year then ended, all
presented on a consolidated basis in reasonable detail and all prepared
in accordance with GAAP.

		
	 	     (b) As soon as available and in any event within 55 days after the
end of each of the first three quarters of each fiscal year of the
Borrower, balance sheet of the Borrower and its Subsidiaries as at the
end of such quarter and related statements of earnings and cash flows of
the Borrower and its Subsidiaries for such quarter and for the year to
date, in reasonable detail and prepared on a consolidated basis in
accordance with GAAP, subject to year-end adjustments.

		
	 	     (c) Concurrent with the delivery of any financial statements under
paragraph (a) or (b), a Compliance Certificate, duly executed by the
chief financial officer or treasurer of the Borrower.

		
	 	     (d) Promptly following the issuance of any Authorizing Order, a
favorable opinion of counsel to the Borrower, in form and substance
reasonably acceptable to the Agent, addressed to the Agent and the Banks,
advising the Agent and the Banks of such issuance, stating the
restrictions, if any, that such Authorizing Order imposes on the
Borrower’s ability to obtain Borrowings or Letters of Credit hereunder,
and attaching a copy of such Authorizing Order.

		
	 	     (e) Promptly after the sending or filing thereof, copies of all
regular and periodic financial reports which the Borrower or any
Subsidiary shall file with the SEC or any national securities exchange.

		
	 	     (f) Immediately after the commencement thereof, notice in writing of
all litigation and of all proceedings before any governmental or
regulatory agency affecting the Borrower or any Restricted Subsidiary of
the type described in Section 4.7 or which seek a monetary recovery
against the Borrower or any Restricted Subsidiary combined in excess of
$50,000,000.

		
	 	     (g) As promptly as practicable (but in any event not later than five
Business Days) after an officer of the Borrower obtains knowledge of the
occurrence of any Default or Event of Default, notice of such occurrence,
together with a detailed statement by a responsible officer of the
Borrower of the steps being taken by the Borrower to cure the effect of
such event.

		
	 	     (h) Promptly upon becoming aware of any Reportable Event or the
occurrence of a prohibited transaction (as defined in Section 4975 of the
Internal Revenue Code or Section 406 of ERISA) in connection with any
Plan or any trust created thereunder, which could reasonably be expected
to result in a liability to Borrower or any Subsidiary in excess of
$50,000,000, a written notice specifying the nature thereof, what action
the Borrower has taken, is taking or proposes to take with

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	 	respect thereto, and, when known, any action taken or threatened by
the Internal Revenue Service, the Pension Benefit Guaranty Corporation or
the Department of Labor with respect thereto.

		
	 	     (i) Promptly upon their receipt, copies of (a) all notices received
by the Borrower, any Restricted Subsidiary or ERISA Affiliate of the
Pension Benefit Guaranty Corporation’s intent to terminate any Plan or to
have a trustee appointed to administer any Plan, and (b) all notices
received by the Borrower, any Restricted Subsidiary or any ERISA
Affiliate from a Multiemployer Plan concerning the imposition or amount
of withdrawal liability imposed pursuant to Section 4202 of ERISA, which
withdrawal liability individually or in the aggregate exceeds
$50,000,000.

		
	 	     (j) All notices required to be delivered under Section 9.14.

		
	 	     (k) Promptly after it obtains knowledge of any such change, notice
(by telephone, followed by written notice sent promptly thereafter in
accordance with Section 9.3) of any change in the rating by S&P or
Moody’s of the Borrower’s First Mortgage Bonds, together with the details
thereof, and of any announcement by S&P or Moody’s that its rating is
“under review” or that any such rating has been placed on a “CreditWatch
List”® or “watch list” or that any similar action has been taken by such
rating agency.

		
	 	     (l) Such other information respecting the financial condition and
results of operations of the Borrower or any Subsidiary as any Bank may
from time to time reasonably request.

Section 5.2 Books and Records; Inspection and Examination.

The Borrower will keep, and will cause each Subsidiary to keep, accurate books
of record and account for itself in which true and complete entries will be
made in accordance with GAAP. Upon request of any Applicable Party, as defined
below, the Borrower will, and will cause each Subsidiary to, give any
representative of such Applicable Party access to, and permit such
representative to examine, copy or make extracts from, any and all books,
records and documents in its possession (except to the extent that such access
is restricted by law or by a bona fide non-disclosure agreement not entered
into primarily for the purpose of evading the requirements of this Section), to
inspect any of its properties (subject to such physical security requirements
as the Borrower or the applicable Subsidiary may require) and to discuss its
affairs, finances and accounts with any of its principal officers, all at such
times during normal business hours, upon reasonable notice, and as often as
such Applicable Party may reasonably request. As used in this Section 5.2,
“Applicable Party” means (i) so long as any Event of Default has occurred and
is continuing, the Agent or any Bank, and (ii) at all other times, the Agent.
The provisions of this Section 5.2 shall in no way preclude any Bank from
discussing the general affairs, finances and accounts of the Borrower with any
of its principal officers at such times during normal business hours and as
often as may be agreed to between the Borrower and such Bank.

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Section 5.3 Compliance with Laws.

The Borrower will, and will cause each Subsidiary to, comply with the
requirements of applicable laws and regulations, the noncompliance with which
would effect a Material Adverse Change.

Section 5.4 Payment of Taxes and Other Claims.

The Borrower will, and will cause each Subsidiary to, pay or discharge, when
due, (a) all taxes, assessments and governmental charges levied or imposed upon
it or upon its income or profits, or upon any properties belonging to it, prior
to the date on which penalties attach thereto, (b) all federal, state and local
taxes required to be withheld by it, and (c) all lawful claims for labor,
materials and supplies which, if unpaid, might by law become a lien or charge
upon any properties of the Borrower or any Subsidiary; provided, that neither
the Borrower nor any Subsidiary shall be required to pay any such tax,
assessment, charge or claim (i) whose amount, applicability or validity is
being contested in good faith by appropriate proceedings and for which the
Borrower or such Subsidiary has provided adequate reserves in accordance with
GAAP or (ii) where failure to pay such tax, assessment, charge or claim could
not reasonably be expected to result in a liability in excess of $10,000,000.

Section 5.5 Maintenance of Properties.

The Borrower will keep and maintain, and will cause each Subsidiary to keep and
maintain, all of its properties necessary or useful in its business in good
condition, repair and working order; provided, however, that nothing in this
Section shall prevent the Borrower or any Subsidiary from discontinuing the
operation and maintenance of, or disposing of, any of its properties if (i) (A)
such discontinuance or disposition is, in the reasonable judgment of the
Borrower or that Subsidiary, desirable in the conduct of its business, and (B)
no Default or Event of Default exists at the time of, or will be caused by,
such discontinuance or disposition or (ii) such discontinuance or disposition
relates to obsolete or worn-out property.

Section 5.6 Insurance.

The Borrower will, and will cause each Restricted Subsidiary to, obtain and
maintain insurance with insurers reasonably believed by the Borrower or such
Restricted Subsidiary to be responsible and reputable, in such amounts and
against such risks as is usually carried by companies in similar circumstances
engaged in similar business and owning similar properties in the same general
areas in which the Borrower or that Restricted Subsidiary operates.

Section 5.7 Preservation of Corporate Existence.

The Borrower will, and will cause each Restricted Subsidiary to, preserve and
maintain its corporate existence and all of its rights, privileges and
franchises; provided, however, that neither the Borrower nor any Restricted
Subsidiary shall be required to preserve any of its

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rights, privileges and franchises or to maintain its corporate existence if (i)
its Board of Directors shall reasonably determine that the preservation or
maintenance thereof is no longer desirable in the conduct of the business of
the Borrower or that Restricted Subsidiary, and (ii) no Default or Event of
Default exists upon, or will be caused by, the termination of such right,
privilege, franchise or existence; provided, further, that in no event shall
the foregoing be construed to permit the Borrower to terminate its corporate
existence.

Section 5.8 Delivery of Information.

At any time when the Borrower is not subject to Section 13 or 15(d) of the
Exchange Act, for the benefit of holders from time to time of Bonds, the
Borrower agrees to furnish at its expense, upon request, to holders of Bonds
and prospective purchasers of securities information satisfying the
requirements of subsection (d)(4)(i) of Rule 144A under the Act.

Section 5.9 Use of Proceeds.

The Borrower will, and will cause each Subsidiary to, use the proceeds of the
Advances and L/C Amounts for general corporate purposes (including, without
limitation, support of commercial paper) and to repay outstanding Advances and
L/C Amounts. The Borrower will not, nor will it permit any Subsidiary to, use
any of the proceeds of the Advances and L/C Amounts to purchase or carry any
“margin stock” (as defined in Regulation U) or to make any acquisition of any
corporation, limited liability company or other business entity unless, prior
to making such acquisition, the Borrower or such Subsidiary shall have obtained
written approval from the board of directors or other governing body of such
entity.

ARTICLE VI

Negative Covenants

So long as any Note shall remain unpaid or any Commitment or L/C Amount shall
be outstanding, the Borrower agrees that, without the prior written consent of
the Required Banks:

Section 6.1 Liens.

The Borrower will not create, incur, assume or suffer to exist any Lien on any
of its assets, now owned or hereafter acquired, and will not permit any
Subsidiary to create, incur, assume or suffer to exist any Lien on any of such
Subsidiary’s assets, now owned or hereafter acquired, relating to any
indebtedness of such Subsidiary with respect to which the Borrower has any
obligation for the payment of money; excluding, however, from the operation of
the foregoing:

		
	 	     (a) Liens for taxes or assessments or other governmental charges to
the extent not required to be paid by Section 5.4.

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	 	     (b) Materialmen’s, merchants’, carriers’ worker’s, repairer’s, or
other like liens arising in the ordinary course of business to the extent
not required to be paid by Section 5.4.

		
	 	     (c) Pledges or deposits to secure obligations under worker’s
compensation laws, unemployment insurance, social security and other
similar laws, or to secure the performance of bids, tenders, contracts
(other than for the repayment of borrowed money) or leases or to secure
statutory obligations or surety or appeal bonds, or to secure indemnity,
performance or other similar bonds in the ordinary course of business.

		
	 	     (d) Zoning restrictions, easements, licenses, restrictions on the
use of real property or minor irregularities in title thereto, which do
not materially impair the use of such property in the operation of the
business of the Borrower and its Subsidiaries taken as a whole or the
value of such property for the purpose of such business.

		
	 	     (e) Purchase money Liens upon or in property acquired after the date
hereof, provided that (i) such Lien is created not later than the 90th
day following the acquisition or completion of construction of such
property by the Borrower or its applicable Subsidiary, and (ii) no such
Lien extends or shall extend to or cover any property of the Borrower or
its Subsidiaries other than the property then being acquired, fixed
improvements then or thereafter erected thereon and improvements and
modifications thereto necessary to maintain such properties in working
order.

		
	 	     (f) Liens granted by any Acquisition Target prior to the acquisition
by the Borrower or any Subsidiary of any interest in such Acquisition
Target or its assets, so long as (i) such Lien was granted by the
Acquisition Target prior to such acquisition and not in contemplation
thereof, and (ii) no such Lien extends to any assets of the Borrower or
any Subsidiary other than the assets of the Acquisition Target and
improvements and modifications thereto necessary to maintain such
properties in working order or, in the case of an asset transfer, the
assets so acquired by the Borrower or the applicable Subsidiary and
improvements and modifications thereto.

		
	 	     (g) Liens (other than those described in subsection (e)) securing
any indebtedness for borrowed money in existence on the date hereof and
listed in Schedule 6.1 hereto.

		
	 	     (h) Liens created under or in connection with the First Mortgage
Indenture.

		
	 	     (i) Liens permitted under the First Mortgage Indenture as such First
Mortgage Indenture exists on the date hereof, without regard to any
waiver, amendment, modification or restatement thereof.

		
	 	     (j) Liens securing any refinancing of indebtedness secured by the
Liens described in paragraphs (e), (f), and (g) , so long as the amount
of such indebtedness secured by any such Lien does not exceed the amount
of such refinanced

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	 	indebtedness immediately prior to the refinancing. Liens do not
extend to assets other than those encumbered prior to such refinancing
and improvements and modifications thereto.

		
	 	     (k) Liens granted by any Subsidiary of the Borrower in favor of the
Borrower or any wholly-owned Subsidiary of the Borrower.

		
	 	     (l) Liens not otherwise described in this Section 6.1, so long as
the aggregate amount of indebtedness secured by all such Liens does not
at any time exceed 10% of the Tangible Net Worth of the Borrower and its
Subsidiaries.

Section 6.2 Dividends.

The Borrower will not declare or pay any dividend (other than dividends payable
solely in stock of the Borrower) on any class of its stock or make any payment
on account of the purchase, redemption or other retirement of any shares of
such stock or make any distribution in respect thereof, either directly or
indirectly, at any time following and during the continuance of any Default or
Event of Default arising under paragraph (a), (b), (i) or (j) of Section 7.1.

Section 6.3 Sale of Assets.

The Borrower will not, and will not permit any Subsidiary to, sell, lease,
assign, transfer or otherwise dispose of all or a Material Part of the Assets
of the Borrower and its Subsidiaries (whether in one transaction or in a series
of transactions) to any other Person other than (i) in the ordinary course of
business, (ii) dispositions of property no longer used or useful in the
business of the Borrower or any Subsidiary and (iii) dispositions of assets the
net proceeds of which are invested or re-invested, or held in cash or
cash-equivalents for reinvestment, in other energy-related assets; provided,
however, that a wholly-owned Subsidiary of the Borrower may sell, lease, or
transfer all or a substantial part of its assets to the Borrower or another
wholly-owned Subsidiary of the Borrower, and the Borrower or such other
wholly-owned Subsidiary, as the case may be, may acquire all or substantially
all of the assets of the Subsidiary so to be sold, leased or transferred to it,
and any such sale, lease or transfer shall not be included in determining if
the Borrower and/or its Subsidiaries disposed of a Material Part of its Assets.
For purposes hereof, “Material Part of the Assets” means assets with a net
book value in excess of 10% of the total assets of the Borrower and its
Subsidiaries on a consolidated basis as determined in accordance with GAAP, as
shown on the most recent balance sheet of the Borrower and its Subsidiaries
available as of the date of determination. Notwithstanding the foregoing, the
operating agreement between TRANSLink Transmission Co., LLC and the Borrower
shall not be treated as a disposition for the purposes of this Section 6.3.

Section 6.4 Consolidation and Merger.

The Borrower will not consolidate with or merge into any Person, or permit any
other Person to merge into it, or acquire (in a transaction analogous in
purpose or effect to a consolidation

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or merger) all or substantially all of the assets of any other Person;
provided, however, that the restrictions contained in this Section shall not
apply to or prevent the consolidation or merger of any Person with, or a
conveyance or transfer of its assets to, the Borrower so long as (i) no Default
or Event of Default exists at the time of, or will be caused by, such
consolidation, merger, conveyance or transfer, and (ii) the Borrower shall be
the continuing or surviving corporation.

Section 6.5 Hazardous Substances.

The Borrower will not, and will not permit any Subsidiary to, cause or permit
any Hazardous Substance to be disposed of in any manner, or on, under or at any
real property which is operated by the Borrower or any Subsidiary or in which
the Borrower or any Subsidiary has any interest, if such disposition could
reasonably be expected to result in a Material Adverse Change.

Section 6.6 Restrictions on Nature of Business.

The Borrower will not engage in any line of business materially different from
that presently engaged in by the Borrower.

Section 6.7 Transactions with Affiliates.

The Borrower will not make any loan or capital contribution to, or any other
investment in, any Affiliate, or pay any dividend to any Affiliate of the
Borrower, or make any other cash transfer to any Affiliate of the Borrower;
provided, however, that the foregoing shall not prohibit any of the following:

		
	 	     (a) Transactions made upon fair and reasonable terms no less
favorable to the Borrower than would obtain, taking into account all
facts and circumstances, in a comparable arm’s-length transaction with a
Person not an Affiliate of the Borrower.

		
	 	     (b) Distributions to the extent not prohibited by Section 6.2.

		
	 	     (c) Loans to Northern States Power Company (a Wisconsin corporation)
to provide working capital so long as the aggregate principal amount
outstanding at any time shall not exceed $50 million.

		
	 	     (d) Transactions with Affiliates which are subject to the
jurisdiction of the Federal Energy Regulatory Commission (“FERC”), the
SEC or the Minnesota Public Utilities Commission.

		
	 	     (e) Allocation of taxes, tax benefits and tax credits in accordance
with the restrictions and requirements of PUHCA.

		
	 	     (f) Contributions of capital to subsidiaries, so long as such
transaction does not violate Section 6.3 of this Agreement.

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	 	     (g) Any investment in TRANSLink Transmission Co., LLC (“TRANSLink”)
or any operating agreement between TRANSLink and the Borrower and/or its
Subsidiaries, complying with the requirements of FERC Order No. 2000.

Section 6.8 Ratio of Funded Debt to Total Capital.

The Borrower will not at any time permit its ratio of total Funded Debt to
Total Capital, determined on a consolidated basis with respect to the Borrower
and its Subsidiaries as at the end of each fiscal quarter of the Borrower, to
be greater than 0.60 to 1.

Section 6.9 Interest Coverage Ratio.

The Borrower will not at any time permit its Interest Coverage Ratio,
determined as of the end of each fiscal quarter of the Borrower, to be less
than 2.75 to 1.

Section 6.10 Securities Laws.

The Borrower agrees with the Agent:

		
	 	     (a) Not to be or become, at any time prior to the expiration of
three years after the delivery of the Bonds, an open-end investment
company, unit investment trust, closed-end investment company or
face-amount certificate company that is or is required to be registered
under Section 8 of the Investment Company Act;

		
	 	     (b) During the period of two years after the delivery of the Bonds,
the Borrower will not, and will not permit any of its “affiliates” (as
defined in Rule 144 under the Act) to, resell any of the Bonds which
constitute “restricted securities” under Rule 144 that have been
reacquired by any of them; and

		
	 	     (c) Until at least six months after the offer of the Bonds hereunder
has been terminated, neither the Borrower nor any person will on the
Borrower’s behalf offer the Bonds, or any substantially similar security
of the Borrower for sale to, or solicit offers to buy any such security
from, any person, it being understood that such agreement is made with a
view to bringing the offer and sale of the Bonds hereunder within the
exception provided by Section 4(2) of the Act and Rule 506 thereunder.

ARTICLE VII

Events of Default, Rights and Remedies

Section 7.1 Events of Default.

“Event of Default”, wherever used herein, means any one of the following
events:

		
	 	     (a) Default in the payment of any principal of any Note or L/C
Amount when it becomes due and payable.

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	 	     (b) Default in the payment of any interest on any Note or any fees
required under Section 2.8 or under Section 2.9 when the same become due
and payable and the continuance of such default for five Business Days.

		
	 	     (c) Default in the performance, or breach, of any covenant or
agreement on the part of the Borrower contained in Article VI hereof
(other than Section 6.5).

		
	 	     (d) Default in the performance, or breach, of any covenant or
agreement of the Borrower in this Agreement or any other Loan Document
(including but not limited to Section 6.5, but excluding any other
covenant or agreement a default in whose performance or whose breach is
elsewhere in this Section specifically dealt with), and the continuance
of such default or breach for a period of 30 days after the Agent, at the
request of any Bank, has given notice to the Borrower specifying such
default or breach and requiring it to be remedied.

		
	 	     (e) Any representation or warranty made by the Borrower in this
Agreement or any other Loan Document or by the Borrower (or any of its
officers) in any certificate, instrument, or statement contemplated by or
made or delivered pursuant to or in connection with this Agreement, shall
prove to have been incorrect in any material respect when made.

		
	 	     (f) The Borrower or the Parent shall assert that any Loan Documents
or any Bonds are unenforceable in accordance with their terms; or the
principal amount outstanding under the Bonds shall at any time be less
than the greater of the Outstandings or the Commitment Amounts.

		
	 	     (g) A default in the payment when due (after giving effect to any
applicable grace periods) of principal or interest with respect to any
indebtedness or any Swap Contract of the Borrower or any Subsidiary
(other than indebtedness arising hereunder) if the aggregate amount of
all such indebtedness as to which such payment defaults exist is not less
than $50,000,000.

		
	 	     (h) A default (other than a default described in paragraph (g))
under any bond, debenture, note or other evidence of indebtedness or any
Swap Contract of the Borrower or any Subsidiary (other than to the Banks)
or under any indenture or other instrument under which any such evidence
of indebtedness has been issued or by which it is governed and the
expiration of the applicable period of grace, if any, specified in such
evidence of indebtedness, indenture or other instrument if the effect of
such default is to cause or to permit the holder of such indebtedness (or
trustee or agent on behalf of such holder) to cause such indebtedness to
come due prior to its stated maturity or is to cause or to permit the
counterparty in respect of such Swap Contract to elect an early
termination date in respect of such Swap Contract; provided, however,
that no Event of Default shall be deemed to have occurred under this
paragraph if the aggregate amount owing as to all such indebtedness and
Swap Contracts as to which such defaults have occurred and are continuing
is less than $50,000,000; provided further that if such default shall be
cured by the Borrower or

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	 	such Subsidiary, or waived by the holders of such indebtedness or
counterparties in respect of such Swap Contracts, in each case prior to
the commencement of any action under Section 7.2 and as may be permitted
by such evidence of indebtedness, indenture, other instrument, or Swap
Contract, then the Event of Default hereunder by reason of such default
shall be deemed likewise to have been thereupon cured or waived.

		
	 	     (i) The Borrower or any Restricted Subsidiary shall be adjudicated a
bankrupt or insolvent, or admit in writing its inability to pay its debts
as they mature, or make an assignment for the benefit of creditors; or
the Borrower or any Restricted Subsidiary shall apply for or consent to
the appointment of any receiver, trustee, or similar officer for it or
for all or any substantial part of its property; or such receiver,
trustee or similar officer shall be appointed without the application or
consent of the Borrower or such Restricted Subsidiary, and such
appointment shall continue undischarged for a period of 60 days; or the
Borrower or any Restricted Subsidiary shall institute (by petition,
application, answer, consent or otherwise) any bankruptcy, insolvency,
reorganization, arrangement, readjustment of debt, dissolution,
liquidation or similar proceeding relating to it under the laws of any
jurisdiction; or any such proceeding shall be instituted (by petition,
application or otherwise) against the Borrower or any Restricted
Subsidiary and shall continue undischarged for 60 days; or any judgment,
writ, warrant of attachment or execution or similar process shall be
issued or levied against a substantial part of the property of the
Borrower or any Restricted Subsidiary and such judgment, writ, or similar
process shall not be released, vacated, stayed or fully bonded within 60
days after its issue or levy.

		
	 	     (j) A petition shall be filed by the Borrower or any Restricted
Subsidiary under the United States Bankruptcy Code naming the Borrower or
that Restricted Subsidiary as debtor; or an involuntary petition shall be
filed against the Borrower or any Restricted Subsidiary under the United
States Bankruptcy Code, and such petition shall not have been dismissed
within 60 days after such filing; or an order for relief shall be entered
in any case under the United States Bankruptcy Code naming the Borrower
or any Restricted Subsidiary as debtor.

		
	 	     (k) The Parent shall cease to own 100% of all classes of capital
stock of the Borrower; or a Change of Control shall occur with respect to
the Parent.

		
	 	     (l) The rendering against the Borrower or any Subsidiary of a final
judgment, decree or order for the payment of money if the amount of such
judgment, decree or order, together with the amount of all other such
judgments, decrees and orders then outstanding, less (in each case) the
portion thereof covered by insurance proceeds, is greater than
$50,000,000 and if such judgment, decree or order remains unsatisfied and
in effect for any period of 30 consecutive days without a stay of
execution.

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	 	     (m) Any Plan shall have been terminated as a result of which the
Borrower or any Subsidiary or ERISA Affiliate has incurred an unfunded
liability in excess of $50,000,000; or a trustee shall have been
appointed by an appropriate United States District Court to administer
any Plan or the Pension Benefit Guaranty Corporation shall have
instituted proceedings to terminate any Plan or to appoint a trustee to
administer any Plan and in either case such action could reasonably be
expected to result in liability to the Borrower or any Subsidiary in
excess of $50,000,000, or withdrawal liability in excess of $50,000,000
shall have been asserted against the Borrower or any Subsidiary or ERISA
Affiliate by a Multiemployer Plan; or the Borrower or any Subsidiary or
ERISA Affiliate shall have incurred any joint and several liability to
the Pension Benefit Guaranty Corporation, the Internal Revenue Service or
the Department of Labor, or the Borrower or any Subsidiary shall have
incurred any other liability to the Pension Benefit Guaranty Corporation,
the Internal Revenue Service or the Department of Labor, in excess of
$50,000,000 with respect to any Plan; or any Reportable Event that the
Required Banks may determine in good faith could reasonably be expected
to constitute grounds for the termination of any Plan by the Pension
Benefit Guaranty Corporation, for the appointment by the appropriate
United States District Court of a trustee to administer any Plan or for
the imposition of withdrawal liability with respect to a Multiemployer
Plan, and which, in any such case, could reasonably be expected to result
in liability to Borrower or any Subsidiary or ERISA Affiliate in excess
of $50,000,000, shall have occurred and be continuing 30 days after
written notice to such effect shall have been given to the Borrower by
the Banks.

		
	 	     (n) Any Authorizing Order or other governmental license or other
permission necessary for the maintenance of Obligations outstanding or
the conduct of the Borrower’s business substantially as presently
conducted shall be suspended or revoked or shall fail to be renewed upon
expiration.

		
	 	     (o) Any court, government or governmental agency shall condemn,
seize or otherwise appropriate, or take custody or control of, all or any
Material Part of the Assets of the Borrower and its Subsidiaries.

		
	 	     (p) Failure of the Borrower to maintain or deposit in the Cash
Collateral Account on or after the fifth Business Day preceding the
Commitment Termination Date (or earlier, if required by Section 7.2(c))
an amount equal to the face amount of all outstanding Letters of Credit.

Section 7.2 Rights and Remedies.

Upon the occurrence of an Event of Default or at any time thereafter until such
Event of Default is waived by the Required Banks or cured, the Agent may, with
the consent of the Required Banks, and shall, upon the request of the Required
Banks, exercise any or all of the following rights and remedies:

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	 	     (a) The Agent may, by notice to the Borrower, declare the
Commitments to be terminated, whereupon the same shall forthwith
terminate.

		
	 	     (b) The Agent may, by notice to the Borrower, declare the entire
unpaid principal amount of the Notes then outstanding, all interest
accrued and unpaid thereon, and all other amounts payable under this
Agreement to be forthwith due and payable, whereupon the Notes, all such
accrued interest and all such amounts shall become and be forthwith due
and payable, without presentment, demand, protest or further notice of
any kind, all of which are hereby expressly waived by the Borrower.

		
	 	     (c) If any Letter of Credit remains outstanding, the Agent may, by
notice to the Borrower, require the Borrower to deposit in the Cash
Collateral Account immediately available funds equal to the aggregate
face amount of all such outstanding Letters of Credit (less any amounts
then on deposit in the Cash Collateral Account).

		
	 	     (d) The Banks may, without notice to the Borrower and without
further action, apply any and all money owing by any Bank to the Borrower
to the payment of the Notes then outstanding, including interest accrued
thereon, and of all other sums then owing by the Borrower hereunder. For
purposes of this paragraph (d), “Bank” means the Banks, as defined
elsewhere in this Agreement, and any participant in the loans made
hereunder; provided, however, that each such participant, by exercising
its rights under this paragraph (d), agrees that it shall be obligated
under Section 8.4 with respect to such payment as if it were a Bank for
purposes of that Section.

		
	 	     (e) The Agent may exercise and enforce all rights and remedies
available to it under the Pledge Agreement and in respect of the Cash
Collateral Account.

		
	 	     (f) The Agent and the Banks may exercise any other rights and
remedies available to them by law or agreement.

Notwithstanding the foregoing, upon the occurrence of an Event of Default
described in Section 7.1(j) hereof (whether or not such Event of Default also
arises under Section 7.1(i) hereof), the Commitments shall terminate and the
entire unpaid principal amount of the Notes then outstanding, all interest
accrued and unpaid thereon, and all other amounts payable under this Agreement
shall be immediately due and payable without presentment, demand, protest or
notice of any kind.

Section 7.3 Pledge of Cash Collateral Account.

The Borrower hereby pledges, and grants the Agent, as agent for the Banks,
including the Issuing Bank, a security interest in, all sums held in the Cash
Collateral Account from time to time and all proceeds thereof as security for
the payment of all amounts due and to become due from the Borrower to the
Issuing Bank, the Agent and/or the Banks pursuant to this Agreement, including
but not limited to both principal of and interest on the Notes and all

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renewals, extensions and modifications thereof and any notes issued in
substitution therefor, and specifically including the Borrower’s obligation to
reimburse the Issuing Bank for any amount drawn under any Letter of Credit,
whether such reimbursement obligation arises directly under this Agreement or
under a separate reimbursement agreement. Upon request of the Borrower, the
Agent shall permit the Borrower to withdraw from the Cash Collateral Account,
so long as no Default or Event of Default then exists, the lesser of (i) the
Excess Balance (as defined below), or (ii) the balance of the Cash Collateral
Account. If a Default or Event of Default then exists, the Agent shall, upon
the request of the Borrower, apply the Excess Balance to the payment of the
Obligations. As used herein, “Excess Balance” means (A) after the fifth
Business Day preceding the Commitment Termination Date, the amount by which the
balance of the Cash Collateral Account exceeds the L/C Amount, and (B) prior to
the fifth Business Day preceding the Commitment Termination Date, the balance
of the Cash Collateral Account. The Agent shall have full control of the Cash
Collateral Account, and, except as set forth above, the Borrower shall have no
right to withdraw the funds maintained in the Cash Collateral Account.

ARTICLE VIII

The Agent

Section 8.1 Authorization.

Each Bank and the holder of each Note irrevocably appoints and authorizes the
Agent to act on behalf of such Bank or holder to the extent provided herein or
in any document or instrument delivered hereunder or in connection herewith,
and to take such other action as may be reasonably incidental thereto.

Section 8.2 Distribution of Payments and Proceeds.

		
	 	     (a) After deduction of any costs of collection as hereinafter
provided, the Agent shall remit to each Bank that Bank’s Percentage of
all payments of principal, interest, Letter of Credit fees payable under
Section 2.7(d) and facility and utilization fees payable under Section
2.8 that are received by the Agent under the Loan Documents. Each Bank’s
interest in the Loan Documents shall be payable solely from payments,
collections and proceeds actually received by the Agent under the Loan
Documents; and the Agent’s only liability to the Banks hereunder shall be
to account for each Bank’s Percentage of such payments, collections and
proceeds in accordance with this Agreement. If the Agent is ever
required for any reason to refund any such payments, collections or
proceeds, each Bank will refund to the Agent, upon demand, its Percentage
of such payments, collections or proceeds, together with its Percentage
of interest or penalties, if any, payable by the Agent in connection with
such refund. The Agent may, in its sole discretion, make payment to the
Banks in anticipation of receipt of payment from the Borrower. If the
Agent fails to receive any such anticipated payment from the Borrower,
each Bank shall promptly refund to the Agent, upon demand, any such
payment made to it in anticipation of payment from

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	 	the Borrower, together with interest for each day on such amount
until so refunded at a rate equal to the Federal Funds Rate for each such
date.

		
	 	     (b) Notwithstanding the foregoing, if any Bank has wrongfully
refused to fund its Percentage of any Borrowing or other Advance as
required hereunder, or if the principal balance of any Bank’s Note is for
any other reason less than its Percentage of the aggregate principal
balances of the Notes then outstanding, the Agent may remit all payments
received by it to the other Banks until such payments have reduced the
aggregate amounts owed by the Borrower to the extent that the aggregate
amount owing to such Bank hereunder is equal to its Percentage of the
aggregate amount owing to all of the Banks hereunder. The provisions of
this paragraph are intended only to set forth certain rules for the
application of payments, proceeds and collections in the event that a
Bank has breached its obligations hereunder and shall not be deemed to
excuse any Bank from such obligations.

Section 8.3 Expenses.

All payments, collections and proceeds received or effected by the Agent may be
applied, first, to pay or reimburse the Agent for all costs, expenses, damages
and liabilities at any time incurred by or imposed upon the Agent in connection
with this Agreement or any other Loan Document (including but not limited to
all reasonable attorney’s fees, foreclosure expenses and advances made to
protect the security of collateral, if any, but excluding any costs, expenses,
damages or liabilities arising from the gross negligence or willful misconduct
of the Agent). If the Agent does not receive payments, collections or proceeds
from the Borrower or its properties sufficient to cover any such costs,
expenses, damages or liabilities within 30 days after their incurrence or
imposition, each Bank shall, upon demand, remit to the Agent its Percentage of
the difference between (i) such costs, expenses, damages and liabilities, and
(ii) such payments, collections and proceeds.

Section 8.4 Payments Received Directly by Banks.

If any Bank or other holder of a Note shall obtain any payment or other
recovery (whether voluntary, involuntary, by application of offset or
otherwise) on account of principal of or interest on any Note other than
through distributions made in accordance with Section 8.2, such Bank or holder
shall promptly give notice of such fact to the Agent and shall purchase from
the other Banks or holders such participations in the Notes held by them as
shall be necessary to cause the purchasing Bank or holder to share the excess
payment or other recovery ratably with each of them; provided, however, that if
all or any portion of the excess payment or other recovery is thereafter
recovered from such purchasing Bank or holder, the purchase shall be rescinded
and the purchasing Bank restored to the extent of such recovery (but without
interest thereon).

Section 8.5 Indemnification.

The Agent shall not be required to do any act hereunder or under any other
document or instrument delivered hereunder or in connection herewith, or to
prosecute or defend any suit

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in respect of this Agreement or the Notes or any documents or instrument
delivered hereunder or in connection herewith unless indemnified to its
satisfaction by the holders of the Notes against loss, cost, liability and
expense (other than any such loss, cost, liability or expense attributable to
the Agent’s own gross negligence or willful misconduct). If any indemnity
furnished to the Agent for any purpose shall, in the opinion of the Agent, be
insufficient or become impaired, the Agent may call for additional indemnity
and not commence or cease to do the acts indemnified against until such
additional indemnity is furnished.

Section 8.6 Exculpation.

		
	 	     (a) The Agent shall be entitled to rely upon advice of counsel
concerning legal matters, and upon this Agreement, any Loan Document and
any schedule, certificate, statement, report, notice or other writing
which it in good faith believes to be genuine or to have been presented
by a proper person. Neither the Agent nor any of its directors,
officers, employees or agents shall (a) be responsible for any recitals,
representations or warranties contained in, or for the execution,
validity, genuineness, effectiveness or enforceability of this Agreement,
any Loan Document, or any other instrument or document delivered
hereunder or in connection herewith, (b) be responsible for the validity,
genuineness, perfection, effectiveness, enforceability, existence, value
or enforcement of any collateral security, (c) be under any duty to
inquire into or pass upon any of the foregoing matters, or to make any
inquiry concerning the performance by the Borrower or any other obligor
of its obligations, or (d) in any event, be liable as such for any action
taken or omitted by it or them, except for its or their own gross
negligence or willful misconduct. The appointment of Wells Fargo as
Agent hereunder shall in no way impair or affect any of the rights and
powers of, or impose any duties or obligations upon, Wells Fargo in its
individual capacity.

		
	 	     (b) The term, “agent”, is used herein in reference to the Agent
merely as a matter of custom. It is intended to reflect only an
administrative relationship between the Agent and the Banks, in each case
as independent contracting parties. However, the obligations of the Agent
shall be limited to those expressly set forth herein. In no event shall
the use of such term create or imply any fiduciary relationship or any
other obligation arising under the general law of agency, and no implied
covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or any other Loan Document
or otherwise exist against the Agent.

Section 8.7 Agent and Affiliates.

The Agent shall have the same rights and powers hereunder in its individual
capacity as any other Bank, and may exercise or refrain from exercising the
same as though it were not the Agent, and the Agent and its Affiliates may
accept deposits from and generally engage in any kind of business with the
Borrower as fully as if the Agent were not the Agent hereunder.

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Section 8.8 Credit Investigation.

Each Bank acknowledges that it has made its own independent credit decision and
investigation and taken such care on its own behalf as would have been the case
had its Commitment been granted and the Advances made directly by such Bank to
the Borrower without the intervention of the Agent or any other Bank. Each
Bank agrees and acknowledges that the Agent makes no representations or
warranties about the creditworthiness of the Borrower or any other party to
this Agreement or with respect to the legality, validity, sufficiency or
enforceability of this Agreement, any Loan Document, or any other instrument or
document delivered hereunder or in connection herewith.

Section 8.9 Resignation.

The Agent may resign as such at any time upon at least 30 days’ prior notice to
the Borrower and the Banks. In the event of any resignation of the Agent, the
Required Banks shall as promptly as practicable appoint a Bank as a successor
Agent; provided, however, that so long as no Default or Event of Default has
occurred and is continuing at such time, no such successor Agent may be
appointed without the prior written consent of the Borrower. If no such
successor Agent shall have been so appointed by the Required Banks and shall
have accepted such appointment within 30 days after the resigning Agent’s
giving of notice of resignation, then the resigning Agent may, on behalf of the
Banks, appoint a Bank as a successor Agent, which shall be a commercial bank
organized under the laws of the United States of America or of any State
thereof. Upon the acceptance of any appointment as Agent hereunder by a
successor Agent, such successor Agent shall thereupon be entitled to receive
from the prior Agent such documents of transfer and assignment as such
successor Agent may reasonably request and the resigning Agent shall be
discharged from its duties and obligations under this Agreement. After any
resignation pursuant to this Section, the provisions of this Section shall
inure to the benefit of the retiring Agent as to any actions taken or omitted
to be taken by it while it was an Agent hereunder.

Section 8.10 Assignments.

		
	 	     (a) Any Bank may, at any time, assign a portion of its Notes and
Commitment to an Eligible Lender (an “Applicant”) on any date (the
“Adjustment Date”) selected by such Bank, subject to the terms and
provisions of this Section 8.10. The aggregate principal amount of the
Note and Commitment so assigned in any assignment shall be not less than
$5,000,000, and the assigning Bank shall retain at least $5,000,000 of
such Note and Commitment for its own account; provided, however, that the
foregoing restriction shall not apply to a Bank assigning its entire Note
and Commitment to the Applicant. Any Bank proposing an assignment
hereunder shall give notice of such assignment to the Agent and the
Borrower at least ten Business Days prior to such assignment (unless the
Agent consents to a shorter period of time). Such notice shall specify
the identity of such Applicant and the Percentage which it proposes that
such Applicant acquire (which Percentage shall be the same for the
Commitment and the Note held by the assigning Bank). Any

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	 	assignment hereunder may be made only with the prior written consent
of the Agent and the Borrower; provided, however, that (i) in no event
shall such consent be unreasonably withheld, and (ii) the consent of the
Borrower shall not be required if a Default or Event of Default has
occurred and is continuing at the time of such assignment.

		
	 	     (b) Subject to the prior written consent of the Agent and the
Borrower (if applicable), to confirm the status of an Applicant as a
party to this Agreement and to evidence the assignment of the applicable
portion of the assigning Bank’s Commitment and Notes in accordance
herewith:

	 	(i)	 	the Borrower, such Bank, such Applicant, and the
Agent shall, on or before the Adjustment Date, execute and
deliver to the Agent an Assignment Certificate (provided that,
if a Default or Event of Default has occurred and is
continuing on the applicable Adjustment Date, the assignment
will be effective whether the Borrower signs it or not), in
substantially the form of Exhibit E (an “Assignment
Certificate”); and
	 
	 	(ii)	 	the Borrower will, at its own expense and in
exchange for the assigning Bank’s Note, execute and deliver to
the assigning Bank a new Note, payable to the order of the
Applicant in an amount corresponding to the applicable
interest in the assigning Bank’s rights and obligations
acquired by such Applicant pursuant to such assignment, and,
if the assigning Bank has retained interests in such rights
and obligations, a new Note, payable to the order of that Bank
in an amount corresponding to such retained interests. Such
new Notes shall be in an aggregate principal amount equal to
the principal amount of the Note to be replaced by such new
Notes (or, if less, the Commitment Amount of the assigning
Bank prior to giving effect to such assignment, unless such
assignment is made after the Commitment Termination Date, in
which case the aggregate principal amount of the new Notes
shall equal the outstanding principal balance of the Note to
be replaced by such new Notes), shall be dated the effective
date of such assignment and shall otherwise be in the form of
the Note to be replaced thereby. Such new Notes shall be
issued in substitution for, but not in satisfaction or payment
of, the Note being replaced thereby; and

Upon the execution and delivery of such Assignment Certificate and such
Notes, (a) this Agreement shall deemed to be amended to the extent, and
only to the extent, necessary to reflect the addition of such Additional
Bank and the resulting adjustment of Percentages arising therefrom, (b)
the assigning Bank shall be relieved of all obligations hereunder to the
extent of the reduction of all obligations hereunder and to the extent of
the reduction of such Bank’s Percentage, and (c) the Additional Bank
shall become a party hereto and shall be entitled to all rights, benefits
and privileges accorded to a Bank herein and in each other document or
instrument executed

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pursuant hereto and subject to all obligations of a Bank hereunder,
including the right to approve or disapprove actions which, in accordance
with the terms hereof, require the approval of the Required Banks or all
Banks, and the obligations to make Advances hereunder.

		
	 	     (c) In order to facilitate the addition of Additional Banks hereto,
the Borrower shall (subject to the written agreement of any prospective
Additional Bank to be subject to the confidentiality provisions of
Section 8.13) provide all reasonable assistance requested by each Bank
and the Agent relating thereto, which shall not require undue effort or
expense on the part of the Borrower, including, without limitation, the
furnishing of such written materials and financial information regarding
the Borrower as any Bank or the Agent may reasonably request, and the
participation by officers of the Borrower in a meeting or teleconference
call with any Applicant upon the reasonable request upon reasonable
notice of any Bank or the Agent.

		
	 	     (d) Without limiting any other provision hereof:

	 	(i)	 	each Bank shall have the right at any time upon
written notice to the Borrower and the Agent (but without
requiring the consent of the Borrower or the Agent) to sell,
assign, transfer, or negotiate all or any part of its
Commitment, Advances, Notes, and other rights and obligations
under this Agreement and the Loan Documents to one or more
Affiliates of such Bank, provided that, unless consented to by
the Borrower and the Agent (which consent shall not be
unreasonably withheld), no such sale, assignment, transfer or
negotiation of Commitment shall relieve the transferring Bank
from its obligations (to the extent such Affiliate does not
fulfill its obligations) hereunder; and
	 
	 	(ii)	 	each Bank shall have the right at any time upon
written notice to the Borrower and the Agent (but without
requiring the consent of the Borrower or the Agent) to sell,
assign, transfer, or negotiate all or any part of its
Commitment, Advances, Notes, and other rights and obligations
under this Agreement and the Loan Documents to one or more
Banks, and any such sale, assignment, transfer or negotiation
shall relieve the transferring Bank from its obligations
hereunder to the extent of the obligations so transferred
(except, in any event, to the extent that the Borrower, any
other Bank or the Agent has rights against such transferring
Bank as a result of any default by such transferring Bank
under this Agreement);

provided, however, that any partial sale, assignment, transfer or
negotiation pursuant to this Section shall be pro rata as to all of the
Commitment, Note and Advances transferred.

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	 	     (e) Simultaneous with any assignment under this Section, the Bank
making such assignment shall pay the Agent a transfer fee in the amount
of $3,500.

		
	 	     (f) Notwithstanding anything to the contrary contained herein, any
Bank (a “Granting Bank”) may grant to a special purpose funding vehicle
(an “SPC”) of such Granting Bank, identified as such in writing from time
to time by the Granting Bank to the Agent and the Borrower, the option to
provide to the Borrower all or any part of any Advance that such Granting
Bank would otherwise be obligated to make to the applicable Borrower
pursuant to this Agreement; provided that (i) nothing herein shall
constitute a commitment by any SPC to make any Advance, (ii) if an SPC
elects not to exercise such option or otherwise fails to provide all or
any part of such Advance, the Granting Bank shall be obligated to make
such Advance pursuant to the terms hereof, (iii) such Granting Bank’s
other obligations under this Agreement shall remain unchanged, (iv) such
Granting Bank shall remain solely responsible to the other parties hereto
for the performance of such obligations, and (v) the Borrower, the Agent
and the other Banks shall continue to deal solely and directly with such
Granting Bank in connection with such Granting Bank’s rights and
obligations under this Agreement (including any rights and obligations
assigned to such SPC). The making of an Advance by an SPC hereunder shall
be deemed to utilize the Commitment of the applicable Granting Bank to
the same extent, and as if, such Advance were made by such Granting Bank.
Each party hereto hereby agrees that no SPC shall be liable for any
indemnity or similar payment obligation under this Agreement (all
liability for which shall remain with the applicable Granting Bank). All
notices hereunder to any Granting Bank or the related SPC, and all
payments in respect of the Obligations due to such Granting Bank or the
related SPC, shall be made to such Granting Bank. In addition, each
Granting Bank shall vote as a Bank hereunder without giving effect to any
assignment under this paragraph (f), and no SPC shall have any vote as a
Bank under this Agreement for any purpose. 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 senior
indebtedness 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 proceedings under the laws of the
United States or any State thereof. In addition, notwithstanding anything
to the contrary contained in this Section 8.10, any SPC may (i) with
notice to, but without the prior written consent of, the Borrower or the
Agent and without paying any transfer fee therefor, assign all or a
portion of its interests in its right to repayment of any Advances to its
Granting Bank or to any financial institutions providing liquidity and/or
credit support to or for the account of such SPC to fund the Advances
made by such SPC or to support the securities (if any) issued by such SPC
to fund such Advances and (ii) disclose on a confidential basis, to the
extent such disclosure would be permitted under Section 8.13 as if such
SPC were a Bank, any non-public information relating to its Advances to
any rating agency, commercial paper dealer or provider of any surety,
guarantee or credit or liquidity enhancement to

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	 	such SPC. No amendment to this paragraph (f) that affects the
rights of an SPC that has made an advance hereunder shall be effective
without the consent of such SPC.

		
	 	     (g) Notwithstanding any other provision of this Agreement, any Bank
may at any time create a security interest in all or any portion of its
rights under this Agreement and that Bank’s Note in favor of any Federal
Reserve Bank in accordance with Regulation A of the Board of Governors of
the Federal Reserve System.

Section 8.11 Participations

Each Bank may grant participations in a portion of its Notes, Letter of Credit
participations and Commitments to any Eligible Lender, upon prior written
notice to the Agent but without the consent of the Agent or the Borrower, but
only so long as the principal amount of the participation so granted is no less
than $5,000,000 (or, if the participant is a Participating Affiliate, no less
than $1,000,000). No holder of any such participation, other than an Affiliate
of such Bank, shall be entitled to require such Bank to take or omit to take
any action hereunder, except that such Bank may agree with such participant
that such Bank will not, without such participant’s consent, agree to any
action described in paragraph (a) of Section 9.2. No Bank shall, as between the
Borrower and such Bank, be relieved of any of its obligations hereunder as a
result of any such granting of a participation. The Borrower hereby
acknowledges and agrees that any participant described in this Section will,
for purposes of Sections 2.16, 2.17 and 2.18 only, be considered to be a Bank
hereunder (provided that such participant shall not be entitled to receive any
more than the Bank selling such participation would have received had such sale
not taken place).

Section 8.12 Limitation on Assignments and Participations.

Except as set forth in Sections 8.10 and 8.11, no Bank may assign any of its
rights or obligations under, or grant any participation in, any Loan Document
or Commitment.

Section 8.13 Disclosure of Information.

The Agent and the Banks shall keep confidential (and cause their respective
officers, directors, employees, agents and representatives to keep
confidential) all information, materials and documents furnished by the
Borrower and its Subsidiaries to the Agent or the Banks (the “Disclosed
Information”). Notwithstanding the foregoing, the Agent and each Bank may
disclose Disclosed Information (i) to the Agent or any other Bank; (ii) to any
Affiliate of any Bank in connection with the transactions contemplated hereby,
provided that such Affiliate has been informed of the confidential nature of
such information; (iii) to legal counsel, accountants and other professional
advisors to the Agent or such Bank; (iv) to any regulatory body having
jurisdiction over any Bank or the Agent; (v) to the extent required by
applicable laws and regulations or by any subpoena or similar legal process, or
requested by any governmental agency or authority; (vi) to the extent such
Disclosed Information (A) becomes publicly available other than as a result of
a breach of this Agreement, (B) becomes available to the Agent or such Bank on
a non-confidential basis from a source other than the Borrower or a Subsidiary,
or (C) was available to the Agent or such Bank on a non-

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confidential basis prior to its disclosure to the Agent or such Bank by the
Borrower or a Subsidiary; (vii) to the extent the Borrower or such Subsidiary
shall have consented to such disclosure in writing; (viii) to the extent
reasonably deemed necessary by the Agent or any Bank in the enforcement of the
remedies of the Agent and the Banks provided under the Loan Documents; or (ix)
in connection with any potential assignment or participation in the interest
granted hereunder, provided that any such potential assignee or participant
shall have executed a confidentiality agreement imposing on such potential
assignee or participant substantially the same obligations as are imposed on
the Agent and the Banks under this Section 8.13.

Notwithstanding anything herein to the contrary, information subject to this
Section 8.13 shall not include, and the Agent and each Bank may disclose
without limitation of any kind, any information with respect to the “tax
treatment” and “tax structure” (in each case, within the meaning of Treasury
Regulation Section 1.6011-4) of the transactions contemplated hereby and all
materials of any kind (including opinions or other tax analyses) that are
provided to the Agent or such Bank relating to such tax treatment and tax
structure; provided that with respect to any document or similar item that in
either case contains information concerning the tax treatment or tax structure
of the transaction as well as other information, this sentence shall only apply
to such portions of the document or similar item that relate to the tax
treatment or tax structure of the Notes, Letters of Credit and transactions
contemplated hereby. The Borrower and its Subsidiaries may also disclose
without limitation the “tax treatment” and “tax structure” of the transactions
contemplated hereby.

Section 8.14 Titles.

The Persons identified on the title page as “Syndication Agent” and “Co-Lead
Arrangers” shall have no right, power, obligation or liability under this
Agreement or any other Loan Document on account of such identification other
than those applicable to such Persons in their capacity (if any) as Banks. Each
Bank acknowledges that it has not relied, and will not rely, on any Person so
identified in deciding to enter into this Agreement or in taking or omitting
any action hereunder.

Section 8.15 Agent not Offering Bonds.

Each Bank acknowledges that neither the Agent’s taking possession of the Bonds,
nor its exercise of remedies with respect to the Bonds and subsequent
distribution of proceeds thereunder, constitutes or will constitute an offer of
any security, a solicitation of an offer to buy any security, or a placement of
any security.

ARTICLE IX

Miscellaneous

Section 9.1 No Waiver; Cumulative Remedies.

No failure or delay on the part of the Banks in exercising any right, power or
remedy under the Loan Documents shall operate as a waiver thereof; nor shall
any Bank’s acceptance of

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payments while any Default or Event of Default is outstanding operate as a
waiver of such Default or Event of Default, or any right, power or remedy under
the Loan Documents; nor shall any single or partial exercise of any such right,
power or remedy preclude any other or further exercise thereof or the exercise
of any other right, power or remedy under the Loan Documents. The remedies
provided in the Loan Documents are cumulative and not exclusive of any remedies
provided by law.

Section 9.2 Amendments, Etc.

No amendment or waiver of any provision of any Loan Document or consent to any
departure by the Borrower therefrom shall be effective unless the same shall be
in writing and signed by the Required Banks (or by the Agent with the consent
or at the request of the Required Banks), and any such waiver shall be
effective only in the specific instance and for the specific purpose for which
given. Notwithstanding the foregoing:

		
	 	     (a) No such amendment or waiver shall be effective to do any of the
following unless signed by each of the Banks (or by the Agent with the
consent or at the request of each of the Banks):

	 	(i)	 	Increase the Commitment Amount of any Bank or
extend the Commitment Termination Date.
	 
	 	(ii)	 	Permit the Borrower to assign its rights under
this Agreement.
	 
	 	(iii)	 	Amend this Section, the definition of “Required
Banks” in Section 1.1, or any provision herein providing for
consent or other action by all Banks.
	 
	 	(iv)	 	Forgive any indebtedness of the Borrower arising
under this Agreement or the Notes, or reduce the rate of
interest or any fees charged under this Agreement or the
Notes.
	 
	 	(v)	 	Postpone or delay any date fixed by this
Agreement or any other Loan Document for any payment of
principal, interest, facility fees or other material amounts
due to the Banks (or any of them) hereunder or under any other
Loan Document.
	 
	 	(vi)	 	Release the Agent’s security interest in any
Bonds or other collateral granted under the Pledge Agreement
or amend any terms of any Bonds or, except pursuant to the
terms hereof, release any collateral in the Cash Collateral
Account.

		
	 	     (b) No amendment, waiver or consent shall affect the rights or
duties of the Agent under this Agreement or any other Loan Document
unless in writing and signed by the Agent.

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	 	     (c) No amendment, modification or (except as provided elsewhere
herein) termination of this Agreement or waiver of any rights of the
Borrower or obligations of any Bank or the Agent hereunder shall be
effective unless the Borrower shall have consented thereto in writing.

No notice to or demand on the Borrower in any case shall entitle the Borrower
to any other or further notice or demand in similar or other circumstances.

Section 9.3 Notice.

Except as otherwise expressly provided herein, all notices and other
communications hereunder shall be in writing and shall be (i) personally
delivered, (ii) transmitted by registered mail, postage prepaid, (iii) sent
by Federal Express or similar expedited delivery service, or (iv) transmitted
by telecopy, in each case addressed or transmitted by telecopy to the party to
whom notice is being given at its address or telecopier number (as the case may
be) as set forth in Exhibit A or in any applicable Assignment Certificate; or,
as to each party, at such other address or telecopier number as may hereafter
be designated in a notice by that party to the other party complying with the
terms of this Section. All such notices or other communications shall be
deemed to have been given on (i) the date received if delivered personally,
(ii) five business days after the date of posting, if delivered by mail, (iii)
the date of receipt, if delivered by Federal Express or similar expedited
delivery service, or (iv) the date of transmission if delivered by telecopy,
except that notices or requests to the Banks pursuant to any of the provisions
of Article II shall not be effective as to any Bank until received by that
Bank.

Section 9.4 Costs and Expenses.

The Borrower agrees to pay on demand (i) all costs and expenses incurred by the
Agent in connection with the negotiation, preparation, execution,
administration or amendment of the Loan Documents and the other instruments and
documents to be delivered hereunder and thereunder, and (ii) all costs and
expenses incurred by the Agent or any Bank in connection with the workout or
enforcement of the Loan Documents and the other instruments and documents to be
delivered hereunder and thereunder; including, in each case, reasonable fees
and out-of-pocket expenses of counsel with respect thereto, whether paid to
outside counsel or allocated to the Agent or such Bank by in-house counsel. The
Borrower also agrees to pay and reimburse the Agent for all of its
out-of-pocket and allocated costs incurred in connection with each audit or
examination conducted by the Agent, its employees or agents, which audits and
examinations shall be for the sole benefit of the Agent and the Banks.

Section 9.5 Indemnification by Borrower.

The Borrower hereby agrees to indemnify the Agent and the Banks and each
officer, director, employee and agent thereof (herein individually each called
an “Indemnitee” and collectively called the “Indemnitees”) from and against any
and all losses, claims, damages, reasonable expenses (including, without
limitation, reasonable attorneys’ fees) and liabilities (all of the foregoing
being herein called the “Indemnified Liabilities”) incurred by an Indemnitee in

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connection with or arising out of the execution or delivery of this Agreement
or any agreement or instrument contemplated hereby, the performance by the
parties hereto of their respective obligations hereunder or the use of the
proceeds of any Advance or Letter of Credit hereunder (including but not
limited to any such loss, claim, damage, expense or liability arising out of
any claim that any Environmental Law has been breached with respect to any
activity or property of the Borrower), except for any portion of such losses,
claims, damages, expenses or liabilities incurred solely as a result of the
gross negligence or willful misconduct of the applicable Indemnitee. If and to
the extent that the foregoing indemnity may be unenforceable for any reason,
the Borrower hereby agrees to make the maximum contribution to the payment and
satisfaction of each of the Indemnified Liabilities which is permissible under
applicable law. All obligations provided for in this Section shall survive any
termination of this Agreement. Notwithstanding the foregoing, the Borrower
shall not be obligated to indemnify any Indemnitee in respect of any
Indemnified Liabilities arising as a result of the Issuing Bank’s failure to
pay any Letter of Credit after the presentation to it of a request strictly
complying with the terms and conditions of such Letter of Credit.

Section 9.6 Execution in Counterparts.

This Agreement and the other Loan Documents may be executed in any number of
counterparts, each of which when so executed and delivered shall be deemed to
be an original and all of which counterparts of this Agreement or such other
Loan Document, as the case may be, taken together, shall constitute but one and
the same instrument.

Section 9.7 Binding Effect, Assignment.

The Loan Documents shall be binding upon and inure to the benefit of the
Borrower and the Banks and their respective successors and assigns, except that
the Borrower shall not have the right to assign its rights thereunder or any
interest therein without the prior written consent of each of the Banks.

Section 9.8 Governing Law.

The Loan Documents shall be governed by, and construed in accordance with, the
laws of the State of Minnesota.

Section 9.9 Severability of Provisions.

Any provision of this Agreement which is prohibited or unenforceable shall be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof.

Section 9.10 Consent to Jurisdiction.

Each party irrevocably (i) agrees that any suit, action or other legal
proceeding arising out of or relating to this Agreement or any other Loan
Document may be brought in a court of record in Hennepin County in the State of
Minnesota or in the courts of the United States

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located in such State, (ii) consents to the jurisdiction of each such court in
any suit, action or proceeding, (iii) waives any objection which it may have to
the laying of venue of any such suit, action or proceeding in any such courts
and any claim that any such suit, action or proceeding has been brought in an
inconvenient forum, and (iv) agrees that a final judgment in any such suit,
action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.

Section 9.11 Waiver of Jury Trial.

THE BORROWER, THE AGENT AND THE BANKS HEREBY WAIVE TRIAL BY JURY IN ANY
JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER
SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO,
OR CONNECTED WITH THIS AGREEMENT AND THE NOTES OR THE RELATIONSHIPS ESTABLISHED
HEREUNDER.

Section 9.12 Prior Agreements.

This Agreement and the other Loan Documents and related documents described
herein restate and supersede in their entirety any and all prior agreements and
understandings, oral or written, between the Banks and the Borrower relating to
the subject matter hereof.

Section 9.13 General Release.

The Borrower hereby absolutely and unconditionally releases and forever
discharges each Indemnitee (as defined in Section 9.5) from any and all claims,
demands or causes of action (arising from the beginning of time to and
including the date of this Agreement) of any kind, nature or description,
whether arising in law or equity or upon contract or tort or under any state or
federal law or otherwise, whether such claims, demands and causes of action are
matured or unmatured or known or unknown, which the Borrower has had, now has
or has made claim to have against any Indemnitee for or by reason of any act,
omission, matter, cause or thing arising out of or in any way related to the
Prior Credit Agreement or any document executed in connection therewith.

Section 9.14 Recalculation of Covenants Following Accounting Practices Change.

The Borrower shall notify the Agent of any Accounting Practices Change promptly
upon becoming aware of the same. Promptly following such notice, the Borrower
and the Banks shall negotiate in good faith in order to effect any adjustments
to Sections 6.8 and 6.9 necessary to reflect the effects of such Accounting
Practices Change.

Section 9.15 Headings.

Article and Section headings in this Agreement are included herein for
convenience of reference only and shall not constitute a part of this Agreement
for any other purpose.

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Section 9.16 Nonliability of Banks.

The relationship between the Borrower on the one hand and the Banks, the
Issuing Bank and the Agent on the other hand shall be solely that of borrower
and lender. Neither the Agent, either Co-Lead Arranger, any Bank nor the
Issuing Bank shall have any fiduciary responsibilities to the Borrower.
Neither the Agent, either Co-Lead Arranger, any Bank nor the Issuing Bank
undertakes any responsibility to the Borrower to review or inform the Borrower
of any matter in connection with any phase of the Borrower’s business or
operations. The Borrower agrees that neither the Agent, either Co-Lead
Arranger, any Bank nor the Issuing Bank shall have liability to the Borrower
(whether sounding in tort, contract or otherwise) for losses suffered by the
Borrower in connection with, arising out of, or in any way related to, the
transactions contemplated and the relationship established by the Loan
Documents, or any act, omission or event occurring in connection therewith,
unless it is determined in a final non-appealable judgment by a court of
competent jurisdiction that such losses resulted from (i) the gross negligence
or willful misconduct of the party from which recovery is sought or (ii) the
Issuing Bank’s failure to pay any Letter of Credit after the presentation to it
of a request strictly complying with the terms and conditions of such Letter of
Credit. Neither the Agent, either Co-Lead Arranger, any Bank nor the Issuing
Bank shall have any liability with respect to, and the Borrower hereby waives,
releases and agrees not to sue for, any special, indirect or consequential
damages suffered by the Borrower in connection with, arising out of, or in any
way related to the Loan Documents or the transactions contemplated thereby.

[Signature Pages Follow]

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

	 	 	 	 	 	 	 
	 	 	
NORTHERN STATES POWER
      COMPANY

	 	 	 	 	 	 	 
	 	 	
By	 	/s/ Ben G.S. Fowke III
	 	 	 	

	 	 	 	 	Its	 	Vice President and Treasurer
	 	 	 	 	 	 	

[Signature Page to Northern States Power Company Credit
Agreement]

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WELLS FARGO BANK, NATIONAL 
      ASSOCIATION,  as Agent and as a 
     Bank

	 	 	 	 	 	 	 
	 	 	
By	 	  /s/ Scott D. Bjelde
	 	 	 	

	 	 	 	 	Its	 	Vice President and Senior Banker
	 	 	 	 	 	 	

	 	 	 	 	 	 	 
	 	 	
By	 	  Christopher A. Cudak
	 	 	 	

	 	 	 	 	Its	 	Senior Vice President
	 	 	 	 	 	 	

[Signature Page to Northern States Power Company Credit
Agreement]

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BANK ONE, NA 
     (Main Branch, Chicago)

	 	 	 	 	 	 	 
	 	 	
By	 	  /s/ Jane A. Bek
	 	 	 	

	 	 	 	 	Its	 	Director
	 	 	 	 	 	 	

[Signature Page to Northern States Power Company Credit
Agreement]

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THE BANK OF NEW YORK

	 	 	 	 	 	 	 
	 	 	
By	 	  /s/
	 	 	 	

	 	 	 	 	Its	 	Managing Director
	 	 	 	 	 	 	

[Signature Page to Northern States Power Company Credit
Agreement]

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KEY BANK NATIONAL ASSOCIATION

	 	 	 	 	 	 	 
	 	 	
By	 	  /s/
	 	 	 	

	 	 	 	 	Its	 	Vice President
	 	 	 	 	 	 	

[Signature Page to Northern States Power Company Credit
Agreement]

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UBS AG, 

       Cayman Islands Branch

	 	 	 	 	 	 	 
	 	 	
By	 	  /s/
	 	 	 	

	 	 	 	 	Its	 	Director
	 	 	 	 	 	 	

	 	 	 	 	 	 	 
	 	 	
By	 	  /s/
	 	 	 	

	 	 	 	 	Its	 	Associate Director
	 	 	 	 	 	 	

[Signature Page to Northern States Power Company Credit
Agreement]

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THE BANK OF TOKYO-MITSUBISHI, 
       LTD., Chicago Branch

	 	 	 	 	 	 	 
	 	 	
By	 	  /s/ Patrick McCue
	 	 	 	

	 	 	 	 	Its	 	Vice President & Manager
	 	 	 	 	 	 	

[Signature Page to Northern States Power Company Credit
Agreement]

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BARCLAYS BANK PLC

	 	 	 	 	 	 	 
	 	 	
By	 	  /s/ Sydney G. Dennis
	 	 	 	

	 	 	 	 	Its	 	Director
	 	 	 	 	 	 	

[Signature Page to Northern States Power Company Credit
Agreement]

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CITICORP, USA

	 	 	 	 	 	 	 
	 	 	
By	 	  /s/ Dhaya Ranganathan
	 	 	 	

	 	 	 	 	Its	 	Vice President
	 	 	 	 	 	 	

[Signature Page to Northern States Power Company Credit
Agreement]

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JPMORGAN CHASE BANK

	 	 	 	 	 	 	 
	 	 	
By	 	  /s/ Peter M. Ling
	 	 	 	

	 	 	 	 	Its	 	Managing Director
	 	 	 	 	 	 	

[Signature Page to Northern States Power Company Credit
Agreement]

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U.S. BANK NATIONAL ASSOCIATION

	 	 	 	 	 	 	 
	 	 	
By	 	  /s/ Christine J. Geer
	 	 	 	

	 	 	 	 	Its	 	Corporate Banking Officer
	 	 	 	 	 	 	

[Signature Page to Northern States Power Company Credit
Agreement]

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CREDIT SUISSE FIRST BOSTON, 

     Cayman Island Branch

	 	 	 	 	 	 	 
	 	 	
By	 	  /s/ Sarah Wu
	 	 	 	

	 	 	 	 	Its	 	Vice President
	 	 	 	 	 	 	

	 	 	 	 	 	 	 
	 	 	
By	 	  /s/ David J. Dodd
	 	 	 	

	 	 	 	 	Its	 	Associate
	 	 	 	 	 	 	

[Signature Page to Northern States Power Company Credit
Agreement]

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BMO NESBITT BURNS FINANCING, 
     INC.

	 	 	 	 	 	 	 
	 	 	
By	 	  /s/ Thomas H. Peer
	 	 	 	

	 	 	 	 	Its	 	Vice President
	 	 	 	 	 	 	

[Signature Page to Northern States Power Company Credit
Agreement]

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GOLDMAN SACHS CREDIT 
      PARTNERS L.P.

	 	 	 	 	 	 	 
	 	 	
By	 	  /s/ Stephen B. King
	 	 	 	

	 	 	 	 	Its	 	Authorized Signatory
	 	 	 	 	 	 	

[Signature Page to Northern States Power Company Credit
Agreement]

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BANK OF OKLAHOMA, N.A.

	 	 	 	 	 	 	 
	 	 	
By	 	  Thomas M. Foncannon
	 	 	 	

	 	 	 	 	Its	 	Senior Vice President
	 	 	 	 	 	 	

[Signature Page to Northern States Power Company Credit
Agreement]

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EXHIBITS AND SCHEDULES

	 	 	 	 	 
	 	 	
Exhibit A
	 	Commitment Amounts and Addresses
	 	 	 	 	 
	 	 	
Exhibit B
	 	Note
	 	 	 	 	 
	 	 	
Exhibit C
	 	Compliance Certificate
	 	 	 	 	 
	 	 	
Exhibit D
	 	Opinion of Borrower’s Counsel
	 	 	 	 	 
	 	 	
Exhibit E
	 	Assignment Certificate
	 	 	 	 	 
	 	 	
Exhibit F
	 	Borrowing Certificate
	 	 	 	 	 
	 	 	
Schedule 4.2
	 	Regulatory Consents
	 	 	 	 	 
	 	 	
Schedule 4.4
	 	Subsidiaries
	 	 	 	 	 
	 	 	
Schedule 4.7
	 	Litigation
	 	 	 	 	 
	 	 	
Schedule 4.8
	 	Environmental Matters
	 	 	 	 	 
	 	 	
Schedule 4.22
	 	Compliance with Laws
	 	 	 	 	 
	 	 	
Schedule 6.1
	 	Liens

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EXHIBIT A

COMMITMENT AMOUNTS AND ADDRESSES

	 	 	 	 	 	 	 
	Name	 	Commitment Amount	 	Notice Address
	
	 	
	 	

	Northern States Power Company	 	
N/A
	 	 	 	800 Nicollet Mall 

Minneapolis, Minnesota 55402

Attention: Mary Schell

Telecopier: 612-215-5370

	 	 	 	 	 	 	 
	Wells Fargo Bank, National

     Association, as Agent	 	
N/A
	 	 	 	MAC N9305-031

Sixth and Marquette

Minneapolis, Minnesota 55479

Attention: Scott Bjelde

Telecopier: 612-667-2276
	 	 	 	 	 	 	 
	Wells Fargo Bank, National

     Association, as a Bank	 	$37,400,000
	 	 	 	MAC N9305-031

Sixth and Marquette

Minneapolis, Minnesota 55479

Attention: Scott Bjelde

Telecopier: 612-667-2276

	 	 	 	 	 	 	 
	Bank One, N.A. (Main Branch,

     Chicago)	 	$37,400,000
	 	 	 	One Bank One Plaza, Suite IL1-0363

Chicago, Illinois 60670-0363

Attention: Jane Bek

Telecopier: 312-732-5435
	 	 	 	 	 	 	 
	Bank of New York	 	$24,200,000
	 	 	 	One Wall Street

19th Floor

New York, New York 10286

Attention: Cynthia Howells

Telecopier: 212-635-7923
	 	 	 	 	 	 	 
	Key Bank National Association	 	$24,200,000
	 	 	 	601 108th
Ave. N.E. – 5th Floor

Mail Code: WA-31-18-0312

Bellevue, WA 98004

Attention: Kevin Smith

Telecopier: (425) 709-4587
	 	 	 	 	 	 	 
	UBS AG, Cayman Islands
      Branch	 	$24,200,000
	 	 	 	677 Washington Boulevard

Stamford, CT 06901

Attention: Marie Haddad

Telecopier: (203) 719-3888
	 	 	 	 	 	 	 
	Bank of Tokyo-Mitsubishi
Ltd., 
     Chicago Branch	 	$17,600,000
	 	 	 	601 Carlson Parkway

Suite 370

Minnetonka, MN 55503

Attention: Patrick McCue

Telecopier: (952) 473-5152
	 	 	 	 	 	 	 
	Barclays Bank PLC	 	$17,600,000
	 	 	 	200 Park Avenue
– 4th Floor

New York, NY 10166

Attention: Sydney Dennis

Telecopier: (212) 412-2441
	 	 	 	 	 	 	 

 

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	Name	 	Commitment Amount	 	Notice Address
	
	 	
	 	

	Citicorp, USA	 	$17,600,000
	 	 	 	388 Greenwich
Street, 21st Floor

New York, NY 10013

Attention: Amit Vasani

Telecopier: (212) 816-8098
	 	 	 	 	 	 	 
	JPMorgan Chase Bank	 	$17,600,000
	 	 	 	270 Park Avenue – 5th Floor

New York, NY 10017

Attention: Peter Ling
	 	 	 	 	 	 	 
	US Bank National Association	 	$17,600,000
	 	 	 	800 Nicollet Mall

Minneapolis, MN 55402

Attention: Christine Geer

Telecopier: (612) 303-2265
	 	 	 	 	 	 	 
	Credit Suisse First Boston,

     Cayman Islands Branch	 	$13,200,000
	 	 	 	Eleven Madison Avenue

New York, NY 10010

Attention: Sarah Wu

Telecopier: (212) 325-8321
	 	 	 	 	 	 	 
	BMO Nesbitt Burns Financing,
Inc.	 	$11,000,000
	 	 	 	3 Times Square – 28th Floor

New York, NY 10036

Attention: Thomas Peer

Telecopier: (212) 605-1451
	 	 	 	 	 	 	 
	Goldman Sachs Credit
Partners, L.P.	 	$11,000,000
	 	 	 	85 Broad Street—6th Floor

New York, NY 10004

Attention: Philip F. Green

Telecopier: (212) 428-1243
	 	 	 	 	 	 	 
	Bank of Oklahoma, N.A	 	$4,400,000
	 	 	 	1625 Broadway—Suite 1570

Denver, CO 80202

Attention: Tom Foncannon

Telecopier: (303) 534-9499

-2-

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EXHIBIT B

PROMISSORY NOTE

	 	 	 
	$                    	 	
Minneapolis, Minnesota
	 	 	
                                   
,
200     

          For value received, Northern States Power Company, a Minnesota corporation
(the “Borrower”), promises to pay to the order of      
                    
     (the “Bank”), at such place as the Agent under the
Credit Agreement defined below may from time to time designate in writing, the
principal sum of                          Dollars ($     ), or, if
less, the aggregate unpaid principal amount of all advances made by the Bank to
the Borrower pursuant to Section 2.1 of the Credit Agreement dated May 16, 2003
among the Borrower, Wells Fargo Bank, National Association, as Agent (in such
capacity, the “Agent”), and various Banks, including the Bank (together with
all amendments, modifications and restatements thereof, the “Credit
Agreement”), and to pay interest on the principal balance of this Note
outstanding from time to time at the rate or rates determined pursuant to the
Credit Agreement.

          This Note is issued pursuant to, and is subject to, the Credit Agreement,
which provides (among other things) for the amount and date of payments of
principal and interest required hereunder, for the acceleration of this Note
upon an Event of Default and for the mandatory and voluntary prepayment of this
Note.

          The Borrower shall pay all costs of collection, including reasonable
attorneys’ fees and legal expenses, if this Note is not paid when due, whether
or not legal proceedings are commenced.

          Presentment or other demand for payment, notice of dishonor and protest
are expressly waived.

	 	 	 	 	 	 	 
	 	 	
NORTHERN STATES POWER
      COMPANY

	 	 	 	 	 	 	 
	 	 	
By	 	 	 	 
	 	 	 	

	 	 	 	 	Its	 	 
	 	 	 	 	 	 	

 

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EXHIBIT C

COMPLIANCE CERTIFICATE

                    
   ,
20       

Wells Fargo Bank, National Association,

      for itself and as Agent under

      the Credit Agreement described below

The Banks, as defined under the Credit

      Agreement described below

Ladies and Gentlemen:

     Reference is made to the Credit Agreement dated as of May 16, 2003, as it
may be amended from time to time (the “Credit Agreement”) among Northern States
Power Company (the “Borrower”), Wells Fargo Bank, National Association, as
Agent, and the Banks, as defined therein. All terms defined in the Credit
Agreement and not otherwise defined herein shall have the meanings given them
in the Credit Agreement.

     This is a Compliance Certificate submitted in connection with the
Borrower’s financial statements (the “Statements”) as of                     
     ,      
(the “Effective Date”).

     I hereby certify to you as follows:

		
	 	(a) I am the                          [**chief financial
officer/treasurer] of the Borrower, and I am familiar with the
financial statements and financial affairs of the Borrower.
	 
	 	(b) The Statements have been prepared in accordance with GAAP,
**[subject to year-end audit adjustments].
	 
	 	(c) The computations on the Annexes hereto set forth the Borrower’s
compliance or non-compliance with the requirements set forth in
Sections 6.8 and 6.9 as of the Effective Date:

     I have no knowledge of the occurrence of any Default or Event of Default,
except as set forth in the attachments, if any, hereto.

	 	 	 	 	 	 	 
	 	 	
Very truly yours,

NORTHERN STATES POWER COMPANY

	 	 	 	 	 	 	 
	 	 	
By:	 	 	 	 
	 	 	 	

	 	 	 	 	Its:	 	 
	 	 	 	 	 	 	

 

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ANNEX 1 TO COMPLIANCE CERTIFICATE

Funded Debt to Total Capital (Section 6.9)

	 	 	 	 	 	 	 	 	 
	1.	 	Funded Debt	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
(a)
	 	Long-term debt (including current maturities)
	 	$	 	 
	 	 	 	 	 	 	 	 	

	 	 	
(b)
	 	Commercial paper & other short term debt
	 	$	 	 
	 	 	 	 	 	 	 	 	

	 	 	
(c)
	 	Letters of credit
	 	$	 	 
	 	 	 	 	 	 	 	 	

	 	 	
(d)
	 	Net liabilities under Swap Contracts
	 	$	 	 
	 	 	 	 	 	 	 	 	

	 	 	
(e)
	 	Capitalized Lease Obligations
	 	$	 	 
	 	 	 	 	 	 	 	 	

	 	 	
(f)
	 	Off-Balance Sheet Liabilities (including Sale
and Leaseback Transactions and Synthetic Lease
Obligations)
	 	$	 	 
	 	 	 	 	 	 	 	 	

	 	 	
(g)
	 	TOPrS of the Borrower
	 	$	 	 
	 	 	 	 	 	 	 	 	

	 	 	
(h)
	 	Guaranties of indebtedness of others
	 	$	 	 
	 	 	 	 	 	 	 	 	

	 	 	
(i)
	 	Other Funded Debt
	 	$	 	 
	 	 	 	 	 	 	 	 	

	 	 	
(j)
	 	Total Funded Debt (sum of Items (a) through (i))
	 	$	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	$	 	 
	 	 	 	 	 	 	 	 	

	2.	 	Capitalization	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
(a)
	 	Common Stock
	 	$	 	 
	 	 	 	 	 	 	 	 	

	 	 	
(b)
	 	Premium on Common Stock
	 	$	 	 
	 	 	 	 	 	 	 	 	

	 	 	
(c)
	 	Retained Earnings
	 	$	 	 
	 	 	 	 	 	 	 	 	

	 	 	
(d)
	 	Stockholder’s Equity

          (sum of Items (a) through(c))
	 	$	 	

	 	 	 	 	 	 	 	 	 
	 	 	
(e)
	 	Funded Debt (from Item 1(j) above)
	 	$	 	 
	 	 	 	 	 	 	 	 	

	 	 	
(f)
	 	Capitalization (sum of Items (d) and (e))
	 	$	 	 
	 	 	 	 	 	 	 	 	

	3.	 	Funded Debt to Total Capital (Ratio of Item
1(j) to

Item 2(f))

(not to be greater than 0.60 to 1.0)	 	 	 	
    to 1.
	 	 	 	 	 	 	 	 	

 

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ANNEX 2 TO COMPLIANCE CERTIFICATE

Interest Coverage Ratio (Section 6.10)

	 	 	 	 	 	 	 	 	 
	1.	 	EBIT	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
(a)
	 	Consolidated Net Income
	$	 	 	 
	 	 	 	 	 	 	

	 	 	
(b)
	 	Interest Expense (including TOPrS)
	$	 	 
	 	 	 	 	 	 	

	 	 	
(c)
	 	Income Taxes
	$	 	 
	 	 	 	 	 	 	

	 	 	
(d)
	 	Excluding Non-operating Gains and Losses
(net of income tax)
	$	 	 
	 	 	 	 	 	 	

	 	 	
(e)
	 	EBIT (total of (a)+(b)+(c)±(d))
	$	 	 
	 	 	 	 	 	 	

	 	 	 	 	 	 	$	 	 
	 	 	 	 	 	 	 	

	2.	 	Interest Expense (including TOPrS)
	 	$	 	 
	 	 	 	 	 	 	 	

	3.	 	Interest Coverage Ratio (Ratio of Item 1(e) to	 	 	 	 
	 	 	Item 2)

(not to be less than 2.75 to 1.0)
	 	 	 	     to 1.0
	 	 	 	 	 	 	 	

 

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EXHIBIT D

OPINION LETTER

[See Attached]

 

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[Opinion of Gary Johnson]

May 16, 2003

To the Persons identified on

Schedule I hereto

Ladies and Gentlemen:

          I am the General Counsel of Northern States Power Company (the “Borrower”)
and have represented the Borrower in connection with the execution and delivery
by the Borrower of the Credit Agreement dated as of May 16, 2003 (the “Credit
Agreement”) by and between the Borrower, Wells Fargo Bank, National
Association, as administrative agent (in such capacity, the “Agent”) and the
financial institutions which are party thereto (the “Banks”). This opinion is
delivered to you pursuant to Section 3.1(h) of the Credit Agreement.
Capitalized terms used herein and not otherwise defined herein have the
meanings assigned to such terms in the Credit Agreement.

     In rendering this opinion, I have examined the articles of incorporation
and bylaws of the Borrower and its Subsidiaries, the Loan Documents, and have
made such further investigation and examined such further documents as I deemed
necessary to render an informed opinion on the matters hereinafter set forth.
I have assumed: (a) the genuineness of the signatures on all documents and
instruments (other than the signatures of the officers of Borrower), the
authenticity of all documents submitted as originals, the conformity to
originals of all documents submitted as photostatic or certified copies, and
the accuracy and completeness of all corporate records made available to me by
the Borrower; (b) that each of the parties (other than the Borrower) to the
Loan Documents has the legal capacity, power and authority required for it to
enter into the Loan Documents to which it is a party, and to perform its
respective obligations thereunder; (c) that all such parties (except with
respect to the Borrower) have received any corporate or other authorization
required by any applicable charter, by-law, law or regulation; (d) the due
execution and delivery of the Loan Documents by each of the parties thereto
(other than the Borrower); and (e) that the Loan Documents constitute the
legal, valid and binding obligations of the respective parties thereto, other
than the Borrower.

     I am qualified to practice law in the State of Minnesota and do not
purport to be expert on and express no opinion with respect to any laws other
than the laws of the State of Minnesota.

          Based on such examination and investigation, it is my opinion that:

 

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	 	1.	 	Each of the Borrower and its Subsidiaries is a corporation
duly incorporated, validly existing and in good standing under the
laws of the state of its incorporation, and is duly licensed or
qualified to transact business in all jurisdictions where the
character of the property owned or leased or the nature of the
business transacted by it makes such licensing or qualification
necessary, except where the failure to be so licensed or qualified
(i) will not permanently preclude the Borrower or such Subsidiary
from maintaining any material action in any such domestic
jurisdiction even though such action arose in whole or in part
during the period of such failure, and (ii) will not result in any
other Material Adverse Change.
	 
	 	2.	 	Each of the Borrower and its Subsidiaries has all requisite
corporate power and authority to conduct its business as described
in the Borrower’s Annual Report on Form 10-K for the year ended
December 31, 2002 filed with the SEC and to own its properties. The
Borrower has all requisite corporate power and authority to execute,
deliver, and perform its obligations under the Loan Documents.
	 
	 	3.	 	The Loan Documents have been duly and validly executed and
delivered by the Borrower and constitute the Borrower’s legal, valid
and binding obligations, enforceable in accordance with their
respective terms (including in the case of the Notes and the Bonds
against claims of usury), except (i) to the extent that such
enforcement may be limited by bankruptcy, insolvency or similar laws
affecting the enforcement of creditors’ rights generally or by
general equitable principles, (ii) to the extent that the
indemnification provisions of the Loan Documents may be held to be
unenforceable by applicable provisions of securities laws or public
policy, (iii) that I express no opinion as to whether the Borrower
has any interest in the Bonds and (iv) that I express no opinion as
to the perfection or priority of any security interest purported to
be created under the Loan Documents.
	 
	 	4.	 	The Bonds and the Indenture have been duly executed, issued
and delivered by the Borrower and, assuming due authentication
thereof by the Trustee, will constitute valid and legally binding
obligations of the Borrower enforceable against the Borrower
(subject to the qualifications expressed in paragraph 3 above with
respect to the validity and enforceability of the Loan Documents)
against the Borrower in accordance with their terms and entitled to
the benefits of the Indenture.
	 
	 	5.	 	The execution, delivery and performance by the Borrower of
the Loan Documents, the Bonds and the Indenture, the borrowings from
time to time thereunder and the consummation of the transactions
therein contemplated, have been duly authorized by all necessary
corporate action and do not and will not (i) require any consent or
approval of the stockholders of the Borrower, or any authorization,
consent, approval, order, filing, registration or qualification by
any governmental department, commission, board, bureau, agency or
instrumentality,

 

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	 	 	 	domestic or foreign, other than (A) those consents described in
Schedule 4.2 to the Credit Agreement, all of which consents have been
obtained and remain in full force and effect, (B) those filings
required to perfect the security interests created under the Loan
Documents and (C) any filings or approvals that may be required under
state securities laws, (ii) violate any provision of any law, rule or
regulation or of any order, writ, injunction or decree presently in
effect having applicability to the Borrower or of the Articles of
Incorporation or Bylaws of the Borrower, (iii) result in a breach of
or constitute a default under any indenture or loan or credit
agreement or any other material agreement, lease or instrument to
which the Borrower is a party or by which it or its properties may be
bound, or (iv) result in, or require, the creation or imposition of
any Lien or other charge or encumbrance of any nature (other than the
Liens created under the Loan Documents and the Indenture) upon or with
respect to any of the properties now owned or hereafter acquired by
the Borrower, except, in the case of clause (ii) or (iii), any such
breach, violation or default which would not, individually or in the
aggregate, result in a Material Adverse Change.
	 
	 	6.	 	To the best of my knowledge, except as set forth in Schedule
4.7 to the Credit Agreement, there are no actions, suits or
proceedings pending or overtly threatened against the Borrower or
the properties of the Borrower before any court or governmental
department, commission, board, bureau, agency or instrumentality,
domestic or foreign, which could reasonably be expected to effect a
Material Adverse Change.
	 
	 	7.	 	The Indenture is in proper form, conforming to the laws of
the States of Minnesota, North Dakota, and South Dakota, to give and
create the Lien which it purports to create and has been and now is
duly and properly recorded or filed in all places necessary to
effectuate the Lien of the Indenture.
	 
	 	8.	 	The Borrower has good and valid title to all real and fixed
property and leasehold rights described or enumerated in the
Indenture (except such properties as have been released from the
Lien thereof in accordance with the terms thereof), subject only to:
(a) taxes and assessments not yet delinquent; (b) the Lien of the
Indenture; (c) as to parts of the Borrower’s property, certain
easements, conditions, restrictions, leases, and similar
encumbrances which do not affect the Borrower’s use of such property
in the usual course of its business, certain minor defects in title
which are not material, defects in title to certain properties which
are not essential to the Borrower’s business; and mechanics’ lien
claims being contested or not of record or for the satisfaction or
discharge of which adequate provision has been made by the Borrower
pursuant to the Indenture.
	 
	 	9.	 	The Bonds are secured by and entitled to the benefits of the
Indenture equally and ratably, except as to sinking fund provisions,
with all other bonds duly issued and outstanding under the Indenture
by a valid and direct first mortgage Lien of the Indenture on all of
the real and fixed properties, leasehold rights, franchises, and

 

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	 	 	 	permits now owned by the Borrower, subject only to the items set forth
in the preceding paragraph 8 of this opinion.
	 
	 	10.	 	The Bonds also are secured equally and ratably, except as to
sinking fund provisions, with all other bonds duly issued and
outstanding under the Indenture by a valid and direct first mortgage
lien (subject to permitted liens as defined in the Indenture) on all
real and fixed property hereafter acquired by the Borrower in
conformity with the terms of the Indenture, except as the United
States Bankruptcy Code may affect the validity of the Lien of such
Indenture on property acquired after the commencement of a case
under such Act, except as to the prior Lien of the Trustee under the
Indenture in certain events specified therein, and except as
otherwise provided in the Indenture in the case of consolidation,
merger, or transfer of all the mortgaged and pledged property as an
entirety.
	 
	 	11.	 	All conditions precedent set forth in the Indenture with
respect to the Assignment and Assumption Agreement dated as of
August 18, 2000 between the Parent and Borrower have been satisfied.
	 
	 	12.	 	All covenants and conditions precedent to the authentication
and delivery of the Bonds have been complied with.
	 
	 	13.	 	The Minnesota Public Utilities Commission has issued its
order (the “MPUC Order”) authorizing the incurrence by the Borrower
of short-term debt so long as the aggregate principal amount of
short-term debt outstanding does not exceed 15% of the Borrower’s
total capitalization. All obligations in respect of the Notes and
the Bonds will constitute short-term indebtedness for purposes of
the MPUC Order. The MPUC Order is in full force and effect on the
date hereof.

     This opinion is rendered only with respect to the laws and the regulations
which are in effect as of the date hereof. I assume no responsibility for
updating this opinion to take into account any event, action, interpretation or
change of law occurring subsequent to the date hereof that may affect the
validity of any of the opinions expressed herein.

     The foregoing opinion is furnished solely for the benefit of the
addressees hereof and their successors and assigns, in connection with the Loan
Documents and the transactions contemplated thereby, and may not be relied upon
by, and copies may not be delivered to, any other person or be used for any
other purpose without our prior written consent. I hereby consent to reliance
hereon by any future participant or assignee of the Bank’s interests under the
Credit Agreement as expressly permitted by Section 8.10 of the Credit
Agreement; provided that such Bank has notified such participant or assignee
that this opinion speaks only as of the date hereof and to its addressees and
that I have no responsibility or obligation to update this opinion, to consider
its applicability or correctness to other than its addressees, or to take into
account changes in law, facts or any other development of which I may later
become aware.

	 
	Very truly yours,

 

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[NSP - Opinion of Jones Day}

May 16, 2003

The Persons identified

on Schedule I hereto

Ladies and Gentlemen:

We have acted as special counsel for Northern States Power Company, a Minnesota
corporation (the “Borrower”), in connection with the Credit Agreement dated as
of May 16, 2003 (the “Credit Agreement”) by and between the Borrower, Wells
Fargo Bank, National Association, as administrative agent (in such capacity,
the “Agent”) and the financial institutions which are party thereto (the
“Banks”). This opinion is delivered to you pursuant to Section 3.1(h) of the
Credit Agreement. Capitalized terms used herein and not otherwise defined
herein have the meanings assigned to such terms in the Credit Agreement. With
your permission, all assumptions and statements of reliance herein have been
made without any independent investigation or verification on our part except
to the extent, if any, otherwise expressly stated, and we express no opinion
with respect to the subject matter or accuracy of the assumptions or items upon
which we have relied

In connection with the opinions expressed herein, we have examined such
documents, records and matters of law as we have deemed necessary for the
purposes of this opinion. We have examined, among other documents, (i) a copy
of the Credit Agreement, (ii) the form of Note attached as Exhibit B to the
Credit Agreement (the “Note”), (iii) the Supplemental Indenture dated as of May
1, 2003 (the “Supplemental Indenture”), supplementing the First Mortgage Bond
Indenture and (iv) the form of Bond set forth in said Supplemental Indenture.
The Credit Agreement, the Notes issued thereunder, the Supplemental Indenture
and the Bonds are referred to herein collectively as the “Documents”. In all
such examinations, we have assumed the legal capacity of all natural persons
executing documents, the genuineness of all signatures, the authenticity of
original and certified documents and the conformity to original or certified
copies of all copies submitted to us as conformed or reproduction copies. As
to various questions of fact relevant to the opinions expressed herein, we have
relied upon, and assume the accuracy of, representations and warranties
contained in the Documents and certificates and oral or written statements and
other information of or from representatives of the Borrower and others and
assume compliance on the part of the Borrower and each other party to the
Documents with their covenants and agreements contained therein. With respect
to the

 

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opinion expressed in paragraphs (a) and (b) below, our opinions are limited (x)
to our actual knowledge of the specially regulated business activities and
properties of the Borrower, based upon review of the Annual Report on Form 10-K
for the fiscal year ended December 31, 2001 filed by the Borrower with the
Securities and Exchange Commission, but without any additional investigation or
verification on our part and (y) to our review of only those laws and
regulations that, in our experience, are normally applicable to transactions of
the type contemplated by the Credit Agreement.

Based upon the foregoing, and subject to the limitations, qualifications and
assumptions set forth herein, we are of the opinion that:

	 	(a)	 	Assuming that the issuance and sale of the Bonds have been
duly authorized and approved by an order of the Minnesota Public
Utilities Commission and such order is in full force and effect on
the date hereof, no approval, authorization, consent or order of any
public board or body under the laws of the United States of America
is legally required in connection with the execution, delivery and
performance by the Borrower of the Documents.
	 
	 	(b)	 	Based upon the assumption set forth in paragraph (a) above,
the execution and delivery of the Documents by the Borrower and the
performance by the Borrower of its obligations thereunder do not
violate any present law, or present regulation of any governmental
agency or authority, of the United States of America applicable to
the Borrower or its property, including without limitation the
Public Utility Holding Company Act of 1935, as amended (the “Holding
Company Act”).
	 
	 	(c)	 	The Borrower is not an “investment company” or a company
“controlled” by an “investment company” as such terms are defined in
the Investment Company Act of 1940, as amended.
	 
	 	(d)	 	The Borrower is a “public utility” and a “subsidiary company”
of a “holding company”, as such terms are defined in the Holding
Company Act.
	 
	 	(e)	 	No registration of the Bonds under the Act, and no
qualification of an indenture under the Trust Indenture Act with
respect thereto, is required for the offer and sale of the Bonds to
the Agent in the manner contemplated by the Credit Agreement.

     The opinions set forth above are subject to the following qualifications:

	 	1.	 	To the extent it may be relevant to the opinions expressed herein,
we have assumed that the parties to the Documents (other than the
Borrower) have the power to enter into and perform such documents and
to consummate the transactions contemplated thereby and that such
documents have been duly authorized, executed and delivered by, and
constitute legal, valid and binding obligations of, such parties.

 

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	 	2.	 	For purposes of our opinions above, we have assumed that (i) the
Borrower is a corporation validly existing and in good standing in its
jurisdiction of organization, (ii) the Borrower has all requisite power
and authority, and has obtained all requisite corporate, shareholder,
board, and third party authorizations, consents and approvals, (iii)
except to the extent of our opinion in paragraph (a) above, the
Borrower has obtained all requisite governmental authorizations,
consents and approvals, and made all requisite filings and
registrations, necessary to execute, deliver and perform the Documents,
(iv) except to the extent of our opinion in paragraph (b) above, the
execution, delivery and performance of the Documents by the Borrower
will not violate or conflict with any law, rule, regulation, order,
decree, judgment, instrument or agreement binding upon or applicable to
the Borrower or its properties, and (v) the Documents to which the
Borrower is a party have been duly executed and delivered by it.
	 
	 	3.	 	We express no opinion herein with respect to any law, rule or
regulation as to tax or, except to the extent of our opinion in
paragraph (e) above, securities matters or as to any matters relating
to ERISA.

The opinions expressed herein are limited to the federal laws of the United
States.

We express no opinion as to the compliance or noncompliance, or the effect of
the compliance or noncompliance, of each of the addressees or any other person
or entity with any state or federal laws or regulations applicable to each of
them by reason of their status as or affiliation with a federally insured
depository institution. Our opinions are limited to those expressly set forth
herein, and we express no opinions by implication.

The opinions expressed herein are solely for the benefit of the addressees
hereof in connection with the transaction referred to herein and may not be
relied on by such addressees for any other purpose or in any manner or for any
purpose by any other person or entity; provided, however, that this opinion may
be relied upon by any Additional Bank that becomes a Bank pursuant to the terms
of the Credit Agreement to the extent that the addressees hereto may rely on
it. This opinion speaks only as of the date hereof and to its addressees and
that we have no responsibility or obligation to update this opinion, to
consider its applicability or correctness to other than its addressees, or to
take into account changes in law, facts or any other development of which we
may later become aware.

	 
	Very truly yours,

 

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EXHIBIT E

ASSIGNMENT CERTIFICATE

Assigning Bank:          
            
            

Applicant:          
            
            
          

          This Certificate (the “Certificate”) is delivered pursuant to Section 8.10
of the Credit Agreement dated as of May 16, 2003 (together with all amendments,
supplements, restatements and other modifications, if any, from time to time
made thereto, the “Credit Agreement”), among Northern States Power Company, a
Minnesota corporation (the “Borrower”), Wells Fargo Bank, National Association,
as lead arranger and administrative agent (the “Agent”), and the various banks
now or hereafter parties thereto.

          The Assigning Bank named above wishes to assign a portion of its interest
arising under the Credit Agreement to the Applicant named above pursuant to
Section 8.10 of the Credit Agreement, and the Applicant wishes to become an
Additional Bank pursuant thereto. This Certificate is an Assignment
Certificate, as defined in the Credit Agreement, and is executed for purposes
of informing the Agent and the Borrower of the transactions contemplate hereby
and obtaining the consent of the Agent and the Borrower to the extent required
under the Credit Agreement.

          Accordingly, the undersigned hereby agree as follows:

          1. Definitions. Unless otherwise defined herein, terms used herein have
the meanings provided in the Credit Agreement.

          2. Allocation of Payments. Any interest, fees and other payments accrued
to the Effective Date with respect to the Assigning Bank’s interest under the
Loan Documents shall be for the account of the Assigning Bank. Any interest,
fees and other payments accruing on and after the Effective Date with respect
to the interests assigned hereunder shall be for the account of the Applicant.
Each of the Assigning Bank and the Applicant agrees that it will hold in trust
for the other party any interest, fees and other amounts which it may receive
to which the other party is entitled pursuant to the preceding sentence and pay
to the other party any such amounts which it may receive promptly upon receipt.

          3. Effective Date; Conditions. The date on which the Applicant shall
become an Additional Bank (the “Effective Date”) is                    , 200  ;
provided, however, that the assignment and assumption described in this
Certificate shall not be effective unless, on or before the Effective Date, (i)
the Agent has received counterparts of this Certificate duly executed and
delivered by the Borrower (unless the Borrower’s consent to the assignment
hereunder is not required under Section 8.10 of the Credit Agreement), the
Assigning Bank, the Agent and the Applicant, (ii) the Agent has received the
transfer fee for

 

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the account of the Agent in the amount of $3,500 (or, if the Applicant is
an Affiliate of the Assigning Bank, $1,250), and (iii) all other terms and
conditions of this Certificate and the Credit Agreement relating to the
assignment hereunder have been satisfied.

          4. Applicant’s Interest. Effective as of the Effective Date, (i) the
Applicant’s Commitment Amount shall be the amount designated as the “Assigned
Commitment Amount” opposite the Applicant’s signature below (and the Applicant
shall be deemed to have assumed the Assigning Bank’s Commitment in the amount
of such Assigned Commitment Amount), (ii) the principal amount of Advances
under Section 2.1 owing to the Applicant shall be the amount designated as the
“Assigned Committed Advances” opposite the Applicant’s signature below, and
(iii) the Applicant’s Percentage shall be the percentage designated as the
“Assigned Percentage” opposite the Applicant’s signature below.

          5. Retained Interest. Effective as of the Effective Date, (i) the
Assigning Bank’s Commitment Amount shall be the amount designated as the
“Retained Commitment Amount” opposite the Assigning Bank’s signature below (and
the Assigning Bank shall be relieved of all of its obligations under the Credit
Agreement to the extent of the reduction in its Commitment Amount in accordance
herewith), (ii) the principal amount of Advances under Section 2.1 owing to the
Assigning Bank shall be the amount designated as the “Retained Committed
Advances” opposite the Assigning Bank’s signature below, and (iii) the
Assigning Bank’s Percentage shall be the percentage designated as the “Retained
Percentage” opposite the Assigning Bank’s signature below.

          6. New Notes. On the Effective Date, the Borrower shall issue and deliver
to the Agent in exchange for the Assigning Bank’s Note (i) a Note payable to
the order of the Applicant in a face principal amount equal to the Applicant’s
“Assigned Commitment Amount” (or, if the Effective Date is after the Commitment
Termination Date, the Applicant’s “Assigned Committed Advances”), in
substantially the form of Exhibit A to the Credit Agreement, and (ii) a Note
payable to the order of the Assigning Bank in the amount of the “Retained
Commitment Amount” (or, if the Effective Date is after the Commitment
Termination Date, the Assigning Bank’s “Retained Committed Advances”), in
substantially the form of Exhibit A to the Credit Agreement. The Agent shall
deliver the foregoing Notes to the Applicant and the Assigning Bank promptly
after the Effective Date, or (if later) the receipt by the Agent thereof.

          7. Notice Address. The address shown below the Applicant’s signature
hereto shall be its notice address for purposes of Section 9.3 of the Credit
Agreement, unless and until it shall designate, in accordance with such Section
9.3, another address for such purposes.

          8. Assumption. Upon the Effective Date, the Applicant shall become a party
to the Credit Agreement and a Bank thereunder and (i) shall be entitled to all
rights, benefits and privileges accorded to a Bank in the Credit Agreement,
(ii) shall be subject to all obligations of a Bank thereunder, and (iii) shall
be deemed to have specifically ratified and

 

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confirmed (and by executing this Certificate the Applicant hereby
specifically ratifies and confirms) all of the provisions of the Credit
Agreement and the Loan Documents.

          9. Independent Credit Decision. The Applicant (a) acknowledges that it has
received a copy of the Credit Agreement and the Schedules and Exhibits thereto,
together with copies of the most recent financial statements referred to in
Section 4.5 or 5.1 of the Credit Agreement, and such other documents and
information as it has deemed appropriate to make its own credit and legal
analysis and decision to enter into this Assignment Certificate; (b)
acknowledges and agrees that in becoming an Additional Bank and in making any
Advance under the Credit Agreement, such actions have been and will be made
without recourse to, or representation or warranty by, the Assigning Bank or
the Agent; and (c) agrees that it will, independently and without reliance upon
the Assigning Bank, the Agent or any other Bank and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit and legal decisions in taking or not taking action under the Credit
Agreement.

          10. Withholding Tax. The Applicant (a) represents and warrants to the
Agent and the Borrower that under applicable law and treaties no tax will be
required to be withheld by the Agent or the Borrower with respect to any
payments to be made to the Applicant hereunder, (b) agrees to furnish (if it is
organized under the laws of any jurisdiction other than the United States or
any State thereof) to the Agent and the Borrower prior to the time that the
Agent or Borrower is required to make any payment of principal, interest or
fees hereunder, duplicate executed originals of U.S. Internal Revenue Service
Form W-8ECI or W-8BEN (or appropriate replacement forms) and agrees to provide
new Forms W-8ECI or W-8BEN (or appropriate replacement forms) upon the
expiration of any previously delivered form or comparable statements in
accordance with applicable U.S. law and regulations and amendments thereto,
duly executed and completed by the Applicant, and (c) agrees to comply with all
applicable U.S. laws and regulations with regard to such withholding tax
exemption.

          11. Further Assurances. The Borrower, the Assigning Bank and the Applicant
shall, at any time and from time to time upon the written request of the Agent,
execute and deliver such further documents and do such further acts and things
as the Agent may reasonably request in order to effect the purpose of this
Certificate.

          12. Miscellaneous. This Certificate may be executed in any number of
counterparts by the parties hereto, each of which counterparts shall be deemed
to be an original and all of which shall together constitute one and the same
certificate. Matters relating to this Certificate shall be governed by, and
construed in accordance with, the internal laws of the State of Minnesota.

 

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          IN WITNESS WHEREOF, the undersigned have executed this Certificate as of
the Effective Date set forth above.

	 	 	 	 	 
	Retained Committed Advances:

      $	 	

      [Assigning Bank]
	Retained Commitment Amount:
	 	 	 	 
	      $
	 	 	 	 
	Retained Percentage:      
%
	 	By

      Its
	 	 
	 
	 	 	 	 
	Assigned Committed Advances:

      $
	 	
       [Applicant]	 	 
	Assigned Commitment Amount:
	 	 	 	 
	      $
	 	 	 	 
	Assigned Percentage:     %
	 	By

      Its
	 	 
	 
	 	 	Notice Address:	 	 
	 
	 	 	

Telecopier:   

	 	 

Consent of Agent

The Agent hereby consents to the foregoing Assignment.

	 	 	 	 
	 	
WELLS FARGO BANK, NATIONAL
    ASSOCIATION
	 	 	 	 
	 	 	By

      Its

 

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Consent of Borrower

The Borrower hereby consents to the foregoing Assignment.

	 	 	 	 
	 	
NORTHERN STATES POWER 
    COMPANY
	 	 	 	 
	 	By	

	 	 	Its	

 

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EXHIBIT F

BORROWING CERTIFICATE

, 200    

Wells Fargo Bank, National Association,

     for itself and as Agent under the Credit

     Agreement described below

MAC N9305-031

Sixth Street and Marquette Avenue

Minneapolis, Minnesota 55479

The Banks, as defined under the Credit

     Agreement described below

     Re: $275,000,000 Northern States Power Company Credit Facility

Ladies and Gentlemen:

     Reference is made to the Credit Agreement dated May 16, 2003 (together
with all amendments, modifications and restatements thereof, the “Credit
Agreement”) among Northern States Power Company (the “Borrower”), Wells Fargo
Bank, National Association, as Agent, and Banks that are parties thereto. As
used herein, terms defined in the Credit Agreement and not otherwise defined
herein have the meanings given them in the Credit Agreement.

     The Borrower has requested [a Borrowing to be made under Section 2.1 of
the Credit Agreement ] [a Letter of Credit to be issued under Section 2.7 of
the Credit Agreement], as more specifically described on Attachment 1.

     I hereby certify to you that the [Borrowing/Letter of Credit (including
the Borrower’s obligation to reimburse the Banks on account of any draw under
such Letter of Credit)] requested by the Borrower (i) has been duly authorized
by the Borrower’s board of directors pursuant to its resolution
dated                   
, (ii) has been duly authorized by the Minnesota Public
Utilities Commission pursuant to its order dated                 [**
alternate for clause (ii): does not and will not require any authorization,
consent or approval of the Minnesota Public Utilities Commission], and (iii)
does not and will not require any other authorization, consent or approval by
any governmental department, commission, board, bureau, agency or
instrumentality, domestic or foreign, other than those that have been obtained,
copies of which have been delivered to the Agent pursuant to Section 5.1(d).

 

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     I further certify to you that the [Borrowing/Letter of Credit (including
the Borrower’s obligation to reimburse the Banks on account of any draw under
such Letter of Credit)] requested by the Borrower complies with all applicable
requirements of each board resolution and authorization of the Minnesota Public
Utilities Commission described above, including but not limited to any
applicable limitation on the aggregate amount of debt that the Borrower may
have outstanding at any one time.

	 	 	 	 
	 	
NORTHERN STATES POWER COMPANY
	 	 	 	 
	 	By 	

	 	 	Its	

 

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Attachment 1

Terms of Borrowing:

	 	1.	 	The Business Day of the proposed Borrowing is   
                 
             .
	 
	 	2.	 	The aggregate amount of the proposed Borrowing is $         .
	 
	 	3.	 	The proposed Borrowing is to be comprised of $         of
Advances to bear interest at the Base Rate and $         of Advances
to bear interest at the Eurodollar Rate.
	 
	 	4.	 	The duration of the Interest Period for Advances that bear
interest at the Eurodollar Rate shall be         months.

Terms of Letter of Credit:

	 	1.	 	The proposed date of issuance is   
                 
             .
	 
	 	2.	 	The stated amount of the Letter of Credit is $         .
	 
	 	3.	 	The Letter of Credit is to be issued to   
                 
             .
	 
	 	4.	 	The expiration date of the Letter of Credit is   
                 
             .

 

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SCHEDULE 4.2

CONSENTS

The approvals or authorizations of the following regulatory bodies, depending
upon the characterization of the Borrowings under the Agreement, may be
required and have each been obtained and are in full force and effect:

		
	 	     Minnesota Public Utilities Commission

 

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SCHEDULE 4.4

SUBSIDIARIES

	 
	United Power and Land Company (100%)*
	NSP Financing I (100%)*
	NSP Financing II (100%)*
	NSP Nuclear Corporation (100%)

*Denotes Restricted Subsidiary

 

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SCHEDULE 4.7

LITIGATION

1.     See disclosure regarding legal proceedings of the Borrower
under the heading NSP-Minnesota in Item 3 of the Borrower’s Annual
Report on Form 10-K for the year ended December 31, 2002 filed
with the SEC (the “2002 Form 10-K”) and in Note 13 to the
Consolidated Financial Statements contained in the 2002 Form 10-K.

2.     SchlumberSema, Inc. v. Xcel Energy Inc – Under a 1996 Data Services
Agreement (DSA), SchlumberSema, Inc. (SLB) provides automated meter reading,
distribution automation, and other data services to NSP-Minnesota. In
September 2002, NSP-Minnesota issued written notice that SLB had committed
events of default under the DSA, including SLB’s nonpayment of approximately
$7.4 million for distribution automation assets. In November 2002, SLB
demanded arbitration before the American Arbitration Association and asserted
various claims against NSP-Minnesota totaling $24 million for NSP’s alleged
breach of an expansion contract and a meter purchasing contract. On April 9,
2003, the parties attempted to mediate their dispute. The mediation was
unsuccessful. On April 16, 2003 SchlumberSema, Inc. filed a motion in the U.S.
Bankruptcy Court in Delaware for an Order that “any claim against
SchlumberSema, Inc., arising from the alleged failure to sign the DA Transfer
Agreement was cured, released, waived and/or barred by this court’s Order of
May 4, 2000 approving the sale of CellNet Data Systems, Inc.’s assets to SLB”.
NSP-Minnesota will vigorously oppose this motion.

 

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SCHEDULE 4.8

ENVIRONMENTAL MATTERS

See disclosure regarding environmental contingencies of the
Borrower in Note 13 to the Consolidated Financial Statements
contained in the 2002 Form 10-K.

 

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SCHEDULE 4.22

COMPLIANCE WITH LAWS

See disclosure regarding legal proceedings of the Borrower under
the heading NSP-Minnesota in Item 3 of the Borrower’s Annual
Report on Form 10-K for the year ended December 31, 2002 filed
with the SEC (the “2002 Form 10-K”) and in Note 13 to the
Consolidated Financial Statements contained in the 2002 Form 10-K.

 

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SCHEDULE 6.1

LIENS

None

a

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