Document:

vc_8k0911ex.htm

     

    Exhibit
10.1

    
 

    
      	
              Published
      CUSIP Number: ___________________

               

              CREDIT
      AGREEMENT

               

               

              among

               

               

              VECTREN
      CAPITAL, CORP.,

              as
      Borrower,

               

              VECTREN
      CORPORATION,

              as
      Guarantor,

               

              THE
      LENDERS SIGNATORY HERETO,

              JPMORGAN
      CHASE BANK, N.A.,

              as
      Co-Syndication Agent

              UNION
      BANK OF CALIFORNIA, N.A.,

              as
      Co-Syndication Agent,

              and

               

              BANK
      OF AMERICA, N.A.,

              as
      Administrative Agent and LC Issuer

               

               

              Dated
      as of September 11, 2008

               

               

              BANC
      OF AMERICA SECURITIES LLC

              LEAD
      ARRANGER AND BOOK RUNNER

            

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE
OF CONTENTS

    Page

     

    
      	
              ARTICLE
      I   DEFINITIONS

            	
              1

            
	
              ARTICLE
      II   THE CREDITS

            	
              14

            
	 
      	
              2.1.

            	
              Commitments

            	
              14

            
	 
      	
              2.2.

            	
              Required
      Payments; Termination

            	
              14

            
	 
      	
              2.3.

            	
              Ratable
      Loans

            	
              14

            
	 
      	
              2.4.

            	
              Types
      of Advances

            	
              14

            
	 
      	
              2.5.

            	
              Facility
      Fee; Reductions in Aggregate Commitment

            	
              14

            
	 
      	
              2.6.

            	
              Minimum
      Amount of Each Advance

            	
              15

            
	 
      	
              2.7.

            	
              Optional
      Principal Payments

            	
              15

            
	 
      	
              2.8.

            	
              Method
      of Selecting Types and Interest Periods for New Advances

            	
              15

            
	 
      	
              2.9.

            	
              Conversion
      and Continuation of Outstanding Advances

            	
              16

            
	 
      	
              2.10.

            	
              Changes
      in Interest Rate, etc

            	
              16

            
	 
      	
              2.11.

            	
              Rates
      Applicable After Default

            	
              16

            
	 
      	
              2.12.

            	
              Payments
      Generally; Administrative Agent’s Clawback

            	
              17

            
	 
      	
              2.13.

            	
              Notes;
      Telephonic Notices

            	
              18

            
	 
      	
              2.14.

            	
              Interest
      Payment Dates; Interest and Fee Basis

            	
              18

            
	 
      	
              2.15.

            	
              Notification
      of Advances, Interest Rates, Prepayments and Commitment
      Reductions

            	
              19

            
	 
      	
              2.16.

            	
              Lending
      Installations

            	
              19

            
	 
      	
              2.17.

            	
              Issuance
      of Letters of Credit

            	
              19

            
	 
      	
              2.18.

            	
              Use
      of Proceeds

            	
              27

            
	 
      	
              2.19.

            	
              Increases
      in Aggregate Commitment

            	
              27

            
	
              ARTICLE
      III   YIELD PROTECTION; TAXES

            	
              28

            
	 
      	
              3.1.

            	
              Yield
      Protection

            	
              28

            
	 
      	
              3.2.

            	
              Changes
      in Capital Adequacy Regulations

            	
              29

            
	 
      	
              3.3.

            	
              Availability
      of Types of Advances

            	
              29

            
	 
      	
              3.4.

            	
              Funding
      Indemnification

            	
              29

            
	 
      	
              3.5.

            	
              Taxes

            	
              30

            
	 
      	
              3.6.

            	
              Lender
      Statements; Survival of Indemnity

            	
              32

            
	 
      	
              3.7.

            	
              Replacement
      of Lenders

            	
              33

            

    

    

    
      
        
           

        

        
          - i
-

          
            

          

        

        
           

        

      

    

    
       

       

      TABLE
OF CONTENTS

      (continued)

      Page

    

    

    
      	
              ARTICLE
      IV   CONDITIONS PRECEDENT

            	
              33

            
	 
      	
              4.1.

            	
              Initial
      Credit Extension

            	
              33

            
	 
      	
              4.2.

            	
              Each
      Credit Extension

            	
              34

            
	
              ARTICLE
      V   REPRESENTATIONS AND WARRANTIES

            	
              35

            
	 
      	
              5.1.

            	
              Existence
      and Standing

            	
              35

            
	 
      	
              5.2.

            	
              Authorization
      and Validity

            	
              35

            
	 
      	
              5.3.

            	
              No
      Conflict; Government Consent

            	
              35

            
	 
      	
              5.4.

            	
              Financial
      Statements

            	
              36

            
	 
      	
              5.5.

            	
              Material
      Adverse Change

            	
              36

            
	 
      	
              5.6.

            	
              Taxes

            	
              36

            
	 
      	
              5.7.

            	
              Litigation
      and Contingent Obligations

            	
              36

            
	 
      	
              5.8.

            	
              Subsidiaries

            	
              37

            
	 
      	
              5.9.

            	
              ERISA

            	
              37

            
	 
      	
              5.10.

            	
              Accuracy
      of Information

            	
              37

            
	 
      	
              5.11.

            	
              Regulation
      U

            	
              37

            
	 
      	
              5.12.

            	
              Material
      Agreements

            	
              37

            
	 
      	
              5.13.

            	
              Compliance
      With Laws

            	
              37

            
	 
      	
              5.14.

            	
              Ownership
      of Properties

            	
              37

            
	 
      	
              5.15.

            	
              Plan
      Assets; Prohibited Transactions

            	
              38

            
	 
      	
              5.16.

            	
              Environmental
      Matters

            	
              38

            
	 
      	
              5.17.

            	
              Investment
      Company Act

            	
              38

            
	 
      	
              5.18.

            	
              Insurance

            	
              38

            
	 
      	
              5.19.

            	
              Solvency

            	
              38

            
	 
      	
              5.20.

            	
              Reportable
      Transaction

            	
              39

            
	
              ARTICLE
      VI   COVENANTS

            	
              39

            
	 
      	
              6.1.

            	
              Financial
      Reporting

            	
              39

            
	 
      	
              6.2.

            	
              Use
      of Proceeds

            	
              41

            
	 
      	
              6.3.

            	
              Notice
      of Default

            	
              41

            
	 
      	
              6.4.

            	
              Conduct
      of Business

            	
              42

            
	 
      	
              6.5.

            	
              Taxes

            	
              42

            

    

    

    
      
        
           

        

        
          - ii
-

          
            

          

        

        
           

        

      

    

    
      
         

         

        TABLE
OF CONTENTS

        (continued)

        Page

      

    

    
      	 
      	
              6.6.

            	
              Insurance

            	
              42

            
	 
      	
              6.7.

            	
              Compliance
      with Laws

            	
              42

            
	 
      	
              6.8.

            	
              Maintenance
      of Properties

            	
              43

            
	 
      	
              6.9.

            	
              Inspection

            	
              43

            
	 
      	
              6.10.

            	
              Dividends

            	
              43

            
	 
      	
              6.11.

            	
              Indebtedness

            	
              43

            
	 
      	
              6.12.

            	
              Merger

            	
              44

            
	 
      	
              6.13.

            	
              Sale
      of Assets

            	
              45

            
	 
      	
              6.14.

            	
              Investments
      and Acquisitions

            	
              45

            
	 
      	
              6.15.

            	
              Liens

            	
              45

            
	 
      	
              6.16.

            	
              Affiliates

            	
              46

            
	 
      	
              6.17.

            	
              Leverage
      Ratio

            	
              47

            
	 
      	
              6.18.

            	
              Certain
      Restrictions

            	
              47

            
	
              ARTICLE
      VII   DEFAULTS

            	
              47

            
	
              ARTICLE
      VIII   ACCELERATION, WAIVERS, AMENDMENTS AND
      REMEDIES

            	
              49

            
	 
      	
              8.1.

            	
              Acceleration

            	
              49

            
	 
      	
              8.2.

            	
              Remedies
      Not Exclusive

            	
              50

            
	 
      	
              8.3.

            	
              Deposit
      to Secure Reimbursement Obligations

            	
              50

            
	 
      	
              8.4.

            	
              Subrogation

            	
              51

            
	 
      	
              8.5.

            	
              Amendments

            	
              51

            
	 
      	
              8.6.

            	
              Preservation
      of Rights

            	
              51

            
	
              ARTICLE
      IX   GENERAL PROVISIONS

            	
              52

            
	 
      	
              9.1.

            	
              Survival
      of Representations

            	
              52

            
	 
      	
              9.2.

            	
              Governmental
      Regulation

            	
              52

            
	 
      	
              9.3.

            	
              Headings

            	
              53

            
	 
      	
              9.4.

            	
              Entire
      Agreement

            	
              53

            
	 
      	
              9.5.

            	
              Several
      Obligations; Benefits of this Agreement

            	
              53

            
	 
      	
              9.6.

            	
              Expenses;
      Indemnification

            	
              53

            
	 
      	
              9.7.

            	
              Numbers
      of Documents

            	
              55

            
	 
      	
              9.8.

            	
              Accounting

            	
              55

            

    

    

    
      
        
           

        

        
          - iii
-

          
            

          

        

        
           

        

      

    

    
      
        
           

           

          TABLE
OF CONTENTS

          (continued)

          Page

        

      

      
 

    

    
      	 
      	
              9.9.

            	
              Severability
      of Provisions

            	
              55

            
	 
      	
              9.10.

            	
              Nonliability
      of Lenders

            	
              55

            
	 
      	
              9.11.

            	
              Treatment
      of Certain Information; Confidentiality

            	
              56

            
	 
      	
              9.12.

            	
              Nonreliance

            	
              57

            
	 
      	
              9.13.

            	
              Disclosure

            	
              57

            
	 
      	
              9.14.

            	
              USA
      PATRIOT Act

            	
              57

            
	 
      	
              9.15.

            	
              Letter
      of Credit Amounts

            	
              57

            
	 
      	
              9.16.

            	
              No
      Advisory or Fiduciary Responsibility

            	
              57

            
	
              ARTICLE
      X   THE ADMINISTRATIVE AGENT

            	
              58

            
	 
      	
              10.1.

            	
              Appointment
      and Authority

            	
              58

            
	 
      	
              10.2.

            	
              Rights
      as a Lender

            	
              58

            
	 
      	
              10.3.

            	
              Exculpatory
      Provisions

            	
              58

            
	 
      	
              10.4.

            	
              Reliance
      by Administrative Agent

            	
              59

            
	 
      	
              10.5.

            	
              Delegation
      of Duties

            	
              60

            
	 
      	
              10.6.

            	
              Resignation
      of Administrative Agent

            	
              60

            
	 
      	
              10.7.

            	
              Non-Reliance
      on Administrative Agent and Other Lenders

            	
              61

            
	 
      	
              10.8.

            	
              Agent
      May File Proofs of Claim

            	
              61

            
	 
      	
              10.9.

            	
              No
      Other Duties, Etc

            	
              61

            
	
              ARTICLE
      XI   SETOFF; RATABLE PAYMENTS

            	
              62

            
	 
      	
              11.1.

            	
              Setoff

            	
              62

            
	 
      	
              11.2.

            	
              Ratable
      Payments

            	
              62

            
	
              ARTICLE
      XII   BENEFIT OF AGREEMENT; ASSIGNMENTS;
      PARTICIPATIONS

            	
              62

            
	 
      	
              12.1.

            	
              Successors
      and Assigns Generally

            	
              62

            
	 
      	
              12.2.

            	
              Assignments
      by Lenders

            	
              63

            
	 
      	
              12.3.

            	
              Register

            	
              64

            
	 
      	
              12.4.

            	
              Participations

            	
              64

            
	 
      	
              12.5.

            	
              Limitations
      upon Participant Rights

            	
              65

            
	 
      	
              12.6.

            	
              Certain
      Pledges

            	
              65

            
	 
      	
              12.7.

            	
              Resignation
      as LC Issuer after Assignment

            	
              65

            
	
              ARTICLE
      XIII   GUARANTY

            	
              66

            

    

    

    
      
        
           

        

        
          - iv
-

          
            

          

        

        
           

        

      

    

    
      
        
           

           

          TABLE
OF CONTENTS

          (continued)

          Page

        

      

      
 

    

    
      	 
      	
              13.1.

            	
              GUARANTY

            	
              66

            
	 
      	
              13.2.

            	
              Waivers

            	
              66

            
	 
      	
              13.3.

            	
              Guaranty
      Absolute

            	
              66

            
	 
      	
              13.4.

            	
              Acceleration

            	
              67

            
	 
      	
              13.5.

            	
              Marshaling;
      Reinstatement

            	
              67

            
	 
      	
              13.6.

            	
              Delay
      of Subrogation

            	
              68

            
	
              ARTICLE
      XIV   NOTICES

            	
              68

            
	 
      	
              14.1.

            	
              Notices;
      Effectiveness; Electronic Communication

            	
              68

            
	 
      	
              14.2.

            	
              Change
      of Address

            	
              70

            
	
              ARTICLE
      XV   COUNTERPARTS

            	
              70

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

            	
              71

            
	 
      	
              16.1.

            	
              CHOICE
      OF LAW

            	
              71

            
	 
      	
              16.2.

            	
              CONSENT
      TO JURISDICTION

            	
              71

            
	 
      	
              16.3.

            	
              WAIVER
      OF JURY TRIAL

            	
              71

            

    

    

    
      
        
           

        

        
          - v
-

          
            

          

        

        
           

        

      

    

    
 

    
      	
              PRICING
      SCHEDULE

            
	 
      	 
      
	
              Schedule
      I

            	
              Commitments

            
	
              Schedule
      5.7

            	
              Litigation

            
	
              Schedule
      5.8

            	
              Subsidiaries
      and Other Investments

            
	
              Schedule
      5.14

            	
              Indebtedness
      and Liens

            
	
              Schedule
      5.16

            	
              Environmental
      Matters

            
	
              Schedule
      6.18

            	
              Certain
      Restrictions

            
	
              Schedule
      14.1

            	
              Notice
      Information

            
	 
      	 
      
	
              Exhibit
      A

            	
              Form
      of Revolving Credit Note

            
	
              Exhibit
      B

            	
              Form
      of Borrowing Notice

            
	
              Exhibit
      C

            	
              Form
      of Compliance Certificate

            
	
              Exhibit
      D

            	
              [intentionally
      omitted]

            
	
              Exhibit
      E

            	
              Form
      of Assignment and Assumption

            
	
              Exhibit
      F

            	
              Form
      of Increase Request

            

    

    
      
         

      

      
        - vi
-

        
          

        

      

      
         

      

    

    CREDIT
AGREEMENT

     

    This
Agreement, dated as of September 11, 2008, is among VECTREN CAPITAL, CORP.,
VECTREN CORPORATION, the Lenders party hereto, JPMORGAN CHASE BANK, N.A., as
Co-Syndication Agent, UNION BANK OF CALIFORNIA, N.A., as Co-Syndication Agent
(such institutions, the “Syndication Agents”)
and BANK OF AMERICA, N.A., as LC Issuer and as Administrative
Agent.  The parties hereto agree as follows:

     

    ARTICLE
I

     

    DEFINITIONS

     

    As used
in this Agreement:

     

    “Acquisition” means
any transaction, or any series of related transactions, consummated on or after
the date of this Agreement, by which Borrower or any of its Subsidiaries (i)
acquires any going business or all or substantially all of the assets of any
firm, corporation or limited liability company, or division thereof, whether
through purchase of assets, merger or otherwise or (ii) directly or indirectly
acquires (in one transaction or as the most recent transaction in a series of
transactions) at least a majority (in number of votes) of the securities of a
corporation which have ordinary voting power for the election of directors
(other than securities having such power only by reason of the happening of a
contingency) or a majority (by percentage or voting power) of the outstanding
ownership interests of a partnership or limited liability company.

     

    “Additional Lender”
has the meaning specified in Section
2.19.

     

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

     

    “Administrative
Agent’s Office” means the
Administrative Agent’s address and, as appropriate, account as set forth on
Schedule 14.1,
or such other address or account as the Administrative Agent may from time to
time notify Borrower and the Lenders.

     

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

     

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

     

    “Affiliate” of any
Person means any other Person directly or indirectly controlling, controlled by
or under common control with such Person.  A Person shall be deemed to
control another Person if the controlling Person owns 10% or more of any class
of 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.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Aggregate Commitment”
means the aggregate of the Commitments of all the Lenders, as changed from time
to time pursuant to the terms hereof.  On the date hereof, the amount
of the Aggregate Commitment is $120,000,000.

     

    “Aggregate Outstanding Credit
Exposure” means, at any time, the sum of (i) the aggregate principal
amount of the Advances at such time plus (ii) the LC Obligations at such
time.

     

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

     

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

     

    “Alternate Base Rate”
means for any day a fluctuating rate per annum equal to the higher of (a) the
Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest in effect for
such day as publicly announced from time to time by Bank of America as its
“prime rate.”  The “prime rate” is a rate set by Bank of America based
upon various factors including, without limitation, Bank of America’s costs and
desired return, general economic conditions and other factors, and is used as a
reference point for pricing some loans, which may be priced at, above, or below
such announced rate.  Any change in such rate announced by Bank of
America shall take effect at the opening of business on the day specified in the
public announcement of such change.

     

    “Applicable Fee Rate”
means, at any time, the percentage rate per annum at which facility fees are
accruing on the Aggregate Commitment (without regard to usage) and Letter of
Credit fees at such time as set forth in the Pricing Schedule.

     

    “Applicable Margin”
means, at any time, with respect to Advances of any Type at any time, the
percentage rate per annum which is applicable at such time with respect to
Advances of such Type, as set forth in the Pricing Schedule.

     

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

     

    “Arranger” means Banc
of America Securities LLC, as Lead Arranger and Book Runner.

     

    “Article” means an
article of this Agreement unless another document is specifically
referenced.

     

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

     

    “Assignment and
Assumption” means an assignment and assumption entered into by a Lender
and an assignee (with the consent of any party whose consent is required by
Section 12.2),
and accepted by the Administrative Agent, in substantially the form of Exhibit E or any
other form approved by the Administrative Agent.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    “Authorized Officer”
means any Vice President, the Secretary, the Treasurer, the Assistant Secretary
and Assistant Treasurer of Borrower, acting singly.

     

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

     

    “Borrower” means
Vectren Capital, Corp., an Indiana corporation, and its successors and
assigns.

     

    “Borrower Materials”
has the meaning specified in Section
6.1.

     

    “Borrowing Date” means
a date on which a Credit Extension is made hereunder.

     

    “Borrowing Notice” has
the meaning specified in Section 2.8.

     

    “BSA” has the meaning
specified in Section
6.7.

     

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

     

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

     

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

     

    “Cash Collateralize”
has the meaning specified in Section
2.17.7.

     

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

     

    “Change in Control”
means (i) the acquisition by any Person, or two or more Persons acting in
concert, of beneficial ownership (within the meaning of Rule 13d-3 of the
Securities and Exchange Commission under the Securities Exchange Act of 1934) of
30% or more of the outstanding shares of voting stock of Guarantor, (ii) the
occurrence during any period of twelve (12) consecutive months, commencing
before or after the date of this Agreement, pursuant to

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    which
individuals who on the first day of such period were directors of Guarantor
(together with any replacement or additional directors who were nominated or
elected by a majority of directors then in office) cease to constitute a
majority of the Board of Directors of Guarantor or (iii) Guarantor shall cease
to own, free and clear of any Lien, 100% of the issued and outstanding capital
stock of Borrower.

     

    “Closing Date” means
the first date all the conditions precedent in Section 4.1 are
satisfied or waived in accordance with Section
8.5.

     

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

     

    “Commitment” means,
for each Lender, the obligation of such Lender to make Loans to, and participate
in Letters of Credit issued upon the application of, Borrower in an aggregate
amount not exceeding the amount set forth opposite its name on Schedule I or as set
forth in any Assignment and Assumption relating to any assignment that has
become effective pursuant to Section 12.2.4, as
such amount may be modified from time to time pursuant to the terms
hereof.

     

    “Commitment Termination
Date” means September 10, 2009, or any earlier date on which the
Aggregate Commitment is reduced to zero or otherwise terminated pursuant to the
terms hereof.

     

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

     

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

     

    “Contingent
Obligation” of a Person means any agreement, undertaking or arrangement
by which such Person assumes, guarantees, endorses, contingently agrees to
purchase or provide funds for the payment of, or otherwise becomes or is
contingently liable upon, the obligation or liability of any other Person (other
than accounts payable of such Person’s Subsidiary arising in the ordinary course
of such Subsidiary’s business payable on terms customary in the trade), or
agrees to maintain the net worth or working capital or other financial condition
of any other Person, or otherwise assures any creditor of such other Person
against loss, including, without limitation, any comfort letter, operating
agreement or take-or-pay contract.

     

    “Conversion/Continuation
Notice” has the meaning specified in
Section 2.9.

     

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

     

    “Credit Extension”
means the making of an Advance or the issuance of or participation in a Letter
of Credit hereunder.

     

    “Default” means an
event described in Article
VII.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

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

     

    “Eligible Assignee”
means any Person that meets the requirements to be an assignee under Sections 12.2.3,
12.2.5 and
12.2.6 (subject
to such consents, if any, as may be required under Section
12.2.6).

     

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

     

    “Environmental
Liability” means any liability, contingent or otherwise (including,
without limitation, any liability for damages, costs of environmental
remediation, fines, penalties or indemnities), of Borrower, Guarantor or any of
their respective Subsidiaries directly or indirectly resulting from or based
upon (a) violation of any Environmental Law, (b) the generation, use, handling,
transportation, storage, treatment or disposal of any Hazardous Materials, (c)
exposure to any Hazardous Materials, (d) the release or threatened release of
any Hazardous Materials into the environment or (e) any contract, agreement or
other consensual arrangement pursuant to which liability is assumed or imposed
with respect to any of the foregoing.

     

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

     

    “Eurodollar Advance”
means an Advance which bears interest by reference to the applicable Eurodollar
Rate.

     

    “Eurodollar Rate”
means for any Interest Period with respect to a Eurodollar Rate Loan, a rate per
annum determined by the Administrative Agent pursuant to the following
formula:

    

      
        	 
      	
                Eurodollar
      Rate  =  

              	
                Eurodollar
      Base Rate

              	 
      
	 
      	
                1.00
      – Eurodollar Reserve Percentage

              	 
      

      

       

    

    Where,

    

    “Eurodollar Base Rate”
means, for such Interest Period, the rate per annum equal to the British Bankers
Association LIBOR Rate (“BBA LIBOR”), as
published by Reuters (or

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    other
commercially available source providing quotations of BBA LIBOR as designated by
the Administrative Agent from time to time) at approximately 11:00 a.m., London
time, two Business Days prior to the commencement of such Interest Period, for
United States Dollar deposits (for delivery on the first day of such Interest
Period) with a term equivalent to such Interest Period.  If such rate
is not available at such time for any reason, then the “Eurodollar Base Rate”
for such Interest Period shall be the rate per annum determined by the
Administrative Agent to be the rate at which deposits in United States Dollars
for delivery on the first day of such Interest Period in same day funds in the
approximate amount of the Eurodollar Rate Loan being made, continued or
converted by Bank of America and with a term equivalent to such Interest Period
would be offered by Bank of America’s London Branch to major banks in the London
interbank eurodollar market at their request at approximately 11:00 a.m. (London
time) two Business Days prior to the commencement of such Interest
Period.

    

    “Eurodollar Reserve
Percentage” means, for any day during any Interest Period, the reserve
percentage (expressed as a decimal, carried out to five decimal places) in
effect on such day, whether or not applicable to any Lender, under regulations
issued from time to time by the Board of Governors of the Federal Reserve System
for determining the maximum reserve requirement (including, without limitation,
any emergency, supplemental or other marginal reserve requirement) with respect
to Eurocurrency funding (currently referred to as “Eurocurrency
liabilities”).  The Eurodollar Rate for each outstanding
Eurodollar Rate Loan shall be adjusted automatically as of the effective date of
any change in the Eurodollar Reserve Percentage.

    

    “Eurodollar Loan”
means a Loan which bears interest by reference to the applicable Eurodollar
Rate.

     

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

     

    “Exhibit” refers to an
exhibit to this Agreement, unless another document is specifically
referenced.

     

    “Existing
Indebtedness” has the meaning specified in Section
6.11.

     

    “Federal Funds Rate”
means, for any day, the rate per annum equal to the weighted average of the
rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers on such day, as published by
the Federal Reserve Bank of New York on the Business Day next succeeding such
day; provided
that (a) if such day is not a Business Day, the Federal Funds Rate for such day
shall be such rate on such transactions on the next preceding Business Day as so
published on the next succeeding Business Day, and (b) if no such rate is so
published on such next succeeding Business Day, the Federal Funds Rate for such
day shall be the average rate (rounded upward, if necessary, to a
whole

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    multiple
of 1/100 of 1%) charged to Bank of America on such day on such transactions as
determined by the Administrative Agent.

     

    “Fee Letter” means
that certain letter agreement dated August 26, 2008 among Borrower,
Guarantor, the Administrative Agent and the Arranger.

     

    “Financial Contract”
of a Person means (i) any exchange-traded or over-the-counter futures, forward,
swap or option contract or other financial instrument with similar
characteristics, (ii) any agreements, devices or arrangements providing for
payments related to fluctuations of interest rates, exchange rates or forward
rates, including, but not limited to, interest rate exchange agreements, forward
currency exchange agreements, interest rate cap or collar protection agreements,
forward rate currency or interest rate options or (iii) to the extent not
otherwise included in the foregoing, any Rate Hedging Agreement.

     

    “Floating Rate” means,
for any day, a rate per annum equal to (i) the Alternate Base Rate for such day
plus (ii) the
Applicable Margin for Floating Rate Advances, in each case changing when and as
the Alternate Base Rate changes.

     

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

     

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

     

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

     

    “Governmental
Authority” means the government of the United States or any other nation,
or of any political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government (including,
without limitation, any supra-national bodies such as the European Union or the
European Central Bank).

     

    “Guaranteed
Obligations” has the meaning specified in Section
13.1.

     

    “Guarantor” means
Vectren Corporation, and its successors and assigns.

     

    “Hazardous Materials”
means all explosive or radioactive substances or wastes and all hazardous or
toxic substances, wastes or other pollutants, including, without limitation,
petroleum or petroleum distillates, asbestos or asbestos-containing materials,
polychlorinated biphenyls, radon gas, infectious or medical wastes and all other
substances or wastes of any nature regulated pursuant to any Environmental
Law.

     

    “Honor Date” has the
meaning specified in Section
2.17.3.

     

    “Indebtedness” of a
Person means such Person’s (i) obligations for borrowed money, (ii) obligations
representing the deferred purchase price of Property or services (other than
accounts payable arising in the ordinary course of such Person’s business
payable on terms customary in

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    the
trade), (iii) obligations, whether or not assumed, secured by Liens or payable
out of the proceeds or production from property now or hereafter owned or
acquired by such Person, (iv) obligations which are evidenced by notes,
acceptances or other instruments, (v) obligations of such Person to purchase
securities or other property arising out of or in connection with the sale of
the same or substantially similar securities or property, (vi) Capitalized Lease
Obligations, (vii) Contingent Obligations (other than Contingent Obligations
with respect to primary obligations (other than Indebtedness) of Subsidiaries,
which primary obligations are not prohibited by this Agreement), (viii)
reimbursement and other obligations in connection with letters of credit, (ix)
Net Mark-to-Market Exposure of Rate Hedging Agreements and other Financial
Contracts, (x) Synthetic Lease Obligations and (xi) any other obligation for
borrowed money or other financial accommodation which in accordance with
Agreement Accounting Principles would be shown as a liability on the
consolidated balance sheet of such Person.

     

    “Intercompany
Indebtedness” has the meaning specified in Section
6.11(iv).

     

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

     

    “Investment” of a
Person means any loan, advance (other than commission, travel and similar
advances to officers and employees made in the ordinary course of business),
extension of credit (other than accounts receivable arising in the ordinary
course of business on terms customary in the trade) or contribution of capital
by such Person; stocks, bonds, mutual funds, partnership interests, notes,
debentures or other securities owned by such Person; any deposit accounts and
certificate of deposit owned by such Person; and structured notes, derivative
financial instruments and other similar instruments or contracts owned by such
Person.

     

    “ISP” means, with
respect to any Letter of Credit, the “International Standby Practices 1998”
published by the Institute of International Banking Law & Practice, Inc. (or
such later version thereof as may be in effect at the time of
issuance).

     

    “Issuer Documents”
means with respect to any Letter of Credit, the Letter of Credit Application,
and any other document, agreement and instrument entered into by the LC Issuer
and Borrower (or any Subsidiary) or in favor of the LC Issuer and relating to
such Letter of Credit.

     

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

     

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

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

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

     

    “LC Issuer” means Bank
of America in its capacity as issuer of Letters of Credit
hereunder.

     

    “LC Obligations”
means, at any time, the sum, without duplication, of (i) the aggregate undrawn
stated amount of all Letters of Credit outstanding at such time plus (ii) the
aggregate unpaid amount at such time of all reimbursement obligations in respect
of the Letters of Credit.

     

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

     

    “Lending Installation”
means, with respect to a Lender or the Administrative Agent, the office, branch,
subsidiary or affiliate of such Lender or the Administrative Agent listed on
Schedule 14.1
hereof or otherwise selected by such Lender or the Administrative Agent pursuant
to Section 2.16.

     

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

     

    “Letter of Credit
Sublimit” means an amount equal to $40,000,000.  The Letter of
Credit Sublimit is part of, and not in addition to, the Aggregate
Commitment.

     

    “Letters of Credit”
means standby and commercial letters of credit now or hereafter issued by the LC
Issuer from time to time at the request of, and for the account of, Borrower
issued pursuant to this Agreement.

     

    “Letter of Credit Fee”
has the meaning specified in Section
2.17.9.

     

    “Lien” means any lien
(statutory or other), security interest, mortgage, pledge, hypothecation,
assignment, deposit arrangement, encumbrance or preference, priority or other
security agreement or preferential arrangement of any kind or nature whatsoever
(including, without limitation, the interest of a vendor or lessor under any
conditional sale, Capitalized Lease or other title retention
agreement).

     

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

     

    “Loan Documents” means
this Agreement, the Fee Letter, the Notes, any Letter of Credit Application and
any other documents or instruments now or hereafter executed and delivered by or
on behalf of Borrower to the Administrative Agent or the Lenders to further
evidence or govern the Obligations.

     

    “Material Adverse
Effect” means a material adverse effect on (i) the business, Property,
condition (financial or otherwise) or results of operations of Guarantor and its
Subsidiaries taken as a whole, (ii) the ability of Borrower or Guarantor to
perform its obligations under the Loan

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    Documents,
or (iii) the validity or enforceability of any of the Loan Documents or the
rights or remedies of the Administrative Agent, the LC Issuer or the Lenders
thereunder.

     

    “Material
Indebtedness” has the meaning specified in Section 7.5.

     

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

     

    “Mortgage Indenture”
means the Mortgage and Deed of Trust, dated as of April 1, 1932, between
Southern Indiana Gas and Electric Company and Bankers Trust Company (as
supplemented from time to time before or after the date hereof by various
supplemental indentures thereto).

     

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

     

    “Net Mark-to-Market
Exposure” of a Person means, as of any date of determination, the excess
(if any) of all unrealized losses over all unrealized profits of such Person
arising from Rate Hedging Agreements or other Financial
Contracts.  “Unrealized losses” means the fair market value of the
cost to such Person of replacing such Rate Hedging Agreement or other Financial
Contract as of the date of determination (assuming the Rate Hedging Agreement or
other Financial Contract were to be terminated as of that date), and “unrealized
profits” means the fair market value of the gain to such Person of replacing
such Rate Hedging Agreement or other Financial Contract as of the date of
determination (assuming such Rate Hedging Agreement or other Financial Contract
were to be terminated as of that date).

     

    “Non-U.S. Lender” has
the meaning specified in Section 3.5(iv).

     

    “Notes” means the
Revolving Credit Notes.

     

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

     

    “OFAC” has the meaning
specified in Section
6.7.

     

    “Other Taxes” has the
meaning specified in Section 3.5(ii).

     

    “Participants” has the
meaning specified in Section 12.4.

     

    “Payment Date” means
the last Business Day of each month.

     

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

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

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

     

    “Plan” means an
employee pension benefit plan which is covered by Title IV of ERISA or subject
to the minimum funding standards under Section 412 of the Code as to which
Borrower or any member of the Controlled Group may have any
liability.

     

    “Platform” has the
meaning specified in Section
6.1.

     

    “Pro Rata Share”
means, as to any Lender, when used with reference to an aggregate or total
amount, an amount equal to the product of (a) such aggregate or total amount,
multiplied by
(b) a fraction, the numerator of which shall be the sum of such Lender’s
Commitment (or, if the Commitments have been terminated, the sum of such
Lender’s outstanding Revolving Loans and participations in outstanding Letters
of Credit) and the denominator of which shall be the Aggregate Commitment (or,
if the Commitments have been terminated, the sum of the total outstanding
Revolving Loan Advances and the aggregate face amount of outstanding Letters of
Credit).

     

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

     

    “Public Lender” has
the meaning specified in Section
6.1.

     

    “Rate Hedging
Agreement” means an agreement, device or arrangement providing for
payments which are related to fluctuations of interest rates, exchange rates or
forward rates, including, but not limited to, dollar-denominated or
cross-currency interest rate exchange agreements, forward currency exchange
agreements, interest rate cap or collar protection agreements, forward rate
currency or interest rate options, puts and warrants.

     

    “Rate Hedging
Obligations” of a Person means any and all obligations of such Person,
whether absolute or contingent and howsoever and whensoever created, arising,
evidenced or acquired (including, without limitation, all renewals, extensions
and modifications thereof and substitutions therefor), under (i) any and all
Rate Hedging Agreements, and (ii) any and all cancellations, buy backs,
reversals, terminations or assignments of any Rate Hedging
Agreement.

     

    “Register” has the
meaning specified in Section 12.3.

     

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

     

    “Regulation U” means
Regulation U of the Board of Governors of the Federal Reserve System as from
time to time in effect and any successor or other regulation or official
interpretation of said Board of Governors relating to the extension of credit by
banks for the

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    purpose
of purchasing or carrying margin stocks applicable to member banks of the
Federal Reserve System.

     

    “Related Parties”
means, with respect to any Person, such Person’s Affiliates and the partners,
directors, officers, employees, agents, trustees and advisors of such Person and
of such Person’s Affiliates.

     

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

     

    “Required Lenders”
means Lenders in the aggregate having more than 50% of the Aggregate Commitment
or, if the Aggregate Commitment has been terminated, Lenders in the aggregate
holding more than 50% of the aggregate unpaid principal amount of the
outstanding Advances and participations in outstanding Letters of
Credit.

     

    “Revolving Credit
Notes” means the Revolving Credit Notes, each substantially in the form
of Exhibit A
hereto, duly executed by Borrower to the respective Lenders to evidence the
Revolving Loans, including any and all renewals, extensions, replacements and
modifications thereof.

     

    “Revolving Loan” has
the meaning specified in Section
2.1.

     

    “Revolving Loan
Advance” means an Advance under the Commitments.

     

    “Risk-Based Capital
Guidelines” has the meaning specified in Section
3.2.

     

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

     

    “Schedule” refers to a
specific schedule to this Agreement, unless another document is specifically
referenced.

     

    “Section” means a
numbered section of this Agreement, unless another document is specifically
referenced.

     

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

     

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

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    ordinary
voting power of which shall at the time be so owned or
controlled.  Unless otherwise expressly provided, all references
herein to a “Subsidiary” shall mean a Subsidiary of Borrower.

     

    “Subsidiary Existing
Indebtedness” has the meaning specified in Section
6.11(vi).

     

    “Substantial Portion”
means, with respect to the Property of Borrower and its Subsidiaries, Property
which (i) represents more than 10% of the consolidated assets of Borrower and
its Subsidiaries as would be shown in the consolidated financial statements of
Borrower and its Subsidiaries as at the beginning of the twelve-month period
ending with the month in which such determination is made or (ii) is responsible
for more than 10% of the consolidated net sales or of the consolidated net
income of Borrower and its Subsidiaries as reflected in the financial statements
referred to in clause
(i) above.

     

    “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 Agreement Accounting Principles if such lease or
agreement were accounted for as a Capitalized Lease.

     

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

     

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

     

    “Unfunded Liabilities”
means the amount (if any) by which the present value of all vested and unvested
accrued benefits under all Single Employer Plans exceeds the fair market value
of all such Plan assets allocable to such benefits, all determined as of the
then most recent valuation date for such Plans using PBGC actuarial assumptions
for single employer plan terminations.

     

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

     

    “Unreimbursed Amount”
has the meaning specified in Section
2.17.3.

     

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

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    “Withholding
Certificate” has the meaning specified in Section 3.5(iv).

     

    The
foregoing definitions shall be equally applicable to both the singular and
plural forms of the defined terms.

     

    ARTICLE
II

     

    THE
CREDITS

     

    2.1.           Commitments.  Subject
to the terms and conditions of this Agreement and prior to the Commitment
Termination Date, each Lender severally agrees, on the terms and conditions set
forth in this Agreement, to make loans (“Revolving Loans”) to
Borrower and participate in Letters of Credit issued upon the request of
Borrower from time to time in amounts not to exceed in the aggregate at any one
time outstanding the amount of its Commitment.  No requested Revolving
Loan Advance shall cause the aggregate outstanding principal balance of the
Revolving Loan Advances plus the outstanding LC Obligations to exceed the
Aggregate Commitment.  Subject to the terms of this Agreement,
Borrower may borrow, repay and reborrow such available amount under the
Commitments at any time prior to the Commitment Termination Date.  The
Commitments to lend hereunder shall expire on the Commitment Termination
Date.  The Revolving Loans made by the Lenders pursuant hereto shall
be evidenced by the Revolving Credit Notes.

     

    2.2.           Required Payments;
Termination.  Any outstanding Advances and all other unpaid
Obligations shall be paid in full by Borrower on the Commitment Termination
Date.

     

    2.3.           Ratable
Loans.  With respect to the Commitments, each Advance
thereunder shall consist of Revolving Loans made from the several Lenders in
accordance with their respective Pro Rata Shares.

     

    2.4.           Types of
Advances.  The Revolving Loan Advances may be Floating Rate
Advances or Eurodollar Advances, or a combination thereof, selected by Borrower
in accordance with Sections 2.8 and
2.9.

     

    2.5.           Facility Fee; Reductions in
Aggregate Commitment.

     

    2.5.1.                      Borrower
agrees to pay to the Administrative Agent for the account of each Lender
according to its Pro Rata Share a facility fee at a per annum rate equal to the
Applicable Fee Rate from and after the date hereof to and including the
Commitment Termination Date on such Lender’s Commitment (regardless of usage) in
effect from time to time.  Such facility fees shall be payable in
arrears on the last Business Day of each quarter and on the Commitment
Termination Date.

     

    2.5.2.                      Borrower
may permanently reduce the Aggregate Commitment in whole, or in part ratably
among the Lenders in integral multiples of $5,000,000, upon at least three
Business Days’ prior written notice to the Administrative Agent, which notice
shall specify the amount of any such reduction, provided, however, that (i) the amount of
the Aggregate Commitment may not be reduced below the Aggregate Outstanding
Credit Exposure and (ii) if, after giving effect to any reduction of the
Aggregate Commitment, the Letter of Credit Sublimit

     

    
      
         

      

      
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    exceeds
the amount of the Aggregate Commitment, the Letter of Credit Sublimit shall be
automatically reduced by the amount of such excess.  All accrued
facility fees shall be payable on the effective date of any termination of the
obligations of the Lenders to make Credit Extensions hereunder.

     

    2.6.           Minimum Amount of Each
Advance.  Each Eurodollar Advance shall be in the minimum
amount of $5,000,000 and in integral multiples of $1,000,000 (if in excess
thereof), and each Floating Rate Advance may be in the amount of $1,000,000 or
an integral multiple thereof.  Borrower shall not request a Eurodollar
Advance if, after giving effect thereto, more than ten separate Eurodollar
Advances would be outstanding.

     

    2.7.           Optional Principal
Payments.  Borrower may from time to time pay, without penalty
or premium, all outstanding Floating Rate Advances, or, in a minimum aggregate
amount of $1,000,000 or any integral multiple of $1,000,000 in excess thereof,
any portion of the outstanding Floating Rate Advances upon one Business Day’s
prior notice to the Administrative Agent.  Borrower may from time to
time pay, subject to the payment of any funding indemnification amounts required
by Section 3.4 but
without penalty or premium, all outstanding Eurodollar Advances, or, in a
minimum aggregate amount of $5,000,000 or any integral multiple of $1,000,000 in
excess thereof, any portion of the outstanding Eurodollar Advances upon three
Business Days’ prior notice to the Administrative Agent.  Each
prepayment pursuant to this Section shall be made together with accrued and
unpaid interest to the date of such prepayment on the principal amount
paid.

     

    2.8.           Method of Selecting Types
and Interest Periods for New Advances.  Borrower shall select
the Type of Advance and, in the case of each Eurodollar Advance, the Interest
Period applicable thereto from time to time.  Borrower shall give the
Administrative Agent irrevocable notice in the form of Exhibit B (a “Borrowing Notice”)
not later than 10:00 a.m. (Chicago time) on the proposed Borrowing Date of each
Floating Rate Advance and three Business Days before the Borrowing Date for each
Eurodollar Advance, specifying:

     

    
      	
               
      

            	
              (i)

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

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      aggregate amount of such Advance,

            

    

     

    
      	
               
      

            	
              (iii)

            	
              the
      Type of Advance selected, and

            

    

     

    
      	
               
      

            	
              (iv)

            	
              in
      the case of each Eurodollar Advance, the Interest Period applicable
      thereto.

            

    

     

    Any
notice received later than 10:00 a.m. (Chicago time) on any day shall be deemed
to be received on the following Business Day.  The Administrative
Agent shall notify the Lenders of Borrower’s intent to borrow by 12:00 p.m.
(Chicago time) on the date it receives a timely Borrowing Notice from
Borrower.  Not later than 2:00 p.m. (Chicago time) on each Borrowing
Date, each Lender shall make available its Loan or Loans in immediately
available funds to the Administrative Agent at its address specified pursuant to
Article
XIV.  The Administrative Agent will make the funds so received
from the Lenders available to Borrower at the Administrative Agent’s aforesaid
address.

     

    
      
         

      

      
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    2.9.           Conversion and Continuation
of Outstanding Advances.  Floating Rate Advances shall continue
as Floating Rate Advances unless and until such Floating Rate Advances are
converted into Eurodollar Advances pursuant to this Section 2.9 or
are repaid in accordance with Section 2.7.  Each
Eurodollar Advance shall continue as a Eurodollar Advance until the end of the
then applicable Interest Period therefor, at which time such Eurodollar Advance
shall be automatically converted into a Floating Rate Advance unless (x) such
Eurodollar Advance is or was repaid in accordance with Section 2.7 or (y)
Borrower shall have given the Administrative Agent a Conversion/Continuation
Notice (as defined below) requesting that, at the end of such Interest Period,
such Eurodollar Advance continue as a Eurodollar Advance for the same or another
Interest Period.  Subject to the terms of Section 2.6,
Borrower may elect from time to time to convert all or any part of a Floating
Rate Advance into a Eurodollar Advance.  Borrower shall give the
Administrative Agent irrevocable notice (a “Conversion/Continuation
Notice”) of each conversion of a Floating Rate Advance into a Eurodollar
Advance or continuation of a Eurodollar Advance not later than 10:00 a.m.
(Chicago time) at least three Business Days prior to the date of the requested
conversion or continuation, specifying:

     

    
      	
               
      

            	
              (i)

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

            

    

     

    
      	
               
      

            	
              (ii)

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

            

    

     

    
      	
               
      

            	
              (iii)

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

            

    

     

    2.10.                      Changes in Interest Rate,
etc.  Each Floating Rate Advance shall bear interest on the
outstanding principal amount thereof, for each day from and including the date
such Advance is made or is automatically converted from a Eurodollar Advance
into a Floating Rate Advance pursuant to Section 2.9, to but
excluding the date it is paid or is converted into a Eurodollar Advance pursuant
to Section 2.9,
at a rate per annum equal to the Floating Rate for such day.  Changes
in the rate of interest on that portion of any Advance maintained as a Floating
Rate Advance will take effect simultaneously with each change in the Alternate
Base Rate.  Each Eurodollar Advance shall bear interest on the
outstanding principal amount thereof from and including the first day of each
Interest Period applicable thereto to (but not including) the last day of such
Interest Period at the Eurodollar Rate determined by the Administrative Agent as
applicable to such Eurodollar Advance based upon Borrower’s selections under
Sections 2.8
and 2.9, plus
the Applicable Margin from time to time in effect, and otherwise in accordance
with the terms hereof.  No Interest Period may end after the
Commitment Termination Date.

     

    2.11.                      Rates Applicable After
Default.  Notwithstanding anything to the contrary contained in
Section 2.8 or
2.9, during the
continuance of a Default or Unmatured Default the Required Lenders may, at their
option, by notice to Borrower (which notice may be revoked at the option of the
Required Lenders notwithstanding any provision of Section 8.5 requiring
unanimous consent of the Lenders to changes in interest rates), declare that no
Advance may be made as, converted into or continued as a Eurodollar
Advance.  During the continuance of a Default the Required Lenders
may, at their option, by notice to Borrower (which notice may be

     

    
      
         

      

      
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    revoked
at the option of the Required Lenders notwithstanding any provision of Section 8.5 requiring
unanimous consent of the Lenders to changes in interest rates), declare that (i)
each Eurodollar Advance shall bear interest for the remainder of the applicable
Interest Period at the Eurodollar Rate otherwise applicable to such Interest
Period plus the Applicable Margin from time to time in effect plus 2% per annum
and (ii) each Floating Rate Advance shall bear interest at a rate per annum
equal to the Floating Rate in effect from time to time plus 2% per annum and
(iii) each of the Letter of Credit fees described in Section 2.17.9 shall
be increased by 2% per annum, provided that, during
the continuance of a Default under Section 7.6 or 7.7, the interest
rates set forth in clauses (i) and (ii) above and the
increase in the Letter of Credit fees set forth in clause (iii) above
shall be applicable to all Advances without any election or action on the part
of the Administrative Agent or any Lender.

     

    2.12.                      Payments Generally;
Administrative Agent’s Clawback.

     

    2.12.1.                      Method of Payment.
All payments to be made by Borrower shall be made without condition or deduction
for any counterclaim, defense, recoupment or setoff, in immediately available
funds to the Administrative Agent at the Administrative Agent’s address
specified pursuant to Article XIV, or at
any other Lending Installation of the Administrative Agent specified in writing
by the Administrative Agent to Borrower, by noon (Chicago time) on the date when
due and shall (except in the case of reimbursement obligations in respect of
Letters of Credit for which the LC Issuer has not been fully indemnified by the
Lenders, or as otherwise specifically required hereunder) be applied ratably by
the Administrative Agent among the Lenders.  Each payment delivered to
the Administrative Agent for the account of any Lender shall be delivered
promptly by the Administrative Agent to such Lender in the same type of funds
that the Administrative Agent received at its address specified pursuant to
Article XIV or
at any Lending Installation specified in a notice received by the Administrative
Agent from such Lender.  The Administrative Agent is hereby authorized
to charge the account of Borrower maintained with Bank of America for each
payment of principal, interest and fees as it becomes due
hereunder.

     

    2.12.2.                      Funding by Lenders;
Presumption by Administrative Agent.  Unless the Administrative
Agent shall have received notice from a Lender prior to the proposed date of any
Eurodollar Rate Advance (or, in the case of any Floating Rate Advance, prior to
12:00 p.m. (Chicago time) on the date of such Advance) that such Lender will not
make available to the Administrative Agent such Lender’s share of such Advance,
the Administrative Agent may assume that such Lender has made such share
available on such date in accordance with Section 2.1 (or, in
the case of a Floating Rate Advance, that such Lender has made such share
available in accordance with and at the time required by Section 2.1) and may,
in reliance upon such assumption, make available to Borrower a corresponding
amount.  In such event, if a Lender has not in fact made its share of
the applicable Advance available to the Administrative Agent, then the
applicable Lender and Borrower severally agree to pay to the Administrative
Agent forthwith on demand such corresponding amount in immediately available
funds with interest thereon, for each day from and including the date such
amount is made available to Borrower to but excluding the date of payment to the
Administrative Agent, at (A) in the case of a payment to be made by such Lender,
the greater of the Federal Funds Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank
compensation, plus any administrative, processing or similar fees customarily
charged by the Administrative Agent

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    in
connection with the foregoing, and (B) in the case of a payment to be made by
Borrower, the interest rate applicable to Floating Rate Loans.  If
Borrower and such Lender shall pay such interest to the Administrative Agent for
the same or an overlapping period, the Administrative Agent shall promptly remit
to Borrower the amount of such interest paid by Borrower for such
period.  If such Lender pays its share of the applicable Advance to
the Administrative Agent, then the amount so paid shall constitute such Lender’s
Loan included in such Advance.  Any payment by Borrower shall be
without prejudice to any claim Borrower may have against a Lender that shall
have failed to make such payment to the Administrative Agent.

     

    2.12.3.                      Payments by Borrower;
Presumptions by Administrative Agent.  Unless the
Administrative Agent shall have received notice from Borrower prior to the date
on which any payment is due to the Administrative Agent for the account of the
Lenders or the LC Issuer hereunder that Borrower will not make such payment, the
Administrative Agent may assume that Borrower has made such payment on such date
in accordance herewith and may, in reliance upon such assumption, distribute to
the Lenders or the LC Issuer, as the case may be, the amount due.  In
such event, if Borrower has not in fact made such payment, then each of the
Lenders or the LC Issuer, as the case may be, severally agrees to repay to the
Administrative Agent forthwith on demand the amount so distributed to such
Lender or the LC Issuer, in immediately available funds with interest thereon,
for each day from and including the date such amount is distributed to it to but
excluding the date of payment to the Administrative Agent, at the greater of the
Federal Funds Rate and a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation.  A
notice of the Administrative Agent to any Lender or Borrower with respect to any
amount owing under this Section 2.12.3 shall
be conclusive, absent manifest error.

     

    2.13.                      Notes; Telephonic
Notices.  Each Lender is hereby authorized to record the
principal amount of each of its Loans and each repayment on any schedule
attached to its Note, provided, however, that neither
the failure to so record nor any error in such recordation shall affect
Borrower’s obligations under such Note.  Borrower hereby authorizes
the Lenders and the Administrative Agent to extend, convert or continue
Advances, effect selections of Types of Advances and to transfer funds based on
telephonic notices made by an Authorized Officer.  The Administrative
Agent and any Lender may rely, without further inquiry, on all such requests
which shall have been received by it in good faith by anyone reasonably believed
to be an Authorized Officer.  Borrower agrees to deliver promptly to
the Administrative Agent a written confirmation, if such confirmation is
requested by the Administrative Agent or any Lender, of each telephonic notice
signed by an Authorized Officer.  If the written confirmation differs
in any material respect from the action taken by the Administrative Agent and
the Lenders, the records of the Administrative Agent and the Lenders shall
govern absent manifest error.

     

    2.14.                      Interest Payment Dates;
Interest and Fee Basis.  Interest accrued on each Floating Rate
Advance shall be payable on each Payment Date, commencing with the first such
date to occur after the date hereof, on any date on which such Advance is
prepaid, whether due to acceleration or otherwise, and at
maturity.  Interest accrued on each Eurodollar Advance shall be
payable on the last day of its applicable Interest Period, or any date on which
the Eurodollar Advance is prepaid, whether by acceleration or otherwise, and on
the Commitment Termination Date.  Interest accrued on each Eurodollar
Advance having an Interest Period longer than three months shall also be payable
on the last day of each three month interval during such Interest

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    Period.  Interest
and facility fees shall be calculated for actual days elapsed on the basis of a
360-day year.  Interest shall be payable for the day an Advance is
made but not for the day of any payment on the amount paid if payment is
received prior to noon (local time) at the place of payment.  If any
payment of principal of or interest on an Advance shall become due on a day
which is not a Business Day, then (subject to the second proviso of the
definition of “Interest Period”) such payment shall be made on the next
succeeding Business Day and, in the case of a principal payment, such extension
of time shall be included in computing interest in connection with such
payment.

     

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

     

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

     

    2.17.                      Issuance of Letters of
Credit.

     

    2.17.1.                      The Letter of Credit
Commitment.

     

    (a)           Subject
to the terms and conditions set forth herein, (i) the LC Issuer agrees, in
reliance upon the agreements of the Lenders set forth in this Section 2.17, (A)
from time to time on any Business Day during the period from the Closing Date
until the date that is 30 days prior to the Commitment Termination Date, to
issue Letters of Credit for the account of Borrower, and to amend Letters of
Credit previously issued by it, in accordance with Section 2.17.2
below, and (B) to honor drawings under the Letters of Credit; and (ii) the
Lenders severally agree to participate in Letters of Credit issued for the
account of Borrower and any drawings thereunder; provided that after
giving effect to any LC Credit Extension with respect to any Letter of Credit,
(x) the Aggregate Outstanding Credit Exposure shall not exceed the Aggregate
Commitment, (y) the aggregate amount of the Revolving Loans of any Lender, plus such Lender’s
Pro Rata Share of all LC Obligations, shall not exceed such Lender’s Commitment
and (z) the

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    outstanding
amount of the LC Obligations at any time shall not exceed the Letter of Credit
Sublimit.  Each request by Borrower for the issuance or amendment of a
Letter of Credit shall be deemed to be a representation by Borrower that the LC
Credit Extension so requested complies with the conditions set forth in the
proviso to the
preceding sentence.  Within the foregoing limits, and subject to the
terms and conditions hereof, Borrower’s ability to obtain Letters of Credit
shall be fully revolving, and accordingly Borrower may, during the foregoing
period, obtain Letters of Credit to replace Letters of Credit that have expired
or that have been drawn upon and reimbursed.

     

    (b)           The
LC Issuer shall not issue any Letter of Credit, if:

     

    
      	
               
      

            	
              (i)

            	
              the
      expiry date of such requested Letter of Credit would occur more than
      twelve months after the date of issuance, unless the Required Lenders have
      approved such expiry date; or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      expiry date of such requested Letter of Credit would occur after the
      Commitment Termination Date, unless all the Lenders have approved such
      expiry date.

            

    

     

    (c)           The
LC Issuer shall not be under any obligation to issue any Letter of Credit
if:

     

    
      	
               
      

            	
              (i)

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

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      issuance of such Letter of Credit would violate one or more policies of
      the LC Issuer applicable to letters of credit
  generally;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              except
      as otherwise agreed by the Administrative Agent and the LC Issuer, such
      Letter of Credit is in an initial stated amount less than $100,000, in the
      case of a commercial Letter of Credit, or $500,000, in the case of a
      standby Letter of Credit;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              such
      Letter of Credit is to be denominated in a currency other than United
      States Dollars;

            

    

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (v)

            	
              such
      Letter of Credit contains any provisions for automatic reinstatement of
      the stated amount after any drawing thereunder;
  or

            

    

     

    
      	
               
      

            	
              (vi)

            	
              a
      default of any Lender’s obligations to fund under Section 2.17.3
      exists or any Lender is at such time a Defaulting Lender hereunder, unless
      the LC Issuer has entered into reasonably satisfactory arrangements with
      Borrower or such Lender to eliminate the LC Issuer’s risk with respect to
      such Lender.

            

    

     

    (d)           The
LC Issuer shall not amend any Letter of Credit if the LC Issuer would not be
permitted at such time to issue such Letter of Credit in its amended form under
the terms hereof.

     

    (e)           The
LC Issuer shall be under no obligation to amend any Letter of Credit if (i) the
LC Issuer would have no obligation at such time to issue such Letter of Credit
in its amended form under the terms hereof or (ii) the beneficiary of such
Letter of Credit does not accept the proposed amendment to such Letter of
Credit.

     

    (f)           The
LC Issuer shall act on behalf of the Lenders with respect to any Letters of
Credit issued by it and the documents associated therewith, and the LC Issuer
shall have all of the benefits and immunities (i) provided to the Administrative
Agent in Article
X with respect to any acts taken or omissions suffered by the LC Issuer
in connection with Letters of Credit issued by it or proposed to be issued by it
and Issuer Documents pertaining to such Letters of Credit as fully as if the
term “Administrative Agent” as used in Article X included
the LC Issuer with respect to such acts or omissions, and (ii) as additionally
provided herein with respect to the LC Issuer.

     

    2.17.2.                      Procedures for Issuance and
Amendment of Letters of Credit.

     

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

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    amended;
(ii) the proposed date of amendment thereof (which shall be a Business Day);
(iii) the nature of the proposed amendment; and (iv) such other matters as the
LC Issuer may require.  Additionally, Borrower shall furnish to the LC
Issuer and the Administrative Agent such other documents and information
pertaining to such requested Letter of Credit issuance or amendment, including,
without limitation, any Issuer Documents, as the LC Issuer or the Administrative
Agent may require.

     

    (b)           Promptly
after receipt of any Letter of Credit Application, the LC Issuer will confirm
with the Administrative Agent (by telephone or in writing) that the
Administrative Agent has received a copy of such Letter of Credit Application
from Borrower and, if not, the LC Issuer will provide the Administrative Agent
with a copy thereof.  Unless the LC Issuer has received written notice
from any Lender, the Administrative Agent, Borrower or Guarantor, at least one
Business Day prior to the requested date of issuance or amendment of the
applicable Letter of Credit, that one or more applicable conditions contained in
Article IV
shall not then be satisfied, then, subject to the terms and conditions hereof,
the LC Issuer shall, on the requested date, issue a Letter of Credit for the
account of Borrower or enter into the applicable amendment, as the case may be,
in each case in accordance with the LC Issuer’s usual and customary business
practices.  Immediately upon the issuance of each Letter of Credit,
each Lender shall be deemed to, and hereby irrevocably and unconditionally
agrees to, purchase from the LC Issuer a risk participation in such Letter of
Credit in an amount equal to the product of such Lender’s Pro Rata Share times the amount of
such Letter of Credit.

     

    (c)           Promptly
after its delivery of any Letter of Credit or any amendment to a Letter of
Credit to an advising bank with respect thereto or to the beneficiary thereof,
the LC Issuer will also deliver to Borrower and the Administrative Agent a true
and complete copy of such Letter of Credit or amendment.

     

    2.17.3.                      Drawings and Reimbursements;
Funding of Participations.

     

    (a)           Upon
receipt from the beneficiary of any Letter of Credit of any notice of a drawing
under such Letter of Credit, the LC Issuer shall notify Borrower and the
Administrative Agent thereof.  Not later than 11:00 a.m. (Chicago
time) on the date of any payment by the LC Issuer under a Letter of Credit (each
such date, an “Honor
Date”), Borrower shall reimburse the LC Issuer through the Administrative
Agent in an amount equal to the amount of such drawing.  If Borrower
fails to so reimburse the LC Issuer by such time, the Administrative Agent shall
promptly notify each Lender of the Honor Date, the amount of the unreimbursed
drawing (the “Unreimbursed
Amount”), and the amount of such Lender’s Pro Rata Share
thereof.  In such event, Borrower shall be deemed to have requested a
Floating Rate Advance to be disbursed on the Honor Date in an amount equal to
the Unreimbursed Amount, without regard to the minimum and multiples specified
in Section 2.6
for the principal amount of Floating Rate Loans, but subject to the amount of
the unutilized portion of the Aggregate Commitment and the conditions set forth
in Section 4.2
(other than the delivery of a Borrowing Notice).  Any notice given by
the LC Issuer or the Administrative Agent pursuant to this Section 2.17.3(a) may
be given by telephone if immediately confirmed in writing; provided
that

     

    
      
         

      

      
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    the lack
of such an immediate confirmation shall not affect the conclusiveness or binding
effect of such notice.

     

    (b)           Each
Lender shall upon any notice pursuant to Section 2.17.3(a)
make funds available to the Administrative Agent for the account of the LC
Issuer at the Administrative Agent’s Office in an amount equal to its Pro Rata
Share of the Unreimbursed Amount not later than 1:00 p.m. (Chicago time) on the
Business Day specified in such notice by the Administrative Agent, whereupon,
subject to the provisions of Section 2.17.3(c),
each Lender that so makes funds available shall be deemed to have made a
Floating Rate Loan to Borrower in such amount.  The Administrative
Agent shall remit the funds so received to the LC Issuer.

     

    (c)           With
respect to any Unreimbursed Amount that is not fully refinanced by a Floating
Rate Advance because the conditions set forth in Section 4.2 cannot be
satisfied or for any other reason, Borrower shall be deemed to have incurred
from the LC Issuer an LC Borrowing in the amount of the Unreimbursed Amount that
is not so refinanced, which LC Borrowing shall be due and payable on demand
(together with interest) and shall bear interest at the rate specified in Section 2.11
applicable to Floating Rate Advances after Default.  In such event,
each Lender’s payment to the Administrative Agent for the account of the LC
Issuer pursuant to Section 2.13.3(b)
shall be deemed payment in respect of its participation in such LC Borrowing and
shall constitute an LC Advance from such Lender in satisfaction of its
participation obligation under this Section
2.17.3.

     

    (d)           Until
each Lender funds its Loan or LC Advance pursuant to this Section 2.17.3 to
reimburse the LC Issuer for any amount drawn under any Letter of Credit,
interest in respect of such Lender’s Pro rata Share of such amount shall be
solely for the account of the LC Issuer.

     

    (e)           Each
Lender’s obligation to make Revolving Loans or LC Advances to reimburse the LC
Issuer for amounts drawn under Letters of Credit, as contemplated by this Section 2.17.3, shall
be absolute and unconditional and shall not be affected by any circumstance,
including, without limitation, (i) any setoff, counterclaim, recoupment, defense
or other right which such Lender may have against the LC Issuer, Borrower or any
other Person for any reason whatsoever; (ii) the occurrence or continuance of a
Default or Unmatured Default, or (iii) any other occurrence, event or condition,
whether or not similar to any of the foregoing; provided, however, that each
Lender’s obligation to make Revolving Loans pursuant to this Section 2.17.3 is
subject to the conditions set forth in Section 4.2 (other
than delivery by Borrower of a Borrowing Notice).  No such making of
an LC Advance shall relieve or otherwise impair the obligation of Borrower to
reimburse the LC Issuer for the amount of any payment made by the LC Issuer
under any Letter of Credit, together with interest as provided
herein.

     

    (f)           If
any Lender fails to make available to the Administrative Agent for the account
of the LC Issuer any amount required to be paid by such Lender pursuant to the
foregoing provisions of this Section 2.17.3 by the
time specified in Section 2.17.3(b),
the LC Issuer shall be entitled to recover from such Lender (acting through
the

     

    
      
         

      

      
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    Administrative
Agent), on demand, such amount with interest thereon for the period from the
date such payment is required to the date on which such payment is immediately
available to the LC Issuer at a rate per annum equal to the greater of the
Federal Funds Rate and a rate determined by the LC Issuer in accordance with
banking industry rules on interbank compensation, plus any administrative,
processing or similar fees customarily charged by the LC Issuer in connection
with the foregoing.  If such Lender pays such amount (with interest
and fees as aforesaid), the amount so paid shall constitute such Lender’s Loan
included in the relevant Advance or LC Advance in respect of the relevant LC
Borrowing, as the case may be.  A certificate of the LC Issuer
submitted to any Lender (through the Administrative Agent) with respect to any
amounts owing under this Section 2.17.3(f)
shall be conclusive absent manifest error.

     

    2.17.4.                      Repayment of
Participations.

     

    (a)           At
any time after the LC Issuer has made a payment under any Letter of Credit and
has received from any Lender such Lender’s LC Advance in respect of such payment
in accordance with Section 2.17.3, if
the Administrative Agent receives for the account of the LC Issuer any payment
in respect of the related Unreimbursed Amount or interest thereon (whether
directly from Borrower or otherwise, including proceeds of Cash Collateral
applied thereto by the Administrative Agent), the Administrative Agent will
distribute to such Lender its Pro Rata Share thereof in the same funds as those
received by the Administrative Agent.

     

    (b)           If
any payment received by the Administrative Agent for the account of the LC
Issuer pursuant to Section 2.17.3(a) is
required to be returned for any reason (including, without limitation, pursuant
to any invalidation, set aside or settlement entered into by the LC Issuer in
its discretion), each Lender shall pay to the Administrative Agent for the
account of the LC Issuer its Pro Rata Share thereof on demand of the
Administrative Agent, plus interest thereon from the date of such demand to the
date such amount is returned by such Lender, at a rate per annum equal to the
Federal Funds Rate from time to time in effect.  The obligations of
the Lenders under this clause shall survive the payment in full of the
Obligations and the termination of this Agreement.

     

    2.17.5.                      Obligations
Absolute. The obligation of
Borrower to reimburse the LC Issuer for each drawing under each Letter of Credit
and to repay each LC Borrowing shall be absolute, unconditional and irrevocable,
and shall be paid strictly in accordance with the terms of this Agreement under
all circumstances, including, without limitation, the following:

     

    (a)           any
lack of validity or enforceability of such Letter of Credit, this Agreement or
any other Loan Document;

     

    (b)           the
existence of any claim, counterclaim, setoff, defense or other right that
Borrower or any Subsidiary may have at any time against any beneficiary or any
transferee of such Letter of Credit (or any Person for whom any such beneficiary
or any such transferee may be acting), the LC Issuer or any other Person,
whether in connection

     

    
      
         

      

      
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    with this
Agreement, the transactions contemplated hereby or by such Letter of Credit or
any agreement or instrument relating thereto, or any unrelated
transaction;

     

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

     

    (d)           any
payment by the LC Issuer under such Letter of Credit against presentation of a
draft or certificate that does not strictly comply with the terms of such Letter
of Credit; or any payment made by the LC Issuer under such Letter of Credit to
any Person purporting to be a trustee in bankruptcy, debtor-in-possession,
assignee for the benefit of creditors, liquidator, receiver or other
representative of or successor to any beneficiary or any transferee of such
Letter of Credit, including, without limitation, any arising in connection with
any proceeding under any bankruptcy or insolvency law; or

     

    (e)           any
other circumstance or happening whatsoever, whether or not similar to any of the
foregoing, including, without limitation, any other circumstance that might
otherwise constitute a defense available to, or a discharge of, Borrower or any
Subsidiary.

     

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

    

    2.17.6.                      Role of LC
Issuer. Each
Lender and Borrower agree that, in paying any drawing under a Letter of Credit,
the LC Issuer shall not have any responsibility to obtain any document (other
than any sight draft, certificates and documents expressly required by the
Letter of Credit) or to ascertain or inquire as to the validity or accuracy of
any such document or the authority of the Person executing or delivering any
such document.  None of the LC Issuer, the Administrative Agent, any
of their respective Related Parties nor any correspondent, participant or
assignee of the LC Issuer shall be liable to any Lender for (a) any action taken
or omitted in connection herewith at the request or with the approval of the
Lenders or the Required Lenders, as applicable; (b) any action taken or omitted
in the absence of gross negligence or willful misconduct; or (c) the due
execution, effectiveness, validity or enforceability of any document or
instrument related to any Letter of Credit or Issuer
Document.  Borrower hereby assumes all risks of the acts or omissions
of any beneficiary or transferee with respect to its use of any Letter of
Credit; provided, however, that this
assumption is not intended to, and shall not, preclude Borrower’s pursuing such
rights and remedies as it may have against the beneficiary or transferee at law
or under any other agreement.  None of the LC Issuer, the
Administrative Agent, any of their respective Related Parties nor any
correspondent, participant or assignee of the LC Issuer shall be liable or
responsible for any of the matters described in clauses (a)
through (e) of
Section 2.17.5;
provided, however, that
anything in such clauses to the contrary notwithstanding, Borrower may have a
claim against the LC Issuer, and the LC Issuer may be liable to Borrower, to the
extent, but only to the extent, of any direct, as opposed to

     

    
      
         

      

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

     

    2.17.7.                      Cash
Collateral.  Upon the request of the Administrative Agent, (i)
if the LC Issuer has honored any full or partial drawing request under any
Letter of Credit and such drawing has resulted in an LC Borrowing, or (ii) if,
as of the Commitment Termination Date, any LC Obligation for any reason remains
outstanding, Borrower shall, in each case, immediately Cash Collateralize the
then outstanding amount of all LC Obligations.  Section 8.3 sets
forth certain additional requirements to deliver Cash Collateral
hereunder.  For purposes of this Section 2.17, “Cash Collateralize”
means to pledge and deposit with or deliver to the Administrative Agent, for the
benefit of the LC Issuer and the Lenders, as collateral for the LC Obligations,
cash or deposit account balances pursuant to documentation in form and substance
satisfactory to the Administrative Agent and the LC Issuer (which documents are
hereby consented to by the Lenders).  Derivatives of such term have
corresponding meanings.  Borrower hereby grants to the Administrative
Agent, for the benefit of the LC Issuer and the Lenders, a security interest in
all such cash, deposit accounts and all balances therein, if any, and all
proceeds of the foregoing.  Cash Collateral shall be maintained in
blocked, non-interest bearing deposit accounts at Bank of America.

     

    2.17.8.                      Applicability of ISP and
UCP.  Unless otherwise expressly agreed by the LC Issuer and
Borrower when a Letter of Credit is issued, (i) the rules of the ISP shall apply
to each standby Letter of Credit, and (ii) the rules of the Uniform Customs and
Practice for Documentary Credits, as most recently published by the
International Chamber of Commerce at the time of issuance shall apply to each
commercial Letter of Credit.

     

    2.17.9.                      Letter of Credit
Fees.  Borrower shall pay to the Administrative Agent for the
account of each Lender in accordance with its Pro Rata Share a Letter of Credit
fee (the “Letter of
Credit Fee”) for each Letter of Credit equal to the Applicable Fee Rate
times the daily
amount available to be drawn under such Letter of Credit.  For
purposes of computing the daily amount available to be drawn under any Letter of
Credit, the amount of such Letter of Credit shall be determined in accordance
with Section
9.15.  Letter of Credit Fees shall be (i) due and payable on
the first Business Day after the end of each March, June, September and
December, commencing with the first such date to occur after the issuance of
such Letter of Credit, on the Commitment Termination Date and thereafter on
demand and (ii) computed on a quarterly basis in arrears.  If there is
any change in the Applicable Fee Rate during any quarter, the daily amount
available to be drawn under each Letter of Credit shall be computed and
multiplied by the Applicable Fee Rate separately for each period during such
quarter that such Applicable Fee Rate was in effect.  Notwithstanding
anything to the contrary contained herein, upon the request

     

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    of the
Required Lenders, while any Default exists, all Letter of Credit Fees shall
accrue at a rate which is 2% per annum higher than the rate otherwise applicable
thereto.

     

    2.17.10.                      Fronting Fee and Documentary
and Processing Charges Payable to LC Issuer.  Borrower shall
pay directly to the LC Issuer for its own account a fronting fee of 1/8%,
computed on the daily amount available to be drawn under such Letter of Credit
on a quarterly basis in arrears.  Such fronting fee shall be due and
payable on the tenth Business Day after the end of each March, June, September
and December in respect of the most recently-ended quarterly period (or portion
thereof, in the case of the first payment), commencing with the first such date
to occur after the issuance of such Letter of Credit, on the Commitment
Termination Date and thereafter on demand.  For purposes of computing
the daily amount available to be drawn under any Letter of Credit, the amount of
such Letter of Credit shall be determined in accordance with Section
9.15.  In addition, Borrower shall pay directly to the LC
Issuer for its own account the customary issuance, presentation, amendment and
other processing fees, and other standard costs and charges, of the LC Issuer
relating to letters of credit as from time to time in effect.  Such
customary fees and standard costs and charges are due and payable on demand and
are nonrefundable.

     

    2.17.11.                      Conflict with Issuer
Documents.  In the event of any conflict between the terms
hereof and the terms of any Issuer Document, the terms hereof shall
control.

     

    2.18.                      Use of
Proceeds.  The proceeds of Advances under the Revolving Loans
shall be used for general corporate purposes not prohibited by this
Agreement.

     

    2.19.                      Increases in Aggregate
Commitment.  So long as no Default or Unmatured Default exists
or would result therefrom, Borrower may, from time to time, by means of a letter
delivered to the Administrative Agent substantially in the form of Exhibit F, and
acknowledged by Guarantor, request that the Aggregate Commitment be increased to
up to $200,000,000 (less the amount of any previous reductions of the Aggregate
Commitment pursuant to Section 2.5 above) by
(a) increasing the Commitment of one or more Lenders that have agreed to such
increase and/or (b) adding one or more commercial banks or other Persons as a
party hereto (each, an “Additional Lender”)
with a Commitment in an amount agreed to by any such Additional Lender; provided that no
Additional Lender shall be added as a party hereto without the written consent
of the Administrative Agent (which shall not be unreasonably
withheld).  Any increase in the Aggregate Commitment pursuant to this
Section 2.19
shall, subject to the satisfaction of the conditions precedent referred to
below, be effective three Business Days after the date on which the
Administrative Agent has received and accepted the applicable increase letter in
the form of Annex 1 to Exhibit F (in the
case of an increase in the Commitment of an existing Lender) or assumption
letter in the form of Annex 2 to Exhibit F (in the
case of the addition of an Additional Lender).  The effectiveness of
each such increase to the Aggregate Commitment shall be subject to the
conditions precedent that the Administrative Agent shall have received each of
the following documents, each dated the effective date of such increase (or such
other date as shall be reasonably acceptable to the Administrative Agent): (a)
certified copies of resolutions of the board of directors of Borrower approving
such increase to the Aggregate Commitment, in form and substance reasonably
acceptable to the Administrative Agent, and (b) such other documents, opinions
of counsel and certificates as the Administrative Agent may reasonably request,
each in form and substance reasonably acceptable to the

     

    
      
         

      

      
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    Administrative
Agent.  The Administrative Agent shall promptly notify Borrower and
the Lenders of the effectiveness of any increase in the amount of the Aggregate
Commitment pursuant to this Section 2.19 and of
the Commitment of each Lender after giving effect thereto.  Borrower
acknowledges that, in order to maintain Advances in accordance with each
Lender’s pro rata share of all outstanding Advances prior to any increase in the
Aggregate Commitment pursuant to this Section 2.19, a
reallocation of the Commitments as a result of a non-pro-rata increase in the
Aggregate Commitment may require prepayment of all or portions of certain
Advances on the date of such increase (and any such prepayment shall be subject
to the provisions of Section
3.4).

     

    ARTICLE
III

     

    YIELD PROTECTION;
TAXES

     

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

     

    
      	
               
      

            	
              (i)

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

            

    

     

    
      	
               
      

            	
              (ii)

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

            

    

     

    
      	
               
      

            	
              (iii)

            	
              imposes
      any other condition the result of which is to increase the cost to any
      Lender or any applicable Lending Installation or the LC Issuer of making,
      funding or maintaining its Eurodollar Loans, or of issuing or
      participating in Letters of Credit, or reduces any amount receivable by
      any Lender or any applicable Lending Installation or the LC Issuer in
      connection with its Eurodollar Loans, Letters of Credit or participations
      therein, or requires any Lender or any applicable Lending Installation or
      the LC Issuer to make any payment calculated by reference to the amount of
      Eurodollar Loans, Letters of Credit or participations therein held or
      interest or fees received by it, by an amount deemed material by such
      Lender, or the LC Issuer, as the case may
be,

            

    

     

    
      
         

      

      
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    and the
result of any of the foregoing is to increase the cost to such Lender or
applicable Lending Installation or the LC Issuer, as the case may be, of making
or maintaining its Eurodollar Loans or Commitment, or of issuing or
participating in Letters of Credit, or to reduce the return received by such
Lender or applicable Lending Installation or the LC Issuer, as the case may be,
in connection with such Eurodollar Loans, Commitment or Letters of Credit or
participations therein, then, within 15 days of demand by such Lender or the LC
Issuer, as the case may be, Borrower shall pay such Lender or the LC Issuer, as
the case may be, such additional amount or amounts as will compensate such
Lender or the LC Issuer, as the case may be, for such increased cost or
reduction in amount received.

     

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

     

    3.3.           Availability of Types of
Advances.  If (i) any Lender determines that maintenance of its
Eurodollar Loans at a suitable Lending Installation would violate any applicable
law, rule, regulation, or directive, whether or not having the force of law, or
(ii) the Required Lenders determine that (a) deposits of a type and maturity
appropriate to match fund Eurodollar Advances are not available or (b) the
interest rate applicable to a Type of Advance does not accurately reflect the
cost of making or maintaining such Advance, then the Administrative Agent shall
suspend the availability of the affected Type of Advance and, in the case of
clause (i),
require any affected Eurodollar Advances to be repaid or converted to Floating
Rate Advances, subject to the payment of any funding indemnification amounts
required by Section 3.4.

     

    3.4.           Funding
Indemnification.  If any payment of a Eurodollar Advance occurs
on a date which is not the last day of the applicable Interest Period, whether
because of acceleration, prepayment or otherwise, or a Eurodollar Advance is not
made on the date specified by Borrower

     

    
      
         

      

      
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    for any
reason other than default by the Lenders, Borrower will indemnify each Lender
for any loss or cost incurred by it resulting therefrom, including, without
limitation, any loss or cost in liquidating or employing deposits acquired to
fund or maintain such Eurodollar Advance.

     

    3.5.           Taxes.

     

    
      	
               
      

            	
              (i)

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

            

    

     

    
      	
               
      

            	
              (ii)

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

            

    

     

    
      	
               
      

            	
              (iii)

            	
              Borrower
      hereby agrees to indemnify the Administrative Agent, the LC Issuer and
      each Lender for the full amount of Taxes or Other Taxes (including,
      without limitation, any Taxes or Other Taxes imposed on amounts payable
      under this Section 3.5)
      paid by the Administrative Agent, the LC Issuer or such Lender and any
      liability (including penalties, interest and expenses) arising therefrom
      or with respect thereto.  Payments due under this
      indemnification shall be made within 30 days of the date the
      Administrative Agent, the LC Issuer or such Lender makes demand therefor
      pursuant to Section 3.6.

            

    

     

    
      	
               
      

            	
              (iv)

            	
              To
      the extent permitted by applicable law, each Lender that is not a United
      States person within the meaning of Code section 7701(a)(30) (a “Non-U.S.
      Lender”) shall deliver to Borrower and the Administrative Agent on
      or prior to the date hereof (or in the case of a Lender that is an
      assignee, on the date of such assignment to such Lender) two accurate and
      complete original signed copies of IRS Form W-8BEN, W-8ECI, or W-8IMY (or
      any successor or other applicable form prescribed by the IRS) certifying
      to such Lender’s entitlement to a complete exemption from, or a reduced
      rate

            

    

     

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

    in,
United States withholding tax on interest payments to be made hereunder or any
Loan.  If a Lender that is a Non-U.S. Lender is claiming a complete
exemption from withholding on interest pursuant to Sections 871(h) or 881(c) of
the Code, the Lender shall deliver (along with two accurate and complete
original signed copies of IRS Form W-8BEN) a certificate in form and substance
reasonably acceptable to Agent (any such certificate, a “Withholding
Certificate”).  In addition, each Lender that is a Non-U.S.
Lender agrees that from time to time after the date hereof (or in the case of a
Lender that is an assignee, after the date of the assignment to such Lender),
when a lapse in time (or change in circumstances occurs) renders the prior
certificates hereunder obsolete or inaccurate in any material respect, such
Lender shall, to the extent permitted under applicable law, deliver to Borrower
and the Administrative Agent two new and accurate and complete original signed
copies of an IRS Form W-8BEN, W-8ECI or W-8IMY (or any successor or other
applicable forms prescribed by the IRS), and if applicable, a new Withholding
Certificate, to confirm or establish the entitlement of such Lender or the
Administrative Agent to an exemption from, or reduction in, United States
withholding tax on interest payments to be made hereunder or any
Loan.

     

    
      	
               
      

            	
              (v)

            	
              Each
      Lender that is not a Non-U.S. Lender (other than any such Lender which is
      taxed as a corporation for U.S. federal income tax purposes) shall provide
      two properly completed and duly executed copies of IRS Form W-9 (or any
      successor or other applicable form) to Borrower and the Administrative
      Agent certifying that such Lender is exempt from United States backup
      withholding tax.  To the extent that a form provided pursuant to
      this Section
      3.5(v) is rendered obsolete or inaccurate in any material respects
      as result of change in circumstances with respect to the status of a
      Lender, such Lender shall, to the extent permitted by applicable law,
      deliver to Borrower and the Administrative Agent revised forms necessary
      to confirm or establish the entitlement to such Lender’s or the
      Administrative Agent’s exemption from United States backup withholding
      tax.

            

    

     

    
      	
               
      

            	
              (vi)

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

            

    

     

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (vii)

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

            
	 	 	 
	 	(viii)	Each
      Lender agrees to indemnify the Administrative Agent and hold the
      Administrative Agent harmless for the full amount of any and all present
      or future Taxes and related liabilities (including penalties, interest,
      additions to tax and expenses, and any Taxes imposed by any jurisdiction
      on amounts payable to the Administrative Agent under this Section 3.5)
      which are imposed on or with respect to principal, interest or fees
      payable to such Lender hereunder and which are not paid by Borrower
      pursuant to this Section 3.5,
      whether or not such Taxes or related liabilities were correctly or legally
      asserted.  This indemnification shall be made within 30 days
      from the date the Administrative Agent makes written demand
      therefor.

    

     

    
      	
               
      

            	
              (ix)

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

            

    

     

    3.6.           Lender Statements; Survival
of Indemnity.  To the extent reasonably possible and upon the
request of Borrower, each Lender shall designate an alternate Lending
Installation with respect to its Eurodollar Loans to reduce any liability of
Borrower to such Lender under Sections 3.1, 3.2 and 3.5 or to avoid the
unavailability of Eurodollar Advances under Section 3.3, so
long as such designation is not, in the judgment of such Lender, disadvantageous
to such Lender.  Each Lender shall deliver a written statement of such
Lender to Borrower (with a copy to the Administrative Agent) as to the amount
due, if any, under Section 3.1,
3.2, 3.4 or 3.5.  Such
written statement shall set forth in reasonable detail the calculations upon
which such Lender determined such amount and shall be final, conclusive and
binding on Borrower in the absence

     

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

    of
manifest error.  Determination of amounts payable under such Sections
in connection with a Eurodollar Loan shall be calculated as though each Lender
funded its Eurodollar Loan through the purchase of a deposit of the type and
maturity corresponding to the deposit used as a reference in determining the
Eurodollar Rate applicable to such Loan, whether in fact that is the case or
not.  Unless otherwise provided herein, the amount specified in the
written statement of any Lender shall be payable on demand after receipt by
Borrower of such written statement.  The obligations of Borrower under
Sections 3.1,
3.2, 3.4 and 3.5 shall survive
payment of the Obligations and termination of this Agreement.

     

    3.7.           Replacement of
Lenders.  If any Lender requests compensation under Section 3.1 or 3.2, or if Borrower
is required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.5, then
Borrower may, at its sole expense and effort, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in, and
consents required by, Section 12.2), all of
its interests, rights and obligations under this Agreement and the related Loan
Documents to an assignee that shall assume such obligations (which assignee may
be another Lender, if a Lender accepts such assignment), provided
that:

     

    (a)           Borrower
shall have paid to the Administrative Agent the assignment fee specified in
Section
12.2.4;

     

    (b)           such
Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and LC Advances, accrued interest thereon, accrued fees
and all other amounts payable to it hereunder and under the other Loan Documents
(including any amounts under Section 3.4) from the
assignee (to the extent of such outstanding principal and accrued interest and
fees) or Borrower (in the case of all other amounts);

     

    (c)           in
the case of any such assignment resulting from a claim for compensation under
Section 3.1 or
3.2 or payments
required to be made pursuant to Section 3.5, such
assignment will result in a reduction in such compensation or payments
thereafter; and

     

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

     

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

    

    ARTICLE
IV

     

    CONDITIONS
PRECEDENT

    

    4.1.           Initial Credit
Extension.  The Lenders and the LC Issuer shall not be required
to make the initial Credit Extension hereunder unless Borrower has furnished the
following to the

     

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

    Administrative
Agent (with sufficient copies for the Lenders, in the case of all documents),
each in form and substance satisfactory to the Administrative Agent and each of
the Lenders:

     

    
      	
               
      

            	
              (i)

            	
              Copies
      of the articles or certificate of incorporation of Borrower and Guarantor,
      together with all amendments, and a certificate of existence, each
      certified by the appropriate governmental officer in its jurisdiction of
      incorporation.

            

    

     

    
      	
               
      

            	
              (ii)

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

            

    

     

    
      	
               
      

            	
              (iii)

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

            

    

     

    
      	
               
      

            	
              (iv)

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

            

    

     

    
      	
               
      

            	
              (v)

            	
              A
      written opinion of Borrower’s and Guarantor’s counsel, addressed to the
      Administrative Agent, the Lenders and LC Issuer in the form approved by
      the Administrative Agent.

            

    

     

    
      	
               
      

            	
              (vi)

            	
              Revolving
      Credit Notes payable to the order of each of the
  Lenders.

            

    

     

    
      	
               
      

            	
              (vii)

            	
              The
      insurance certificate described in Section
      5.18.

            
	 	 	 
	 	(viii)	The
      fees due and payable in accordance with the Fee
  Letter.

    

     

    
      	
               
      

            	
              (ix)

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

            

    

     

    Without
limiting the generality of the provisions of the last paragraph of Section 10.3, for
purposes of determining compliance with the conditions specified in this Section 4.1, each
Lender that has signed this Agreement shall be deemed to have consented to,
approved or accepted or to be satisfied with, each document or other matter
required thereunder to be consented to or approved by or acceptable or
satisfactory to a Lender unless the Administrative Agent shall have received
notice from such Lender prior to the proposed Closing Date specifying its
objection thereto.

     

    4.2.           Each Credit
Extension.  The Lenders and the LC Issuer shall not be required
to make any Credit Extension, unless on the applicable Borrowing
Date:

     

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (i)

            	
              There
      exists no Default or Unmatured
Default.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              The
      representations and warranties contained in Article V are
      true and correct as of such Borrowing Date except to the extent any such
      representation or warranty is stated to relate solely to an earlier date,
      in which case such representation or warranty shall have been true and
      correct on and as of such earlier date; provided that
      this Section
      4.2(ii) shall not apply to the representations and warranties set
      forth in Section
      5.5, clause (i) of
      the first sentence of Section 5.7,
      the second sentence of Section 5.7 and
      Section
      5.16.

            

    

     

    Each
Borrowing Notice or Letter of Credit Application with respect to each such
Credit Extension shall constitute a representation and warranty by Borrower that
the conditions contained in Sections 4.2(i) and
(ii) have been
satisfied.  Any Lender or the LC Issuer may require a duly completed
compliance certificate in substantially the form of Exhibit C as a
condition to making a Credit Extension.

     

    ARTICLE
V

     

    REPRESENTATIONS AND
WARRANTIES

     

    Each of
Borrower and Guarantor represents and warrants to the Lenders that:

     

    5.1.           Existence and
Standing.  Each of Guarantor, Borrower and each Subsidiary of
Borrower is a corporation, partnership (in the case of Subsidiaries only) or
limited liability company duly incorporated or organized, as the case may be,
validly existing and (to the extent such concept applies to such entity) in good
standing under the laws of its jurisdiction of incorporation or organization and
has all requisite authority to conduct its business in each jurisdiction in
which its business is conducted.

     

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

     

    5.3.           No Conflict; Government
Consent.  Neither the execution or delivery by Borrower and
Guarantor of the Loan Documents to which it is a party, nor the consummation of
the transactions therein contemplated, nor compliance with the provisions
thereof will violate (i) any law, rule, regulation, order, writ, judgment,
injunction, decree or award binding on Borrower, Guarantor or any of their
Subsidiaries, (ii) Borrower’s, Guarantor’s or any of their Subsidiary’s articles
or certificate of incorporation, partnership agreement, certificate of
partnership, articles or certificate of organization, by-laws, or operating or
other management

     

    
      
         

      

      
        35

        
          

        

      

      
         

      

    

    agreement,
as the case may be, or (iii) the provisions of any indenture, instrument or
agreement to which Borrower, Guarantor or any of their Subsidiaries is a party
or is subject, or by which it, or its Property, is bound, or conflict with or
constitute a default thereunder, or result in, or require, the creation or
imposition of any Lien in, of or on the Property of Borrower, Guarantor or a
Subsidiary pursuant to the terms of any such indenture, instrument or
agreement.  No order, consent, adjudication, approval, license,
authorization, or validation of, or filing, recording or registration with, or
exemption by, or other action in respect of any governmental or public body or
authority, or any subdivision thereof, which has not been obtained by Borrower,
Guarantor or any of their Subsidiaries, is required to be obtained by Borrower,
Guarantor or any of their Subsidiaries in connection with the execution and
delivery of the Loan Documents, the borrowings under this Agreement, the payment
and performance by Borrower of the Obligations or the legality, validity,
binding effect or enforceability of any of the Loan Documents.

     

    5.4.           Financial
Statements.  The consolidated financial statements dated
December 31, 2007 and June 30, 2008 of Guarantor and its Subsidiaries heretofore
delivered to the Lenders were prepared in accordance with generally accepted
accounting principles in effect on the dates such statements were prepared and
fairly present the consolidated financial condition and operations of Guarantor
and its Subsidiaries at such date and the consolidated results of their
operations for the periods then ended.

     

    5.5.           Material Adverse
Change.  Since June 30, 2008 there has been no change in the
business, Property, prospects, condition (financial or otherwise) or results of
operations of Guarantor and its Subsidiaries which could reasonably be expected
to have a Material Adverse Effect.

     

    5.6.           Taxes.  Guarantor
and its Subsidiaries have filed all United States federal tax returns and all
other tax returns which are required to be filed and have paid all taxes due
pursuant to said returns or pursuant to any assessment received by Guarantor or
any of its Subsidiaries, except such taxes, if any, as are being contested in
good faith and as to which adequate reserves have been provided in accordance
with Agreement Accounting Principles and as to which no Lien
exists.  The Federal income tax liabilities of Guarantor and its
Subsidiaries have been finally determined (whether by reason of completed audits
or the statute of limitations having run) for all fiscal years up to and
including the fiscal year ended December 31, 2002.  No tax Liens have
been filed and no claims are being asserted with respect to any such
taxes.  The charges, accruals and reserves on the books of Guarantor
and its Subsidiaries in respect of any taxes or other governmental charges are
adequate.

     

    5.7.           Litigation and Contingent
Obligations.  Except as set forth on Schedule 5.7, there
is no litigation, arbitration, governmental investigation, proceeding or inquiry
pending or, to the knowledge of any of their officers, threatened against or
affecting Guarantor or any of its Subsidiaries which (i) could reasonably be
expected to have a Material Adverse Effect or (ii) seeks to prevent, enjoin or
delay the making of any Credit Extension.  Other than any liability
incident to any litigation, arbitration or proceeding which (i) could not
reasonably be expected to have a Material Adverse Effect,  (ii) is
disclosed in the Form 10-K of Guarantor for the fiscal year ended December 31,
2007 or (iii) is permitted by Section 6.11 or (iv)
is set forth on Schedule 5.7 or Schedule 5.14,
Guarantor has no material Contingent Obligations (other than

     

    
      
         

      

      
        36

        
          

        

      

      
         

      

    

    guarantees
of obligations (other than Indebtedness) of Subsidiaries, which obligations are
not prohibited by this Agreement).

     

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

     

    5.9.           ERISA.  Neither
Guarantor nor any other member of the Controlled Group has incurred, or is
reasonably expected to incur, any withdrawal liability to Multiemployer Plans
that would reasonably be expected to have a Material Adverse
Effect.  Each Plan complies in all material respects with all
applicable requirements of law and regulations, no Reportable Event has occurred
with respect to any Plan, neither Guarantor nor any other member of the
Controlled Group has withdrawn from any Plan or initiated steps to do so, and no
steps have been taken to reorganize or terminate any Plan.

     

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

     

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

     

    5.12.                      Material
Agreements.  Neither Guarantor nor any Subsidiary is a party to
any agreement or instrument or subject to any charter or other corporate
restriction which could reasonably be expected to have a Material Adverse
Effect.  Neither Guarantor nor any Subsidiary thereof is in default in
the performance, observance or fulfillment of any of the obligations, covenants
or conditions contained in (i) any agreement to which it is a party, which
default could reasonably be expected to have a Material Adverse Effect or (ii)
any agreement or instrument evidencing or governing Indebtedness.

     

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

     

    5.14.                      Ownership of
Properties.  Except as set forth on Schedule 5.14, on the
date of this Agreement, Guarantor and its Subsidiaries will have good title,
free of all Liens other than those permitted by Section 6.15, to
all of the Property and assets reflected in Guarantor’s most recent

     

    
      
         

      

      
        37

        
          

        

      

      
         

      

    

    consolidated
financial statements provided to the Administrative Agent as owned by Guarantor
and its Subsidiaries.

     

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

     

    5.16.                      Environmental
Matters.  In the ordinary course of its business, the officers
of Guarantor consider the effect of Environmental Laws on the business of
Guarantor and its Subsidiaries, in the course of which they identify and
evaluate potential risks and liabilities accruing to Guarantor due to
Environmental Laws.  On the basis of this consideration, Guarantor has
concluded that, except as set forth on Schedule 5.16,
Environmental Laws cannot reasonably be expected to have a Material Adverse
Effect.  Except as set forth on Schedule 5.16,
neither Guarantor nor any of its Subsidiaries has received any notice to the
effect that its operations are not in material compliance with any of the
requirements of applicable Environmental Laws or are the subject of any federal
or state investigation evaluating whether any remedial action is needed to
respond to a release of any toxic or hazardous waste or substance into the
environment, which non-compliance or remedial action could reasonably be
expected to have a Material Adverse Effect.

     

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

     

    5.18.                      Insurance.  The
certificate signed by the President, Chief Financial Officer, Secretary or
Treasurer of Borrower, that attests to the existence and adequacy of, and
summarizes, the property and casualty insurance program carried by Borrower with
respect to itself and its Subsidiaries and that has been furnished by Borrower
to the Administrative Agent and the Lenders, is complete and
accurate.  This summary includes the insurer’s or insurers’ name(s),
policy number(s), expiration date(s), amount(s) of coverage, type(s) of
coverage, exclusion(s), and deductibles.  This summary also includes
similar information, and describes any reserves, relating to any self-insurance
program that is in effect.

     

    5.19.                      Solvency.

     

    (a)           Immediately
after the consummation of the transactions to occur on the date hereof and
immediately following the making of each Loan, if any, made on the date hereof
and after giving effect to the application of the proceeds of such Loans, (a)
the fair value of the assets of Guarantor and its Subsidiaries on a consolidated
basis, at a fair valuation, will exceed the debts and liabilities, subordinated,
contingent or otherwise, of Guarantor and its Subsidiaries on a consolidated
basis; (b) the present fair saleable value of the property of Guarantor and its
Subsidiaries on a consolidated basis will be greater than the amount that will
be required to pay the probable liability of Guarantor and its Subsidiaries on a
consolidated basis on their debts and other liabilities,
subordinated,

     

    
      
         

      

      
        38

        
          

        

      

      
         

      

    

    continent
or otherwise, as such debts and other liabilities become absolute and matured;
(c) Guarantor and its Subsidiaries on a consolidated basis will be able to pay
their debts and liabilities, subordinated, contingent or otherwise, as such
debts and liabilities become absolute and matured; and (d) Guarantor and its
Subsidiaries on a consolidated basis will not have unreasonably small capital
with which to conduct the businesses in which they are engaged as such
businesses are now conducted and are proposed to be conducted after the date
hereof.

     

    (b)           Guarantor
does not intend to, or to permit any of its Subsidiaries to, and does not
believe that it or any of its Subsidiaries will, incur debts beyond its ability
to pay such debts as they mature, taking into account the timing of and amounts
of cash to be received by it or any such Subsidiary and the timing of the
amounts of cash to be payable on or in respect of its Indebtedness or the
Indebtedness of any such Subsidiary.

     

    5.20.                      Reportable
Transaction.  Borrower does not intend to treat the Advances
and related transactions as being a “reportable transaction” (within the meaning
of Treasury Regulation Section 1.6011-4).  In the event Borrower
determines to take any action inconsistent with such intention, it will promptly
notify the Administrative Agent thereof.

     

    ARTICLE
VI

     

    COVENANTS

     

    Until the
Obligations are paid in full, and so long as any Commitment is outstanding,
unless the Required Lenders shall otherwise consent in writing:

     

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

     

    
      	
               
      

            	
              (i)

            	
              Within
      90 days after the close of each of its fiscal years, (a) an unqualified
      audit report certified by independent certified public accountants
      acceptable to the Lenders, prepared in accordance with Agreement
      Accounting Principles on a consolidated basis for Guarantor and its
      Subsidiaries, including balance sheets as of the end of such period,
      related statements of income and retained earnings, and a statement of
      cash flows, accompanied by any management letter prepared by said
      accountants and (b) unaudited financial statements for Borrower and its
      Subsidiaries, prepared in accordance with Agreement Accounting Principles
      on a consolidated basis for Borrower and its Subsidiaries, including
      balance sheets as of the end of such period, related profit and loss and
      reconciliation of surplus statements and a statement of cash
      flows.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Within
      45 days after the close of the first three quarterly periods of each of
      its fiscal years, for Guarantor and its Subsidiaries either (i) a
      consolidated unaudited balance sheet as at the close of each such period
      and consolidated statements of income and retained earnings and a
      statement

            

    

     

    
      
         

      

      
        39

        
          

        

      

      
         

      

    

    of cash
flows for the period from the beginning of such fiscal year to the end of such
quarter, all certified by Guarantor’s chief financial officer or (ii) if
Guarantor is then a “registrant” within the meaning of Rule 1-01 of Regulation
S-X of the Securities and Exchange Commission and required to file a report on
Form 10-Q with the Securities and Exchange Commission, a copy of Guarantor’s
report on Form 10-Q for such quarterly period.

     

    
      	
               
      

            	
              (iii)

            	
              Together
      with the financial statements required under Sections 6.1(i)
      and (ii),
      a compliance certificate in substantially the form of Exhibit C
      signed by its Chief Financial Officer or Treasurer showing the
      calculations necessary to determine compliance with this Agreement and
      stating that No Default or Unmatured Default exists, or if any Default or
      Unmatured Default exists, stating the nature and status
      thereof.

            

    

     

    
      	
               
      

            	
              (iv)

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

            

    

     

    
      	
               
      

            	
              (v)

            	
              As
      soon as possible and in any event within 10 days after receipt by
      Borrower, a copy of (a) any notice or claim to the effect that Borrower or
      any of its Subsidiaries is or may be liable to any Person as a result of
      the release by Borrower, any of its Subsidiaries, or any other Person of
      any toxic or hazardous waste or substance into the environment, and (b)
      any notice alleging any violation of any federal, state or local
      environmental, health or safety law or regulation by Borrower or any of
      its Subsidiaries, which, in either case, could reasonably be expected to
      have a Material Adverse Effect.

            

    

     

    
      	
               
      

            	
              (vi)

            	
              Promptly
      upon the furnishing thereof to the shareholders of Guarantor, copies of
      all financial statements, reports and proxy statements so
      furnished.

            

    

     

    
      	
               
      

            	
              (vii)

            	
              Promptly
      upon the filing thereof, copies of all registration statements (other than
      registration statements on Form S-8 or any successor form thereto and
      other than registration statements relating to shares to be issued under a
      dividend reinvestment plan) and annual, quarterly, monthly or other
      regular reports which Guarantor or any of its Subsidiaries files with the
      Securities and Exchange Commission.

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

    

     

    
      
         

      

      
        40

        
          

        

      

      
         

      

    

    Documents
required to be delivered pursuant to clause (i), (ii), (vi) or (vii) above may be
delivered electronically and, if so delivered, shall be deemed to have been
delivered on the date (i) on which Borrower posts such documents, or provides a
link thereto, on a website on the internet at a website address previously
specified to the Administrative Agent and the Lenders; or (ii) on which such
documents are posted on Borrower’s behalf on IntraLinks or another relevant
website, if any, to which each of the Administrative Agent and each Lender has
access; provided that (x)
upon request of the Administrative Agent or any Lender, Borrower shall deliver
paper copies of such documents to the Administrative Agent or such Lender (until
a written request to cease delivering paper copies is given by the
Administrative Agent or such Lender) and (y) Borrower shall notify (which may be
by facsimile or electronic mail) the Administrative Agent and each Lender of the
posting of any documents.  The Administrative Agent shall have no
obligation to request the delivery of, or to maintain copies of, the documents
referred to above or to monitor compliance by Borrower with any such request for
delivery, and each Lender shall be solely responsible for requesting delivery to
it or maintaining its copies of such documents.

     

    Borrower
hereby acknowledges that (a) the Administrative Agent and/or the Arranger will
make available to the Lenders and the LC Issuer materials and/or information
provided by or on behalf of Borrower hereunder (collectively, “Borrower Materials”)
by posting Borrower Materials on IntraLinks or another similar electronic system
(the “Platform”) and (b)
certain of the Lenders (each, a “Public Lender”) may
have personnel who do not wish to receive material non-public information with
respect to Borrower or its Affiliates, or the respective securities of any of
the foregoing, and who may be engaged in investment and other market-related
activities with respect to such Persons’ securities.  Borrower hereby
agrees that, so long as Borrower is the issuer of any outstanding debt or equity
securities that are registered or issued pursuant to a private offering or is
actively contemplating issuing any such securities, (w) all Borrower Materials
that are to be made available to Public Lenders shall be clearly and
conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word
“PUBLIC” shall appear prominently on the first page thereof; (x) by marking
Borrower Materials “PUBLIC,” Borrower shall be deemed to have authorized the
Administrative Agent, the Arranger, the LC Issuer and the Lenders to treat such
Borrower Materials as not containing any material non-public information with
respect to Borrower or its securities for purposes of United States Federal and
state securities laws (provided, however, that to the
extent such Borrower Materials constitute Information, they shall be treated as
set forth in Section
9.11); (y) all Borrower Materials marked “PUBLIC” are permitted to be
made available through a portion of the Platform designated “Public Side
Information;” and (z) the Administrative Agent and the Arranger shall be
entitled to treat any Borrower Materials that are not marked “PUBLIC” as being
suitable only for posting on a portion of the Platform not designated “Public
Side Information.”

     

    6.2.           Use of
Proceeds.  Use the proceeds of the Advances solely for the
purposes herein described.  Each of Borrower and Guarantor will not,
nor will it permit any Subsidiary to, use any of the proceeds of the Credit
Extensions to purchase or carry any “margin stock” (as defined in Regulation U)
which is subject to any limitation on sale, pledge, or other restriction
hereunder.

     

    6.3.           Notice of
Default.  Each of Borrower and Guarantor will, and will cause
each Subsidiary to, give notice in writing to the Lenders of the occurrence of
any Default or Unmatured Default and of any other development, financial or
otherwise, which could

     

    
      
         

      

      
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    reasonably
be expected to have a Material Adverse Effect, in each case promptly after any
officer of Borrower or Guarantor obtains knowledge thereof.

     

    6.4.           Conduct of
Business.  Each of Borrower and Guarantor will, and will cause
each Subsidiary to, carry on and conduct its business in substantially the same
manner and in substantially the same or reasonably related fields of enterprise
as it is presently conducted and do all things necessary to remain duly
incorporated or organized, validly existing and (to the extent such concept
applies to such entity) in good standing as a domestic corporation, partnership
or limited liability company in its jurisdiction of incorporation or
organization, as the case may be, and maintain all requisite authority to
conduct its business in each jurisdiction in which its business is
conducted.

     

    6.5.           Taxes.  Each
of Borrower and Guarantor will, and will cause each Subsidiary to, timely file
complete and correct United States federal and applicable foreign, state and
local tax returns required by law and pay when due all taxes, assessments and
governmental charges and levies upon it or its income, profits or Property,
except those which are being contested in good faith by appropriate proceedings
and with respect to which adequate reserves have been set aside in accordance
with Agreement Accounting Principles.

     

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

     

    6.7.           Compliance with
Laws.

     

    (a)           Each
of Borrower and Guarantor will, and will cause each Subsidiary to, comply with
all laws, rules, regulations, orders, writs, judgments, injunctions, decrees or
awards to which it may be subject including, without limitation, all
Environmental Laws, except where such noncompliance, singly or in the aggregate,
could not have a Material Adverse Effect.

     

    (b)           Without
limiting clause
(a) above, each of Borrower and Guarantor will, and will cause each
Subsidiary to, ensure that no person who owns a controlling interest in or
otherwise controls Borrower, Guarantor or a Subsidiary is or shall be (i) listed
on the Specially Designated Nationals and Blocked Person List maintained by the
Office of Foreign Assets Control (“OFAC”), Department of
the Treasury, and/or any other similar lists maintained by OFAC pursuant to any
authorizing statute, Executive Order or regulation or (ii) a person designated
under Section 1(b), (c) or (d) of Executive Order No. 13224 (September 23,
2001), any related enabling legislation or any other similar Executive
Orders.

     

    (c)           Without
limiting clause
(a) above, each of Borrower and Guarantor will, and will cause each
Subsidiary to, comply with the Bank Secrecy Act (“BSA”) and all other
applicable anti-money laundering laws and regulations.

     

    
      
         

      

      
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    6.8.           Maintenance of
Properties.  Each of Borrower and Guarantor will, and will
cause each Subsidiary to, do all things necessary to maintain, preserve, protect
and keep its Property in good repair, working order and condition, and make all
necessary and proper repairs, renewals and replacements so that its business
carried on in connection therewith may be properly conducted at all times,
except where such failure, to maintain, singly or in the aggregate, could not
have a Material Adverse Effect.

     

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

     

    6.10.                      Dividends.  Borrower
will not, nor will it permit any Subsidiary to, declare or pay any dividends or
make any distributions on its capital stock (other than dividends payable in its
own capital stock) or redeem, repurchase or otherwise acquire or retire any of
its capital stock at any time outstanding; except that any Subsidiary may
declare and pay dividends or make distributions to Borrower or to a Wholly-Owned
Subsidiary of Borrower.

     

    6.11.                      Indebtedness.  Each
of Borrower and Guarantor will not, nor will it permit any Subsidiary (excluding
Vectren Utility Holdings, Inc. and its Subsidiaries on the date hereof) to,
create, incur or suffer to exist any Indebtedness, except:

     

    
      	
               
      

            	
              (i)

            	
              The
      Obligations.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Indebtedness
      existing on the date hereof and (A) disclosed in the Form 10-Q of
      Guarantor for the fiscal quarter ended June 30, 2008 or (B) described on
      Schedule
      5.14 (including, but not limited to, amounts available under
      commitments related thereto but not yet drawn upon) (the “Existing
      Indebtedness”) and any Indebtedness extending the maturity of, or
      refunding or refinancing, such Existing Indebtedness, provided that
      the principal amount of such Existing Indebtedness shall not be increased
      above the amount thereof immediately prior to such extension, refunding or
      refinancing (including, but not limited to, amounts available under
      commitments related thereto but not yet drawn upon), and the direct and
      contingent obligors therefor shall not be changed, as a result of or in
      connection with such extension, refunding or
  refinancing.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              Indebtedness
      not exceeding $300,000,000 in the aggregate outstanding at any
      time.

            

    

     

    
      	
               
      

            	
              (iv)

            	
              Indebtedness
      of (a) Guarantor or Borrower owing to any Subsidiary of Guarantor or
      Subsidiary of Borrower or (b) any Subsidiary of
  Guarantor

            

    

     

    
      
         

      

      
        43

        
          

        

      

      
         

      

    

    or
Borrower owing to Guarantor or Borrower or any of their Subsidiaries
(collectively, “Intercompany
Indebtedness”).

     

    
      	
               
      

            	
              (v)

            	
              Indebtedness
      incurred with respect to Financial Contracts that are (A) entered into by
      Borrower, Guarantor or a Subsidiary of Borrower or Guarantor consistent
      with such Person’s past practices and in the ordinary course of such
      Person’s business and (B) not entered into for speculative
      purposes.

            

    

     

    
      	
               
      

            	
              (vi)

            	
              Indebtedness
      of a Person existing on the date the Person becomes a Subsidiary of
      Guarantor or Borrower, provided such
      Indebtedness was not incurred in contemplation of such Person becoming a
      Subsidiary (“Subsidiary Existing
      Indebtedness”) and any Indebtedness extending the maturity of, or
      refunding or refinancing, such Subsidiary Existing Indebtedness, provided that
      the principal amount of such extension, refunding or refinancing
      Indebtedness shall not be increased above the amount thereof immediately
      prior to such extension, refunding or refinancing and there shall not be
      any change in the direct and indirect obligors
  thereunder.

            

    

     

    
      	
               
      

            	
              (vii)

            	
              Indebtedness
      assumed by a new Subsidiary of Guarantor (which Indebtedness is
      non-recourse to Guarantor and its other Subsidiaries), in connection with
      the Acquisition of assets of a Person that had theretofore been obligated
      on such Indebtedness, provided such
      Indebtedness was not incurred by such other Person in contemplation of
      such Acquisition and any Indebtedness extending the maturity of, or
      refunding or refinancing, such Indebtedness, provided that
      the principal amount of such extension, refunding or refinancing
      Indebtedness shall not be increased above the amount thereof immediately
      prior to such extension, refunding or refinancing and there shall not be
      any change in the direct and indirect obligors
  thereunder.

            

    

     

    
      	
               
      

            	
              (viii)

            	
              Indebtedness
      of any Subsidiary of Guarantor (other than Borrower) which Indebtedness is
      non-recourse to Guarantor and its other
  Subsidiaries.

            

    

     

    6.12.                      Merger.  Each
of Borrower and Guarantor will not, nor will it permit any Subsidiary to, merge
or consolidate with or into any other Person, except (i) a Subsidiary of
Guarantor may merge into Guarantor or a Wholly-Owned Subsidiary of Guarantor and
(ii) provided
that, both prior to and immediately after giving effect to such merger or
consolidation, no Default or Unmatured Default exists, Borrower and Guarantor
may enter into mergers (provided that (a)
Borrower, or Guarantor, as the case may be, is the surviving corporation of any
such merger or consolidation to which such Person is a party or (b) if Borrower
or Guarantor is not the surviving entity of such merger or consolidation, (x)
the Person into which Borrower or Guarantor, as the case may be, shall be merged
or formed by any such consolidation (1) shall be a corporation organized and
validly existing under the laws of the United States or any state thereof or the
District of Columbia and (2) shall assume Borrower’s or Guarantor’s, as
applicable, obligations hereunder and under the Notes in an agreement or
instrument satisfactory

     

    
      
         

      

      
        44

        
          

        

      

      
         

      

    

    in form
and substance to the Administrative Agent and (y) the Moody’s Rating and the
S&P Rating (each as defined in the Pricing Schedule) of the surviving
corporation in effect immediately after giving effect to such merger or
consolidation shall not be less than “Baa3” (in the case of the Moody’s Rating)
and “BBB-” (in the case of the S&P Rating)).

     

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

     

    
      	
               
      

            	
              (i)

            	
              Sales
      of inventory in the ordinary course of
business.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Leases,
      sales or other dispositions of its Property that, together with all other
      Property of Guarantor and its Subsidiaries previously leased, sold or
      disposed of (other than inventory in the ordinary course of business) as
      permitted by this Section during the twelve-month period ending with the
      month in which any such lease, sale or other disposition occurs, do not
      constitute all or substantially all of the Property of Guarantor and its
      Subsidiaries.

            

    

     

    6.14.                      Investments and
Acquisitions.  Borrower will not, nor will it permit any
Subsidiary to, make or suffer to exist any Investments (including without
limitation, loans and advances to, and other Investments in, Subsidiaries), or
commitments therefor, or to create any Subsidiary or to become or remain a
partner in any partnership or joint venture, or to make any Acquisition of any
Person, except:

     

    
      	
               
      

            	
              (i)

            	
              Cash
      Equivalent Investments.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Investments
      in Subsidiaries and other Investments, in each case in existence on the
      date hereof and described in Schedule
      5.8.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              Loans
      and advances by Borrower to Guarantor and Guarantor’s
      Subsidiaries.

            

    

     

    6.15.                      Liens.  Each
of Borrower and Guarantor will not, nor will it permit any Subsidiary to,
create, incur, or suffer to exist any Lien in, of or on the Property of
Borrower, Guarantor or any of their Subsidiaries, except:

     

    
      	
               
      

            	
              (i)

            	
              Liens
      for taxes, assessments or governmental charges or levies on its Property
      if the same shall not at the time be delinquent or thereafter can be paid
      without penalty, or are being contested in good faith and by appropriate
      proceedings and for which adequate reserves in accordance with Agreement
      Accounting Principles shall have been set aside on its
    books.

            

    

     

    
      	
               
      

            	
              (ii)

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

            

    

     

    
      
         

      

      
        45

        
          

        

      

      
         

      

    

    adequate
reserves in accordance with Agreement Accounting Principles shall have been set
aside on its books.

     

    
      	
               
      

            	
              (iii)

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

            

    

     

    
      	
               
      

            	
              (iv)

            	
              Utility
      easements, building restrictions and such other encumbrances or charges
      against real property as are of a nature generally existing with respect
      to properties of a similar character and which do not in any material way
      affect the marketability of the same or interfere with the use thereof in
      the business of Guarantor or its
Subsidiaries.

            

    

     

    
      	
               
      

            	
              (v)

            	
              Liens
      existing on the date hereof and described in Schedule 5.14,
      including extensions, renewals or replacements of any such Liens in
      connection with the extension, renewal or replacement of any related
      Existing Indebtedness (without any increase in the amount thereof or any
      change in the direct and contingent obligors thereof); provided that
      in connection with the refinancing of any such Existing Indebtedness such
      Liens shall extend only to the property covered by such Liens immediately
      prior to such extension, renewal or
replacement.

            

    

     

    
      	
               
      

            	
              (vi)

            	
              Liens
      securing Indebtedness of a Person existing on the date the Person becomes
      a Subsidiary of Guarantor or Liens on assets securing Indebtedness assumed
      by Guarantor or a Subsidiary of Guarantor when such assets are acquired by
      Guarantor or a Subsidiary of Guarantor, including extensions, renewals or
      replacements of any such Liens, provided, however, that
      (i) such Liens were not created in contemplation of such Person becoming a
      Subsidiary or the acquisition of such assets and (ii) such Liens may not
      extend to any other Property owned by Guarantor or any of its
      Subsidiaries.

            

    

     

    
      	
               
      

            	
              (vii)

            	
              Liens
      under the Mortgage Indenture on the property of Southern Indiana Gas and
      Electric Company that is subject to the Mortgage Indenture (without giving
      effect to any amendments thereto after the date hereof that would expand
      the description of the collateral subject to the lien
      thereof).

            
	 	 	 
	 	(viii)	Liens
      securing Intercompany Indebtedness owing to
Borrower.

    

     

    
      	
               
      

            	
              (ix)

            	
              Liens
      securing Indebtedness not exceeding 10% of Guarantor’s Consolidated Net
      Worth in the aggregate outstanding at any
time.

            

    

     

    6.16.                      Affiliates.  Except
as permitted by Section 6.14(iii),
Borrower will not, and will not permit any Subsidiary to, enter into any
transaction (including, without limitation, the purchase or sale of any Property
or service) with, or make any payment or transfer to, any Affiliate except in
the ordinary course of business and pursuant to the reasonable requirements of
Borrower’s or such Subsidiary’s business and upon fair and reasonable terms no
less favorable to Borrower or such Subsidiary than Borrower or such Subsidiary
would obtain in a comparable

     

    
      
         

      

      
        46

        
          

        

      

      
         

      

    

    arms’-length
transaction; provided that in a
transaction between Borrower and a Subsidiary, the transaction need only be
arm’s length with respect to Borrower.

     

    6.17.                      Leverage
Ratio.  Guarantor will not permit the ratio, determined as of
the end of each of its fiscal quarters, of (i) Guarantor’s Consolidated
Indebtedness to (ii) Guarantor’s Consolidated Indebtedness plus Guarantor’s
Consolidated Net Worth to be greater than .65 to 1.0.

     

    6.18.                      Certain
Restrictions.  Guarantor shall not permit any of its
Subsidiaries to, directly or indirectly, create or otherwise cause or suffer to
exist or become effective any encumbrance or restriction on the ability of any
Subsidiary to (a) pay dividends or make other distributions on its capital stock
owned by Guarantor or any Subsidiary, or pay any Indebtedness owed to Guarantor
or any Subsidiary (other than as described on Schedule 6.18 and
other customary limits imposed by corporate law and fraudulent conveyance
statutes and applicable restrictions contained in section 305(a) of the Federal
Power Act, as amended), (b) make loans or advances to Guarantor or Borrower or
(c) transfer any of its assets or properties to Guarantor or Borrower, except
for such encumbrances or restrictions existing by reason of or under (i)
applicable law, (ii) this Agreement and the other Loan Documents, (iii)
customary restrictions with respect to a Subsidiary pursuant to an agreement
that has been entered into for the sale or disposition of all or substantially
all of the capital stock of such Subsidiaries, (iv) restrictions binding on any
Subsidiary on the date it becomes a Subsidiary, provided such
restrictions were not created in contemplation of such Person becoming a
Subsidiary or (v) restrictions set forth on Schedule
6.18.

     

    ARTICLE
VII

     

    DEFAULTS

     

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

     

    7.1.           Any
representation or warranty made or deemed made by or on behalf of Borrower,
Guarantor or any of its Subsidiaries to the Lenders or the Administrative Agent
under or in connection with this Agreement, any Credit Extension, any other Loan
Document or any certificate or information delivered in connection with this
Agreement or any other Loan Document shall be materially false on the date as of
which made.

     

    7.2.           Nonpayment
of principal of any Loan or reimbursement obligation in respect of any Letter of
Credit when due, or nonpayment of interest upon any Loan or of any facility fee,
Letter of Credit fee or other obligation under any of the Loan Documents within
five days after the same becomes due.

     

    7.3.           The
breach by Borrower or Guarantor of any of the terms or provisions of Section 6.2, 6.3, 6.10, 6.11, 6.12, 6.13, 6.14, 6.15, 6.16, 6.17 or 6.18.

     

    7.4.           The
breach by Borrower or Guarantor (other than a breach which constitutes a Default
under another Section of this Article VII) of any
of the terms or provisions of this Agreement which is not remedied within thirty
days.

     

    
      
         

      

      
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    7.5.           Failure
of Borrower or any of its Subsidiaries or Guarantor to pay when due (whether at
stated maturity, on the date fixed for prepayment, by acceleration or otherwise)
any Indebtedness aggregating in excess of $50,000,000 (“Material
Indebtedness”); or the default by Borrower or any of its Subsidiaries or
Guarantor in the performance (beyond the applicable grace period with respect
thereto, if any) of any term, provision or condition contained in any agreement
under which any such Material Indebtedness was created or is governed, or any
other event shall occur or condition exist, the effect of which default or event
is to cause, or to permit the holder or holders of such Material Indebtedness to
cause, such Material Indebtedness to become due prior to its stated maturity; or
any Material Indebtedness of Borrower or any of its Subsidiaries or Guarantor
shall be declared to be due and payable or required to be prepaid or repurchased
(other than by a regularly scheduled payment) prior to the stated maturity
thereof; or Borrower or any of its Subsidiaries or Guarantor shall not pay, or
admit in writing its inability to pay, its debts generally as they become
due.

     

    7.6.           Borrower
or any of its Subsidiaries or Guarantor shall (i) have an order for relief
entered with respect to it under the Federal bankruptcy laws as now or hereafter
in effect, (ii) make an assignment for the benefit of creditors, (iii) apply
for, seek, consent to, or acquiesce in, the appointment of a receiver,
custodian, trustee, examiner, liquidator or similar official for it or any
Substantial Portion of its Property, (iv) institute any proceeding seeking an
order for relief under the Federal bankruptcy laws as now or hereafter in effect
or seeking to adjudicate it a bankrupt or insolvent, or seeking dissolution,
winding up, liquidation, reorganization, arrangement, adjustment or composition
of it or its debts under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors or fail to file an answer or other pleading
denying the material allegations of any such proceeding filed against it, (v)
take any corporate or other organizational action to authorize or effect any of
the foregoing actions set forth in this Section 7.6 or (vi)
fail to contest in good faith any appointment or proceeding described in Section
7.7.

     

    7.7.           Without
the application, approval or consent of Borrower or any of its Subsidiaries, or
Guarantor, a receiver, trustee, examiner, liquidator or similar official shall
be appointed for Borrower or any of its Subsidiaries or Guarantor or any
Substantial Portion of its Property, or a proceeding described in Section 7.6(iv) shall
be instituted against Borrower or any of its Subsidiaries or Guarantor and such
appointment continues undischarged or such proceeding continues undismissed or
unstayed for a period of 60 consecutive days.

     

    7.8.           Any
court, government or governmental agency shall condemn, seize or otherwise
appropriate, or take custody or control of, all or any portion of the Property
of Borrower and its Subsidiaries or Guarantor which, when taken together with
all other Property of Borrower and its Subsidiaries or Guarantor so condemned,
seized, appropriated, or taken custody or control of, during the twelve-month
period ending with the month in which any such action occurs, constitutes a
Substantial Portion.

     

    7.9.           Borrower
or any of its Subsidiaries or any Guarantor shall fail within 30 days to pay,
bond or otherwise discharge any judgment or order for the payment of money in
excess of $50,000,000, which is not stayed on appeal or otherwise being
appropriately contested in good faith.

     

    
      
         

      

      
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    7.10.                      The
Unfunded Liabilities of all Single Employer Plans shall have a Material Adverse
Effect or be reasonably likely to have a Material Adverse Effect or any
Reportable Event shall occur in connection with any Plan.

     

    7.11.                      Borrower
or any other member of the Controlled Group shall have been notified by the
sponsor of a Multiemployer Plan that it has incurred withdrawal liability to
such Multiemployer Plan in an amount which, when aggregated with all other
amounts required to be paid to Multiemployer Plans by Borrower or any other
member of the Controlled Group as withdrawal liability (determined as of the
date of such notification), shall have a Material Adverse Effect or be
reasonably likely to have a Material Adverse Effect.

     

    7.12.                      Borrower
or any other member of the Controlled Group shall have been notified by the
sponsor of a Multiemployer Plan that such Multiemployer Plan is in
reorganization or is being terminated, within the meaning of Title IV of ERISA,
if such reorganization or termination shall have a Material Adverse Effect or be
reasonably likely to have a Material Adverse Effect.

     

    7.13.                      Borrower
or any of its Subsidiaries shall (i) be the subject of any proceeding or
investigation pertaining to the release by Borrower, any of its Subsidiaries or
any other Person of any toxic or hazardous waste or substance into the
environment, or (ii) violate any Environmental Law, which, in the case of an
event described in clause (i) or clause (ii), has a
Material Adverse Effect.

     

    7.14.                      Any
Change in Control shall occur.

     

    7.15.                      The
occurrence of any “default”, as defined in any Loan Document (other than this
Agreement) or the breach of any of the terms or provisions of any Loan Document
(other than this Agreement), which default or breach continues beyond any period
of grace therein provided.

     

    7.16.                      The
obligations of Guarantor under Article XIII hereof
shall fail to remain in full force or effect or any action shall be taken to
discontinue or to assert the invalidity or unenforceability of any of such
obligations, or Guarantor shall deny that it has any further liability under
such Article
XIII, or shall give notice to such effect.

     

    ARTICLE
VIII

     

    ACCELERATION, WAIVERS,
AMENDMENTS AND REMEDIES

     

    8.1.           Acceleration.  If
any Default described in Section 7.6 or
7.7 occurs with
respect to Borrower, Guarantor or any of Borrower’s Subsidiaries, the
commitments of the Lenders to make, renew or convert Advances and to participate
in Letters of Credit, and the obligation and power of the LC Issuer to issue
Letters of Credit hereunder shall automatically terminate and the Obligations
(including, without limitation, the obligation to deposit with the
Administrative Agent a sum equal to the aggregate face amount of the outstanding
Letters of Credit pursuant to Section 8.3
hereof) shall immediately become due and payable without any election or action
on the part of the Administrative Agent, the LC Issuer or any
Lender.  If any other Default occurs, then upon the declaration of the
Required Lenders or the Administrative Agent at the direction of the Required
Lenders, the obligations of the Lenders to make, renew or convert Advances and
to

     

    
      
         

      

      
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    participate
in Letters of Credit, and the obligation and power of the LC Issuer to issue
Letters of Credit under this Agreement shall terminate and the Obligations
(including, without limitation, the obligation to deposit with the
Administrative Agent a sum equal to the aggregate face amount of the outstanding
Letters of Credit pursuant to Section 8.3
hereof) shall immediately become due and payable.  In either event,
the Obligations shall become immediately due and payable without presentment,
demand, protest or notice of any kind, all of which Borrower hereby expressly
waives.

     

    If,
within 30 days after acceleration of the maturity of the Obligations or
termination of the obligations of the Lenders to make Loans and to participate
in Letters of Credit and the obligation and power of the LC Issuer to issue
Letters of Credit hereunder as a result of any Default (other than any Default
as described in Section 7.6 or
7.7 with
respect to Borrower, Guarantor or any of Borrower’s Subsidiaries) and before any
judgment or decree for the payment of the Obligations due shall have been
obtained or entered, the Required Lenders (in their sole discretion) shall so
direct, the Administrative Agent shall, by notice to Borrower, rescind and annul
such acceleration and/or termination.

     

    8.2.           Remedies Not
Exclusive.  The remedies of the Lenders specified in this
Agreement and the other Loan Documents shall not be exclusive and the Lenders
may avail themselves of any of the remedies provided by law as well as any
equitable remedies available to the Lenders, and each and every remedy shall be
cumulative and concurrent and shall be in addition to every other remedy now or
hereafter existing at law or in equity.

     

    8.3.           Deposit to Secure
Reimbursement Obligations.  When any Default or Unmatured
Default has occurred and is continuing, the Required Lenders or the
Administrative Agent at the direction of the Required Lenders may demand that
Borrower immediately pay to the Administrative Agent an amount equal to the
aggregate outstanding amount of the Letters of Credit and Borrower shall
immediately upon any such demand make such payment.  Borrower hereby
irrevocably grants to the Administrative Agent for the benefit of the Lenders a
security interest in all funds deposited to the credit of or in transit to any
deposit account or fund established pursuant to this Section 8.3 (the
“LC Collateral
Account”), including, without limitation, any investment of such
fund.  Borrower hereby acknowledges and agrees that the Administrative
Agent and the LC Issuer would not have an adequate remedy at law for failure by
Borrower to honor any demand made under this Section 8.3 and
that the Administrative Agent and the LC Issuer shall have the right to require
Borrower specifically to perform its undertakings in this Section 8.3
whether or not any draws have been made under any Letter of
Credit.  In the event the Administrative Agent or the LC Issuer makes
a demand pursuant to this Section 8.3, and
Borrower makes the payment demanded, the Administrative Agent agrees to invest
the amount of such payment for the account of Borrower and at Borrower’s risk
and direction in short-term Investments acceptable to the Administrative
Agent.  The Administrative Agent may at any time or from time to time
after funds are deposited in the LC Collateral Account, apply such funds to the
payment of Obligations and any other amounts as shall from time to time have
become due and payable by Borrower to the Lenders or the LC Issuer under the
Loan Documents.  At any time while any Default is continuing, neither
Borrower nor any Person claiming on behalf of or through Borrower shall have a
right to withdraw any of the funds held in the LC Collateral
Account.  After all of the Obligations have been indefeasibly paid in
full and the Commitments have been terminated, any funds remaining on the LC
Collateral

     

    
      
         

      

      
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    Account
shall be returned by the Administrative Agent to Borrower or paid to whomever
may be legally entitled thereto at such time.

     

    8.4.           Subrogation.  The
LC Issuer shall, to the extent of any payments made by the LC Issuer under any
Letter of Credit, be subrogated to all rights of the beneficiary of such Letter
of Credit as to all obligations of Borrower and its Subsidiaries with respect to
which such payment shall have been made by the LC Issuer.

     

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

     

    
      	
               
      

            	
              (i)

            	
              Extend
      the final maturity of any Loan, or extend the expiry date of any Letter of
      Credit to a date after the Commitment Termination Date or postpone any
      regularly scheduled payment of principal of any Loan or forgive all or any
      portion of the principal amount thereof or any reimbursement obligation in
      respect of any Letter of Credit, or reduce the rate or extend the time of
      payment of interest or fees thereon or any reimbursement obligation in
      respect of any Letter of Credit.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Reduce
      the percentage specified in the definition of Required
      Lenders.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              Extend
      the Commitment Termination Date or increase the amount of the Commitment
      of any Lender hereunder or the commitment of the LC Issuer to issue
      Letters of Credit or permit Borrower to assign its rights under this
      Agreement.

            

    

     

    
      	
               
      

            	
              (iv)

            	
              Amend
      this Section
      8.5.

            

    

     

    
      	
               
      

            	
              (v)

            	
              Amend,
      modify or waive Article XIII or
      release Guarantor from its obligations
  thereunder.

            

    

     

    
      	
               
      

            	
              (vi)

            	
              Waive
      compliance with the conditions set forth in Section
      4.1.

            

    

     

    No
amendment of any provision of this Agreement relating to the Administrative
Agent shall be effective without the written consent of the Administrative
Agent.  No amendment to any provision relating to the LC Issuer shall
be effective without the written consent of the LC Issuer.  The
Administrative Agent may waive payment of the fee required under Section 12.2.4
without obtaining the consent of any other party to this
Agreement.  Notwithstanding anything to the

     

    contrary
herein, the Fee Letters may be amended or otherwise modified with the consent of
the parties thereto, without requiring the consent of any other
Lender.

     

    8.6.           Preservation of
Rights.  No delay or omission of the Administrative Agent, the
LC Issuer or any Lender to exercise any power or right under the Loan Documents
shall impair

     

    
      
         

      

      
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    such
power or right or be construed to be a waiver of any Default or an acquiescence
therein, and any single or partial exercise of any power or right shall not
preclude other or further exercise thereof or the exercise of any other power or
right.  No Credit Extension hereunder shall constitute a waiver of any
of the conditions of any Lender’s or the LC Issuer’s obligation to make further
Credit Extensions, nor, in the event Borrower is unable to satisfy any such
condition, shall a waiver of such condition in any one instance have the effect
of precluding any Lender or the LC Issuer from thereafter declaring such
inability to be a Default hereunder.  No course of dealing shall be
binding upon the Administrative Agent, the LC Issuer or any
Lender.  No waiver, amendment or other variation of the terms,
conditions or provisions of the Loan Documents shall be valid unless in writing
and signed by the Persons required pursuant to Section 8.5, and then
only to the extent in such writing specifically set
forth.  Notwithstanding anything to the contrary contained herein or
in any other Loan Document, the authority to enforce rights and remedies
hereunder and under the other Loan Documents against Borrower or Guarantor or
any of them shall be vested exclusively in, and all actions and proceedings at
law in connection with such enforcement shall be instituted and maintained
exclusively by, the Administrative Agent in accordance with this Article VIII for the
benefit of all the Lenders and the LC Issuer; provided, however, that the
foregoing shall not prohibit (a) the Administrative Agent from exercising on its
own behalf the rights and remedies that inure to its benefit (solely in its
capacity as Administrative Agent) hereunder and under the other Loan Documents,
(b) the LC Issuer from exercising the rights and remedies that inure to its
benefit (solely in its capacity as LC Issuer) hereunder and under the other Loan
Documents, (c) any Lender from exercising setoff rights in accordance with Section 11.1 (subject
to the terms of Section 11.2) or (d)
any Lender from filing proofs of claim or appearing and filing pleadings on its
own behalf during the pendency of a proceeding relative to Borrower or Guarantor
under any bankruptcy or insolvency; and provided, further, that if at
any time there is no Person acting as Administrative Agent hereunder and under
the other Loan Documents, then (i) the Required Lenders shall have the rights
otherwise ascribed to the Administrative Agent pursuant to Section 8.1 and (ii)
in addition to the matters set forth in clauses (b), (c) and (d) of the preceding
proviso and
subject to Section
11.2, any Lender may, with the consent of the Required Lenders, enforce
any rights and remedies available to it and as authorized by the Required
Lenders.

     

    ARTICLE
IX

     

    GENERAL
PROVISIONS

     

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

     

    9.2.           Governmental
Regulation.  Anything contained in this Agreement to the
contrary notwithstanding, neither the LC Issuer nor any Lender shall be
obligated to extend credit to

     

    
      
         

      

      
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    Borrower
in violation of any limitation or prohibition provided by any applicable statute
or regulation.

     

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

     

    9.4.           Entire
Agreement.  The Loan Documents embody the entire agreement and
understanding among Borrower, Guarantor, the Administrative Agent, the LC Issuer
and the Lenders and supersede all prior agreements and understandings among
Borrower, Guarantor, the Administrative Agent, the LC Issuer and the Lenders
relating to the subject matter thereof other than the Fee Letter.

     

    9.5.           Several Obligations;
Benefits of this Agreement.  The obligations of the Lenders
hereunder to make Revolving Loans, to fund participations in Letters of Credit
and to make payments pursuant to Section 9.6(c)
are several and not joint.  The failure of any Lender to make any
Loan, to fund any such participation or to make any payment under Section 9.6(c)
on any date required hereunder shall not relieve any other Lender of its
corresponding obligation to do so on such date, and no Lender shall be
responsible for the failure of any other Lender to so make its Loan, to purchase
its participation or to make its payment under Section 9.6(c).  This
Agreement shall not be construed so as to confer any right or benefit upon any
Person other than the parties to this Agreement and their respective successors
and assigns; provided, however, that the
parties hereto expressly agree that the Arrangers shall enjoy the benefits of
Sections 9.1,
9.6, 9.10 and 9.16 to the extent
specifically set forth therein and each Arranger shall have the right to enforce
such provisions on its own behalf and in its own name to the same extent as if
it were a party to this Agreement. 

     

    9.6.           Expenses;
Indemnification.  

     

    (a)           Costs and
Expenses.  Borrower shall pay (i) all reasonable
out-of-pocket expenses incurred by the Administrative Agent and its Affiliates
(including, without limitation, the reasonable fees, charges and disbursements
of counsel for the Administrative Agent), in connection with the syndication of
the credit facilities provided for herein, the preparation, negotiation,
execution, delivery and administration of this Agreement and the other Loan
Documents or any amendments, modifications or waivers of the provisions hereof
or thereof (whether or not the transactions contemplated hereby or thereby shall
be consummated), (ii) all reasonable out-of-pocket expenses incurred by the LC
Issuer in connection with the issuance, amendment, renewal or extension of any
Letter of Credit or any demand for payment thereunder and (iii) all
out-of-pocket expenses incurred by the Administrative Agent, any Lender or the
LC Issuer (including, without limitation, the fees, charges and disbursements of
any counsel for the Administrative Agent, any Lender or the LC Issuer), and
shall pay all fees and time charges for attorneys who may be employees of the
Administrative Agent, any Lender or the LC Issuer, in connection with the
enforcement or protection of its rights (A) in connection with this
Agreement and the other Loan Documents, including, without limitation, its
rights under this Section, or (B) in connection with the Loans made or
Letters of Credit issued hereunder, including, without limitation, all such
out-of-pocket

     

    
      
         

      

      
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    expenses
incurred during any workout, restructuring or negotiations in respect of such
Loans or Letters of Credit.

     

    (b)           Indemnification by
Borrower.  Borrower shall indemnify the Administrative Agent
(and any sub-agent thereof), each Lender and the LC Issuer, and each Related
Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against,
and hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses (including the fees, charges and disbursements
of any counsel for any Indemnitee), and shall indemnify and hold harmless each
Indemnitee from all fees and time charges and disbursements for attorneys who
may be employees of any Indemnitee, incurred by any Indemnitee or asserted
against any Indemnitee by any third party or by Borrower or Guarantor arising
out of, in connection with, or as a result of (i) the execution or delivery
of this Agreement, any other Loan Document or any agreement or instrument
contemplated hereby or thereby, the performance by the parties hereto of their
respective obligations hereunder or thereunder, the consummation of the
transactions contemplated hereby or thereby, or, in the case of the
Administrative Agent (and any sub-agent thereof) and its Related Parties only,
the administration of this Agreement and the other Loan Documents (including,
without limitation, in respect of any matters addressed in Section 3.5),
(ii) any Loan or Letter of Credit or the use or proposed use of the
proceeds therefrom (including, without limitation, any refusal by the LC Issuer
to honor a demand for payment under a Letter of Credit if the documents
presented in connection with such demand do not strictly comply with the terms
of such Letter of Credit), (iii) any actual or alleged presence or release
of Hazardous Materials on or from any property owned or operated by Borrower or
any of its Subsidiaries, or any Environmental Liability related in any way to
Borrower or any of its Subsidiaries, or (iv) any actual or prospective
claim, litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory, whether brought by a third
party or by Borrower or Guarantor, and regardless of whether any Indemnitee is a
party thereto; provided that such
indemnity shall not, as to any Indemnitee, be available to the extent that such
losses, claims, damages, liabilities or related expenses (x) are determined
by a court of competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such Indemnitee or
(y) result from a claim brought by Borrower or Guarantor against an
Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or
under any other Loan Document, if Borrower or Guarantor has obtained a final and
nonappealable judgment in its favor on such claim as determined by a court of
competent jurisdiction.

     

    (c)           Reimbursement by
Lenders.  To the extent that Borrower for any reason fails to
indefeasibly pay any amount required under subsection (a)
or (b) of
this Section to be paid by it to the Administrative Agent (or any sub-agent
thereof), the LC Issuer or any Related Party of any of the foregoing, each
Lender severally agrees to pay to the Administrative Agent (or any such
sub-agent), the LC Issuer or such Related Party, as the case may be, such
Lender’s Pro Rata Share (determined as of the time that the applicable
unreimbursed expense or indemnity payment is sought) of such unpaid amount,
provided that
the unreimbursed expense or indemnified loss, claim, damage, liability or
related expense, as the case may be, was incurred by or asserted against the
Administrative

     

    
      
         

      

      
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    Agent (or
any such sub-agent) or the LC Issuer in its capacity as such, or against any
Related Party of any of the foregoing acting for the Administrative Agent (or
any such sub-agent) or LC Issuer in connection with such
capacity.  The obligations of the Lenders under this subsection (c)
are subject to the provisions of Section 9.5.

     

    (d)           Waiver of Consequential
Damages, Etc.  To the fullest extent permitted by applicable
law, Borrower shall not assert, and hereby waives, any claim against any
Indemnitee, on any theory of liability, for special, indirect, consequential or
punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement, any other Loan Document or
any agreement or instrument contemplated hereby, the transactions contemplated
hereby or thereby, any Loan or Letter of Credit or the use of the proceeds
thereof.  No Indemnitee referred to in subsection (b) above
shall be liable for any damages arising from the use by unintended recipients of
any information or other materials distributed to such unintended recipients by
such Indemnitee through telecommunications, electronic or other information
transmission systems in connection with this Agreement or the other Loan
Documents or the transactions contemplated hereby or thereby other than for
direct or actual damages resulting from the gross negligence or willful
misconduct of such Indemnitee as determined by a final and nonappealable
judgment of a court of competent jurisdiction.

     

    (e)           Payments.  All
amounts due under this Section shall be payable not later than ten Business Days
after demand therefor.

     

    (f)           Survival.  The
agreements in this Section shall survive the resignation of the Administrative
Agent and the LC Issuer, the replacement of any Lender, the termination of the
Aggregate Commitment and the repayment, satisfaction or discharge of all the
other Obligations.

     

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

     

    9.8.           Accounting.  Except
as provided to the contrary herein, all accounting terms used herein shall be
interpreted and all accounting determinations hereunder shall be made in
accordance with Agreement Accounting Principles.

     

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

     

    9.10.                      Nonliability of
Lenders.  The relationship between Borrower on the one hand and
the Lenders, the LC Issuer and the Administrative Agent on the other hand shall
be solely that of borrower and lender.  Neither the Administrative
Agent, any Arranger, the LC Issuer nor any Lender shall have any fiduciary
responsibility to Borrower.  Neither the Administrative Agent, any
Arranger, the LC Issuer nor any Lender undertakes any responsibility to Borrower
to review

     

    
      
         

      

      
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    or inform
Borrower of any matter in connection with any phase of Borrower’s business or
operations.  Borrower agrees that neither the Administrative Agent,
any Arranger, the LC Issuer nor any Lender shall have liability to Borrower
(whether sounding in tort, contract or otherwise) for losses suffered by
Borrower in connection with, arising out of, or in any way related to, the
transactions contemplated and the relationship established by the Loan
Documents, or any act, omission or event occurring in connection therewith,
unless it is determined in a final non-appealable judgment by a court of
competent jurisdiction that such losses resulted from the gross negligence or
willful misconduct of the party from which recovery is
sought.  Neither the Administrative Agent, any Arranger, the LC Issuer
nor any Lender shall have any liability with respect to, and Borrower hereby
waives, releases and agrees not to sue for, any special, indirect or
consequential damages suffered by Borrower in connection with, arising out of,
or in any way related to the Loan Documents or the transactions contemplated
thereby.

     

    9.11.                      Treatment of Certain
Information; Confidentiality.  Each of the Administrative
Agent, the Lenders and the LC Issuer agrees to maintain the confidentiality of
the Information (as defined below), except that Information may be disclosed (a)
to its Affiliates and to its and its Affiliates’ respective partners, directors,
officers, employees, agents, trustees, advisors and representatives (it being
understood that the Persons to whom such disclosure is made will be informed of
the confidential nature of such Information and instructed to keep such
Information confidential), (b) to the extent requested by any regulatory
authority purporting to have jurisdiction over it (including, without
limitation, any self-regulatory authority, such as the National Association of
Insurance Commissioners), (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (d) to any other party
hereto, (e) in connection with the exercise of any remedies hereunder or under
any other Loan Document or any action or proceeding relating to this Agreement
or any other Loan Document or the enforcement of rights hereunder or thereunder,
(f) subject to an agreement containing provisions substantially the same as
those of this Section, to (i) any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations
under this Agreement or any assignee invited to be a Lender under Section 2.19 or (ii)
any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to Borrower and its obligations, (g) with the
consent of Borrower or (h) to the extent such Information (x) becomes publicly
available other than as a result of a breach of this Section or (y) becomes
available to the Administrative Agent, any Lender, the LC Issuer or any of their
respective Affiliates on a nonconfidential basis from a source other than
Borrower.  For purposes of this Section, “Information” means
all information received from Borrower or any Subsidiary relating to Borrower or
any Subsidiary or any of their respective businesses, other than any such
information that is available to the Administrative Agent, any Lender or the LC
Issuer on a nonconfidential basis prior to disclosure by Borrower or any
Subsidiary, provided that, in the
case of information received from Borrower or any Subsidiary after the date
hereof, such information is clearly identified at the time of delivery as
confidential.  Any Person required to maintain the confidentiality of
Information as provided in this Section shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of
care to maintain the confidentiality of such Information as such Person would
accord to its own confidential information.  Each of the
Administrative Agent, the Lenders and the LC Issuer acknowledges that (a) the
Information may include material non-public information concerning Borrower or a
Subsidiary, as the case may be, (b) it has developed compliance procedures
regarding the use of material non-public information and (c) it will handle such
material non-

     

    
      
         

      

      
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    public
information in accordance with applicable law, including, without limitation,
United States Federal and state securities laws.

     

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

     

    9.13.                      Disclosure.  The
Lenders hereby (i) acknowledge and agree that Bank of America and/or its
Affiliates from time to time may hold investments in, make other loans to or
have other relationships with Borrower and its Affiliates, and (ii) waive any
liability of Bank of America or such Affiliate of Bank of America to Borrower or
any Lender, respectively, arising out of or resulting from such investments,
loans or relationships other than liabilities arising out of the gross
negligence or willful misconduct of Bank of America or its
Affiliates.

     

    9.14.                      USA PATRIOT
Act.  Each Lender that is subject to the Act (as hereinafter
defined) and the Administrative Agent (for itself and not on behalf of any
Lender) hereby notifies Borrower that pursuant to the requirements of the USA
PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001))
(the “Act”), it
is required to obtain, verify and record information that identifies Borrower,
which information includes the name and address of Borrower and other
information that will allow such Lender or the Administrative Agent, as
applicable, to identify Borrower in accordance with the Act.  Borrower
shall, promptly following a request by the Administrative Agent or any Lender,
provide all documentation and other information that the Administrative Agent or
such Lender requests in order to comply with its ongoing obligations under
applicable “know your customer” and anti-money laundering rules and regulations,
including the Act. 

     

    9.15.                      Letter of Credit
Amounts.  Unless otherwise specified herein, the amount of a
Letter of Credit at any time shall be deemed to be the stated amount of such
Letter of Credit in effect at such time; provided, however, that with
respect to any Letter of Credit that, by its terms or the terms of any Issuer
Document related thereto, provides for one or more automatic increases in the
stated amount thereof, the amount of such Letter of Credit shall be deemed to be
the maximum stated amount of such Letter of Credit after giving effect to all
such increases, whether or not such maximum stated amount is in effect at such
time.

     

    9.16.                      No Advisory or Fiduciary
Responsibility.  In connection with all aspects of each
transaction contemplated hereby (including in connection with any amendment,
waiver or other modification hereof or of any other Loan Document), each of
Borrower and Guarantor acknowledges and agrees, and acknowledges its Affiliates’
understanding, that: (a) (i) the arranging and other services regarding this
Agreement provided by the Administrative Agent and the Arranger are arm’s-length
commercial transactions between Borrower, Guarantor and their respective
Affiliates, on the one hand, and the Administrative Agent and the Arranger, on
the other hand, (ii) each of Borrower and Guarantor has consulted its own legal,
accounting, regulatory and tax advisors to the extent it has deemed appropriate,
and (iii) Borrower and Guarantor is capable of evaluating, and understands and
accepts, the terms, risks and conditions of the transactions contemplated hereby
and by the other Loan Documents; (b) (i) the Administrative Agent and the
Arranger each is and has been acting solely as a principal and, except as
expressly agreed in writing by the relevant parties, has not been, is not, and
will not be

     

    
      
         

      

      
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    acting as
an advisor, agent or fiduciary for Borrower, Guarantor or any of their
respective Affiliates, or any other Person and (ii) neither the Administrative
Agent nor the Arranger has any obligation to Borrower, Guarantor or any of their
respective Affiliates with respect to the transactions contemplated hereby
except those obligations expressly set forth herein and in the other Loan
Documents; and (iii) the Administrative Agent and the Arranger and their
respective Affiliates may be engaged in a broad range of transactions that
involve interests that differ from those of Borrower, Guarantor and their
respective Affiliates, and neither the Administrative Agent nor the Arranger has
any obligation to disclose any of such interests to Borrower, Guarantor or any
of their respective Affiliates.  To the fullest extent permitted by
law, each of Borrower and Guarantor hereby waives and releases any claims that
it may have against the Administrative Agent and the Arranger with respect to
any breach or alleged breach of agency or fiduciary duty in connection with any
aspect of any transaction contemplated hereby.

     

    ARTICLE
X

     

    THE ADMINISTRATIVE
AGENT

     

    10.1.                      Appointment and
Authority.  Each of the Lenders and the LC Issuer hereby
irrevocably appoints Bank of America to act on its behalf as the Administrative
Agent hereunder and under the other Loan Documents and authorizes the
Administrative Agent to take such actions on its behalf and to exercise such
powers as are delegated to the Administrative Agent by the terms hereof or
thereof, together with such actions and powers as are reasonably incidental
thereto.  The provisions of this Article are solely for the benefit of
the Administrative Agent, the Lenders and the LC Issuer, and neither Borrower
nor Guarantor shall have rights as a third party beneficiary of any of such
provisions.

     

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

     

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

     

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

     

    (b)           shall
not have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated hereby or
by the other Loan Documents that the Administrative Agent is required to
exercise as directed in writing by the Required Lenders (or such other number
or

     

    
      
         

      

      
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    percentage
of the Lenders as shall be expressly provided for herein or in the other Loan
Documents), provided that the
Administrative Agent shall not be required to take any action that, in its
opinion or the opinion of its counsel, may expose the Administrative Agent to
liability or that is contrary to any Loan Document or applicable law;
and

     

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

     

    The
Administrative Agent shall not be liable for any action taken or not taken by it
(i) with the consent or at the request of the Required Lenders (or such other
number or percentage of the Lenders as shall be necessary, or as the
Administrative Agent shall believe in good faith shall be necessary, under the
circumstances as provided in Sections 8.5 and
8.1) or (ii) in
the absence of its own gross negligence or willful misconduct.  The
Administrative Agent shall be deemed not to have knowledge of any Default or
Unmatured Default unless and until notice describing such Default or Unmatured
Default is given to the Administrative Agent by Borrower, a Lender or the LC
Issuer.

     

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

     

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

     

    
      
         

      

      
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    10.5.                      Delegation of
Duties.  The Administrative Agent may perform any and all of
its duties and exercise its rights and powers hereunder or under any other Loan
Document by or through any one or more sub-agents appointed by the
Administrative Agent.  The Administrative Agent and any such sub-agent
may perform any and all of its duties and exercise its rights and powers by or
through their respective Related Parties.  The exculpatory provisions
of this Article shall apply to any such sub-agent and to the Related Parties of
the Administrative Agent and any such sub-agent, and shall apply to their
respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative
Agent.

     

    10.6.                      Resignation of
Administrative Agent.  The Administrative Agent may at any time
give notice of its resignation to the Lenders, the LC Issuer and
Borrower.  Upon receipt of any such notice of resignation, the
Required Lenders shall have the right, in consultation with Borrower, to appoint
a successor, which shall be a bank with an office in the United States, or an
Affiliate of any such bank with an office in the United States.  If no
such successor shall have been so appointed by the Required Lenders and shall
have accepted such appointment within 30 days after the retiring
Administrative Agent gives notice of its resignation, then the retiring
Administrative Agent may on behalf of the Lenders and the LC Issuer, appoint a
successor Administrative Agent meeting the qualifications set forth above; provided that if the
Administrative Agent shall notify Borrower and the Lenders that no qualifying
Person has accepted such appointment, then such resignation shall nonetheless
become effective in accordance with such notice and (1) the retiring
Administrative Agent shall be discharged from its duties and obligations
hereunder and under the other Loan Documents and (2) all payments,
communications and determinations provided to be made by, to or through the
Administrative Agent shall instead be made by or to each Lender and the LC
Issuer directly, until such time as the Required Lenders appoint a successor
Administrative Agent as provided for above in this Section.  Upon the
acceptance of a successor’s appointment as Administrative Agent hereunder, such
successor shall succeed to and become vested with all of the rights, powers,
privileges and duties of the retiring (or retired) Administrative Agent, and the
retiring Administrative Agent shall be discharged from all of its duties and
obligations hereunder or under the other Loan Documents (if not already
discharged therefrom as provided above in this Section).  The fees
payable by Borrower to a successor Administrative Agent shall be the same as
those payable to its predecessor unless otherwise agreed between Borrower and
such successor.  After the retiring Administrative Agent’s resignation
hereunder and under the other Loan Documents, the provisions of this Article and
Section 9.6
shall continue in effect for the benefit of such retiring Administrative Agent,
its sub-agents and their respective Related Parties in respect of any actions
taken or omitted to be taken by any of them while the retiring Administrative
Agent was acting as Administrative Agent.

     

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

     

    
      
         

      

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

     

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

     

    (a)           to
file and prove a claim for the whole amount of the principal and interest owing
and unpaid in respect of the Loans, and all other Obligations that are owing and
unpaid and to file such other documents as may be necessary or advisable in
order to have the claims of the Lenders and the Administrative Agent (including
any claim for the reasonable compensation, expenses, disbursements and advances
of the Lenders and the Administrative Agent and their respective agents and
counsel and all other amounts due the Lenders and the Administrative Agent under
Sections 2.5,
2.17 and 9.6) allowed in such
judicial proceedings; and

     

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

     

    and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Lender to make such payments to the Administrative Agent and, in the event that
the Administrative Agent shall consent to the making of such payments directly
to the Lenders, to pay to the Administrative Agent any amount due for the
reasonable compensation, expenses, disbursements and advances of the
Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 2.5, 2.17 and 9.6.

     

    Nothing
contained herein shall be deemed to authorize the Administrative Agent to
authorize or consent to or accept or adopt on behalf of any Lender any plan of
reorganization,

     

    arrangement,
adjustment or composition affecting the Obligations or the rights of any Lender
or to authorize the Administrative Agent to vote in respect of the claim of any
Lender in any such proceeding.

     

    10.9.                      No Other Duties,
Etc.  Anything herein to the contrary notwithstanding, none of
the Bookrunners, Arrangers or Co-Syndication Agents listed on the cover page
hereof shall have

     

    
      
         

      

      
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    any
powers, duties or responsibilities under this Agreement or any of the other Loan
Documents, except in its capacity, as applicable, as the Administrative Agent, a
Lender or the LC Issuer hereunder.

     

    ARTICLE
XI

     

    SETOFF; RATABLE
PAYMENTS

     

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

     

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

     

    ARTICLE
XII

     

    BENEFIT OF AGREEMENT;
ASSIGNMENTS; PARTICIPATIONS

     

    12.1.                      Successors and Assigns
Generally.  The provisions of this Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns permitted hereby, except that neither Borrower nor
Guarantor may assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of the Administrative Agent and each
Lender and no Lender may assign or otherwise transfer any of its rights or
obligations hereunder except (i) to an assignee in accordance with the
provisions of Section
12.2, (ii) by way of participation in accordance with the provisions of
Section 12.4 or
(iii) by way of pledge or assignment of a security interest subject to the
restrictions of Section 12.6 (and any
other attempted assignment or transfer by any party hereto shall be null and
void).  Nothing in this Agreement, expressed or implied, shall be
construed to confer upon any Person (other than the parties hereto, their
respective successors and assigns permitted hereby, Participants to the extent
provided in Section
12.4 and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent, the LC Issuer and the Lenders) any
legal or equitable right, remedy or claim under or by reason of this
Agreement.

     

    
      
         

      

      
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    12.2.                      Assignments by
Lenders.  Any Lender may at any time assign to one or more
assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans (including, without
limitation, for purposes of this Section 12.2,
participations in LC Obligations) at the time owing to it); provided that any
such assignment shall be subject to the following conditions: 

     

    12.2.1.                      Minimum
Amounts.

     

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

     

    (b)           in
any case not described in Section 12.2.1(a),
the aggregate amount of the Commitment (which for this purpose includes Loans
outstanding thereunder) or, if the Commitment is not then in effect, the
principal outstanding balance of the Loans of the assigning Lender subject to
each such assignment, determined as of the date the Assignment and Assumption
with respect to such assignment is delivered to the Administrative Agent or, if
“Trade Date” is specified in the Assignment and Assumption, as of the Trade
Date, shall not be less than $5,000,000 unless each of the
Administrative Agent and, so long as no Default has occurred and is continuing,
Borrower otherwise consents (each such consent not to be unreasonably withheld
or delayed); provided, however, that
concurrent assignments to members of an Assignee Group and concurrent
assignments from members of an Assignee Group to a single Eligible Assignee (or
to an Eligible Assignee and members of its Assignee Group) will be treated as a
single assignment for purposes of determining whether such minimum amount has
been met.

     

    12.2.2.                      Proportionate
Amounts.  Each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights and
obligations under this Agreement with respect to the Loans or the Commitment
assigned.

     

    12.2.3.                      Required
Consents.  No consent shall be required for any assignment
except to the extent required by Section 12.2.1(b)
and, in addition:

     

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

     

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

     

    (c)           the
consent of the LC Issuer (such consent not to be unreasonably withheld or
delayed) shall be required for any assignment that increases the obligation of
the assignee to participate in exposure under one or more Letters of Credit
(whether or not then outstanding).

     

    
      
         

      

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

     

    12.2.5.                      No Assignment to
Borrower.  No such assignment shall be made to Borrower or any
of Borrower’s Affiliates or Subsidiaries.

     

    12.2.6.                      No Assignment to Natural
Persons.  No such assignment shall be made to a natural
person.

     

    Subject
to acceptance and recording thereof by the Administrative Agent pursuant to
Section 12.3
below, from and after the effective date specified in each Assignment and
Assumption, the assignee thereunder shall be a party to this Agreement and, to
the extent of the interest assigned by such Assignment and Assumption, have the
rights and obligations of a Lender under this Agreement, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Assumption, be released from its obligations under this Agreement
(and, in the case of an Assignment and Assumption covering all of the assigning
Lender’s rights and obligations under this Agreement, such Lender shall cease to
be a party hereto) but shall continue to be entitled to the benefits of Sections 3.1, 3.2, 3.4, 3.5 and 9.6 with respect to
facts and circumstances occurring prior to the effective date of such
assignment.  Upon request, Borrower (at its expense) shall execute and
deliver a Note to the assignee Lender.  Any assignment or transfer by
a Lender of rights or obligations under this Agreement that does not comply with
this subsection shall be treated for purposes of this Agreement as a sale by
such Lender of a participation in such rights and obligations in accordance with
Section 12.4.

    

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

     

    12.4.                      Participations.  Any
Lender may at any time, without the consent of, or notice to, Borrower or the
Administrative Agent, sell participations to any Person (other than a natural
person or Borrower or any of Borrower’s Affiliates or Subsidiaries) (each, a
“Participant”)
in all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans
(including such Lender’s participations in LC Obligations) owing to it); provided that
(i) such Lender’s obligations under this Agreement shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations and (iii) Borrower, the
Administrative Agent, the Lenders

     

    
      
         

      

      
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    and the
LC Issuer shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this
Agreement.  

     

    Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of
any  provision of this Agreement; provided that such
agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, waiver or other modification
described in the proviso to Section 8.5 that
affects such Participant.  Subject to Section 12.5,
Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.1, 3.2 and 3.4 and 3.5 to the same extent as
if it were a Lender and had acquired its interest by assignment pursuant to
Section
12.2.  To the extent permitted by law, each Participant also
shall be entitled to the benefits of Section 11.1 as though it were a
Lender, provided such
Participant agrees to be subject to Section 11.2 as
though it were a Lender.

    

    12.5.                      Limitations upon Participant
Rights.  A Participant shall not be entitled to receive any
greater payment under Section 3.1, 3.2 or 3.5 than the applicable
Lender would have been entitled to receive with respect to the participation
sold to such Participant, unless the sale of the participation to such
Participant is made with Borrower’s prior written consent.  A
Participant that would be a Non-U.S. Lender if it were a Lender shall not be
entitled to the benefits of Section 3.5
unless Borrower is notified of the participation sold to such Participant and
such Participant agrees, for the benefit of Borrower, to comply with Sections 3.5(iv) and
(v) as though
it were a Lender.

     

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

     

    12.7.                      Resignation as LC Issuer
after Assignment.  Notwithstanding anything to the contrary
contained herein, if at any time Bank of America assigns all of its Commitment
and Loans pursuant to Section 12.2
above, Bank of America may, upon 30 days’ notice to Borrower and the
Lenders, resign as LC Issuer.  In the event of any such resignation as
LC Issuer, Borrower shall be entitled to appoint from among the Lenders a
successor LC Issuer hereunder; provided, however, that no
failure by Borrower to appoint any such successor shall affect the resignation
of Bank of America as LC Issuer.  If Bank of America resigns as LC
Issuer, it shall retain all the rights, powers, privileges and duties of the LC
Issuer hereunder with respect to all Letters of Credit outstanding as of the
effective date of its resignation as LC Issuer and all LC Obligations with
respect thereto (including the right to require the Lenders to make Loans or
fund risk participations in Unreimbursed Amounts pursuant to Section
2.17.3.  Upon the appointment of a successor LC Issuer, (a)
such successor shall succeed to and become vested with all of the rights,
powers, privileges and duties of the retiring LC Issuer and (b) the successor LC
Issuer shall issue letters of credit in substitution for the Letters of Credit,
if any, outstanding at the time of such succession or make other arrangements
reasonably satisfactory to Bank of

     

    
      
         

      

      
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    America
to effectively assume the obligations of Bank of America with respect to such
Letters of Credit. 

     

    ARTICLE
XIII

     

    GUARANTY

     

    13.1.                      Guaranty.  For
valuable consideration, the receipt of which is hereby acknowledged, and to
induce the Lenders to make advances to Borrower and to participate in Letters of
Credit and to induce the LC Issuer to issue Letters of Credit, Guarantor hereby
absolutely and unconditionally guarantees prompt payment when due, whether at
stated maturity, upon acceleration or otherwise, and at all times thereafter, of
any and all Obligations of Borrower to the Administrative Agent, the Lenders,
the LC Issuer and any holder of a Note, or any of them, under or with respect to
the Loan Documents, whether for principal, interest, fees, expenses or
otherwise, in each case howsoever created, arising or evidenced, whether direct
or indirect, absolute or contingent, now or hereafter existing, or due or to
become due (collectively, the “Guaranteed
Obligations”).  Additionally, Guarantor agrees to reimburse the
Administrative Agent, the Lenders and the LC Issuer for any costs incurred in
enforcing this Article
XIII against Guarantor.  Any term or provision of this Article XIII to the
contrary notwithstanding, the aggregate maximum amount of the Guaranteed
Obligations for which Guarantor shall be liable shall not exceed the maximum
amount for which Guarantor can be liable without rendering this Agreement or any
other Loan Document as it relates to Guarantor, voidable under applicable law
relating to fraudulent conveyance or fraudulent transfer.

     

    13.2.                      Waivers.  Guarantor
waives notice of the acceptance of this guaranty and of the extension or
continuation of the Guaranteed Obligations or any part
thereof.  Guarantor further waives presentment, protest, notice of
notices delivered or demand made on Borrower or action or delinquency in respect
of the Guaranteed Obligations or any part thereof, including any right to
require the Administrative Agent and the Lenders to sue Borrower, any other
guarantor or any other Person obligated with respect to the Guaranteed
Obligations or any part thereof, or otherwise to enforce payment thereof against
any collateral securing the Guaranteed Obligations or any part thereof, and
provided
further that if at any time any payment of any portion of the Guaranteed
Obligations is rescinded or must otherwise be restored or returned upon the
insolvency, bankruptcy or reorganization of Borrower or otherwise, Guarantor’s
obligations hereunder with respect to such payment shall be reinstated at such
time as though such payment had not been made and whether or not the
Administrative Agent or the Lenders are in possession of this
guaranty.  The Administrative Agent, the LC Issuer and the Lenders
shall have no obligation to disclose or discuss with Guarantor their assessments
of the financial condition of Borrower.

     

    13.3.                      Guaranty
Absolute.  This guaranty is a guaranty of payment and not of
collection, is a primary obligation of Guarantor and not merely one of surety,
and the validity and enforceability of this guaranty shall be absolute and
unconditional irrespective of, and shall not be impaired or affected by any of
the following: (a) any extension, modification or renewal of, or indulgence with
respect to, or substitutions for, the Guaranteed Obligations or any part thereof
or any agreement relating thereto at any time; (b) any failure or omission to
enforce any right, power or remedy with respect to the Guaranteed Obligations or
any part thereof or any

     

    
      
         

      

      
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    agreement
relating thereto, or any collateral; (c) any waiver of any right, power or
remedy with respect to the Guaranteed Obligations or any part thereof or any
agreement relating thereto or with respect to any collateral; (d) any release,
surrender, compromise, settlement, waiver, subordination or modification, with
or without consideration, of any collateral, any other guaranties with respect
to the Guaranteed Obligations or any part thereof, or any other obligation of
any Person with respect to the Guaranteed Obligations or any part thereof; (e)
the enforceability or validity of the Guaranteed Obligations or any part thereof
or the genuineness, enforceability or validity of any agreement relating thereto
or with respect to any collateral; (f) the application of payments received from
any source to the payment of obligations other than the Guaranteed Obligations,
any part thereof or amounts which are not covered by this guaranty even though
the Administrative Agent, the LC Issuer and the Lenders might lawfully have
elected to apply such payments to any part or all of the Guaranteed Obligations
or to amounts which are not covered by this guaranty; (g) any change in the
ownership of Borrower or the insolvency, bankruptcy or any other change in the
legal status of Borrower; (h) the change in or the imposition of any law,
decree, regulation or other governmental act which does or might impair, delay
or in any way affect the validity, enforceability or the payment when due of the
Guaranteed Obligations; (i) the failure of Guarantor or Borrower to maintain in
full force, validity or effect or to obtain or renew when required all
governmental and other approvals, licenses or consents required in connection
with the Guaranteed Obligations or this guaranty, or to take any other action
required in connection with the performance of all obligations pursuant to the
Guaranteed Obligations or this guaranty; (j) the existence of any claim, setoff
or other rights which Guarantor may have at any time against Borrower or any
other Person in connection herewith or an unrelated transaction; or (k) any
other circumstance, whether or not similar to any of the foregoing, which could
constitute a defense to a guarantor, including without limitation all defenses
based on suretyship or impairment of collateral; all whether or not Guarantor
shall have had notice or knowledge of any act or omission referred to in the
foregoing clauses
(a) through (k) of this
Section.  It is agreed that Guarantor’s liability hereunder is several
and independent of any other guaranties or other obligations at any time in
effect with respect to the Guaranteed Obligations or any part thereof and that
Guarantor’s liability hereunder may be enforced regardless of the existence,
validity, enforcement or non-enforcement of any such other guaranties or other
obligations or any provision of any applicable law or regulation purporting to
prohibit payment by Borrower of the Guaranteed Obligations in the manner agreed
upon by Borrower and the Administrative Agent, the LC Issuer and the
Lenders.

     

    13.4.                      Acceleration.  Guarantor
agrees that, as between Guarantor on the one hand, and the Lenders, the LC
Issuer and the Administrative Agent, on the other hand, the obligations of
Borrower guaranteed under this Article XIII may be
declared to be forthwith due and payable, or may be deemed automatically to have
been accelerated, as provided in Section 8.1 hereof
for purposes of this Article XIII,
notwithstanding any stay, injunction or other prohibition (whether in a
bankruptcy proceeding affecting Borrower or otherwise) preventing such
declaration as against Borrower and that, in the event of such declaration or
automatic acceleration, such obligations (whether or not due and payable by
Borrower) shall forthwith become due and payable by Guarantor for purposes of
this Article
XIII.

     

    13.5.                      Marshaling;
Reinstatement.  None of the Lenders nor the LC Issuer nor the
Administrative Agent nor any Person acting for or on behalf of the Lenders, the
LC Issuer or the Administrative Agent shall have any obligation to marshal any
assets in favor of Guarantor or

     

    
      
         

      

      
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    against
or in payment of any or all of the Guaranteed Obligations.  If
Guarantor, Borrower or any other guarantor of all or any part of the Guaranteed
Obligations makes a payment or payments to any Lender, the LC Issuer or the
Administrative Agent, or any Lender, the LC Issuer or the Administrative Agent
receives any proceeds of collateral, which payment or payments or any part
thereof are subsequently invalidated, declared to be fraudulent or preferential,
set aside and/or required to be repaid to Borrower, Guarantor, such other
guarantor or any other Person, or their respective estates, trustees, receivers
or any other party, including, without limitation, Guarantor, under any
bankruptcy law, state or federal law, common law or equitable cause, then, to
the extent of such payment or repayment, the part of the Guaranteed Obligations
which has been paid, reduced or satisfied by such amount shall be reinstated and
continued in full force and effect as of the time immediately preceding such
initial payment, reduction or satisfaction.

     

    13.6.                      Delay of
Subrogation.  Notwithstanding any payment made by or for the
account of Guarantor pursuant to this Article XIII,
Guarantor shall not be subrogated to any right of the Administrative Agent or
any Lender, or have any right to obtain reimbursement from Borrower, until such
time as the Administrative Agent and each Lender shall have received final
payment in cash of the full amount of the Guaranteed Obligations.

     

    ARTICLE
XIV

     

    NOTICES

     

    14.1.                      Notices; Effectiveness;
Electronic Communication.  

     

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

     

    (a)           if
to Borrower, the Administrative Agent or the LC Issuer, to the address,
telecopier number, electronic mail address or telephone number specified for
such Person on Schedule 14.1;
and

     

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

     

    Notices
and other communications sent by hand or overnight courier service, or mailed by
certified or registered mail, shall be deemed to have been given when received;
notices and other communications sent by telecopier shall be deemed to have been
given when sent (except that, if not given during normal business hours for the
recipient, shall be deemed to have been given at the opening of business on the
next business day for the recipient).  Notices and other
communications delivered through electronic communications to the extent
provided in Section
14.1.2 below, shall be effective as provided in Section
14.1.2.

    

    
      
         

      

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

     

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

    

    14.1.3.                      The
Platform.  THE PLATFORM IS PROVIDED “AS IS” AND “AS
AVAILABLE.”  THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE
ACCURACY OR COMPLETENESS OF BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM,
AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM BORROWER
MATERIALS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY,
INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE
DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH BORROWER MATERIALS OR THE
PLATFORM.

     

    In no
event shall the Administrative Agent or any of its Related Parties
(collectively, the “Agent Parties”) have
any liability to Borrower, any Lender, the LC Issuer or any other Person for
losses, claims, damages, liabilities or expenses of any kind (whether in tort,
contract or otherwise) arising out of Borrower’s or the Administrative Agent’s
transmission of Borrower Materials through the Internet, except to the extent
that such losses, claims, damages, liabilities or expenses are determined by a
court of competent jurisdiction by a final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such Agent Party;
provided, however, that in no
event shall any Agent Party have any liability to Borrower, any Lender, the LC
Issuer or any other Person for indirect, special, incidental, consequential or
punitive damages (as opposed to direct or actual damages).

    

    14.1.4.                      Change of Address,
Etc.  Each of Borrower, the Administrative Agent and the LC
Issuer may change its address, telecopier or telephone number for notices and
other communications hereunder by notice to the other parties
hereto.  Each other Lender may change

     

    
      
         

      

      
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    its
address, telecopier or telephone number for notices and other communications
hereunder by notice to Borrower, the Administrative Agent and the LC
Issuer.  In addition, each Lender agrees to notify the Administrative
Agent from time to time to ensure that the Administrative Agent has on record
(i) an effective address, contact name, telephone number, telecopier number and
electronic mail address to which notices and other communications may be sent
and (ii) accurate wire instructions for such Lender.  Furthermore,
each Public Lender agrees to cause at least one individual at or on behalf of
such Public Lender to at all times have selected the “Private Side Information”
or similar designation on the content declaration screen of the Platform in
order to enable such Public Lender or its delegate, in accordance with such
Public Lender’s compliance procedures and applicable law, including United
States Federal and state securities laws, to make reference to Borrower
Materials that are not made available through the “Public Side Information”
portion of the Platform and that may contain material non-public information
with respect to Borrower or its securities for purposes of United States Federal
or state securities laws.

     

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

     

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

     

    ARTICLE
XV

     

    COUNTERPARTS

     

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

     

    
      
         

      

      
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    ARTICLE
XVI

     

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

     

    16.1.                      CHOICE OF
LAW.  THE LOAN
DOCUMENTS (OTHER THAN THOSE CONTAINING A CONTRARY EXPRESS CHOICE OF LAW
PROVISION) SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (AND NOT THE
LAW OF CONFLICTS) OF THE STATE OF ILLINOIS, BUT GIVING EFFECT TO FEDERAL LAWS
APPLICABLE TO NATIONAL BANKS.

     

    16.2.                      CONSENT
TO JURISDICTION.  EACH OF BORROWER AND
GUARANTOR HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY
UNITED STATES FEDERAL OR ILLINOIS STATE COURT SITTING IN CHICAGO, ILLINOIS IN
ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENTS AND
EACH OF BORROWER AND GUARANTOR HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN
RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH
COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO
THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT
SUCH COURT IS AN INCONVENIENT FORUM.  NOTHING HEREIN SHALL LIMIT THE
RIGHT OF THE ADMINISTRATIVE AGENT, THE LC ISSUER OR ANY LENDER TO BRING
PROCEEDINGS AGAINST BORROWER OR GUARANTOR IN THE COURTS OF ANY OTHER
JURISDICTION.  ANY JUDICIAL PROCEEDING BY BORROWER OR GUARANTOR
AGAINST THE ADMINISTRATIVE AGENT, THE LC ISSUER OR ANY LENDER OR ANY AFFILIATE
OF THE ADMINISTRATIVE AGENT, THE LC ISSUER OR ANY LENDER INVOLVING, DIRECTLY OR
INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH
ANY LOAN DOCUMENT SHALL BE BROUGHT ONLY IN A COURT IN CHICAGO,
ILLINOIS.

     

    16.3.                      WAIVER OF
JURY TRIAL.  EACH PARTY HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF
OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES
HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION. 

     

    
      
         

      

      
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    [Signatures
Follow]

     

    
      
         

      

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

     

    
      	 
      	
              BORROWER:

            
	 
      	 
      	 
      
	 
      	
              VECTREN
      CAPITAL, CORP.

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/
      Robert L. Goocher

            
	 
      	
              Name:

            	
              Robert
      L. Goocher

            
	 
      	
              Title:

            	
              Vice
      President and Treasurer

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              GUARANTOR:

            
	 
      	 
      	 
      
	 
      	
              VECTREN
      CORPORATION

            
	 
      	
              By:

            	
              /s/
      Robert L. Goocher

            
	 
      	
              Name:

            	
              Robert
      L. Goocher

            
	 
      	
              Title:

            	
              Vice
      President and Treasurer

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 
      	
              BANK OF AMERICA, N.A.,
      as Administrative Agent

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/
      Kristine Thennes

            
	 
      	
              Name:

            	
              Kristine
      Thennes

            
	 
      	
              Title:

            	
              Vice
      President

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 
      	
              BANK OF AMERICA, N.A.,
      as the LC Issuer

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/
      Carlos Morales

            
	 
      	
              Name:

            	
              Carlos
      Morales

            
	 
      	
              Title:

            	
              Vice
      President

            

    

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 
      	
              BANK OF AMERICA, N.A.,
      as a Lender

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/
      Carlos Morales

            
	 
      	
              Name:

            	
              Carlos
      Morales

            
	 
      	
              Title:

            	
              Vice
      President

            

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 
      	
              JPMORGAN CHASE BANK,
      N.A., Individually and as Co-Syndication Agent

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/
      Jennifer Fitzgerald

            
	 
      	
              Name:

            	
              Jennifer
      Fitzgerald

            
	 
      	
              Title:

            	
              Associate

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 
      	
              UNION BANK OF CALIFORNIA,
      N.A., Individually and as Co-Syndication Agent

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/
      Susan K. Johnson

            
	 
      	
              Name:

            	
              Susan
      K. Johnson

            
	 
      	
              Title:

            	
              Vice
      President

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 
      	
              MIZUHO
      CORPORATE BANK (USA)

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/
      Leon Mo

            
	 
      	
              Name:

            	
              Leon
      Mo

            
	 
      	
              Title:

            	
              Senior
      Vice President

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 
      	
              FIFTH
      THIRD BANK

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/
      Dwight E. Hamilton

            
	 
      	
              Name:

            	
              Dwight
      E. Hamilton

            
	 
      	
              Title:

            	
              Sr.
      Vice President

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 
      	
              NATIONAL
      CITY BANK

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/
      Tracy J. Venable

            
	 
      	
              Name:

            	
              Tracy
      J. Venable

            
	 
      	
              Title:

            	
              Senior
      Vice President

            

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 
      	
              OLD
      NATIONAL BANK

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/
      Jennifer S. Barchet

            
	 
      	
              Name:

            	
              Jennifer
      S. Barchet

            
	 
      	
              Title:

            	
              Assistant
      Vice President

            

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    PRICING
SCHEDULE

    

    

    
      	
              Pricing

            	
              Level
      I Status

            	
              Level
      II Status

            	
              Level
      III Status

            	
              Level
      IV Status

            	
              Level
      V Status

            	
              Level
      VI Status

            
	
              Applicable
      Margin for Eurodollar Advances

            	
              0.545%

            	
              0.650%

            	
              0.750%

            	
              1.100%

            	
              1.300%

            	
              1.700%

            
	
              Applicable
      Margin for Floating Rate Advances

            	
              0.00%

            	
              0.00%

            	
              0.00%

            	
              0.00%

            	
              0.00%

            	
              0.00%

            
	
              Applicable
      Fee Rate

              (Facility
      Fee)

            	
              0.08%

            	
              0.10%

            	
              0.125%

            	
              0.150%

            	
              0.20%

            	
              0.30%

            
	
              Applicable
      Fee Rate

              (LC
      Fee)

            	
              0.545%

            	
              0.650%

            	
              0.750%

            	
              1.100%

            	
              1.300%

            	
              1.700%

            

    

    

    For the
purposes of this Schedule, the following terms have the following meanings,
subject to the final paragraph of this Schedule:

     

    “Level I
Status” exists at any date if, on such date, Guarantor’s Moody’s Rating is A2 or
better or Guarantor’s S&P Rating is A or better.

     

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

     

    “Level
III Status” exists at any date if, on such date (i) Guarantor has not qualified
for Level I Status or Level II Status and (ii) Guarantor’s Moody’s Rating is
Baa1 or better and Guarantor’s S&P Rating is BBB+ or better.

     

    “Level IV
Status” exists at any date if, on such date (i) Guarantor has not qualified for
Level I Status, Level II Status or Level III Status and (ii) Guarantor’s Moody’s
Rating is Baa2 or better and Guarantor’s S&P Rating is BBB or
better.

     

    “Level V
Status” exists at any date if, on such date (i) Guarantor has not qualified for
Level I Status, Level II Status, Level III Status or Level IV Status and (ii)
Guarantor’s Moody’s Rating is Baa3 or better and Guarantor’s S&P Rating is
BBB- or better.

     

    “Level VI
Status” exists at any date if, on such date, Guarantor has not qualified for
Level I Status, Level II Status, Level III Status, Level IV Status or Level V
Status.

     

    “Moody’s
Rating” means, at any time, the corporate credit rating (without third-party
credit enhancement) issued by Moody’s and then in effect or the issuer’s rating
issued by Moody’s and then in effect with respect to Guarantor.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

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

     

    “S&P
Rating” means, at any time, the corporate credit rating (without third-party
credit enhancement) issued by S&P and then in effect or the issuer’s rating
issued by S&P and then in effect with respect to Guarantor.

     

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

     

    On the
date hereof, Guarantor has qualified for Level II Status.

     

    The
Applicable Margin and Applicable Fee Rate shall be determined in accordance with
the foregoing table based on Guarantor’s Status as determined from its
then-current Moody’s and S&P Ratings.  The credit rating in effect
on any date for the purposes of this Schedule is that in effect at the close of
business on such date.  If at any time Guarantor has no Moody’s Rating
or no S&P Rating, but has a Rating, the Status shall be determined based on
the Rating that is then in effect.  If at any time Guarantor has no
Moody’s Rating and has no S&P Rating, Level VI Status shall
exist.  If Guarantor is split rated and the rating differential is two
credit rating levels or more, then the intermediate credit rating at the
midpoint (or, if there is no midpoint, the higher of the two credit ratings)
shall apply.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
I

    

    COMMITMENTS

    

    
      	 	
              Lender

            	 	
              Commitment

            	 
	 	
              Bank
      of America, N.A.

            	 	$	25,000,000.00	 
	 	
              JPMorgan
      Chase Bank, N.A.

            	 	$	25,000,000.00	 
	 	
              Union
      Bank of California, N.A.

            	 	$	25,000,000.00	 
	 	
              Mizuho
      Corporate Bank (USA)

            	 	$	15,000,000.00	 
	 	
              Fifth
      Third Bank

            	 	$	10,000,000.00	 
	 	
              National
      City Bank

            	 	$	10,000,000.00	 
	 	
              Old
      National Bank

            	 	$	10,000,000.00	 
	 	 
      	 	 	 	 
	 	 
      	 	 	 	 
	 	 
      	 	 	 	 
	 	
              Total

            	 	$	120,000,000.00	 

    

     

     

     

    
 

    
      
        I-1 

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
5.7

     

    LITIGATION

     

    Environmental
Matters

     

    Clean
Air Act Initiatives

     

    In March
of 2005 USEPA finalized two new air emission reduction regulations. The Clean
Air Interstate Rule (CAIR) is an allowance cap and trade program requiring
further reductions in Nitrogen Oxides (NOx) and Sulfur Dioxide (SO2) emissions
from coal-burning power plants. The Clean Air Mercury Rule (CAMR) is an
allowance cap and trade program requiring further reductions in mercury
emissions from coal-burning power plants. However, on February 8, 2008, the US
Court of Appeals for the District of Columbia vacated the federal CAMR
regulations and on July 11, 2008, the same court vacated the federal CAIR
regulations. At this time it is uncertain how this decision will affect
Indiana's implementation plans for those regulations. Utilization of the
Guarantor's inventory of NOx and SO2 allowances may also be impacted by these
decisions; however, most of these allowances were granted to the Guarantor at
zero cost, so a reduction in carrying value is not expected.

     

    To comply
with Indiana's implementation plan of the Clean Air Act of 1990 and to comply
with potential future regulations of mercury and further NOx and SO2,
reductions, Guarantor's utility subsidiary, Southern Indiana Gas and Electric
Company (“SIGECO”) has the Indiana Utility Regulatory Commission (“IURC”)
authority to invest in clean coal technology. Using this authorization, SIGECO
has invested approximately $307 million in pollution control equipment,
including Selective Catalytic Reduction (SCR) systems and fabric filters. SCR
technology is the most effective method of reducing NOx emissions where high
removal efficiencies are required and fabric filters control particulate matter
emissions. These investments were included in rate base for purposes of
determining new base rates that went into effect on August 15, 2007. Prior to
being included in base rates, return on investments made and recovery of related
operating expenses were recovered through a rider mechanism.

     

    Further,
the IURC granted SIGECO authority to invest in an SO2 scrubber at its generating
facility that is jointly owned with ALCOA (SIGECO's portion is 150 MW). The
order, as updated with an increased spending level, allows SIGECO to recover an
approximate 8 percent return on up to $92 million, excluding AFUDC, in capital
investments through a rider mechanism which is updated every six months for
actual costs incurred. SIGECO may file periodic updates with the IURC requesting
modification to the spending authority. As of June 30, 2008, SIGECO has invested
approximately $73 million in this project. SIGECO expects the SO2 scrubber will
be operational by early 2009. At that time, operating expenses including
depreciation expense associated with the scrubber are expected to be recovered
through a rider mechanism.

     

    Once the
SO2 scrubber is operational, SIGECO’s coal fired generating fleet will be 100
percent scrubbed for SO2 and 90 percent controlled for NOx. SIGECO’s investments
in scrubber, SCR and fabric filter technology allows for compliance with
existing regulations that are unaffected by these recent court decisions and
should position it to comply with future

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    reasonable
pollution control legislation, if and when, reductions in mercury and further
reductions in NOx and SO2, are promulgated by USEPA and/or the District of
Columbia US Court of Appeals rulings are overturned. It is also possible that
CAMR and CAIR regulations being vacated will lead to increased support for the
passage of a multi-pollutant bill in Congress.

     

    Legislative
Actions and Other Climate Change Initiatives Regarding Climate
Change

     

    There are
currently several forms of legislation being circulated at the federal level
addressing the climate change issue. The most prominent of these proposals is
the Lieberman-Warner climate change bill, which mandates a cap on greenhouse gas
emissions beginning in 2012 and the auctioning and subsequent trading of
allowances among those that emit greenhouse gases. The Senate was unable to end
debate of Lieberman-Warner bill, and therefore it was removed from the 2008
calendar. Guarantor anticipates continuing federal legislative efforts modeled
on either the Lieberman-Warner cap and trade proposal or a carbon
tax.

     

    In the
absence of federal legislation, several regional initiatives throughout the
United States are in the process of establishing regional cap and trade
programs. While no climate change legislation is pending in the State of
Indiana, the State is an observer of the Midwestern Regional Greenhouse Gas
Reduction Accord, and its legislature debated, but did not pass, renewable
energy portfolio standards in 2007.

     

    In April
of 2007, the US Supreme Court determined that greenhouse gases meet the
definition of “air pollutant” under the Clean Air Act and ordered the USEPA to
determine whether greenhouse gas emissions from new motor vehicles cause or
contribute to air pollution that may reasonably be anticipated to endanger
public health or welfare. Should the USEPA find such endangerment, it is likely
that major stationary sources will be subject to regulation under the Act. USEPA
has recently released its Advanced Notice of Proposed Rulemaking in which the
agency is soliciting comment as to whether it is appropriate or effective to
regulate greenhouse gas emissions under the Act.

     

    Impact
of Legislative Actions and Other Initiatives is Unknown

     

    If
legislation requiring reductions in CO2, and other greenhouse gases or
legislation mandating a renewable energy portfolio standard is adopted, such
regulation could substantially affect both the costs and operating
characteristics of Guarantor's fossil fuel generating plants and nonutility coal
mining operations. At this time and in the absence of final legislation,
compliance costs and other effects associated with reductions in greenhouse gas
emissions or obtaining renewable energy sources remain uncertain. Guarantor has
gathered preliminary estimates of the costs to comply with the Lieberman-Warner
climate change bill. A preliminary investigation demonstrated costs to comply
would be significant, first to operating expenses for the purchase of
allowances, and later to capital expenditures as technology becomes available to
control greenhouse gas emissions. However, these compliance costs estimates are
very sensitive to highly uncertain assumptions, including allowance prices.
Costs to purchase allowances that cap greenhouse gas emissions should be
considered a cost of providing electricity, and as such, Guarantor believes
recovery should be timely reflected in rates charged to customers. Approximately
20 percent of electric volumes sold in 2007 were delivered to municipal and
other wholesale customers. As such, Guarantor has some flexibility to modify the
level of these

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    transactions
to reduce overall emissions and reduce costs associated with complying with new
environmental regulations.

     

    Environmental
Remediation Efforts

     

    In the
past, Indiana Gas Company, Inc., a subsidiary of Guarantor (“Indiana Gas”),
SIGECO, and others operated facilities for the manufacture of gas. Given the
availability of natural gas transported by pipelines, these facilities have not
been operated for many years. Under currently applicable environmental laws and
regulations, those that operated these facilities may now be required to take
remedial action if certain contaminants are found above the regulatory
thresholds at these sites.

     

    Indiana
Gas identified the existence, location, and certain general characteristics of
26 gas manufacturing and storage sites for which it may have some remedial
responsibility. Indiana Gas completed a remedial investigation/feasibility study
(RIFS) at one of the sites under an agreed order between Indiana Gas and the
Indiana Department of Environmental Management (“IDEM”), and a Record of
Decision was issued by the IDEM in January 2000. Indiana Gas submitted the
remainder of the sites to the IDEM's Voluntary Remediation Program (VRP) and is
currently conducting some level of remedial activities, including groundwater
monitoring at certain sites, where deemed appropriate, and will continue
remedial activities at the sites as appropriate and necessary.

     

    Indiana
Gas accrued the estimated costs for further investigation, remediation,
groundwater monitoring, and related costs for the sites. While the total costs
that may be incurred in connection with addressing these sites cannot be
determined at this time, Indiana Gas has recorded costs that it reasonably
expects to incur totaling approximately $21 million.

     

    The
estimated accrued costs are limited to Indiana Gas' share of the remediation
efforts. Indiana Gas has arrangements in place for 19 of the 26 sites with other
potentially responsible parties (PRP), which serve to limit Indiana Gas' share
of response costs at these 19 sites to between 20 percent and 50 percent. With
respect to insurance coverage, Indiana Gas has received and recorded settlements
from all known insurance carriers under insurance policies in effect when these
plants were in operation in an aggregate amount approximating $20
million.

     

    In
October 2002, SIGECO received a formal information request letter from the IDEM
regarding five manufactured gas plants that it owned and/or operated and were
not enrolled in the IDEM's VRP. In October 2003, SIGECO filed applications to
enter four of the manufactured gas plant sites in IDEM's VRP. The remaining site
is currently being addressed in the VRP by another Indiana utility. SIGECO added
those four sites into the renewal of the global Voluntary Remediation Agreement
that Indiana Gas has in place with IDEM for its manufactured gas plant sites.
That renewal was approved by the IDEM in February 2004. SIGECO is also named in
a lawsuit filed in federal district court in May 2007, involving another site
subject to potential environmental remediation efforts.

     

    SIGECO
has filed a declaratory judgment action against its insurance carriers seeking a
judgment finding its carriers liable under the policies for coverage of further
investigation and any necessary remediation costs that SIGECO may accrue under
the VRP program and/or related

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    to the
site subject to the May 2007 lawsuit. While the total costs that may be incurred
in connection with addressing these sites cannot be determined at this time,
SIGECO has recorded costs that it reasonably expects to incur totaling
approximately $8 million. With respect to insurance coverage, SIGECO has
received and recorded settlements from insurance carriers under insurance
policies in effect when these sites were in operation in an aggregate amount
approximating the costs it expects to incur.

    

    Environmental
remediation costs related to Indiana Gas' and SIGECO's manufactured gas plants
and other sites have had no material impact on results of operations or
financial condition since costs recorded to date approximate PRP and insurance
settlement recoveries. While Guarantor's utilities have recorded all costs which
they presently expect to incur in connection with activities at these sites, it
is possible that future events may require some level of additional remedial
activities which are not presently foreseen and those costs may not be subject
to PRP or insurance recovery.

     

     

     

     

     

    
      
        5.7-1 

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
5.8

     

    SUBSIDIARIES
AND OTHER INVESTMENTS

     

    

    
      	
              Investment

              In

            	 	
              Jurisdiction
      of

              Organization

            	 	
              Owned

              By

            	 	
              Percent

              Ownership

            
	
              IEI
      Capital Corp.

            	 	
              Indiana

            	 	
              Vectren
      Capital, Corp.

            	 	
              100%

            
	 
      	 	 
      	 	 
      	 	 
      

    

     

     

     

     

     

    
 

    
      
         
5.8-1

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
5.14

     

    INDEBTEDNESS
AND LIENS

     

    (A)           Liens

     

    None.

     

     

    (B)           Existing
Indebtedness

     

     

    
      	
              1.

            	
              Reimbursement
      Obligations of Vectren Corporation in connection with a letter of credit
      issued by Old National Bank in favor of Black Panther Mining, LLC in the
      amount of $2,280,000.

            

    

     

     

    
      	
               
      

            	
              2.

            	
              Reimbursement
      Obligations of Vectren Corporation in connection with a letter of credit
      issued by Old National Bank in favor of Black Panther Mining, LLC in the
      amount of $2,890,000.

            

    

     

    
      	
               
      

            	
              3.

            	
              Reimbursement
      Obligations of Vectren Corporation in connection with a letter of credit
      issued by Old National Bank in favor of Vigo Coal in the amount of
      $1,500,000.

            

    

     

    
      	
               
      

            	
              4.

            	
              Reimbursement
      Obligations of Miller Pipeline, a subsidiary of Vectren Corporation, in
      connection with a letter of credit issued by Bank of America in favor of
      Zurich Insurance in the amount of
$2,700,000.

            

    

     

    
      	
               
      

            	
              5.

            	
              Reimbursement
      Obligations of Miller Pipeline, a subsidiary of Vectren Corporation, in
      connection with a letter of credit issued by Bank of America in favor of
      Liberty Insurance in the amount of
$2,800,000.

            

    

     

    
      	
               
      

            	
              6.

            	
              Reimbursement
      Obligations of Vectren Corporation in connection with a letter of credit
      issued by Fifth Third Bank in favor of Liberty Insurance in the amount of
      $25,000.

            

    

     

    
      	
               
      

            	
              7.

            	
              Reimbursement
      Obligations of Vectren Corporation in connection with a letter of credit
      issued by Fifth Third Bank in favor of Zurich Insurance in the amount of
      $1,565,602.

            

    

     

     

    
 

    
      
        5.14-1 

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
5.16

     

    ENVIRONMENTAL
MATTERS

     

    See Schedule 5.7, which
Schedule is incorporated herein by this reference.

     

     

     

     

     

    
 

    
      
         
5.16-1

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
6.18

     

    CERTAIN
RESTRICTIONS

     

    

    
      	
              1.

            	
              The
      payment of cash dividends on SIGECO's common stock to VUHI is, in effect,
      restricted by SIGECO's First Mortgage Indenture (the "Mortgage"). The
      Mortgage restricts dividends to accumulated surplus available for
      distribution to common stock earned subsequent to December 31, 1947 if
      amounts deducted from earnings for current repairs and maintenance and
      provisions for renewals, replacements and depreciation of all the property
      of SIGECO are less than amounts specified in the Mortgage. (Section 1.02
      of the Supplemental Indenture dated as of July 1, 1948, as supplemented.)
      No amount was restricted against cash dividends on common stock as of
      December 31, 2007 under this
restriction.

            

    

    

     

     

     

     

    
 

    
      
        6.18-1 

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
14.1

     

    NOTICE
INFORMATION

    

    VECTREN CAPITAL,
CORP.

    

    One
Vectren Square

    Evansville,
Indiana  47708

    Attention:
Robert L. Goocher

    Telephone:  (812)
491-4080

    FAX:  (812)
491-4346

    

    VECTREN
CORPORATION

    

    One
Vectren Square

    Evansville,
Indiana  47708

    Attention:
Robert L. Goocher

    Telephone:  (812)
491-4080

    FAX:  (812)
491-4346

    

    BANK OF AMERICA,
N.A.,

    as
Administrative Agent

    

    daily borrowing, conversions
and continuations:

    

    Jennifer
Ollek

    BANK OF
AMERICA PLAZA

    901 MAIN
ST

    DALLAS TX
75202

     Telephone:   (214)-209-2642

    Fax:  (214)-290-8374

    Jennifer.ollek@bankofamerica.com

    

    Other Notices—Financials
& Compliance Certificate

    

    Bozena
Janociak

    Agency
Officer

    Bank of
America

    231 South
LaSalle Street

    Chicago,
Illinois  60604

    Mail
Code: IL1-231-10-41

    Telephone:  (312)
828-3597

    Fax:  (877)
207-0732

    Email:
bozena.janociak@BankofAmerica.com

    
      
         

      

      
        14.1-1

        
          

        

      

      
         

      

    

    

    BANK OF AMERICA,
N.A.,

    as LC
Issuer

     

    Issuing Standby Letters of
Credit

     

    

    Tai Anh
Lu

    Bank of
America, N.A.

    Trade
Operations – Los Angeles

    1000 W.
Temple St.

    Mail
Code: CA9-705-07-05

    Los
Angeles, CA 90012-1514

    Telephone:
(213) 481-7840

    Fax:
(213) 580-8442

    Email: tai_anh.lu@bankofamerica.com

     

    Issuing Commercial Letters
of Credit

     

    

    Frantz
Bellevue

    Bank of
America, N.A.

    Trade
Operations – Los Angeles

    1000 W.
Temple St.

    Mail
Code: CA9-705-07-05

    Los
Angeles, CA 90012-1514

    Telephone:
(213) 580-8476

    Fax:
(213) 457-8841

    Email:
frantz.bellevue@bankofamerica.com

    

    BANK OF AMERICA,
N.A.,

    as a
Lender

    

    231 S.
LaSalle Street

    IL
231-06-46

    Chicago,
IL 60604

    Attention:  Carlos
Morales

    Fax:
(312) 828-7393

    email:
carlos.e.morales@bankofamerica.com

    

    

    JPMORGAN CHASE BANK,
N.A.,

    Individually
and as Co-Syndication Agent

    

    Notices
(other than Borrowing Notices):

    

    600
Travis, 20th Floor

    Houston,
TX 77030

    
      
         

      

      
        14.1-2

        
          

        

      

      
         

      

    

    

    

    Attention:  Robert
Traband

    Telephone:
(713) 216-1081

    FAX:
(713) 216-8870

    Email:
robert.traband@jpmorgan.com

    

    Borrowing
Notices:

    

    Loan
& Agency Services

    1111
Fannin 10FL

    Houston
TX, 77002

    Telephone:  (713)
750-2267

    FAX:  (713)
427-6307

    

    UNION BANK OF CALIFORNIA,
N.A.,

    Individually
and as Co-Syndication Agent

    

    Energy
Capital Services

    445 S.
Figueroa Street, 15th Floor

    Los
Angeles, CA 90071

    Attention:
Susan Johnson

    Telephone
(213) 236-4125

    FAX:
(213) 236-4096

    E-mail:
susan.johnson@uboc.com

    

    MIZUHO CORPORATE BANK
(USA)

    1251
Avenue of the Americas

    New York,
New York 10020

    Attention:
Nelson Chang

    Telephone:
(212) 282-3465

    FAX:
(212) 282-4488

    E-mail:
nelson.chang@mizuhocbus.com

    

    FIFTH THIRD
BANK

    20 NW
Third Street

    Evansville,
Indiana 47739-0001

    Attention:
Dwight Hamilton

    Telephone:
(812) 456-3394

    FAX:
(812) 456-4060

    E-mail:
Dwight.Hamilton@53.com

    

    NATIONAL CITY
BANK

    101 W.
Washington Street

    Indianapolis,
IN 46255

    Attention:
Tracy Venable

    Telephone:
(317) 267-7066

    
      
         

      

      
        14.1-3

        
          

        

      

      
         

      

    

    FAX:
(317) 267-6249

    E-mail:
tracy.venable@nationalcity.com

    

    OLD NATIONAL
BANK

    One Main
Street, 2nd Floor

    Evansville,
Indiana 47708

    Attention:
Jennifer S. Barchet

    Telephone:
(812) 461-9723

    FAX:
(812) 464-1262

    Email: jennifer.barchet@oldnational.com

    

    

    

    

    
      
         

      

      
        14.1-4

        
          

        

      

      
         

      

    

    EXHIBIT
A

    FORM OF REVOLVING CREDIT
NOTE

     

     

    
      	
              $________________________

            	
              Date:
      _________________, 200____

            
	 
      	
              Chicago,
      Illinois

               

            

    

    FOR VALUE
RECEIVED, VECTREN CAPITAL, CORP., an Indiana corporation (“Borrower”), hereby
promises to pay to the order of                                                  
(the “Lender”),
or its assigns, at the main office of BANK OF AMERICA, N.A. (the “Administrative
Agent”), as Administrative Agent under the Agreement (hereinafter
defined) in Chicago, Illinois, or at such other place as the holder hereof may
designate in writing, the principal sum of __________ Dollars ($), or the
aggregate unpaid principal amount of all Revolving Loans made by the Lender to
Borrower pursuant to Article II of the Agreement, in lawful money of the United
States of America and in immediately available funds, together with interest on
the unpaid principal balance existing from time to time at the per annum rates
and on the dates set forth in the Agreement.  Borrower shall pay the
principal and accrued and unpaid interest on the Revolving Loans in full on the
Commitment Termination Date and shall make such mandatory payments as are
required to be made under the terms of Article II of the Agreement.

     

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

     

    This Note
is issued pursuant to, is entitled to the benefit of, and is subject to the
provisions of that certain Credit Agreement dated as of September 11, 2008
among Borrower, Vectren Corporation, the lenders party thereto, including the
Lender, and Bank of America, N.A., as the Administrative Agent for the Lenders
(as the same may be amended from time to time, the “Agreement”), to which
Agreement reference is hereby made for a statement of the terms and conditions
governing this Note, including, without limitation, the terms and conditions
under which this Note may be prepaid or its maturity date
accelerated.  This Note is guaranteed, as more specifically described
in the Agreement, and reference is made thereto for a statement of the terms and
provisions thereof.  Capitalized terms used herein and not otherwise
defined herein are used with the meanings attributed to them in the
Agreement.

     

    Subject
to any applicable grace or cure period set forth in the Agreement, if Borrower
fails to make the payment of any installment of principal or interest, as
provided in the Agreement, or upon the occurrence of any other Default, then in
any of such events, or at any time thereafter prior to such Default being cured,
the entire principal balance of this Note, and all accrued and unpaid interest
thereon, irrespective of the maturity date specified herein or in the Agreement,
together with reasonable attorneys’ fees and other costs incurred in collecting
or enforcing payment or performance hereof and with interest from the date of
Default on the unpaid principal balance hereof at the Default rate specified in
Section 2.11 of the Agreement, shall, at the election of the Required
Lenders (except as otherwise provided for automatic acceleration on the
occurrence of certain Defaults specified in the Agreement), and without relief
from valuation and appraisement laws, become immediately due and
payable.

     

    
      
         

      

      
        A-1

        
          

        

      

      
         

      

    

    Borrower
and all endorsers, guarantors, sureties, accommodation parties hereof and all
other parties liable or to become liable for all or any part of this
indebtedness, severally waive demand, presentment for payment, notice of
dishonor, protest and notice of protest and expressly agree that this Note and
any payment coming due under it may be extended or otherwise modified from time
to time without in any way affecting their liability hereunder.

     

    Notice of
acceptance of this Note by the Lender is hereby waived.

     

    BORROWER,
AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL,
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL
BY JURY IN ANY LITIGATION BASED UPON OR ARISING OUT OF THIS NOTE OR ANY OTHER
LOAN DOCUMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED BY THIS NOTE OR ANY COURSE
OF CONDUCT, DEALING, STATEMENTS, WHETHER ORAL OR WRITTEN, OR ACTIONS OF BORROWER
OR ANY OF THE LENDERS.  BORROWER SHALL NOT SEEK TO CONSOLIDATE, BY
COUNTERCLAIM OR OTHERWISE, ANY ACTION IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH
ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN
WAIVED.  THESE PROVISIONS SHALL NOT BE DEEMED TO HAVE BEEN MODIFIED IN
ANY RESPECT OR RELINQUISHED BY THE LENDERS EXCEPT BY WRITTEN INSTRUMENT EXECUTED
BY BORROWER, THE LENDER AND THE OTHER LENDERS.

     

    IN
WITNESS WHEREOF, Borrower has caused this Note to be executed by its duly
authorized officer as of the day and year first hereinabove
written.

     

    
      	
              VECTREN
      CAPITAL, CORP.

               

            
	
              By:

               

            
	
              Its:

            

    

    
      
         

      

      
        A-2

        
          

        

      

      
         

      

    

    SCHEDULE OF REVOLVING
LOANS

    AND PAYMENTS OF
PRINCIPAL

     

    BORROWER:                                VECTREN
CAPITAL, CORP.

    NOTE
DATED:                                           _________,
200_

    

    
      	
              
                Date

              

            	 	
              
                Principal

                Amount

                of
      Loan

              

            	 	
              
                Type

                of
      Loan

              

            	 	
              
                Maturity

                of
      Interest

                Period

              

            	 	
              
                Amount
      of

                Principal
      Repaid

              

            	 	
              
                Unpaid

                Balance

              

            	 	
              
                Maturity

              

            

    

    

     

     

     

     

     

    
 

    
      
         

      

      
        A-3

        
          

        

      

      
         

      

    

    EXHIBIT
B

     

    FORM OF BORROWING
NOTICE

     

     

    

     

    Date:  ___________,
_____

    
      	
              To:

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

            

    

     

    
      	
               
      

            	
              Ladies
      and Gentlemen:

            

    

     

    Reference
is made to that certain Credit Agreement, dated as of September 11, 2008 (as amended, restated,
extended, supplemented or otherwise modified in writing from time to time, the
“Agreement;”
the terms defined therein being used herein as therein defined), among Vectren
Capital, Corp. (the “Borrower”), Vectren
Corporation (the “Guarantor”), the
Lenders from time to time party thereto, and Bank of America, N.A., as
Administrative Agent and LC Issuer.

     

    The
undersigned hereby requests (select one):

     

    
      	
              o  A
      borrowing of an Advance

            	
              o  A
      conversion or continuation of an
Advance

            

    

     

    
      	
              1.

            	
              On

            	 
      	
               
      (a Business Day).

            	 
      
	 
      	 
      	 
      	 
      	 
      
	
              2.

            	
              In
      the amount of $

            	 
      	
              .

            	 
      
	 
      	 
      	 
      	 
      	 
      
	
              3.

            	
              Comprised
      of

            	 
      	 
      	
              .

            
	 
      	 
      	
              [Type
      of Advance requested]

            	 
      	 
      
	 
      	 
      	 
      	 
      
	
              4.

            	
              For
      Eurodollar Advances:  with an Interest Period of ______
      months.

            	 
      

    

    The
Advance requested herein complies with the limitations contained in the second
sentence of Section
2.1 of the Agreement.

     

    

     

    
      	 
      	
              VECTREN
      CAPITAL, CORP.

            
	 
      	 
      	 
      
	 
      	
              By:

            	 
      
	 
      	
              Name:

            	 
      
	 
      	
              Title:

            	 
      

    

    

     

     

    

    

    
      
        B-1 

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
C

    FORM OF COMPLIANCE
CERTIFICATE

     

     

    To:           The
Lenders parties to the

     Credit Agreement Described
Below

     

    This
Compliance Certificate is furnished pursuant to that certain Credit Agreement
dated as of September 11, 2008 (as amended, modified, renewed or extended
from time to time, the “Agreement”) among
VECTREN CAPITAL, CORP. (“Borrower”), VECTREN
CORPORATION, the lenders party thereto and Bank of America, N.A., as
Administrative Agent for the Lenders.  Unless otherwise defined
herein, capitalized terms used in this Compliance Certificate have the meanings
ascribed thereto in the Agreement.

     

    THE
UNDERSIGNED HEREBY CERTIFIES THAT:

     

    
      	
              1.

            	
              I
      am the duly elected _____________ of Borrower;

            
	 	 
	
              2.

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

            
	 	 
	
              3.

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

            
	 	 
	
              4.

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

            

    

     

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

     

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

     

    
      	 	
              VECTREN
      CAPITAL, CORP.

            
	 	 
	 	
              By:

            
	 	 
	 	
              Its:

            

    

     

     

     

    
 

    
      
        C-1 

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
I TO COMPLIANCE CERTIFICATE

     

    Compliance
as of ______, ____ with

    Provisions
of ____and ____ of

    the
Agreement

     

     

     

     

     

     

    
      
        C-2 

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
D

    

    [INTENTIONALLY
OMITTED]

     

     

     

     

     

     

     

    
 

    
      
        D-1 

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
E

    FORM OF ASSIGNMENT AND
ASSUMPTION

     

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

    

    For an
agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns
to [the Assignee][the respective Assignees], and [the][each] Assignee hereby
irrevocably purchases and assumes from [the Assignor][the respective Assignors],
subject to and in accordance with the Standard Terms and Conditions and the
Credit Agreement, as of the Effective Date inserted by the Administrative Agent
as contemplated below (i) all of [the Assignor’s][the respective Assignors’]
rights and obligations in [its capacity as a Lender][their respective capacities
as Lenders] under the Credit Agreement and any other documents or instruments
delivered pursuant thereto to the extent related to the amount and percentage
interest identified below of all of such outstanding rights and obligations of
[the Assignor][the respective Assignors] under the respective facilities
identified below (including, without limitation, the Letters of Credit included
in such facilities5) and (ii) to the extent permitted to be
assigned under applicable law, all claims, suits, causes of action and any other
right of [the Assignor (in its capacity as a Lender)][the respective Assignors
(in their respective capacities as Lenders)] against any Person, whether known
or unknown, arising under or in connection with the Credit Agreement, any other
documents or instruments delivered pursuant thereto or the loan transactions
governed thereby or in any way based on or related to any of the foregoing,
including, but not limited to, contract claims, tort claims, malpractice claims,
statutory claims and all other claims at law or in equity related to the rights
and obligations sold and assigned pursuant to clause (i) above (the
rights and obligations sold and assigned by [the][any] Assignor to [the][any]
Assignee pursuant to clauses (i) and (ii) above being
referred to herein collectively as [the][an] “Assigned
Interest”).  Each such sale and assignment is without recourse
to [the][any] Assignor and, except as expressly provided in this Assignment and
Assumption, without representation or warranty by [the][any]
Assignor.

    

    1.           Assignor[s]:                                ______________________________

    

      

    

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

    

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

    

    
      3 Select as appropriate.  

    

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

    

    
      5 Include all applicable
subfacilities.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            
	
              2.

            	
              Assignee[s]:

            	
               

            
	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            
	
               

            	
              [for
      each Assignee, indicate [Affiliate][Approved Fund] of [identify
      Lender]]

            
	
               

            	
               

            	
               

            
	
              3.

            	
              Borrower(s):

            	
               

            
	
               

            	
               

            	
               

            
	
              4.

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

            
	
               

            	
               

            	
               

            
	
              5.

            	
              Credit Agreement:

            	
              Credit
      Agreement, dated as of September 11, 2008, among Vectren Capital, Corp.,
      Vectren Corporation, the Lenders from time to time party thereto, and Bank
      of America, N.A., as Administrative Agent and LC Issuer

            
	
               

            	
               

            	
               

            
	
              6.

            	
              Assigned Interest[s]:

            	
               

            

    

     

    
      	
              Assignor[s]6

            	
              Assignee[s]7

            	
              Facility

              Assigned8

            	
              Aggregate

              Amount
      of

              Commitment/Loans

              for all Lenders9

            	
              Amount
      of

              Commitment/Loans

              Assigned

            	
              Percentage

              Assigned
      of

              Commitment/

              Loans10

            	
              CUSIP

              Number

            
	
            	
            	
            	
            	
            	
            	
               

            
	
            	
            	
              ____________

            	
              $________________

            	
              $_________

            	
               ____________%

            	
               

            
	
            	
            	
              ____________

            	
              $________________

            	
              $_________

            	
              ____________%

            	
            
	
            	
            	
               ____________

            	
              $________________

            	
              $_________

            	
               ____________%

            	
               

            

    

     

    [7.           Trade
Date:                                __________________]11

     

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

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

    
      	
               

            	
              ASSIGNOR

            
	
               

            	
              [NAME
      OF ASSIGNOR]

            
	
               

            	
               

            	
               

            
	
               

            	
              By:

            	
               

            
	
               

            	
               

            	
              Title:

            
	
               

            	
               

            	
               

            
	
               

            	
              ASSIGNEE

            

    

    

      

    

      
      
        

      

      6 List each Assignor, as
appropriate.  

    

    
      7 List each Assignee, as
appropriate.  

    

    
      8 Fill in the appropriate terminology
for the types of facilities under the Credit Agreement that are being assigned
under this Assignment (e.g. “Revolving Credit Commitment”, “Term Loan
Commitment”, etc.).  

    

    
      9 Amounts in this column and in the
column immediately to the right to be adjusted by the counterparties to take
into account any payments or prepayments made between the Trade Date and the
Effective Date.  

    

    
      10 Set forth, to at least 9 decimals, as
a percentage of the Commitment/Loans of all Lenders thereunder.  

    

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

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               

            	
               

            	
               

            	
              [NAME
      OF ASSIGNEE]

            
	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
              By:

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
              Title:

            
	
              [Consented
      to and]12 Accepted:

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            
	
              BANK
      OF AMERICA, N.A., as Administrative Agent

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            
	
              By:

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Title:

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            
	
              [Consented
      to:]13

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            
	
              By:

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Title:

            	
               

            	
               

            	
               

            

    

    

      

    

      
      
        

      

      12 To be added only if the consent of the
Administrative Agent is required by the terms of the Credit
Agreement.  

    

    
      13 To be added only if the consent of
Borrower and/or other parties (e.g. LC Issuer) is required by the terms of the
Credit Agreement.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ANNEX
1 TO ASSIGNMENT AND ASSUMPTION

    

    [___________________]14

    

    STANDARD
TERMS AND CONDITIONS FOR

    

    ASSIGNMENT
AND ASSUMPTION

    

    1.         Representations and
Warranties.

    

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

    

    1.2.              Assignee.  [The][Each]
Assignee (a) represents and warrants that (i) it has full power and authority,
and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become
a Lender under the Credit Agreement, (ii) it meets all the requirements to be an
assignee under Sections 12.2.3,
12.2.5 and
12.2.6 of the
Credit Agreement (subject to such consents, if any, as may be required under
Section 12.2.6
of the Credit Agreement), (iii) from and after the Effective Date, it shall be
bound by the provisions of the Credit Agreement as a Lender thereunder and, to
the extent of [the][the relevant] Assigned Interest, shall have the obligations
of a Lender thereunder, (iv) it is sophisticated with respect to decisions to
acquire assets of the type represented by [the][such] Assigned Interest and
either it, or the Person exercising discretion in making its decision to acquire
[the][such] Assigned Interest, is experienced in acquiring assets of such type,
(v) it has received a copy of the Credit Agreement, and has received or has been
accorded the opportunity to receive copies of the most recent financial
statements delivered pursuant to Section 6.1 thereof,
as applicable, and such other documents and information as it deems appropriate
to make its own credit analysis and decision to enter into this Assignment and
Assumption and to purchase [the][such] Assigned Interest, (vi) it has,
independently and without reliance upon the Administrative Agent or any other
Lender and based on such documents and information as it has deemed appropriate,
made its own credit analysis and decision to enter into this Assignment and
Assumption and to purchase [the][such] Assigned Interest, and (vii) if it is a
Foreign Lender, attached hereto is any documentation required to be delivered by
it pursuant to the terms of the Credit Agreement, duly completed and executed by
[the][such] Assignee; and (b) agrees that (i) it will, independently and without
reliance upon the Administrative Agent, [the][any] Assignor or any other Lender,
and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not

    

      
        

      

    

    
      14 Describe Credit Agreement
at option of Administrative Agent.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    taking
action under the Loan Documents, and (ii) it will perform in accordance with
their terms all of the obligations which by the terms of the Loan Documents are
required to be performed by it as a Lender.

    

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

    

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

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    EXHIBIT
F

     

    FORM OF INCREASE
REQUEST

     

    __________________,
200____

     

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

    under the
Credit Agreement referred to below

     

    Ladies/Gentlemen:

     

    Please
refer to the Credit Agreement dated as of September 11, 2008 among Vectren
Capital, Corp. (“Borrower”), Vectren
Corporation, as Guarantor, various financial institutions and Bank of America,
N.A., as Administrative Agent (as amended, modified, extended or restated from
time to time, the “Credit
Agreement”).  Capitalized terms used but not defined herein
have the respective meanings set forth in the Credit Agreement.

     

    In
accordance with Section 2.19 of the Credit Agreement, Borrower hereby requests
an increase in the Aggregate Commitment from $__________ to
$__________.  Such increase shall be made by [increasing the
Commitment of ____________ from $________ to $________] [adding _____________ as
a Lender under the Credit Agreement with a Commitment of $____________] as set
forth in the letter attached hereto.  Such increase shall be effective
three Business Days after the date that the Administrative Agent accepts the
letter attached hereto or such other date as is agreed among Borrower, the
Administrative Agent and the [increasing] [new] Lender.

     

    

     

    
      	 
      	
              Very
      truly yours,

               

              VECTREN
      CAPITAL, CORP.

            
	 
      	 
      	 
      
	 
      	
              By:

            	 
      
	 
      	
              Name:

            	 
      
	 
      	
              Title:

            	 
      

    

    

    
      
         

      

      
        F-1

        
          

        

      

      
         

      

    

    Acknowledged.  The
obligations of the

    undersigned
under the Credit Agreement

    (including
Article XIII
thereof) shall remain

    in full
force and effect after the effectiveness

    of the
foregoing increase in the Aggregate

    Commitment.

     

    

     

    
      	
              VECTREN
      CORPORATION, as Guarantor

            	 
	 
      	 
      	 
	
              By:

            	 
      	 
	
              Name:

            	 
      	 
	
              Title:

            	 
      	 

    

     

     

     

     

    
 

    
      
         

      

      
        F-2

        
          

        

      

      
         

      

    

    ANNEX I
TO EXHIBIT F

     

    _____,
200__

     

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

    under the
Credit Agreement referred to below

     

    Ladies/Gentlemen:

     

    Please
refer to the letter dated __________, 200__ from Vectren Capital, Corp. (“Borrower”) requesting
an increase in the Aggregate Commitment from $__________ to $__________ pursuant
to Section 2.19 of the Credit Agreement dated as of September 11, 2008
among Borrower, Vectren Corporation, as Guarantor, various financial
institutions and Bank of America, N.A., as Administrative Agent (as amended,
modified, extended or restated from time to time, the “Credit
Agreement”).  Capitalized terms used but not defined herein
have the respective meanings set forth in the Credit Agreement.

     

    The
undersigned hereby confirms that it has agreed to increase its Commitment under
the Credit Agreement from $__________ to $__________ effective on the date which
is three Business Days after the acceptance hereof by the Administrative Agent
or on such other date as may be agreed among Borrower, the Administrative Agent
and the undersigned.

     

    

     

    
      	 
      	
              Very
      truly yours,

               

              [NAME
      OF INCREASING LENDER]

            
	 
      	 
      	 
      
	 
      	
              By:

            	 
      
	 
      	
              Title:

            	 
      

    

    

    

    
      	
              Accepted
      as of

              _________,
      200__

              BANK
      OF AMERICA, N.A.,

                  as
      Administrative Agent

            
	 
      	 
      
	
              By:

            	 
      
	
              Name:

            	 
      
	
              Title:

            	 
      

    

    

     

    
      
         

      

      
        F-3

        
          

        

      

      
         

      

    

    ANNEX II
TO EXHIBIT F

     

    _____,
200__

     

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

    under the
Credit Agreement referred to below

     

    Ladies/Gentlemen:

     

    Please
refer to the letter dated __________, 200__ from Vectren Capital, Corp. (“Borrower”) requesting
an increase in the Aggregate Commitment from $__________ to $__________ pursuant
to Section 2.19 of the Credit Agreement dated as of September 11, 2008
among Borrower, various financial institutions and Bank of America, N.A., as
Administrative Agent (as amended, modified, extended or restated from time to
time, the “Credit
Agreement”).  Capitalized terms used but not defined herein
have the respective meanings set forth in the Credit Agreement.

     

    The
undersigned hereby confirms that it has agreed to become a Lender under the
Credit Agreement with a Commitment of $__________ effective on the date which is
three Business Days after the acceptance hereof, and consent hereto, by the
Administrative Agent or on such other date as may be agreed among Borrower, the
Administrative Agent and the undersigned.

     

    The
undersigned (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 delivered by Borrower pursuant to 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 become a Lender under the Credit
Agreement; and (b) agrees that it will, independently and without reliance upon
the Administrative Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit and legal decisions in taking or not taking action under the Credit
Agreement.

     

    The
undersigned represents and warrants that (i) it is duly organized and existing
and it has full power and authority to take, and has taken, all action necessary
to execute and deliver this letter and to become a Lender under the Credit
Agreement; and (ii) no notice to, or consent, authorization or approval of, any
Person is required (other than any already given or obtained) for its due
execution and delivery of this letter and the performance of its obligations as
a Lender under the Credit Agreement.

     

    The
undersigned agrees to execute and deliver such other instruments, and take such
other actions, as the Administrative Agent may reasonably request in connection
with the transactions contemplated by this letter.

     

     

    
      
        F-4

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
following administrative details apply to the undersigned:

     

    
      	
              (A)   

            	
              Notice
      Address:

            	 
	 
      	
              Legal
      name:

            	 
      	 
	 
      	
              Address:

            	 
      	 
	 
      	 
      	 
      	 
	 
      	
              Attention:

            	 
      	 
	 
      	
              Telephone:

            	
              (        )

            	 
	 
      	
              Facsimile:

            	
              (        )

            	 
	 
      	 
      	 
      	 
	
              (B)   

            	
              Payment
      Instructions:

            	 
	 
      	
              Account
      No.:

            	 
      	 
	 
      	
              At:

            	 
      	 
	 
      	
              Reference:

            	 
      	 
	 
      	
              Attention:

            	 
      	 

    

    

     

    The
undersigned acknowledges and agrees that, on the date on which the undersigned
becomes a Lender under the Credit Agreement as set forth in the second paragraph
hereof, the undersigned will be bound by the terms of the Credit Agreement as
fully and to the same extent as if the undersigned were an original Lender under
the Credit Agreement.

     

    

     

    
      	 
      	
              Very
      truly yours,

               

              [NAME
      OF NEW LENDER]

            
	 
      	 
      	 
      
	 
      	
              By:

            	 
      
	 
      	
              Title:

            	 
      

    

     

     

     

    
 

    
      
         

      

      
        F-5

        
          

        

      

      
         

      

    

    

    
      	
              Accepted
      and consented to as of

              ______________,
      200___

              BANK
      OF AMERICA, N.A.,

                as
      Administrative Agent

            
	 
      	 
      
	
              By:

            	 
      
	
              Name:

            	 
      
	
              Title:

            	 
      

    

    

     

     

     

    F-6form8k-exhibit10a.htm

    
      Exhibit
10(a) 

       

      Execution
Version

       

       

       

       

       

      CUSIP
Number:  __________

      

      

      
        
          

        

      

      $385,000,000

       

      364-DAY
CREDIT AGREEMENT

       

      dated
as of September 10, 2008

       

      among

       

      PPL
ENERGY SUPPLY, LLC,

       

      THE
LENDERS FROM TIME TO TIME PARTY HERETO

       

      and

       

      WACHOVIA
BANK, NATIONAL ASSOCIATION,

      as
Administrative Agent,

       

      WACHOVIA
CAPITAL MARKETS, LLC,

      as
Lead Arranger

      

       

      BARCLAYS
BANK PLC,

      MORGAN
STANLEY BANK,

      THE
ROYAL BANK OF SCOTLAND

      and

      CREDIT
SUISSE, CAYMAN ISLANDS BRANCH,

      as
Syndication Agents

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      TABLE
OF CONTENTS

       

      Page

      
        	
                ARTICLE
      I DEFINITIONS

              	
                1

              
	 
      	
                Section
      1.01.

              	
                Definitions

              	
                1

              
	 
      	 
      
	
                ARTICLE
      II THE CREDITS

              	
                16

              
	 
      	
                Section
      2.01.

              	
                Commitments
      to Lend

              	
                16

              
	 
      	
                Section
      2.02.

              	
                [Intentionally
      Omitted]

              	
                16

              
	 
      	
                Section
      2.03.

              	
                Notice
      of Borrowings

              	
                16

              
	 
      	
                Section
      2.04.

              	
                Notice
      to Lenders; Funding of Revolving Loans.

              	
                16

              
	 
      	
                Section
      2.05.

              	
                Noteless
      Agreement; Evidence of Indebtedness.

              	
                17

              
	 
      	
                Section
      2.06.

              	
                Interest
      Rates.

              	
                18

              
	 
      	
                Section
      2.07.

              	
                Fees.

              	
                20

              
	 
      	
                Section
      2.08.

              	
                Adjustments
      of Commitments.

              	
                20

              
	 
      	
                Section
      2.09.

              	
                Maturity
      of Loans; Mandatory Prepayments.

              	
                22

              
	 
      	
                Section
      2.10.

              	
                Optional
      Prepayments and Repayments.

              	
                23

              
	 
      	
                Section
      2.11.

              	
                General
      Provisions as to Payments.

              	
                23

              
	 
      	
                Section
      2.12.

              	
                Funding
      Losses

              	
                24

              
	 
      	
                Section
      2.13.

              	
                Computation
      of Interest and Fees

              	
                24

              
	 
      	
                Section
      2.14.

              	
                Basis
      for Determining Interest Rate Inadequate, Unfair or
      Unavailable

              	
                24

              
	 
      	
                Section
      2.15.

              	
                Illegality

              	
                25

              
	 
      	
                Section
      2.16.

              	
                Increased
      Cost and Reduced Return.

              	
                25

              
	 
      	
                Section
      2.17.

              	
                Taxes.

              	
                26

              
	 
      	
                Section
      2.18.

              	
                Base
      Rate Loans Substituted for Affected Euro-Dollar Loans

              	
                28

              
	 
      	
                Section
      2.19.

              	
                Increases
      to the Revolving Commitment.

              	
                29

              
	 
      	 
      
	
                ARTICLE
      III LETTERS OF CREDIT

              	
                30

              
	 
      	
                Section
      3.01.

              	
                Issuing
      Lenders

              	
                30

              
	 
      	
                Section
      3.02.

              	
                Letters
      of Credit

              	
                30

              
	 
      	
                Section
      3.03.

              	
                Method
      of Issuance of Letters of Credit

              	
                31

              
	 
      	
                Section
      3.04.

              	
                Conditions
      to Issuance of Letters of Credit

              	
                31

              
	 
      	
                Section
      3.05.

              	
                Purchase
      and Sale of Letter of Credit Participations

              	
                31

              
	 
      	
                Section
      3.06.

              	
                Drawings
      under Letters of Credit

              	
                32

              
	 
      	
                Section
      3.07.

              	
                Reimbursement
      Obligations

              	
                32

              
	 
      	
                Section
      3.08.

              	
                Duties
      of Issuing Lenders to Lenders; Reliance

              	
                32

              
	 
      	
                Section
      3.09.

              	
                Obligations
      of Lenders to Reimburse Issuing Lender for Unpaid Drawings

              	
                33

              
	 
      	
                Section
      3.10.

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

              	
                34

              
	 
      	
                Section
      3.11.

              	
                Obligations
      in Respect of Letters of Credit Unconditional

              	
                34

              
	 
      	
                Section
      3.12.

              	
                Indemnification
      in Respect of Letters of Credit

              	
                35

              
	 
      	
                Section
      3.13.

              	
                ISP98

              	
                36

              
	 
      	 
      
	
                ARTICLE
      IV CONDITIONS

              	
                36

              
	 
      	
                Section
      4.01.

              	
                Conditions
      to Closing

              	
                36

              
	 
      	
                Section
      4.02.

              	
                Conditions
      to All Credit Events

              	
                37

              
	 
      	 
      
	
                ARTICLE
      V REPRESENTATIONS AND WARRANTIES

              	
                38

              
	 
      	
                Section
      5.01.

              	
                Status

              	
                38

              
	 
      	
                Section
      5.02.

              	
                Authority;
      No Conflict

              	
                38

              
	 
      	
                Section
      5.03.

              	
                Legality;
      Etc

              	
                38

              
	 
      	
                Section
      5.04.

              	
                Financial
      Condition.

              	
                38

              
	 
      	
                Section
      5.05.

              	
                Rights
      to Properties

              	
                39

              
	 
      	
                Section
      5.06.

              	
                Litigation

              	
                39

              
	 
      	
                Section
      5.07.

              	
                No
      Violation

              	
                39

              
	 
      	
                Section
      5.08.

              	
                ERISA

              	
                40

              
	 
      	
                Section
      5.09.

              	
                Governmental
      Approvals

              	
                40

              
	 
      	
                Section
      5.10.

              	
                Investment
      Company Act

              	
                40

              
	 
      	
                Section
      5.11.

              	
                Restricted
      Subsidiaries, Etc

              	
                40

              
	 
      	
                Section
      5.12.

              	
                Tax
      Returns and Payments

              	
                40

              
	 
      	
                Section
      5.13.

              	
                Compliance
      with Laws

              	
                40

              
	 
      	
                Section
      5.14.

              	
                No
      Default

              	
                41

              
	 
      	
                Section
      5.15.

              	
                Environmental
      Matters.

              	
                41

              
	 
      	
                Section
      5.16.

              	
                Guarantees

              	
                42

              
	 
      	
                Section
      5.17.

              	
                OFAC

              	
                42

              
	 
      	 
      
	
                ARTICLE
      VI COVENANTS

              	
                42

              
	 
      	
                Section
      6.01.

              	
                Information

              	
                42

              
	 
      	
                Section
      6.02.

              	
                Maintenance
      of Property; Insurance.

              	
                44

              
	 
      	
                Section
      6.03.

              	
                Conduct
      of Business and Maintenance of Existence

              	
                44

              
	 
      	
                Section
      6.04.

              	
                Compliance
      with Laws, Etc

              	
                45

              
	 
      	
                Section
      6.05.

              	
                Books
      and Records

              	
                45

              
	 
      	
                Section
      6.06.

              	
                Use
      of Proceeds

              	
                45

              
	 
      	
                Section
      6.07.

              	
                Restriction
      on Liens

              	
                45

              
	 
      	
                Section
      6.08.

              	
                Merger
      or Consolidation

              	
                48

              
	 
      	
                Section
      6.09.

              	
                Asset
      Sales

              	
                48

              
	 
      	
                Section
      6.10.

              	
                Restrictive
      Agreements

              	
                49

              
	 
      	
                Section
      6.11.

              	
                Consolidated
      Debt to Consolidated Capitalization Ratio

              	
                49

              
	 
      	
                Section
      6.12.

              	
                Indebtedness

              	
                49

              
	 
      	 
      
	
                ARTICLE
      VII DEFAULTS

              	
                49

              
	 
      	
                Section
      7.01.

              	
                Events
      of Default

              	
                49

              
	 
      	 
      
	
                ARTICLE
      VIII THE AGENTS

              	
                51

              
	 
      	
                Section
      8.01.

              	
                Appointment
      and Authorization

              	
                51

              
	 
      	
                Section
      8.02.

              	
                Individual
      Capacity

              	
                52

              
	 
      	
                Section
      8.03.

              	
                Delegation
      of Duties

              	
                52

              
	 
      	
                Section
      8.04.

              	
                Reliance
      by the Administrative Agent

              	
                52

              
	 
      	
                Section
      8.05.

              	
                Notice
      of Default

              	
                52

              
	 
      	
                Section
      8.06.

              	
                Non-Reliance
      on the Agents and Other Lenders

              	
                53

              
	 
      	
                Section
      8.07.

              	
                Exculpatory
      Provisions

              	
                53

              
	 
      	
                Section
      8.08.

              	
                Indemnification

              	
                53

              
	 
      	
                Section
      8.09.

              	
                Resignation;
      Successors

              	
                54

              
	 
      	
                Section
      8.10.

              	
                Administrative
      Agent’s Fees

              	
                55

              
	 
      	 
      
	
                ARTICLE
      IX MISCELLANEOUS

              	
                55

              
	 
      	
                Section
      9.01.

              	
                Notices

              	
                55

              
	 
      	
                Section
      9.02.

              	
                No
      Waivers; Non-Exclusive Remedies

              	
                57

              
	 
      	
                Section
      9.03.

              	
                Expenses;
      Indemnification.

              	
                57

              
	 
      	
                Section
      9.04.

              	
                Sharing
      of Set-Offs

              	
                58

              
	 
      	
                Section
      9.05.

              	
                Amendments
      and Waivers

              	
                58

              
	 
      	
                Section
      9.06.

              	
                Successors
      and Assigns.

              	
                59

              
	 
      	
                Section
      9.07.

              	
                Governing
      Law; Submission to Jurisdiction

              	
                61

              
	 
      	
                Section
      9.08.

              	
                Counterparts;
      Integration; Effectiveness

              	
                61

              
	 
      	
                Section
      9.09.

              	
                Generally
      Accepted Accounting Principles

              	
                62

              
	 
      	
                Section
      9.10.

              	
                Usage

              	
                62

              
	 
      	
                Section
      9.11.

              	
                WAIVER
      OF JURY TRIAL

              	
                63

              
	 
      	
                Section
      9.12.

              	
                Confidentiality

              	
                63

              
	 
      	
                Section
      9.13.

              	
                USA
      PATRIOT Act Notice

              	
                64

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Appendices
and Schedules:

       

      Commitment
Appendix

       

      Schedules:

       

      
        	
                Schedule
      5.11

              	
                -

              	
                Restricted
      Subsidiaries, Etc.

              
	
                Schedule
      5.16

              	
                -

              	
                Guarantees
      of Foreign Subsidiary Debt

              
	
                Schedule
      6.07

              	
                -

              	
                Existing
      Liens

              
	
                Schedule
      6.10

              	
                -

              	
                Restrictive
      Agreements

              
	
                Schedule
      6.12

              	
                -

              	
                Existing
      Debt

              

      

       

      Exhibits:

       

      
        	
                Exhibit
      A-1

              	
                -

              	
                Form
      of Notice of Borrowing

              
	
                Exhibit
      A-2

              	
                -

              	
                Form
      of Notice of Conversion/Continuation

              
	
                Exhibit
      A-3

              	
                -

              	
                Form
      of Letter of Credit Request

              
	
                Exhibit
      B

              	
                -

              	
                Form
      of Note

              
	
                Exhibit
      C

              	
                -

              	
                Form
      of Assignment and Assumption Agreement

              
	
                Exhibit
      D

              	
                -

              	
                Forms
      of Opinion of Counsel for the Borrower

              
	
                Exhibit
      E

              	
                -

              	
                Form
      of Notice of Revolving Increase

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      364-DAY CREDIT AGREEMENT (this
“Agreement”)
dated as of September 10, 2008 among PPL ENERGY SUPPLY, LLC, a Delaware limited
liability company (the “Borrower”), the
LENDERS party hereto from time to time and WACHOVIA BANK, NATIONAL ASSOCIATION,
as Administrative Agent.

       

      The
Borrower has requested, and, subject to the terms and conditions hereof, the
Lenders have agreed, to extend certain credit facilities to the Borrower on the
terms and conditions of this Agreement.  Accordingly, in consideration
of the mutual agreements set forth herein and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows:

       

      ARTICLE
I

      DEFINITIONS

       

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

       

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

       

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

       

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

       

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

       

      “Agent” means the
Administrative Agent or the Lead Arranger and “Agents” means both of
them.

       

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

       

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

       

      “Applicable
Percentage” means, for purposes of calculating (i) the applicable
interest rate for any day for any Base Rate Loans or Euro-Dollar Loans, (ii) the
applicable rate for the Commitment Fee for any day for purposes of Section
2.07(a) or (iii) the applicable rate for the Letter of Credit Fee for any day
for purposes of Section 2.07(b), the appropriate applicable percentage set forth
below corresponding to the then current highest Borrower’s Ratings; provided, that, in
the event that (a) the Borrower’s Ratings shall fall within different levels and
ratings are maintained by all Rating Agencies, (i) if two applicable ratings are
equal and higher than the third applicable rating, the higher applicable rating
will apply, (ii) if two applicable ratings are equal and lower than the third
applicable rating, the lower applicable rating will apply, (iii) if no
applicable ratings are equal, the intermediate applicable rating will apply; (b)
if the Borrower’s Ratings shall fall within different levels and ratings are
then maintained by only two Rating Agencies, the applicable rating shall be
based on the higher of the two applicable ratings unless one of the two
applicable ratings is two or more levels lower than the other, in which case the
applicable rating shall be determined by reference to the level one rating lower
than the higher of the two applicable ratings:

       

      
        	 
      	
                Borrower’s
      Ratings

                (S&P
      /Moody’s /Fitch)

              	
                Applicable
      Percentage for Commitment Fees

              	
                Applicable
      Percentage for Base Rate Loans

              	
                Applicable
      Percentage for Euro-Dollar Loans and Letter of Credit
  Fees

              
	
                Category
      A

              	
                > A- from
      S&P / A3 from

                Moody’s/
      A- from Fitch

              	
                0.10%

              	
                0.0%

              	
                1.00%

              
	
                Category
      B

              	
                BBB+
      from S&P / Baa1 from

                Moody’s
      / BBB+ from Fitch

              	
                0.15%

              	
                0.0%

              	
                1.250%

              
	
                Category
      C

              	
                BBB
      from S&P / Baa2 from

                Moody’s
      / BBB from Fitch

              	
                0.20%

              	
                0.0%

              	
                1.50%

              
	
                Category
      D

              	
                BBB-
      from S&P / Baa3 from

                Moody’s
      / BBB- from Fitch

              	
                0.30%

              	
                0.0%

              	
                1.75%

              
	
                Category
      E

              	
                <
      BBB- from S&P / Baa3

                from
      Moody’s / BBB- from

                Fitch

              	
                0.35%

              	
                0.0%

              	
                2.00%

              

      

      

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

      “Closing Date” means
the date, not later than September 10, 2008, on which the Administrative Agent
determines that the conditions specified in or pursuant to Section 4.01 have
been satisfied.

       

      “Commitment” means,
with respect to any Lender, the commitment of such Lender to (i) make Loans
under this Agreement as set forth in the Commitment Appendix, (ii) to purchase
participations in Letters of Credit pursuant to Article III hereof, in each case
as such Commitment may be reduced from time to time pursuant to Sections 2.08(a)
or (b),  9.06(c) or increased from time to time pursuant to Sections
2.19 or 9.06(c).

       

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

       

      “Commitment Fee” has
the meaning set forth in Section 2.07(a).

       

      “Commitment Ratio”
shall mean, with respect to any Lender for its Commitment, the percentage
equivalent of the ratio which such Lender’s portion of such Commitment bears to
the aggregate amount of all Commitments, as the case may be (as each may be
adjusted from time to time as provided herein); and “Commitment Ratios”
shall mean, with respect to any Commitment, the Commitment Ratios of all of the
Lenders with respect to such Commitment.

       

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

       

      “Consolidated Debt”
means the consolidated Debt of the Borrower and its Consolidated Subsidiaries
(determined in accordance with GAAP), except that for purposes of this
definition (a) Consolidated Debt shall exclude Non-Recourse Debt of the
Borrower and its Consolidated Subsidiaries, and (b) Consolidated Debt shall
exclude (i) Hybrid Securities of the Borrower and its Consolidated Subsidiaries
in an aggregate amount as shall not exceed 15% of Consolidated Capitalization
and (ii) Equity-Linked Securities in an aggregate amount as shall not exceed 15%
of Consolidated Capitalization.

       

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

       

      “Continuing Lender”
means with respect to any event described in Section 2.08(b), a Lender which is
not a Retiring Lender, and “Continuing Lenders” means any two or more of such
Continuing Lenders.

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

      “Existing Debt” means
the Debt outstanding on the Closing Date and listed on Schedule 6.12
hereto.

       

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

       

      “Fee Letter” means the
letter designated as such dated as of August 21, 2008 by the Administrative
Agent and Wachovia Securities, as a Lead Arranger and book manager, addressed to
and acknowledged and agreed to by the Borrower, as amended, modified or
supplemented from time to time.

       

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

       

      “Foreign Subsidiary”
means a Subsidiary which is not formed under the laws of the United States or
any territory thereof.

       

      “Fronting Fee” has the
meaning set forth in Section 2.07(b).

       

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

       

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

       

      “Group of Loans” means
at any time a group of Loans consisting of (i) all Loans which are Base Rate
Loans at such time or (ii) all Loans which are Euro-Dollar Loans of the same
Type having the same Interest Period at such time; provided, that, if a
Loan of any particular Lender is converted to or made as a Base Rate Loan
pursuant to Sections 2.15 or 2.18, such Loan shall be included in the same Group
or Groups of Loans from time to time as it would have been in if it had not been
so converted or made.

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

      (iii)           if
any Interest Period includes a date on which a payment of principal of the Loans
is required (based on circumstances existing at the first day of such Interest
Period) to be made under Section 2.09 but does not end on such date, then (x)
the principal amount (if any) of each Euro-Dollar Loan required to be repaid on
such date shall have an Interest Period ending on such date and (y) the
remainder (if any) of each such Euro-Dollar Loan shall have an Interest Period
determined as set forth above; and

       

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

       

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

       

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

       

      “Issuing Lender” means
(i) Wachovia Bank, National Association, in its capacity as an issuer of Letters
of Credit under Section 3.02, and its successor or successors in such capacity,
and (ii) any other Lender approved as an “Issuing Lender” pursuant to Section
3.01.

       

      “Lead Arranger” means
Wachovia Securities, in its capacity as lead arranger for the Lenders hereunder
and under the other Loan Documents, and its successors in such
capacity.

       

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

       

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

       

      “Letter of Credit”
means any standby letter of credit issued under this Agreement by an Issuing
Lender.

       

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

       

      “Letter of Credit Fee”
has the meaning set forth in Section 2.07(b).

       

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

       

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

       

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

       

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

       

      “Loan Documents” means
this Agreement and the Notes.

       

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

       

      “Lower Mt. Bethel Lease
Financing” means the existing lease financing associated with the Lower
Mount Bethel project.

       

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

       

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

       

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

       

      “Material Debt” means
Debt (other than the Notes) of the Borrower and/or one or more of its Restricted
Subsidiaries in a principal or face amount exceeding $40,000,000.

       

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

       

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

       

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

       

      “New Lender” means
with respect to any event described in Section 2.08(b), an Eligible Assignee
which becomes a Lender hereunder as a result of such event, and “New Lenders”
means any two or more of such New Lenders.

       

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

       

      “Non-Recourse Debt”
shall mean Debt that is nonrecourse to the Borrower or any Restricted
Subsidiary.

       

      “Non-U.S. Lender” has
the meaning set forth in Section 2.17(e).

       

      “Note” shall mean a
promissory note, substantially in the form of Exhibit B hereto, issued at the
request of a Lender evidencing the obligation of the Borrower to repay
outstanding Revolving Loans.

       

      “Notice of Borrowing”
has the meaning set forth in Section 2.03.

       

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

       

      “Obligations”
means:

       

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

       

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

       

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

       

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

       

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

       

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

       

      “Optional Increase”
has the meaning set forth in Section 2.19(a).

       

      “Other Taxes” has the
meaning set forth in Section 2.17(b).

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

      “Replacement Date” has
the meaning set forth in Section 2.08(b).

       

      “Replacement Lender”
has the meaning set forth in Section 2.08(b).

       

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

       

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

       

      “Restricted
Subsidiary” means each Subsidiary listed on Schedule 5.11 and each other
Subsidiary designated by the Borrower as a “Restricted Subsidiary” in writing to
the Administrative Agent; provided, that, each
Restricted Subsidiary shall be a direct Wholly Owned Subsidiary of the Borrower
or a direct Wholly Owned Subsidiary of a Restricted Subsidiary.

       

      “Retiring Lender”
means a Lender that ceases to be a Lender hereunder pursuant to the operation of
Section 2.08(b).

       

      “Revolving” means,
when used with respect to (i) a Lender’s Commitment, such Lender’s Commitment to
make Revolving Loans pursuant to Section 2.01, as such Commitment may be reduced
from time to time pursuant to Sections 2.08(a) or (b) or 9.06(c) or increased
from time to time pursuant to Sections 2.19 or 9.06(c), (ii) a Borrowing, a
Borrowing made by the Borrower under Section 2.01, as identified in the Notice
of Borrowing with respect thereto or a Mandatory Letter of Credit Borrowing,
(iii) a Lender’s Commitment Ratio, the percentage equivalent of the ratio which
any Lender’s portion of its Revolving Commitment bears to the amount of the
aggregate Revolving Commitments of all Lenders (as adjusted from time to time as
provided herein) and (iv) a Loan, a Loan made under Section 2.01; provided, that, if
any such loan or loans (or portions thereof) are combined or subdivided pursuant
to a Notice of Conversion/Continuation, the term “Revolving Loan” shall refer to
the combined principal amount resulting from such combination or to each of the
separate principal amounts resulting from such subdivision, as the case may
be.

       

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

       

      “Revolving Outstandings
Excess” has the meaning set forth in Section 2.09.

       

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

       

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

       

      “SEC” means the
Securities and Exchange Commission.

       

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

       

      “Special Purpose
Subsidiary” means any Wholly Owned Subsidiary (regardless of the form of
organization) of the Borrower formed solely for the purpose of, and which
engages in no other activities except those necessary for, effecting financings
related to Synthetic Leases.

       

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

       

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

       

      “Taxes” has the
meaning set forth in Section 2.17(a).

       

      “Termination Date”
means the earliest to occur of (a) September 8, 2009 and (b) such earlier date
upon which all Commitments shall have been terminated in their entirety in
accordance with this Agreement.

       

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

       

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

       

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

       

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

       

      “Wachovia Bank” has
the meaning set forth in Section 8.09.

       

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

       

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

       

      ARTICLE
II

      THE
CREDITS

       

      Section
2.01. Commitments to
Lend.  Each Lender severally agrees, on the terms and
conditions set forth in this Agreement, to make Revolving Loans to the Borrower
pursuant to this Section 2.01 from time to time during the Availability Period
in amounts such that its Revolving Outstandings shall not exceed its Revolving
Commitment; provided, that,
immediately after giving effect to each such Revolving Loan, the aggregate
principal amount of all outstanding Revolving Loans (after giving effect to any
amount requested) shall not exceed the aggregate Revolving Commitments less the sum of all
outstanding Letter of Credit Liabilities.  Each Revolving Borrowing
(other than Mandatory Letter of Credit Borrowings) shall be in an aggregate
principal amount of $10,000,000 or any larger multiple of $1,000,000 (except
that any such Borrowing may be in the aggregate amount of the unused Revolving
Commitments) and shall be made from the several Lenders ratably in proportion to
their respective Revolving Commitments.  Within the foregoing limits,
the Borrower may borrow under this Section 2.01, repay, or, to the extent
permitted by Section 2.10, prepay, Revolving Loans and reborrow under this
Section 2.01.

       

      Section
2.02. [Intentionally
Omitted]

       

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

       

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

       

      (ii)  
the
aggregate amount of such Borrowing;

       

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

       

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

       

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

       

      Section
2.04. Notice to Lenders; Funding
of Revolving Loans.

       

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

       

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

       

      (c) Funding By the
Administrative Agent in Anticipation of Amounts Due from the
Lenders.  Unless the Administrative Agent shall have received
notice from a Lender prior to the date of any Borrowing (except in the case of a
Base Rate Borrowing, in which case prior to the time of such Borrowing) that
such Lender will not make available to the Administrative Agent such Lender’s
share of such Borrowing, the Administrative Agent may assume that such Lender
has made such share available to the Administrative Agent on the date of such
Borrowing in accordance with subsection (b) of this Section, and the
Administrative Agent may, in reliance upon such assumption, make available to
the Borrower on such date a corresponding amount.  If and to the
extent that such Lender shall not have so made such share available to the
Administrative Agent, such Lender and the Borrower severally agree to repay to
the Administrative Agent forthwith on demand such corresponding amount, together
with interest thereon for each day from the date such amount is made available
to the Borrower until the date such amount is repaid to the Administrative Agent
at (i) a rate per annum equal to the higher of the Federal Funds Rate and the
interest rate applicable thereto pursuant to Section 2.06, in the case of the
Borrower, and (ii) the Federal Funds Rate, in the case of such
Lender.  Any payment by the Borrower hereunder shall be without
prejudice to any claim the Borrower may have against a Lender that shall have
failed to make its share of a Borrowing available to the Administrative
Agent.  If such Lender shall repay to the Administrative Agent such
corresponding amount, such amount so repaid shall constitute such Lender’s Loan
included in such Borrowing for purposes of this Agreement.

       

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

       

      Section
2.05. Noteless Agreement; Evidence
of Indebtedness.

       

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

       

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

       

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

       

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

       

      Section
2.06. Interest
Rates.

       

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

       

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

       

      (c) Euro-Dollar
Loans.  Each Euro-Dollar Loan shall bear interest on the
outstanding principal amount thereof, for each day during the Interest Period
applicable thereto, at a rate per annum equal to the sum of the Adjusted London
Interbank Offered Rate for such Interest Period plus the Applicable Percentage
for Euro-Dollar Loans for such day; provided, that if any
Euro-Dollar Loan or any portion thereof shall, as a result of clause (iii) of
the definition of Interest Period, have an Interest Period of less than one
month, such portion shall bear interest during such Interest Period at the rate
applicable to Base Rate Loans during such period.  Such interest shall
be payable for each Interest Period on the last day thereof and, if such
Interest Period is longer than three months, at intervals of three months after
the first day thereof.  Any overdue principal of or interest on any
Euro-Dollar Loan shall bear interest, payable on demand, for each day until paid
at a rate per annum equal to the sum of 2% plus the sum of (A) the Adjusted
London Interbank Offered Rate applicable to such Loan at the date such payment
was due plus (B) the Applicable Percentage for Euro-Dollar Loans for such day
(or, if the circumstance described in Section 2.14 shall exist, at a rate per
annum equal to the sum of 2% plus the rate applicable to Base Rate Loans for
such day).

       

      (d) Method of Electing Interest
Rates.

       

      (i) Subject
to Section 2.06(a), the Loans included in each Borrowing shall bear interest
initially at the type of rate specified by the Borrower in the applicable Notice
of Borrowing.  Thereafter, with respect to each Group of Loans, the
Borrower shall have the option (A) to convert all or any part of (y) so long as
no Default or Event of Default is in existence on the date of conversion,
outstanding Base Rate Loans to Euro-Dollar Loans and (z) outstanding Euro-Dollar
Loans to Base Rate Loans; provided, that in
each case that the amount so converted shall be equal to $10,000,000 or any
larger multiple of $1,000,000, or (B) upon the expiration of any Interest Period
applicable to outstanding Euro-Dollar Loans, so long as no Default or Event of
Default is in existence on the date of continuation, to continue all or any
portion of such Loans equal to $10,000,000 and any larger multiple of $1,000,000
in excess of that amount as Euro-Dollar Loans.  The Interest Period of
any Base Rate Loan converted to a Euro-Dollar Loan pursuant to clause (A) above
shall commence on the date of such conversion.  The succeeding
Interest Period of any Euro-Dollar Loan continued pursuant to clause (B) above
shall commence on the last day of the Interest Period of the Loan so
continued.  Euro-Dollar Loans may only be converted on the last day of
the then current Interest Period applicable thereto or on the date required
pursuant to Section 2.18.

       

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

       

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

       

      Section
2.07. Fees.

       

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

       

      (b) Letter of Credit
Fees.  The Borrower shall pay to the Administrative Agent a fee
(the “Letter of Credit
Fee”) for each day at a rate per annum equal to the Applicable Percentage
for the Letter of Credit Fee for such day.  The Letter of Credit Fee
shall accrue from and including the Effective Date to but excluding the last day
of the Availability Period on the aggregate amount available for drawing under
any Letters of Credit outstanding on such day and shall be payable for the
account of the Lenders ratably in proportion to their participations in such
Letter(s) of Credit.  In addition, the Borrower shall pay to each
Issuing Lender a fee (the “Fronting Fee”) in
respect of each Letter of Credit issued by such Issuing Lender computed at the
rate of 0.125% per annum on the average amount available for drawing under such
Letter(s) of Credit.  Fronting Fees shall be due and payable quarterly
in arrears on each Quarterly Date and upon the first day after the Termination
Date.  In addition, the Borrower agrees to pay to each Issuing Lender,
upon each issuance of, payment under, and/or amendment of, a Letter of Credit,
such amount as shall at the time of such issuance, payment or amendment be the
administrative charges and expenses which such Issuing Lender is customarily
charging for issuances of, payments under, or amendments to letters of credit
issued by it.

       

      (c) Payments.  Except
as otherwise provided in this Section 2.07, accrued fees under this Section 2.07
in respect of Loans and Letter of Credit Liabilities shall be payable quarterly
in arrears on each Quarterly Date, on the last day of the Availability Period
and, if later, on the date the Loans and Letter of Credit Liabilities shall be
repaid in their entirety.  Fees paid hereunder shall not be refundable
under any circumstances.

       

      Section
2.08. Adjustments of
Commitments.

       

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

       

      (b) Optional Termination of
Commitments (Non-Pro-Rata).  If (i) any Lender has demanded
compensation or indemnification pursuant to Sections 2.14, 2.15, 2.16 or 2.17,
(ii) the obligation of any Lender to make Euro-Dollar Loans has been suspended
pursuant to Section 2.15 or (iii) any Lender is a Defaulting Lender (each such
Lender described in clauses (i), (ii) or  (iii) being a “Retiring Lender”),
the Borrower shall have the right, if no Default or Event of Default then
exists, to replace such Lender with one or more Eligible Assignees (which may be
one or more of the Continuing Lenders) (each a “Replacement Lender”
and, collectively, the “Replacement Lenders”)
reasonably acceptable to the Administrative Agent.  The replacement of
a Retiring Lender pursuant to this Section 2.08(b) shall be effective on the
tenth Business Day (the “Replacement Date”)
following the date of notice of such replacement to the Retiring Lender and each
Continuing Lender through the Administrative Agent, subject to the satisfaction
of the following conditions:

       

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

       

                
  (A) to the
Retiring Lender an amount equal in the aggregate to the sum of (x) the principal
of, and all accrued but unpaid interest on, all outstanding Loans of the
Retiring Lender, (y) all unpaid drawings that have been funded by (and not
reimbursed to) the Retiring Lender under Section 3.10, together with all accrued
but unpaid interest with respect thereto and (z) all accrued but unpaid fees
owing to the Retiring Lender pursuant to Section 2.08; and

       

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

       

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

       

      On the
Replacement Date, each Replacement Lender that is a New Lender shall become a
Lender hereunder, and the Retiring Lender shall cease to constitute a Lender
hereunder; provided, that the
provisions of this Agreement (including, without limitation, the provisions of
Sections 2.12, 2.16, 2.17 and 9.03) shall continue to govern the rights and
obligations of a Retiring Lender with respect to any Loans made, any Letters of
Credit issued or any other actions taken by such Retiring Lender while it was a
Lender.

       

      In lieu
of the foregoing, upon express written consent of a majority of the Continuing
Lenders, the Borrower shall have the right to permanently terminate the
Revolving Commitment of a Retiring Lender in full.  Upon payment by
the Borrower to the Administrative Agent for the account of the Retiring Lender
of an amount equal to the sum of (i) the aggregate principal amount of all Loans
and Letter of Credit Liabilities held by the Retiring Lender and (ii) all
accrued interest, fees and other amounts owing to the Retiring Lender hereunder,
including, without limitation, all amounts payable by the Borrower to the
Retiring Lender under Sections 2.12, 2.16, 2.17 or 9.03, such Retiring Lender
shall cease to constitute a Lender hereunder; provided, that the
provisions of this Agreement (including, without limitation, the provisions of
Sections 2.12, 2.16, 2.17 and 9.03) shall continue to govern the rights and
obligations of a Retiring Lender with respect to any Loans made, any Letters of
Credit issued or any other actions taken by such Retiring Lender while it was a
Lender.

       

      Section
2.09. Maturity of Loans; Mandatory
Prepayments.

       

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

       

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

       

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

       

      (b) Applications of Prepayments
and Reductions.

       

      (i) Each
prepayment of Loans pursuant to this Section 2.09 shall be applied ratably to
the respective Loans of all of the Lenders.

       

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

       

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

       

      Section
2.10. Optional Prepayments and
Repayments.

       

      (a) Prepayments of
Loans.  Subject to Section 2.12, the Borrower may (i) upon
at least one (1) Business Day’s notice to the Administrative Agent, prepay any
Base Rate Borrowing or (ii) upon at least three (3) Business Days’ notice to the
Administrative Agent, prepay any Euro-Dollar Borrowing, in each case in whole at
any time, or from time to time in part in amounts aggregating $10,000,000 or any
larger multiple of $1,000,000, by paying the principal amount to be prepaid
together with accrued interest thereon to the date of
prepayment.  Each such optional prepayment shall be applied to prepay
ratably the Loans of the several Lenders included in such
Borrowing.

       

      (b) Notice to
Lenders.  Upon receipt of a notice of prepayment pursuant to
Section 2.10(a), the Administrative Agent shall promptly notify each Lender of
the contents thereof and of such Lender’s ratable share (if any) of such
prepayment, and such notice shall not thereafter be revocable by the
Borrower.

       

      Section
2.11. General Provisions as to
Payments.

       

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

       

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

       

      Section
2.12. Funding
Losses.  If the Borrower makes any payment of principal with
respect to any Euro-Dollar Loan pursuant to the terms and provisions of this
Agreement (any conversion of a Euro-Dollar Loan to a Base Rate Loan pursuant to
Section 2.18 being treated as a payment of such Euro-Dollar Loan on the date of
conversion for purposes of this Section 2.12) on any day other than the last day
of the Interest Period applicable thereto, or the last day of an applicable
period fixed pursuant to Section 2.06(c), or if the Borrower fails to borrow,
convert or prepay any Euro-Dollar Loan after notice has been given in accordance
with the provisions of this Agreement, or in the event of the assignment of any
Euro-Dollar Loan other than on the last day of the Interest Period applicable
thereto as a result of a request by the Borrower pursuant to Section 2.08(b),the
Borrower shall reimburse each Lender within fifteen (15) days after demand for
any resulting loss or expense incurred by it (and by an existing Participant in
the related Loan), including, without limitation, any loss incurred in
obtaining, liquidating or employing deposits from third parties, but excluding
loss of margin for the period after any such payment or failure to borrow or
prepay; provided, that such
Lender shall have delivered to the Borrower a certificate as to the amount of
such loss or expense, which certificate shall be conclusive in the absence of
manifest error.

       

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

       

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

       

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

       

      Section
2.16. Increased Cost and Reduced
Return.

       

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

       

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

       

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

       

      Section
2.17. Taxes.

       

      (a) Payments Net of Certain
Taxes.  Any and all payments by the Borrower to or for the
account of any Lender or any Agent hereunder or under any other Loan Document
shall be made free and clear of and without deduction for any and all present or
future taxes, duties, levies, imposts, deductions, charges and withholdings and
all liabilities with respect thereto, excluding: (i) taxes imposed on or
measured by the net income (including branch profits or similar taxes) of, and
gross receipts, franchise or similar taxes imposed on, any Agent or any Lender
by the jurisdiction (or subdivision thereof) under the laws of which such Lender
or Agent is organized or in which its principal executive office is located or,
in the case of each Lender, in which its Applicable Lending Office is located,
and (ii) in the case of each Lender, any United States withholding tax imposed
on such payments, but only to the extent that such Lender is subject to United
States withholding tax at the time such Lender first becomes a party to this
Agreement or changes its Applicable Lending Office (all such nonexcluded taxes,
duties, levies, imposts, deductions, charges, withholdings and liabilities being
hereinafter referred to as “Taxes”).  If
the Borrower shall be required by law to deduct any Taxes from or in respect of
any sum payable hereunder or under any other Loan Document to any Lender or any
Agent, (i) the sum payable shall be increased as necessary so that after making
all such required deductions (including deductions applicable to additional sums
payable under this Section 2.17(a)) such Lender or Agent (as the case may be)
receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrower shall make such deductions, (iii) the
Borrower shall pay the full amount deducted to the relevant taxation authority
or other authority in accordance with applicable law and (iv) the Borrower shall
furnish to the Administrative Agent, for delivery to such Lender, the original
or a certified copy of a receipt evidencing payment thereof.

       

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

       

      (c) Indemnification.  The
Borrower agrees to indemnify each Lender and each Agent for the full amount of
Taxes and Other Taxes (including, without limitation, any Taxes or Other Taxes
imposed or asserted by any jurisdiction on amounts payable under this Section
2.17(c)), whether or not correctly or legally asserted, paid by such Lender or
Agent (as the case may be) and any liability (including penalties, interest and
expenses) arising therefrom or with respect thereto as certified in good faith
to the Borrower by each Lender or Agent seeking indemnification pursuant to this
Section 2.17(c).  This indemnification shall be paid within 15 days
after such Lender or Agent (as the case may be) makes demand
therefor.

       

      (d) Refunds or
Credits.  If a Lender or Agent receives a refund, credit or
other reduction from a taxation authority for any Taxes or Other Taxes for which
it has been indemnified by the Borrower or with respect to which the Borrower
has paid additional amounts pursuant to this Section 2.17, it shall within
fifteen (15) days from the date of such receipt pay over the amount of such
refund, credit or other reduction to the Borrower (but only to the extent of
indemnity payments made or additional amounts paid by the Borrower under this
Section 2.17 with respect to the Taxes or Other Taxes giving rise to such
refund, credit or other reduction), net of all reasonable out-of-pocket expenses
of such Lender or Agent (as the case may be) and without interest (other than
interest paid by the relevant taxation authority with respect to such refund,
credit or other reduction); provided, however, that the Borrower agrees to
repay, upon the request of such Lender or Agent (as the case may be), the amount
paid over to the Borrower (plus penalties, interest or other charges) to such
Lender or Agent in the event such Lender or Agent is required to repay such
refund or credit to such taxation authority.

       

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

       

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

       

      (g) Mitigation.  If
the Borrower is required to pay additional amounts to or for the account of any
Lender pursuant to this Section 2.17, then such Lender will use reasonable
efforts (which shall include efforts to rebook the Revolving Loans held by such
Lender to a new Applicable Lending Office, or through another branch or
affiliate of such Lender) to change the jurisdiction of its Applicable Lending
Office if, in the good faith judgment of such Lender, such efforts (i) will
eliminate or, if it is not possible to eliminate, reduce to the greatest extent
possible any such additional payment which may thereafter accrue and (ii) is not
otherwise disadvantageous, in the sole determination of such Lender, to such
Lender.  Any Lender claiming any indemnity payment or additional
amounts payable pursuant to this Section shall use reasonable efforts
(consistent with legal and regulatory restrictions) to file any certificate or
document reasonably requested in writing by the Borrower or to change the
jurisdiction of its Applicable Lending Office if the making of such a filing or
change would avoid the need for or reduce the amount of any such indemnity
payment or additional amounts that may thereafter accrue and would not, in the
sole determination of such Lender, be otherwise disadvantageous to such
Lender.

       

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

       

      Section
2.18. Base Rate Loans Substituted
for Affected Euro-Dollar Loans.  If (a) the obligation of any
Lender to make or maintain, or to convert outstanding Loans to, Euro-Dollar
Loans has been suspended pursuant to Section 2.15 or (b) any Lender has demanded
compensation under Section 2.16(a) with respect to its Euro-Dollar Loans and, in
any such case, the Borrower shall, by at least four Business Days’ prior notice
to such Lender through the Administrative Agent, have elected that the
provisions of this Section shall apply to such Lender, then, unless and until
such Lender notifies the Borrower that the circumstances giving rise to such
suspension or demand for compensation no longer apply:

       

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

       

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

       

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

       

      
        Section
1.01. Increases to the Revolving
Commitment.

         

        (a) Subject
to the terms and conditions of this Agreement and prior to the date that is
three months prior to the Termination Date, the Borrower may, by delivering to
the Administrative Agent and the Lenders a Notice of Revolving Increase in the
form of Exhibit E, request increases to the Lenders’ Revolving Commitments (each
such request, an “Optional Increase”); provided that: (i) the Borrower may not
request any increase to the Revolving Commitments after the occurrence and
during the continuance of a Default or Event of Default, including, without
limitation, any Default that would result after giving effect to any Optional
Increase; (ii) each Optional Increase shall be in a minimum principal amount of
$10,000,000, or if less, the remaining principal amount permitted pursuant to
this Section 2.19 after giving effect to any prior Optional Increases made under
this Section; and (iii) the sum of the principal amounts of all aggregate
Optional Increases shall be in an aggregate principal amount of no more than
$150,000,000.

         

        (b) Each
Lender may, but shall not be obligated to, participate in any Optional Increase,
and the decision of any Lender to commit to an Optional Increase shall be at
such Lender’s sole discretion and shall be made in writing.  The
Borrower may, at its own expense, solicit additional Revolving Commitments from
third party financial institutions reasonably acceptable to the Administrative
Agent and the Issuing Lenders.  Any such financial institution (if not
already a Lender hereunder) shall become a party to this Agreement as a Lender,
pursuant to a joinder agreement in form and substance reasonably satisfactory to
the Administrative Agent and the Borrower.

         

        (c) As a
condition precedent to the Optional Increase, the Borrower shall deliver to the
Administrative Agent a certificate of the Borrower dated the effective date of
the Optional Increase, signed by a Responsible Officer of the Borrower,
certifying that: (i) the resolutions adopted by the Borrower approving or
consenting to such Optional Increase are attached thereto and such resolutions
are true and correct and have not been altered, amended or repealed and are in
full force and effect and (ii) before and after giving effect to the Optional
Increase, (A) the representations and warranties contained in Article V and the
other Loan Documents are true and correct in all material respects on and as of
the effective date of the Optional Increase, except to the extent that such
representations and warranties specifically refer to an earlier date, in which
case they are true and correct as of such earlier date, and (B) that no Default
or Event of Default exists, is continuing, or would result from the Optional
Increase.

         

        (d) Each
Optional Increase and all Revolving Loans made in connection with such Optional
Increase (i) shall be subject to the terms applicable to the Revolving
Commitments and Revolving Loans in this Agreement (including, without
limitation, the terms applicable to pricing and maturity pursuant to Sections
2.06 and 2.09); (ii) shall for all purposes be Loans and Obligations hereunder
and under the Loan Documents; (iii) shall if requested by the applicable Lender
be represented by a replacement Note which shall be exchanged for the Note of
any Lender committing to an increase in its Revolving Commitment; and (iv) shall
rank pari passu with the other Loans for purposes of Sections 2.09 and
2.11.

         

        (e) The
Revolving Outstandings will be reallocated by the Administrative Agent on the
effective date of any Optional Increase among the Lenders in accordance with
their revised Revolving Commitment Ratios, and the Borrower hereby agrees to pay
any and all costs (if any) required pursuant to Section 2.12 incurred by any
Lender in connection with the exercise of the Optional Increase.

         

      

      ARTICLE
III

      LETTERS
OF CREDIT

       

      Section
3.01. Issuing
Lenders.  Subject to the terms and conditions hereof, the
Borrower may from time to time identify and arrange for one or more of the
Lenders (other than Wachovia Bank) to act as Issuing Lenders
hereunder.  Any such designation by the Borrower shall be notified to
the Administrative Agent at least four Business days prior to the first date
upon which the Borrower proposes that such Issuing Lender issue its first Letter
of Credit, so as to provide adequate time for such proposed Issuing Lender to be
approved by the Administrative Agent hereunder (such approval not to be
unreasonably withheld).  Within two Business Days following the
receipt of any such designation of a proposed Issuing Lender, the Administrative
Agent shall notify the Borrower as to whether such designee is acceptable to the
Administrative Agent.  Nothing contained herein shall be deemed to
require any Lender (subject to the provisions of Section 8.09, other than
Wachovia Bank) to agree to act as an Issuing Lender, if it does not so
desire.

       

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

       

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

       

      Section
3.04. Conditions to Issuance of
Letters of Credit.  The issuance by an Issuing Lender of each
Letter of Credit shall, in addition to the conditions precedent set forth in
Article IV, be subject to the conditions precedent that (i) such Letter of
Credit shall be satisfactory in form and substance to such Issuing Lender, (ii)
the Borrower and, if applicable, any such Affiliate of the Borrower, shall have
executed and delivered such other instruments and agreements relating to such
Letter of Credit as such Issuing Lender shall have reasonably requested and
(iii) such Issuing Lender shall have confirmed on the date of (and after giving
effect to) such issuance that (A) the aggregate amount of all Letter of Credit
Liabilities will not exceed the Letter of Credit Commitment and (B) the
aggregate Revolving Outstandings will not exceed the aggregate amount of the
Revolving Commitments.  Notwithstanding any other provision of this
Section 3.04, no Issuing Lender shall be under any obligation to issue any
Letter of Credit if: any order, judgment or decree of any governmental authority
shall by its terms purport to enjoin or restrain such Issuing Lender from
issuing such Letter of Credit, or any requirement of law applicable to such
Issuing Lender or any request or directive (whether or not having the force of
law) from any governmental authority with jurisdiction over such Issuing Lender
shall prohibit, or request that such Issuing Lender refrain from, the issuance
of letters of credit generally or such Letter of Credit in particular or shall
impose upon such Issuing Lender with respect to such Letter of Credit any
restriction, reserve or capital requirement (for which such Issuing Lender is
not otherwise compensated hereunder) not in effect on the Closing Date, or shall
impose upon such Issuing Lender any unreimbursed loss, cost or expense which was
not applicable on the Closing Date and which such Issuing Lender in good faith
deems material to it.

       

      Section
3.05. Purchase and Sale of Letter
of Credit Participations.  Upon the issuance by an Issuing
Lender of a Letter of Credit, such Issuing Lender shall be deemed, without
further action by any party hereto, to have sold to each Lender, and each Lender
shall be deemed, without further action by any party hereto, to have purchased
from such Issuing Lender, without recourse or warranty, an undivided
participation interest in such Letter of Credit and the related Letter of Credit
Liabilities in accordance with its respective Revolving Commitment Ratio
(although the Fronting Fee payable under Section 2.07(b) shall be payable
directly to the Administrative Agent for the account of the applicable Issuing
Lender, and the Lenders (other than such Issuing Lender) shall have no right to
receive any portion of any such Fronting Fee) and any security therefor or
guaranty pertaining thereto.  Upon any change in the Revolving
Commitments pursuant to Sections 2.19 or 9.06(c), there shall be an automatic
adjustment to the participations in all outstanding Letters of Credit and Letter
of Credit Liabilities to reflect the adjusted Revolving Commitments of the
Lenders pursuant to Sections 2.19, or the adjustment of the Revolving
Commitments of the assigning and assignee Lenders or of all Lenders having
Revolving Commitments pursuant to Section 9.06(c), as the case may
be.

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

      ARTICLE
IV

      CONDITIONS

       

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

       

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

       

      (b) Notes.  On
or prior to the Closing Date, the Administrative Agent shall have received a
duly executed Note for the account of each Lender requesting delivery of a Note
pursuant to Section 2.05.

       

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

       

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

       

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

       

      (f) [Intentionally
Omitted]

       

      (g) Financial
Statements.  The Administrative Agent and each Lender shall
have received and be satisfied with the (i) the audited consolidated financial
statements of the Borrower and its Consolidated Subsidiaries for the fiscal year
ending December 31, 2007, audited by Ernst & Young, LLP, or other nationally
recognized independent public accountants, and containing an opinion of such
firm that such financial statements present fairly, in all material respects and
in conformity with GAAP, the financial position and results of operations of the
Borrower and its Consolidated Subsidiaries, and (ii) unaudited, consolidated,
interim financial statements of the Borrower and its Consolidated Subsidiaries
for the fiscal quarter ending June 30, 2008.

       

      (h) Consents.  All
necessary governmental (domestic or foreign), regulatory and third party
approvals, if any, in connection with the transactions contemplated by this
Agreement and the other Loan Documents shall have been obtained and remain in
full force and effect, in each case without any action being taken by any
competent authority which could restrain or prevent such transaction or impose,
in the reasonable judgment of the Administrative Agent, materially adverse
conditions upon the consummation of such transactions.

       

      (i) Borrower’s
Structure.  The corporate and capital structure of the Borrower
and its Subsidiaries, including, without limitation, the Borrower’s direct or
indirect ownership of the Restricted Subsidiaries, shall be satisfactory to the
Administrative Agent in its reasonable discretion.

       

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

       

      (k) Counsel
Fees.  The Administrative Agent shall have received full
payment from the Borrower of the fees and expenses of Winston & Strawn LLP
described in Section 9.03 which are billed through the Closing
Date.

       

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

       

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

       

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

       

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

       

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

       

      (d) the fact
that the representations and warranties of the Borrower contained in this
Agreement and the other Loan Documents shall be true and correct on and as of
the date of such Credit Event (except for the representations in Section
5.04(c), Section 5.06, Section 5.11 and Section 5.15, which shall be deemed only
to relate to the matters referred to therein on and as of the Closing
Date).

       

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

       

      ARTICLE
V

      REPRESENTATIONS
AND WARRANTIES

       

      The
Borrower represents and warrants that:

       

      Section
5.01. Status.  The
Borrower is a limited liability company duly organized, validly existing and in
good standing under the laws of the State of Delaware and has the limited
liability company authority to make and perform this Agreement and each other
Loan Document to which it is a party.

       

      Section
5.02. Authority; No
Conflict.  The execution, delivery and performance by the
Borrower of this Agreement and each other Loan Document to which it is a party
have been duly authorized by all necessary limited liability company action and
do not violate (i) any provision of law or regulation, or any decree, order,
writ or judgment, (ii) any provision of its limited liability company agreement,
or (iii) result in the breach of or constitute a default under any indenture or
other agreement or instrument to which the Borrower is a party; provided, that any
exercise of the option to increase the Revolving Commitment as contemplated in
Section 2.19 will require further authorization of the Borrower’s Board of
Managers.

       

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

       

      Section
5.04. Financial
Condition.

       

      (a) Audited Financial
Statements.  The consolidated balance sheet of the Borrower and
its Consolidated Subsidiaries as of December 31, 2007 and the related
consolidated statements of income and cash flows for the fiscal year then ended,
reported on by Ernst & Young, LLP, copies of which have been delivered to
each of the Administrative Agent and the Lenders, fairly present, in conformity
with GAAP, the consolidated financial position of the Borrower and its
Consolidated Subsidiaries as of such date and their consolidated results of
operations and cash flows for such fiscal year.

       

      (b) Interim Financial
Statements.  The unaudited consolidated balance sheet of the
Borrower and its Consolidated Subsidiaries as of June 30, 2008 and the related
unaudited consolidated statements of income and cash flows for the three months
then ended fairly present, in conformity with GAAP applied on a basis consistent
with the financial statements referred to in subsection (a) of this Section, the
consolidated financial position of the Borrower and its Consolidated
Subsidiaries as of such date and their consolidated results of operations and
cash flows for such three-month period (subject to normal year-end audit
adjustments).

       

      (c) Material Adverse
Change.  Since December 31, 2007 there has been no change in
the business, assets, financial condition or operations of the Borrower and its
Consolidated Subsidiaries, considered as a whole, that would materially and
adversely affect the Borrower’s ability to perform any of its obligations under
this Agreement, the Notes or the other Loan Documents.

       

      Section
5.05. Rights to
Properties.  The Borrower and its Restricted Subsidiaries have
good and valid fee, leasehold, easement or other right, title or interest in or
to all the properties necessary to the conduct of their business as conducted on
the date hereof and as presently proposed to be conducted, except to the extent
the failure to have such rights or interests would not have a Material Adverse
Effect.

       

      Section
5.06. Litigation.  Except
as disclosed in or contemplated by the Borrower’s Form 10-K Report to the SEC
for the year ended December 31, 2007 or in any subsequent Form 10-Q or 8-K
Report or otherwise furnished in writing to the Administrative Agent, no
litigation, arbitration or administrative proceeding against the Borrower is
pending or, to the Borrower’s knowledge, threatened, which, if adversely
determined, would materially and adversely affect the ability of the Borrower to
perform any of its obligations under this Agreement, the Notes or the other Loan
Documents.  There is no litigation, arbitration or administrative
proceeding pending or, to the knowledge of the Borrower, threatened which
questions the validity of this Agreement or the other Loan Documents to which it
is a party.

       

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

       

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

       

      Section
5.09. Governmental
Approvals.  No authorization, consent or approval from any
Governmental Authority is required for the execution, delivery and performance
by the Borrower of this Agreement, the Notes and the other Loan Documents to
which it is a party, except such authorizations, consents and approvals as have
been obtained prior to the Closing Date and are in full force and
effect.

       

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

       

      Section
5.11. Restricted Subsidiaries,
Etc.  Set forth in Schedule 5.11 hereto is a complete and
correct list as of the Closing Date of the Restricted Subsidiaries of the
Borrower, together with, for each such Subsidiary, the jurisdiction of
organization of such Subsidiary.  Except as disclosed in Schedule 5.11
hereto, as of the Closing Date, (i) each such Subsidiary is a Wholly Owned
Subsidiary of the Borrower and (ii) each such Subsidiary is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
organization and has all corporate or other organizational powers to carry on
its businesses as now conducted.

       

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

       

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

       

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

       

      Section
5.15. Environmental
Matters.

       

      (a) Except
(i) as disclosed in or contemplated by the Borrower’s Form 10-K Report to the
SEC for the year ended December 31, 2007 or in any subsequent Form 10-Q or 8-K
Report or otherwise furnished to the Administrative Agent in writing, or (ii) to
the extent that the liabilities of the Borrower and its Subsidiaries, taken as a
whole, that relate to or could result from the matters referred to in clauses
(i) through (iii) of this Section 5.15(a), inclusive, would not reasonably be
expected to result in a Material Adverse Effect, to the Borrower’s or any of its
Subsidiaries’ knowledge:

       

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

       

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

       

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

       

      (b) Except as
disclosed in or contemplated by the Borrower’s Form 10-K Report to the SEC for
the year ended December 31, 2007 or in any subsequent Form 10-Q or 8-K Report or
otherwise furnished to the Administrative Agent in writing, to the Borrower’s or
any of its Subsidiaries’ knowledge, there are no Environmental Liabilities that
have resulted or could reasonably be expected to result in a Material Adverse
Effect.

       

      (c) For
purposes of this Section 5.15, the terms “the Borrower” and “Subsidiary” shall
include any business or business entity (including a corporation) which is a
predecessor, in whole or in part, of the Borrower or any of its Subsidiaries
from the time such business or business entity became a Subsidiary of PPL
Corporation, a Pennsylvania corporation.

       

      Section
5.16. Guarantees.  As
of the Closing Date, except as set forth in Schedule 5.16 hereto, the Borrower
has no Guarantees of any Debt of any Foreign Subsidiary of the Borrower other
than such Debt not in excess of $25,000,000 in the aggregate.

       

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

       

      ARTICLE
VI

      COVENANTS

       

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

       

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

       

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

       

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

       

      (c) Officer’s
Certificate.  Simultaneously with the delivery of each set of
financial statements referred to in subsections (a) and (b) above, a certificate
of the chief accounting officer of the Borrower, (i) setting forth in reasonable
detail the calculations required to establish compliance with the requirements
of Section 6.11 on the date of such financial statements and (ii) stating
whether there exists on the date of such certificate any Default or Event of
Default and, if any Default or Event of Default then exists, setting forth the
details thereof and the action which the Borrower is taking or proposes to take
with respect thereto.

       

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

       

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

       

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

       

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

       

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

       

      The
Borrower hereby acknowledges that (a) the Administrative Agent will make
available to the Lenders and each Issuing Lender materials and/or information
provided by or on behalf of the Borrower hereunder (collectively, “Borrower Materials”)
by posting the Borrower Materials on IntraLinks or another similar electronic
system (the “Platform”) and (b)
certain of the Lenders may be “public-side” Lenders (i.e., Lenders that do not
wish to receive material non-public information with respect to the Borrower or
its securities) (each, a “Public
Lender”).  The Borrower hereby agrees that it will use
commercially reasonable efforts to identify that portion of the Borrower
Materials that may be distributed to the Public Lenders and that (w) all such
Borrower Materials shall be clearly and conspicuously marked “PUBLIC” which, at
a minimum, shall mean that the word “PUBLIC” shall appear prominently on the
first page thereof; (x) by marking Borrower Materials “PUBLIC,” the Borrower
shall be deemed to have authorized the Administrative Agent, the Issuing Lenders
and the Lenders to treat such Borrower Materials as not containing any material
non-public information (although it may be sensitive and proprietary) with
respect to the Borrower or its securities for purposes of United States Federal
and state securities laws (provided, however, that to the
extent such Borrower Materials constitute Information (as defined below), they
shall be treated as set forth in Section 9.12); (y) all Borrower Materials
marked “PUBLIC” are permitted to be made available through a portion of the
Platform designated “Public Investor;” and (z) the Administrative Agent shall be
entitled to treat any Borrower Materials that are not marked “PUBLIC” as being
suitable only for posting (subject to Section 9.12) on a portion of the Platform
not designated “Public Investor.”  “Information” means
all information received from the Borrower or any of its Subsidiaries relating
to the Borrower or any of its Subsidiaries or any of their respective
businesses, other than any such information that is available to the
Administrative Agent, any Lender or any Issuing Lender on a nonconfidential
basis prior to disclosure by the Borrower or any of its Subsidiaries; provided that, in the
case of information received from the Borrower or any of its Subsidiaries after
the date hereof, such information is clearly identified at the time of delivery
as confidential.  Any Person required to maintain the confidentiality
of Information as provided in this Section shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of
care to maintain the confidentiality of such Information as such Person would
accord to its own confidential information.

       

      Section
6.02. Maintenance of Property;
Insurance.

       

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

       

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

       

      Section
6.03. Conduct of Business and
Maintenance of Existence.  The Borrower will (i) continue, and
will cause each of its Restricted Subsidiaries to continue, to engage in
businesses of the same general type as now conducted by the Borrower and its
Subsidiaries and businesses related thereto or arising out of such businesses,
except to the extent that the failure to maintain any existing business would
not have a Material Adverse Effect and (ii) except as otherwise permitted in
Section 6.08, preserve, renew and keep in full force and effect, and will cause
each of its Subsidiaries to preserve, renew and keep in full force and effect,
their respective limited liability company (or other entity) existence and their
respective rights, privileges and franchises necessary or material to the normal
conduct of business, except, in each case, where the failure to do so could not
reasonably be expected to have a Material Adverse Effect.

       

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

       

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

       

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

       

      Section
6.07. Restriction on
Liens.  The Borrower will not, nor will it permit any of its
Restricted Subsidiaries to, create, incur, assume or suffer to exist any Lien
upon or with respect to any property or assets of any kind (real or personal,
tangible or intangible) of the Borrower or any such Restricted Subsidiary
(including, without limitation, their Voting Stock), except:

       

      (a) Liens for
taxes, assessments or governmental charges or levies not yet due or which are
being contested in good faith and by appropriate proceedings and for which
adequate reserves in accordance with GAAP shall have been set aside on its
books;

       

      (b) Liens
imposed by law, such as carriers’, landlords’, warehousemen’s and mechanics’
liens and other similar liens arising in the ordinary course of business which
secure payment of obligations not more than 45 days past due or which are being
contested in good faith by appropriate proceedings and for which adequate
reserves in accordance with GAAP shall have been set aside on its
books;

       

      (c) Liens
arising out of pledges or deposits under worker’s compensation laws,
unemployment insurance, old age pensions, or other social security or retirement
benefits, or similar legislation;

       

      (d) easements
(including, without limitation, reciprocal easement agreements and utility
agreements), rights-of-way, covenants, consents, reservations, encroachments,
variances and other restrictions, charges or encumbrances (whether or not
recorded) affecting the use of real property;

       

      (e) Liens
existing on the Closing Date and described in Schedule 6.07 hereto;

       

      (f) judgment
Liens arising from judgments which secure payment of legal obligations that
would not constitute a Default under Section 7.01;

       

      (g) any
vendor’s Liens, purchase money Liens or any other Lien on any property or asset
acquired by the Borrower or any of its Restricted Subsidiaries after the date
hereof existing on any such property or asset at the time of acquisition thereof
(and not created in anticipation thereof); provided, that, in
any such case no such Lien shall extend to or cover any other asset of the
Borrower or such Restricted Subsidiaries, as the case may be;

       

      (h) Liens,
deposits and/or similar arrangements to secure the performance of bids, tenders
or contracts (other than contracts for borrowed money), public or statutory
obligations, surety and appeal bonds, performance bonds and other obligations of
a like nature incurred in the ordinary course of business by the Borrower or any
of its Restricted Subsidiaries, including Liens to secure obligations under
agreements relating to the purchase and sale of any commodity (including power
purchase and sale agreements, any commodity hedge or derivative regardless of
whether any such transaction is a “financial” or “physical
transaction”);

       

      (i) Liens on
assets of the Borrower and its Restricted Subsidiaries arising out of
obligations or duties to any municipality or public authority with respect to
any franchise, grant, license, permit or certificate.

       

      (j) rights
reserved to or vested in any municipality or public authority to control or
regulate any asset of the Borrower or any of its Restricted Subsidiaries or to
use such asset in a manner which does not materially impair the use of such
asset for the purposes for which it is held by the Borrower or any of its
Restricted Subsidiaries;

       

      (k) irregularities
in or deficiencies of title to any asset which do not materially adversely
affect the use of such property by the Borrower or any of its Restricted
Subsidiaries in the normal course of its business;

       

      (l) any Lien
on any property or asset of any corporation or other entity existing at the time
such corporation or entity is acquired, merged or consolidated or amalgamated
with or into the Borrower or any of its Restricted Subsidiaries and not created
in contemplation of such event;

       

      (m) any Lien
on any asset securing Debt incurred or assumed for the purpose of financing all
or any part of the cost of acquiring, constructing or improving such asset;
provided, that
any such Lien attaches to such asset, solely to extent of the value of the
obligation secured by such Lien, concurrently with or within 180 days after the
acquisition, construction or improvement thereof:

       

      (n) any Liens
in connection with the issuance of tax-exempt industrial development or
pollution control bonds or other similar bonds issued pursuant to Section 103(b)
of the Internal Revenue Code of 1986, as amended, to finance all or any part of
the purchase price of or the cost of constructing, equipping or improving
property;

       

      (o) rights of
lessees arising under leases entered into by the Borrower or any of its
Restricted Subsidiaries as lessor, in the ordinary course of
business;

       

      (p) any Liens
on or reservations with respect to governmental and other licenses, permits,
franchises, consents and allowances; any Liens on patents, patent licenses and
other patent rights, patent applications, trade names, trademarks, copyrights,
claims, credits, choses in action and other intangible property and general
intangibles including, but not limited to, computer software;

       

      (q) any Liens
on automobiles, buses, trucks and other similar vehicles and movable equipment;
marine equipment; airplanes, helicopters and other flight equipment; and parts,
accessories and supplies used in connection with any of the
foregoing;

       

      (r) any Liens
on furniture and furnishings; and computers and data processing, data storage,
data transmission, telecommunications and other facilities, equipment and
apparatus, which, in any case, are used primarily for administrative or clerical
purposes;

       

      (s) Liens
securing letters of credit entered into in the ordinary course of
business;

       

      (t) Liens
granted on the capital stock of Subsidiaries that are not Restricted
Subsidiaries for the purpose of securing the obligations of such
Subsidiaries;

       

      (u) Liens in
addition to those permitted by clauses (a) through (t) on the property or assets
of a Special Purpose Subsidiary arising in connection with the Lower Mt. Bethel
Lease Financing or the lease of such property or assets through one or more
other lease financings;

       

      (v) Liens by
any Wholly Owned Subsidiary of the Borrower or any Restricted Subsidiary for the
benefit of the Borrower or any such Restricted Subsidiary;

       

      (w) Liens on
property which is the subject of a Capital Lease Obligation designating the
Borrower or any of its Restricted Subsidiaries as lessee and all right, title
and interest of the Borrower or any of its Restricted Subsidiaries in and to
such property and in, to and under such lease agreement, whether or not such
lease agreement is intended as a security; provided, that the
aggregate fair market value of the obligations subject to such Liens shall not
at any time exceed $500,000,000;

       

      (x) Liens on
property which is the subject of one or more leases designating the Borrower or
any of its Restricted Subsidiaries as lessee and all right, title and interest
of the Borrower or any of its Restricted Subsidiaries in and to such property
and in, to and under any such lease agreement, whether or not any such lease
agreement is intended as a security;

       

      (y) Liens
arising out of the refinancing, extension, renewal or refunding of any Debt or
other obligation secured by any Lien permitted by clauses (a) through (x) of
this Section; provided, that such
Debt or other obligation is not increased and is not secured by any additional
assets;

       

      (z) other
Liens on assets or property of the Borrower or any of its Restricted
Subsidiaries, so long as the aggregate value of the obligations secured by such
Liens does not exceed the greater of $250,000,000 or 15% of the total
consolidated assets of the Borrower and its Consolidated Subsidiaries as of the
most recent fiscal quarter of the Borrower for which financial statements are
available.

       

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

       

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

       

      Section
6.10. Restrictive
Agreements.  Except as set forth in Schedule 6.10, the Borrower
will not permit any of its Restricted Subsidiaries to enter into or assume any
agreement prohibiting or otherwise restricting the ability of any Restricted
Subsidiary to pay dividends or other distributions on its respective equity and
equity equivalents to the Borrower or any of its Restricted
Subsidiaries.

       

      Section
6.11. Consolidated Debt to
Consolidated Capitalization Ratio.  The ratio of Consolidated
Debt of the Borrower to Consolidated Capitalization of the Borrower shall not
exceed 65% at any time.

       

      Section
6.12. Indebtedness.  The
Borrower will not permit any of its Restricted Subsidiaries to incur, create,
assume or permit to exist any Debt of such Restricted Subsidiaries
except:

       

      (a) Existing
Debt and any extensions, renewals or refinancings thereof;

       

      (b) Debt
owing to the Borrower or a Wholly Owned Restricted Subsidiary;

       

      (c) any Debt
incurred in respect of the Lower Mt. Bethel Lease Financing;

       

      (d) Non-Recourse
Debt; and

       

      (e) other
Debt, the aggregate principal amount of which does not exceed $500,000,000 at
any time.

       

      ARTICLE
VII

      DEFAULTS

       

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

       

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

       

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

       

      (c) the
Borrower shall fail to observe or perform any covenant or agreement contained in
clause (ii) of Section 6.05, or Sections 6.06, 6.08, 6.09, 6.11 or 6.12;
or

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

      (l) a Change
of Control shall have occurred;

       

      then, and
in every such event, while such event is continuing, the Administrative Agent
may (A) if requested by the Required Lenders, by notice to the Borrower
terminate the Commitments, and the Commitments shall thereupon terminate, and
(B) if requested by the Lenders holding more than 50% of the sum of the
aggregate outstanding principal amount of the Loans and Letter of Credit
Liabilities at such time, by notice to the Borrower declare the Loans and Letter
of Credit Liabilities (together with accrued interest and accrued and unpaid
fees thereon) to be, and the Loans and Letter of Credit Liabilities shall
thereupon become, immediately due and payable without presentment, demand,
protest or other notice of any kind (except as set forth in clause (A) above),
all of which are hereby waived by the Borrower and require the Borrower to, and
the Borrower shall, cash collateralize (in accordance with Section 2.09(a)(ii))
all Letter of Credit Liabilities then outstanding; provided, that, in
the case of any Default or any Event of Default specified in clause 7.01(h) or
7.01(i) above with respect to the Borrower, without any notice to the Borrower
or any other act by the Administrative Agent or any Lender, the Commitments
shall thereupon terminate and the Loans and Letter of Credit Liabilities
(together with accrued interest and accrued and unpaid fees thereon) shall
become immediately due and payable without presentment, demand, protest or other
notice of any kind, all of which are hereby waived by the Borrower, and the
Borrower shall cash collateralize (in accordance with Section 2.09(a)(ii)) all
Letter of Credit Liabilities then outstanding.

       

      ARTICLE
VIII

      THE
AGENTS

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

      Section
8.08. Indemnification.  To
the extent that the Borrower for any reason fails to indefeasibly pay any amount
required under Sections 9.03(a), (b) or (c) to be paid by it to the
Administrative Agent (or any sub-agent thereof), the Lenders agree to indemnify
the Administrative Agent, in its capacity as such, and hold the Administrative
Agent, in its capacity as such, harmless ratably according to their respective
Commitments from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs and reasonable expenses or
disbursements of any kind whatsoever which may at any time (including, without
limitation, at any time following the full payment of the obligations of the
Borrower hereunder) be imposed on, incurred by or asserted against the
Administrative Agent, in its capacity as such, in any way relating to or arising
out of this Agreement or any other Loan Document, or any documents contemplated
hereby or referred to herein or the transactions contemplated hereby or any
action taken or omitted to be taken by the Administrative Agent under or in
connection with any of the foregoing, but only to the extent that any of the
foregoing is not paid by the Borrower; provided, that no
Lender shall be liable to the Administrative Agent for the payment of any
portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs or expenses or disbursements resulting from the gross
negligence, willful misconduct or bad faith of the Administrative
Agent.  If any indemnity furnished to the Administrative Agent for any
purpose shall, in the reasonable opinion of the Administrative Agent, be
insufficient or become impaired, the Administrative Agent may call for
additional indemnity and cease, or not commence, to do the acts indemnified
against until such additional indemnity is furnished.  The agreement
in this Section 8.08 shall survive the payment of all Loans, Letter of Credit
Liabilities, fees and other obligations of the Borrower arising
hereunder.

       

      Section
8.09. Resignation;
Successors.  The Administrative Agent may resign as
Administrative Agent upon twenty (20) days’ notice to the
Lenders.  Upon the resignation of the Administrative Agent, the
Required Lenders shall appoint from among the Lenders a successor to the
Administrative Agent, subject to prior approval by the Borrower (so long as no
Event of Default exists) and the consent of the Required Lenders (such approval
or consent, as the case may be, not to be unreasonably withheld), whereupon such
successor Administrative Agent shall succeed to the rights, powers and duties of
the retiring Administrative Agent, and the term “Administrative Agent” shall
include such successor Administrative Agent effective upon its appointment, and
the retiring Administrative Agent’s rights, powers and duties as Administrative
Agent shall be terminated, without any other or further act or deed on the part
of such former Administrative Agent or any of the parties to this Agreement or
any other Loan Document.  After the retiring Administrative Agent’s
resignation hereunder as Administrative Agent, the provisions of this Article
VIII shall inure to its benefit as to any actions taken or omitted to be taken
by it while it was Administrative Agent under this Agreement or any other Loan
Document.  Any resignation by Wachovia Bank, National Association
(“Wachovia
Bank”), as Administrative Agent pursuant to this Section shall also
constitute its resignation as Issuing Lender, if Wachovia Bank is an Issuing
Lender.  If applicable, upon the acceptance of a successor’s
appointment as Administrative Agent hereunder, (a) such successor shall succeed
to and become vested with all of the rights, powers, privileges and duties of
Wachovia Bank as Issuing Lender, (b) Wachovia Bank as Issuing Lender shall be
discharged from all of its respective duties and obligations hereunder or under
the other Loan Documents, and (c) the successor Issuing Lender shall issue
letters of credit in substitution for the Letters of Credit, if any, issued by
Wachovia Bank and outstanding at the time of such succession or make other
arrangement satisfactory to Wachovia Bank to effectively assume the obligations
of Wachovia Bank as Issuing Lender with respect to such Letters of
Credit.

       

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

       

      ARTICLE
IX

      MISCELLANEOUS

       

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

       

      if to the
Borrower:

       

      PPL
Energy Supply, LLC

      Two North
Ninth Street (GENTW14)

      Allentown,
Pennsylvania  18101-1179

      Attention:  Russell
R. Clelland

      Telephone:  610-774-5151

      Facsimile:  610-774-5235

       

      with a
copy to:

       

      PPL
Energy Supply, LLC

      Two North
Ninth Street (GENTW3)

      Allentown,
Pennsylvania  18101-1179

      Attention:  Frederick
C. Paine, Esq.

      Telephone:  610-774-7445

      Facsimile:  610-774-6726

       

      if to the
Administrative Agent:

       

      Wachovia
Bank, National Association

      One
Wachovia Center

      301 South
College Street – 15th Floor, NC 5562

      Charlotte,
North Carolina  28288

      Attention:  Rick
Price

      Telephone:
704-374-4062

      Facsimile:  704-383-6647

       

      with a
copy to:

       

      Wachovia
Bank, National Association

      201 South
College Street, 23rd Floor

      Charlotte,
North Carolina  28288

      Attention:  Syndications
Agency Services

      Telephone:  704-383-3721

      Facsimile:  704-383-0288

       

      with a
copy to:

       

      Winston
& Strawn LLP

      214 North
Tryon Street, Suite 2200

      Charlotte,
North Carolina  28202

      Attention:
Raymond S. Koloski, Esq.

      Telephone
:  704-350-7723

      Facsimile:  704-350-7800

       

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

       

      Section
9.03. Expenses;
Indemnification.

       

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

       

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

       

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

       

      (d) Waiver of
Damages.  To the fullest extent permitted by applicable law,
the Borrower shall not assert, and hereby waives, any claim against any
Indemnitee, on any theory of liability, for special, indirect, consequential or
punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement, any other Loan Document or
any agreement or instrument contemplated hereby, the transactions contemplated
hereby or thereby, any Loan or Letter of Credit or the use of the proceeds
thereof.  No Indemnitee referred to in clause (b) above shall be
liable for any damages arising from the use by unintended recipients of any
information or other materials distributed by it through telecommunications,
electronic or other information transmission systems in connection with this
Agreement or the other Loan Documents or the transactions contemplated hereby or
thereby; provided that nothing in this Section 9.03(d) shall relieve any Lender
from its obligations under Section 9.12.

       

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

       

      Section
9.05. Amendments and
Waivers.  Any provision of this Agreement or the Notes may be
amended or waived if, but only if, such amendment or waiver is in writing and is
signed by the Borrower and the Required Lenders (and, if the rights or duties of
the Administrative Agent any Issuing Lenders are affected thereby, by the
Administrative Agent or such Issuing Lender, as relevant); provided, that no
such amendment or waiver shall, unless signed by each Lender affected thereby,
(i) increase or decrease the Commitment of any Lender (except for a ratable
decrease in the Commitments of all of the Lenders) or subject any Lender to any
additional obligation (it being understood that waivers or modifications of
conditions precedent, covenants, Defaults or of mandatory reductions in the
Commitments shall not constitute an increase of the Commitment of any Lender,
and that an increase in the available portion of any Commitment of any Lender as
in effect at any time shall not constitute an increase in such Commitment), (ii)
reduce the principal of or rate of interest on any Loan (except in connection
with a waiver of applicability of any post-default increase in interest rates)
or the amount to be reimbursed in respect of any Letter of Credit or any
interest thereon or any fees hereunder, (iii) postpone the date fixed for any
payment of interest on any Loan or the amount to be reimbursed in respect of any
Letter of Credit or any interest thereon or any fees hereunder or for any
scheduled reduction or termination of any Commitment or (except as expressly
provided in Article III) expiration date of any Letter of Credit, (iv) postpone
or change the date fixed for any scheduled payment of principal of any Loan, (v)
change the percentage of the Commitments or of the aggregate unpaid principal
amount of the Loans and Letter of Credit Liabilities, or the number of Lenders,
which shall be required for the Lenders or any of them to take any action under
this Section or any other provision of this Agreement, (vi) change any provision
hereof in a manner that would alter the pro rata sharing of payments required by
Section 2.11(a) or the pro rata reduction of Revolving Commitments required by
Section 2.08(a) or (vii) change the currency in which Loans are to be made,
Letters of Credit are to be issued or payment under the Loan Documents is to be
made, or add additional borrowers.

       

      Section
9.06. Successors and
Assigns.

       

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

       

      (b) Participations.  Any
Lender may at any time grant to one or more banks or other financial
institutions or special purpose funding vehicle (each a “Participant”)
participating interests in its Commitments and/or any or all of its Loans and
Letter of Credit Liabilities.  In the event of any such grant by a
Lender of a participating interest to a Participant, whether or not upon notice
to the Borrower and the Administrative Agent, such Lender shall remain
responsible for the performance of its obligations hereunder, and the Borrower,
the Issuing Lenders and the Administrative Agent shall continue to deal solely
and directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement.  Any agreement pursuant to which any
Lender may grant such a participating interest shall provide that such Lender
shall retain the sole right and responsibility to enforce the obligations of the
Borrower hereunder including, without limitation, the right to approve any
amendment, modification or waiver of any provision of this Agreement; provided, that such
participation agreement may provide that such Lender will not agree to any
modification, amendment or waiver of this Agreement which would (i) extend the
Termination Date, reduce the rate or extend the time of payment of principal,
interest or fees on any Loan or Letter of Credit Liability in which such
Participant is participating (except in connection with a waiver of
applicability of any post-default increase in interest rates) or reduce the
principal amount thereof, or increase the amount of the Participant’s
participation over the amount thereof then in effect (it being understood that a
waiver of any Default or Event of Default or of a mandatory reduction in the
Commitments shall not constitute a change in the terms of such participation,
and that an increase in any Commitment or Loan or Letter of Credit Liability
shall be permitted without the consent of any Participant if the Participant’s
participation is not increased as a result thereof) or (ii) allow the assignment
or transfer by the Borrower of any of its rights and obligations under this
Agreement, without the consent of the Participant, except to the extent any such
assignment results from the consummation of a merger or consolidation permitted
pursuant to Section 6.08 of this Agreement.  The Borrower agrees that
each Participant shall, to the extent provided in its participation agreement,
be entitled to the benefits of Article II with respect to its participating
interest to the same extent as if it were a Lender, subject to the same
limitations, and in no case shall any Participant be entitled to receive any
amount payable pursuant to Article II that is greater that the amount the Lender
granting such Participant’s participating interest would have been entitled to
receive had such Lender not sold such participating interest.  An
assignment or other transfer which is not permitted by subsection (c) or (d)
below shall be given effect for purposes of this Agreement only to the extent of
a participating interest granted in accordance with this subsection
(b).

       

      (c) Assignments
Generally.  Any Lender may at any time assign to one or more
Eligible Assignees (each, an “Assignee”) all, or a
proportionate part (equivalent to an initial amount of not less than $5,000,000
or any larger multiple of $1,000,000), of its rights and obligations under this
Agreement and the Notes with respect to its Loans and, if still in existence,
its Revolving Commitment, and such Assignee shall assume such rights and
obligations, pursuant to an Assignment and Assumption Agreement in substantially
the form of Exhibit C attached hereto executed by such Assignee and such
transferor, with (and subject to) the consent of the Borrower, which shall not
be unreasonably withheld, the Administrative Agent and the Issuing Lenders,
which consent shall not be unreasonably withheld; provided, that if an
Assignee is an Affiliate of such transferor Lender or was a Lender immediately
prior to such assignment, no such consent of the Borrower or the Administrative
Agent shall be required; provided, further, that if at
the time of such assignment a Default or an Event of Default has occurred and is
continuing, no such consent of the Borrower shall be required.  Upon
execution and delivery of such instrument and payment by such Assignee to such
transferor of an amount equal to the purchase price agreed between such
transferor and such Assignee, such Assignee shall be a Lender party to this
Agreement and shall have all the rights and obligations of a Lender with a
Commitment, if any, as set forth in such instrument of assumption, and the
transferor shall be released from its obligations hereunder to a corresponding
extent, and no further consent or action by any party shall be
required.  Upon the consummation of any assignment pursuant to this
subsection (c), the transferor, the Administrative Agent and the Borrower shall
make appropriate arrangements so that, if required, a new Note is issued to the
Assignee.  In connection with any such assignment, the transferor
shall pay to the Administrative Agent an administrative fee for processing such
assignment in the amount of $3,500.  If the Assignee is not
incorporated under the laws of the United States or any state thereof, it shall
deliver to the Borrower and the Administrative Agent certification as to
exemption from deduction or withholding of any United States Taxes in accordance
with Section 2.17.

       

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

       

      (e) Register.  The
Borrower hereby designates the Administrative Agent to serve as the Borrower’s
agent, solely for purposes of this subsection 9.06(e), to (i) maintain a
register (the “Register”) on which
the Administrative Agent will record the Commitments from time to time of each
Lender, the Loans made by each Lender and each repayment in respect of the
principal amount of the Loans of each Lender and to (ii) retain a copy of each
Assignment and Assumption Agreement delivered to the Administrative Agent
pursuant to this Section.  Failure to make any such recordation, or
any error in such recordation, shall not affect the Borrower’s obligation in
respect of such Loans.  The entries in the Register shall be
conclusive, in the absence of manifest error, and the Borrower, the
Administrative Agent, the Issuing Lenders and the other Lenders shall treat each
Person in whose name a Loan and the Note evidencing the same is registered as
the owner thereof for all purposes of this Agreement, notwithstanding notice or
any provision herein to the contrary.  With respect to any Lender, the
assignment or other transfer of the Commitments of such Lender and the rights to
the principal of, and interest on, any Loan made and any Note issued pursuant to
this Agreement shall not be effective until such assignment or other transfer is
recorded on the Register and, except to the extent provided in this subsection
9.06(e), otherwise complies with Section 9.06, and prior to such recordation all
amounts owing to the transferring Lender with respect to such Commitments, Loans
and Notes shall remain owing to the transferring Lender.  The
registration of assignment or other transfer of all or part of any Commitments,
Loans and Notes for a Lender shall be recorded by the Administrative Agent on
the Register only upon the acceptance by the Administrative Agent of a properly
executed and delivered Assignment and Assumption Agreement and payment of the
administrative fee referred to in Section 9.06(c).  The Register shall
be available for inspection by each of the Borrower and each Issuing Lender at
any reasonable time and from time to time upon reasonable prior
notice.  In addition, at any time that a request for a consent for a
material or substantive change to the Loan Documents is pending, any Lender
wishing to consult with other Lenders in connection therewith may request and
receive from the Administrative Agent a copy of the Register.  The
Borrower may not replace any Lender pursuant to Section 2.08(b), unless, with
respect to any Notes held by such Lender, the requirements of subsection 9.06(c)
and this subsection 9.06(e) have been satisfied.

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

      

      [Signature
Pages to Follow]

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

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

       

      PPL
ENERGY SUPPLY, LLC

       

      By:                                                                

      Name:  Russell
R. Clelland

      Title:  Assistant
Treasurer

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      WACHOVIA
BANK, NATIONAL ASSOCIATION, as Administrative Agent and Lender

       

      By:                                                                

      Name:

      Title:

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ____________________,
as a Lender

      (insert
name of Lender)

       

      By:                                                                

      Name:

      Title

       

      Second
signature block, if required

       

      ____________________,
as a Lender

      (insert
name of Lender)

       

      By:                                                                

      Name:

      Title

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