Document:

Exhibit 10.1

 

EXECUTION COPY

 

 

U.S.
$110,000,000

 

REVOLVING
CREDIT AGREEMENT

 

Among

 

AQUILA,
INC.,

as Borrower,

 

The Several
Lenders from Time to Time Parties Hereto

 

and

 

CREDIT
SUISSE FIRST BOSTON,

acting through its Cayman Islands Branch,

as Administrative Agent

 

 

 

CREDIT
SUISSE FIRST BOSTON,

acting through its Cayman Islands Branch,

as Joint Lead Arranger and Sole Bookrunner

 

CITIGROUP
GLOBAL MARKETS INC. 

as Joint Lead Arranger and Documentation Agent

 

LEHMAN
BROTHERS INC.,

as Joint Lead Arranger and Syndication Agent

 

Dated as of
September 20, 2004

 

 

 

TABLE
OF CONTENTS

 

	
  ARTICLE
  I DEFINITIONS AND ACCOUNTING TERMS

  	
   

  
	
   

  	
   

  
	
  Section 1.01.

  	
  Certain
  Defined Terms

  	
   

  
	
  Section 1.02.

  	
  Other
  Definitional Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  II AMOUNTS AND TERMS OF THE REVOLVING CREDIT ADVANCES

  	
   

  
	
   

  	
   

  
	
  Section 2.01.

  	
  The
  Revolving Credit Advances

  	
   

  
	
  Section 2.02.

  	
  Making
  the Revolving Credit Advances

  	
   

  
	
  Section 2.03.

  	
  Fees

  	
   

  
	
  Section 2.04.

  	
  Voluntary
  Termination or Reduction of Commitments

  	
   

  
	
  Section 2.05.

  	
  [Intentionally
  Omitted]

  	
   

  
	
  Section 2.06.

  	
  Repayment
  of Revolving Credit Advances

  	
   

  
	
  Section 2.07.

  	
  Interest
  on Revolving Credit Advances

  	
   

  
	
  Section 2.08.

  	
  Computation
  of Interest

  	
   

  
	
  Section 2.09.

  	
  Inability
  to Determine Interest Rate

  	
   

  
	
  Section 2.10.

  	
  Conversion
  of Revolving Credit Advances

  	
   

  
	
  Section 2.11.

  	
  Prepayments
  of Revolving Credit Advances

  	
   

  
	
  Section 2.12.

  	
  Increased
  Costs

  	
   

  
	
  Section 2.13.

  	
  Illegality

  	
   

  
	
  Section 2.14.

  	
  Payments

  	
   

  
	
  Section 2.15.

  	
  Taxes

  	
   

  
	
  Section 2.16.

  	
  Sharing of Payments, Etc.

  	
   

  
	
  Section 2.17.

  	
  Evidence of Debt

  	
   

  
	
  Section 2.18.

  	
  Use of Proceeds

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III CONDITIONS PRECEDENT

  	
   

  
	
   

  	
   

  
	
  Section 3.01.

  	
  Conditions Precedent to Closing Date

  	
   

  
	
  Section 3.02.

  	
  Conditions Precedent to Each Loan Event

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV REPRESENTATIONS AND WARRANTIES 

  	
   

  
	
   

  	
   

  
	
  Section 4.01.

  	
  Representations and Warranties of the
  Borrower

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V COVENANTS OF THE BORROWER

  	
   

  
	
   

  	
   

  
	
  Section 5.01.

  	
  Affirmative Covenants

  	
   

  
	
  Section 5.02.

  	
  Negative Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI EVENTS OF DEFAULT

  	
   

  
	
   

  	
   

  
	
  Section 6.01.

  	
  Events of Default

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII THE ADMINISTRATIVE AGENT

  	
   

  
	
   

  	
   

  
	
  Section 7.01.

  	
  Authorization and Action

  	
   

  

 

i

 

	
  Section 7.02.

  	
  Administrative Agent’s Reliance, Etc.

  	
   

  
	
  Section 7.03.

  	
  CSFB and Affiliates

  	
   

  
	
  Section 7.04.

  	
  Lender Credit Decision

  	
   

  
	
  Section 7.05.

  	
  Indemnification

  	
   

  
	
  Section 7.06.

  	
  Successor Administrative Agent

  	
   

  
	
  Section 7.07.

  	
  Other Agents

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII MISCELLANEOUS

  	
   

  
	
   

  	
   

  
	
  Section 8.01.

  	
  Amendments, Etc.

  	
   

  
	
  Section 8.02.

  	
  Notices, Etc.

  	
   

  
	
  Section 8.03.

  	
  No Waiver; Remedies

  	
   

  
	
  Section 8.04.

  	
  Costs
  and Expenses

  	
   

  
	
  Section 8.05.

  	
  Right of Set-off

  	
   

  
	
  Section 8.06.

  	
  Binding Effect

  	
   

  
	
  Section 8.07.

  	
  Assignments and Participations

  	
   

  
	
  Section 8.08.

  	
  Confidentiality

  	
   

  
	
  Section 8.09.

  	
  Governing Law

  	
   

  
	
  Section 8.10.

  	
  Execution in Counterparts

  	
   

  
	
  Section 8.11.

  	
  Jurisdiction, Etc.

  	
   

  
	
  Section 8.12.

  	
  Waiver of Jury Trial

  	
   

  
	
  Section 8.13.

  	
  Survival of Representations and Warranties

  	
   

  
	
  Section 8.14.

  	
  Severability

  	
   

  
	
  Section 8.15.

  	
  Integration

  	
   

  
	
  Section 8.16.

  	
  Acknowledgement

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedules

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule I

  	
  –

  	
  Cash Equivalents

  	
   

  
	
  Schedule II

  	
  –

  	
  List of Applicable Lending Offices

  	
   

  
	
  Schedule III

  	
  –

  	
  Pricing Schedule

  	
   

  
	
  Schedule 4.01(d)

  	
  –

  	
  Consents, Authorizations, Filings

  	
   

  
	
  Schedule 4.01(i)

  	
  –

  	
  Material Subsidiaries

  	
   

  
	
  Schedule 5.01(n)

  	
  –

  	
  Extension Regulatory Approvals

  	
   

  
	
  Schedule 5.02(j)

  	
  –

  	
  Existing Debt

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibits

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  –

  	
  Form of Revolving Credit Promissory Note

  	
   

  
	
  Exhibit B

  	
  –

  	
  Form of Notice of Revolving Credit
  Borrowing

  	
   

  
	
  Exhibit C

  	
  –

  	
  Form of Closing Certificate

  	
   

  
	
  Exhibit D

  	
  –

  	
  Form of Assignment and Acceptance

  	
   

  

 

ii

 

REVOLVING
CREDIT AGREEMENT, dated as of September 20, 2004 (this “Agreement”),
among AQUILA, INC., a Delaware corporation (the “Borrower”), the several
banks and other financial institutions from time to time party hereto (the “Lenders”)
and CREDIT SUISSE FIRST BOSTON, acting through its Cayman Islands Branch, as
Administrative Agent (in such capacity, the “Administrative Agent”).

 

PRELIMINARY STATEMENTS

 

1.                                       The
Borrower has requested that the Lenders extend credit on an unsecured basis to
the Borrower in an aggregate principal amount of up to $110,000,000 in the form
of revolving credit advances.

 

2.                                       In
consideration of the foregoing and the mutual covenants herein contained and
for other good and valuable consideration the receipt and sufficiency of which
are hereby acknowledged, the parties hereto, intending to be legally bound,
hereby agree as follows:

 

ARTICLE I

 

DEFINITIONS AND ACCOUNTING TERMS

 

Section 1.01.                             Certain
Defined Terms.  As used in this
Agreement, the following terms shall have the following meanings (such meanings
to be equally applicable to both the singular and plural forms of the terms
defined):

 

“Administrative Agent’s Account” means the account of the
Administrative Agent maintained by the Administrative Agent at The Bank of New
York, ABA No. 02100018, Account No. 8900492627, Account Name: CSFB Agency
Cayman, Reference: Aquila or such other account as the Administrative Agent may
designate from time to time by notice to the Borrower and the Lenders.

 

“Affiliate” means, as to any Person, any other Person which,
directly or indirectly, is in control of (including all directors and officers
of such Person), is controlled by, or is under common control with, such
Person.  For purposes of this
definition, “control” of a Person shall mean the power, directly or indirectly,
to direct or cause the direction of the management and policies of such Person,
whether by ownership of voting securities, by contract or otherwise.

 

“Agreement” has the meaning specified in the first paragraph of
this Agreement.

 

“Alternate Base Rate” means, on any particular date, a rate of
interest per annum equal to the higher of

 

(a)                                  the
rate of interest most recently announced by CSFB as its prime rate in effect at
its principal office in New York City; and

 

(b)                                 the
Federal Funds Rate for such date plus 0.50%.

 

 

“Alternate Base Rate Advance” means a Revolving Credit Advance
that bears interest as provided in Section 2.07(a)(i).

 

“Applicable Lending Office” means, with respect to each Lender,
such Lender’s Domestic Lending Office in the case of an Alternate Base Rate
Advance and such Lender’s Eurodollar Lending Office in the case of a Eurodollar
Rate Advance.

 

“Applicable Margin” means, for any day, with respect to any
Alternate Base Rate Advance or Eurodollar Rate Advance, as the case may be, the
applicable rate per annum determined pursuant to the Pricing Schedule.

 

“Applicable Reduction Premium” means, in respect of any
termination or partial reduction of Commitments pursuant to Section 2.04,
a prepayment premium equal to (1) during the time period commencing on
September 21, 2006 and ending on (and including) September 20, 2007, 2.5% of
the aggregate principal amount of the unused portions of the respective Commitments
of the Lenders being reduced or terminated, (2) during the time period
commencing on September 21, 2007 and ending on (and including) September 20,
2008, 1.5% of the aggregate principal amount of the unused portions of the
respective Commitments of the Lenders being reduced or terminated and (3)
thereafter, 0% of the aggregate principal amount of the unused portions of the
respective Commitments of the Lenders being reduced or terminated.

 

“Approved Fund” means an Affiliate of a Lender or any fund or similar
investment vehicle that is administered or managed by a Lender or an Affiliate
of a Lender.

 

“Assignment and Acceptance” means an assignment and acceptance
entered into by a Lender and an Eligible Assignee, and accepted by the
Administrative Agent, in the form of Exhibit F hereto (or such other form as
may be acceptable to the Administrative Agent).

 

“Borrower” has the meaning specified in the first paragraph of
this Agreement.

 

“Business” has the meaning specified in Section 4.01(p)(i).

 

“Business Day” means a day other than a Saturday, Sunday or
other day on which commercial banks in New York City are authorized or required
by law to close; provided, however, that, when used in connection
with a Eurodollar Rate Advance, the term “Business Day” excludes any day
on which banks are not open for dealings in Dollars in the interbank market in
London, England.

 

“Capital Stock” shall mean any and all shares, interests,
participations or other equivalents (however designated) of capital stock of a
corporation, any and all equivalent ownership interests in a Person (other than
a corporation) and any and all warrants or options to purchase any of the
foregoing.

 

“Cash Equivalents” means the cash equivalents specified on Schedule I.

 

2

 

“Change of Control” means the occurrence of any of the
following:

 

(a)                                  any
Person or “group” (within the meaning of Section 13(d) or 14(d)
of the Securities Exchange Act of 1934) (i) shall have acquired beneficial
ownership of 40% or more of the aggregate outstanding classes of Capital Stock
having voting power in the election of directors of the Borrower or (ii) shall
obtain the power (whether or not exercised) to elect a majority of the
Borrower’s directors;

 

(b)                                 a
majority of the Original Directors cease to constitute a majority of the board
of directors of the Borrower (unless replaced by individuals nominated or
proposed by the Original Directors); or

 

(c)                                  the
Borrower shall be liquidated or dissolved.

 

“Closing Date” means the date on which the conditions precedent
set forth in Section 3.01 shall be satisfied or waived by the Required
Lenders.

 

“Code” means the Internal Revenue Code of 1986, as amended from
time to time, and the regulations promulgated thereunder.

 

“Commitment” means, with respect to any Lender at any time (a)
the amount set forth opposite such Lender’s name on the signature pages hereof,
or (b) if such Lender has entered into any Assignment and Acceptance, the
amount set forth for such Lender in the Register maintained by the
Administrative Agent pursuant to Section 8.07(d), as such amount may be
reduced pursuant to Section 2.04.

 

“Commitment Fee” has the meaning specified in Section 2.03(a).

 

“Compliance Certificate” has the meaning
specified in Section 5.01(b)(ii).

 

“Commonly Controlled Entity” shall mean an entity, whether or
not incorporated, which is under common control with the Borrower or any
Subsidiary within the meaning of Section 4001(a)(14) of ERISA or is
part of a group which includes the Borrower and which is treated as a single
employer under Section 414 of the Code.

 

“Confidential Information” means information that the Borrower
furnishes to the Administrative Agent or any Lender in a writing designated as
confidential, but does not include any such information that is or becomes
generally available to the public or that is or becomes available to the
Administrative Agent or such Lender from a source other than the Borrower, that
is not acting in violation of a confidentiality agreement with the Borrower.

 

“Consolidated” refers to the consolidation of accounts in
accordance with GAAP.

 

“Consolidated Assets” means on any date of determination, all
amounts that are or should, in accordance with GAAP, be included under assets
on a Consolidated balance sheet of any Person and its Subsidiaries determined
in accordance with GAAP.

 

3

 

“Consolidated Interest
Expense” means, with reference to any period, interest on all Debt of the
Borrower and its Subsidiaries, as determined on a consolidated basis in
accordance with GAAP (except excluding amortization of Debt issuance costs).

 

“Consolidated Net Worth”
means, as of any Covenant Compliance Date, the amount of the common equity of
the Borrower less accumulated other comprehensive gains (or, if applicable, plus
accumulated other comprehensive losses) as of such day, determined on a
consolidated basis in accordance with GAAP.

 

“Consolidated Net Income”
means, with reference to any period, the net income (or loss) of Borrower and
its Subsidiaries for such period determined on a consolidated basis in
accordance with GAAP (except excluding extraordinary gains and losses).

 

“Contractual Obligation”
means, with respect to the Domestic Utility Business and the Telecommunications
Business, any agreement, instrument or other undertaking to which Borrower is a
party or by which the Borrower or its property is bound.

 

“Convert”, “Conversion”
and “Converted” each refers to a conversion of Revolving Credit Advances
of one Type into Revolving Credit Advances of the other Type pursuant to Section
2.10.

 

“Covenant Compliance Date”
means the last date of each Fiscal Quarter.

 

“CSFB” means Credit
Suisse First Boston, acting through its Cayman Islands Branch.

 

“Debt” means, with
respect to any Person, the aggregate principal amount of all obligations that,
in accordance with GAAP consistently applied and without duplication, would be
classified as debt on its Consolidated balance sheet; provided,
however, that with respect to the Borrower, “Debt” excludes obligations to
the extent that such obligations are cash collateralized.

 

“Default” means any
Event of Default or any event that would constitute an Event of Default but for
the requirement for the giving of notice, the lapse of time or both has been
satisfied.

 

“Disposition” has the
meaning specified in Section 2.05.

 

“Dollars” and “$”
means dollars in the lawful currency of the United States of America.

 

“Domestic Lending Office”
means, with respect to any Lender, the office of such Lender specified as its
“Domestic Lending Office” opposite its name on Schedule II hereto or in the
Assignment and Acceptance pursuant to which it became a Lender, or such other
office of such Lender as such Lender may from time to time specify by notice from
such Lender to the Borrower and the Administrative Agent.

 

4

 

“Domestic Utility Business” means the regulated electric and
natural gas assets and businesses owned and operated by the Borrower in the
United States.

 

“EBITDA” means, for any period, the total of the following
calculated without duplication: (a) Consolidated Net Income (or loss) of the
Domestic Utility Business and the Telecommunications Business for such period plus
(b)(i) Consolidated Interest Expense, (ii) Federal, state, county and local
income and franchise Taxes, and (iii) depreciation, amortization, unallocated
corporate costs and other non-cash charges, in each case, of such Domestic
Utility Business and the Telecommunications Business for such period, but only
to the extent deducted in the determination of Consolidated Net Income of the
Domestic Utility Business and the Telecommunications Business for such period less
(c) all expenses of the Borrower not related to the Domestic Utility Business,
the Telecommunications Business or the business conducted by Aquila Merchant
Services, Inc. and its Subsidiaries (except excluding (x) extraordinary gains
and losses, (y) $8,500,000 of payments in connection with the recombination of
the Borrower and Aquila Merchant Services, Inc. and (z) fees and expenses
related to the Amendment No. 1 to the Existing Credit Agreement).

 

“Eligible Assignee” means (a) a Lender; (b) an Approved Fund of
a Lender; (c) a commercial bank organized under the laws of the United States,
or any State thereof having a combined capital and surplus of at least
$100,000,000; (d) a savings and loan association or savings bank organized
under the laws of the United States, or any State thereof having a combined
capital and surplus of at least $100,000,000; (e) a commercial bank organized
under the laws of any other country which is a member of the OECD, 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, agency or Affiliate located in the United States or managed and
controlled by a branch, agency or affiliate located in the United States; (f)
the central bank of any country that is a member of the OECD; (g) a finance company,
insurance company or other financial institution, fund (whether a corporation,
partnership, trust or other entity) or other entity that is engaged in making,
purchasing or otherwise investing in commercial loans in the ordinary course of
its business and having total assets (inclusive of assets of Approved Funds
thereof) of at least $100,000,000; and (h) any other Person approved by the
Administrative Agent and, unless a Default or an Event of Default has occurred
and is continuing, the Borrower, in each case such consent not to be
unreasonably withheld or delayed; provided, however, that neither
the Borrower nor any Affiliate of the Borrower shall qualify as an Eligible
Assignee under this definition.

 

“Environmental Laws” means any and all foreign, Federal, state,
local or municipal laws, rules, orders, regulations, statutes, ordinances,
codes, decrees, judgments, permits, licenses, registrations or authorizations
or requirements of any Governmental Authority or other Requirements of Law
(including common law) regulating, relating to or imposing liability or
standards of conduct concerning the health and safety of humans and other
living organisms as it relates to exposures to Materials of Environmental
Concern, protection of natural resources or the environment, including the
manufacture, distribution in commerce, and use of, or Release to the
environment of, Materials of Environmental Concern, as now or may at any time
hereafter be in effect.

 

5

 

“Environmental Liability” means any liability, contingent or
otherwise (including any liability for damages, costs of environmental
remediation, fines, penalties or indemnities), of the Borrower or any
Subsidiary 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 Materials of Environmental Concern, (c)
exposure to any Materials of Environmental Concern, (d) the release or threatened
release of any Materials of Environmental Concern 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 the regulations promulgated and rulings
issued thereunder.

 

“ERISA Affiliate” means any Person that for purposes of Title IV
of ERISA is a member of the Borrower’s controlled group, or under common
control with the Borrower, within the meaning of Section 414 of the Code.

 

“Eurodollar Base Rate” means, with respect to any Eurodollar
Rate Advance for any Interest Period, the rate per annum determined by the
Administrative Agent at approximately 11:00 a.m. (London time) on the date
which is two (2) Business Days prior to the beginning of such Interest Period
by reference to the British Bankers’ Association Interest Settlement Rates for
deposits in Dollars (as set forth by any service selected by the Administrative
Agent which has been nominated by the British Bankers’ Association as an
authorized information vendor for the purpose of displaying such rates) for a
period equal to such Interest Period; provided, however, that, to
the extent that an interest rate is not ascertainable pursuant to the foregoing
provisions of this definition, the “Eurodollar Base Rate” shall be the interest
rate per annum determined by the Administrative Agent to be the average of the
rates per annum at which deposits in Dollars are offered for such Interest
Period to major banks in the London interbank market in London, England by the
Administrative Agent at approximately 11:00 a.m. (London time) on the date
which is two (2) Business Days prior to the beginning of such Interest Period.

 

“Eurodollar Lending Office” means, with respect to any Lender,
the office of such Lender specified as its “Eurodollar Lending Office” opposite
its name on Schedule II hereto or in the Assignment and Acceptance pursuant to
which it became a Lender (or, if no such office is specified, its Domestic
Lending Office), or such other office of such Lender as such Lender may from
time to time specify by notice from such Lender to the Borrower and the
Administrative Agent.

 

“Eurodollar Rate” means with respect to each day during each
Interest Period pertaining to a Eurodollar Rate Advance, a rate per annum
determined for such day in accordance with the following formula:

 

	
   

  	
  Eurodollar Base Rate

  	
   

  
	
  1.00 - Eurodollar Reserve Requirements

  

 

6

 

“Eurodollar Rate Advance” means a Revolving Credit Advance that
bears interest as provided in Section 2.07(a)(ii).

 

“Eurodollar Reserve Requirements” means, for any day as applied
to a Eurodollar Rate Advance, the aggregate (without duplication) of the rates
(expressed as a decimal) of reserve requirements in effect on such day
(including, without limitation, basic, supplemental, marginal and emergency
reserves) under any regulations of the Board of Governors of the Federal
Reserve System or other Governmental Authority having jurisdiction with respect
thereto) dealing with reserve requirements prescribed for eurocurrency funding
(currently referred to as “Eurocurrency Liabilities” in Regulation D of such
Board) maintained by a member bank of such System.

 

“Event of Default” has the meaning specified in Section 6.01.

 

“Exchange Act” means the Securities Exchange Act of 1934, as
amended from time to time.

 

“Existing Credit Agreement” means the Credit Agreement dated as
of April 9, 2003, among the Borrower, the several banks and other financial
institutions from time to time party thereto, and Credit Suisse First Boston,
acting through its Cayman Islands Branch, as administrative agent, lead
arranger and sole book runner.

 

“Extension Regulatory
Approvals” means the regulatory approvals specified on Schedule 5.01(n).

 

“Extension Regulatory
Approval Notice” has the meaning specified in Section 5.01(n).

 

“Federal Funds Rate” means for any particular date, 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, however,
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 charged to the Administrative Agent (in its
individual capacity) on such day on such transactions as determined by the
Administrative Agent.

 

“Fee Letter” means the Fee Letter dated September 1, 2004 among
the Borrower, CSFB, Citigroup Global Markets Inc. and Lehman Brothers Inc.

 

“Financing Lease” means any lease of property, real or personal,
the obligations of the lessee in respect of which are required in accordance
with GAAP to be capitalized on a balance sheet of the lessee.

 

7

 

“Fiscal Quarter” means each consecutive three calendar month
period ending March 31, June 30, September 30 or December 31 of any fiscal
year.

 

“GAAP” has the meaning specified in Section 1.02.

 

“Governmental Authority” means any national government (United
States or foreign), any state or other political subdivision thereof, any
entity exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government and any agency,
authority, instrumentality, or regulatory body of any thereof.

 

“Granting Bank” has the meaning specified in Section 8.07(h).

 

“Guarantee Obligation” means as to any Person (the “guaranteeing
person”), any obligation of the guaranteeing person (including any
reimbursement, counter-indemnity or similar obligation), guaranteeing or in
effect guaranteeing any Indebtedness, lease, dividend or other similar
obligation (the “primary obligation”) of any other third Person (the “primary
obligor”) in any manner, whether directly or indirectly, including any
obligation of the guaranteeing person, whether or not contingent, (i) to
purchase any such primary obligation or any property constituting direct or
indirect security therefor, (ii) to advance or supply funds (x) for the
purchase or payment of any such primary obligation or (y) to maintain working
capital or equity capital of the primary obligor or otherwise to maintain the
net worth, liquidity or solvency of the primary obligor, (iii) to purchase
property, securities or services primarily for the purpose of assuring the
owner of any such primary obligation of the ability of the primary obligor to
make payment of such primary obligation or (iv) otherwise to assure or hold
harmless the owner of any such primary obligation against loss in respect
thereof; provided, however, that the term Guarantee Obligation
shall not include endorsements of instruments for deposit or collection in the
ordinary course of business.

 

“Indebtedness” of any Person at any date means, without
duplication, (a) all obligations of such Person for borrowed money, (b) all
obligations of such Person evidenced by bonds, debentures, notes or similar
instruments, (c) all Financing Lease obligations of such Person, (d) all
obligations of such Person under synthetic leases, tax retention operating
leases, off-balance sheet loans or other off-balance sheet financing products
that, for tax purposes, are considered indebtedness for borrowed money of the
lessee but are classified as operating leases under GAAP, (e) all indebtedness
of such Person for the deferred purchase price of property or services (other
than current trade liabilities incurred in the ordinary course of business),
(f) all outstanding reimbursement obligations of such Person in respect of
outstanding letters of credit, acceptances and similar obligations issued or
created for the account of such Person, (g) all liabilities secured by any Lien
on any property owned by such Person even though such Person has not assumed or
otherwise become liable for the payment thereof, and (h) all Guarantee
Obligations of such Person and (i) all Mandatory Redeemable Stock of the
Borrower and Subsidiaries; provided, however, that “Indebtedness”
of the Borrower excludes liabilities or other obligations to the extent cash
collateralized.

 

“Indemnified Costs” has the meaning specified in Section 7.05.

 

8

 

“Indemnified Party” has the meaning specified in Section
8.04(b).

 

“Initial Termination Date” means September 19, 2005.

 

“Insolvency” means with respect to any Multiemployer Plan, the
condition that such plan is insolvent within the meaning of Section 4245
of ERISA.

 

“Intellectual Property” has the meaning specified in Section
4.01(j).

 

“Interest Period” means, for each Eurodollar Rate Advance
comprising part of the same Revolving Credit Borrowing, the period commencing
on the date of such Eurodollar Rate Advance or the date of the Conversion of
any Alternate Base Rate Advance into such Eurodollar Rate Advance and ending on
the last day of the period selected by the Borrower pursuant to the provisions
in this definition below and, thereafter, each subsequent period commencing on
the last day of the immediately preceding Interest Period and ending on the
last day of the period selected by such Borrower pursuant to the provisions
below, provided, however, that if the Borrower fails to select
the duration of such subsequent period pursuant to the provisions below, such
Eurodollar Rate Advance shall be automatically converted to an Alternate Base
Rate Advance on the last day of such then expiring Interest Period.  The duration of each Interest Period shall
be one, two, three or six months, as the Borrower may, upon notice received by
the Administrative Agent not later than 12:00 Noon (New York City time) on the
third Business Day prior to the first day of such Interest Period, select; provided,
however, that:

 

(a)                                  the
Borrower may not select any Interest Period that ends after the Termination
Date;

 

(b)                                 Interest
Periods commencing on the same date for Eurodollar Rate Advances comprising
part of the same Revolving Credit Borrowing shall be of the same duration;

 

(c)                                  whenever
the last day of any Interest Period would otherwise occur on a day other than a
Business Day, the last day of such Interest Period shall be extended to occur
on the next succeeding Business Day, provided, however, that, if
such extension would cause the last day of such Interest Period to occur in the
next following calendar month, the last day of such Interest Period shall occur
on the next preceding Business Day; and

 

(d)                                 whenever
the first day of any Interest Period occurs on a day of an initial calendar
month for which there is no numerically corresponding day in the calendar month
that succeeds such initial calendar month by the number of months equal to the
number of months in such Interest Period, such Interest Period shall end on the
last Business Day of such succeeding calendar month.

 

“Investment” has the meaning specified in Section 5.02(h).

 

9

 

“Lenders” means the Lenders party hereto and each Person that
becomes a party hereto pursuant to Section 8.07.

 

“Lender Indemnitee” has the meaning specified in Section 7.05.

 

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

 

“Loan Documents” means collectively, this Agreement, the Fee
Letter, the Notes (if any) and each other instrument or certificate (other than
an Assignment and Acceptance, pursuant to which the assignor therein sells
and/or assigns an interest under this Agreement) delivered to the
Administrative Agent or the Lenders hereunder or pursuant hereto (in each case
as the same may be amended, restated, supplemented, extended, renewed or
replaced from time to time), and “Loan Document” means any one of them.

 

“Loan Event” has the meaning specified in Section 3.02.

 

“Mandatory Prepayment under the Existing Credit Agreement” means
the mandatory prepayment of all amounts due or outstanding under, and
termination of commitments under, the Existing Credit Agreement.

 

“Mandatory Redeemable Stock” means, with respect to any Person,
any share of such Person’s Capital Stock, to the extent that it is (a)
redeemable, payable or required to be purchased or otherwise retired or
extinguished, or convertible into any Indebtedness or other liability,
obligation, covenant or duty of or binding upon, or any term or condition to be
observed by or binding upon such Person or any of its assets, (i) at a fixed or
determinable date, whether by operation of a sinking fund or otherwise, (ii) at
the option of any other Person or (iii) upon the occurrence of a condition not
solely within the control of such Person such as a redemption required to be
made utilizing future earnings, or (b) convertible into Capital Stock which has
the features set forth in clause (a).

 

“Material Adverse Effect” shall mean any material adverse effect
(a) on the business, operations, property, condition (financial or otherwise)
or prospects of the Borrower and its Subsidiaries (taken as a whole) or (b) on
the legality, validity or enforceability of this Agreement, any of the other
Loan Documents, or any of the rights or remedies of the Administrative Agent
thereunder, respectively.

 

“Materials of Environmental Concern” means any gasoline or
petroleum (including crude oil or any fraction thereof) or petroleum products
or any other pollutant, contaminant, hazardous substance, hazardous waste,
special waste, toxic substance, radioactive material, or other compound,
element, material or substance in any form whatsoever (including products)
regulated, restricted or addressed by or under any 

 

10

 

Environmental
Law, including asbestos, polychlorinated biphenyls and urea-formaldehyde
insulation.

 

“Material Subsidiary” means, as at any time of determination,
each Subsidiary of the Borrower which, in the aggregate, as at the end of the
Fiscal Quarter immediately preceding such time of determination, has
Consolidated Assets equal to or greater than 10% of the total Consolidated Assets
of the Borrower and its Subsidiaries as at the end of such Fiscal Quarter, as
determined in accordance with GAAP; provided, that neither Aquila Merchant
Services, Inc. nor any of its Subsidiaries will constitute a Material
Subsidiaries for the purpose of this definition.

 

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

 

“Multiemployer Plan” means a multiemployer plan, as defined in
Section 4001(a)(3) of ERISA, to which the Borrower or any of its ERISA
Affiliates is making or accruing an obligation to make contributions, or has
within any of the preceding five plan years made or accrued an obligation to
make contributions.

 

“Multiple Employer Plan” means a single employer plan, as
defined in Section 4001(a)(15) of ERISA, that (a) is maintained for employees
of the Borrower or any ERISA Affiliate and at least one Person other than such
Borrower and its ERISA Affiliates or (b) was so maintained and in respect of
which any Borrower or any of its ERISA Affiliates could have liability under
Section 4064 or 4069 of ERISA in the event such plan has been or were to be
terminated.

 

“Non-Recourse Debt” means either (a) Debt as to which the
Borrower has no direct or indirect liability whether as primary obligor,
guarantor, surety, provider of collateral security or through any other right
or arrangement of any nature (including any election by the holder of such
indebtedness) providing direct or indirect assurance of payment or performance
of any such obligations in whole or in part, or (b) Debt of the Borrower that funded
the purchase or construction of Domestic Utility Business assets, whereby the
recourse of the lenders is limited solely to the assets purchased or
constructed with such Debt (and, therefore, the lenders are not contractually
entitled to recourse against the general assets of the Borrower if an event of
default were to occur with respect to such Debt).

 

“Note” means a revolving credit promissory note of the Borrower
payable to the order of any Lender, delivered pursuant to a request made under Section
2.17, in substantially the form of Exhibit A hereto, evidencing the
aggregate indebtedness of the Borrower to such Lender resulting from the
Revolving Credit Advances made by such Lender.

 

“Notice of Revolving Credit Borrowing” has the meaning specified
in Section 2.02(a).

 

“OECD” means the Organization for Economic Cooperation and
Development.

 

11

 

“Original Directors” means the individuals named to, and serving
as directors on, the Borrower’s board of directors on the date hereof.

 

“Other Taxes” has the meaning specified in Section 2.15(b).

 

“Patriot Act” has the meaning specified in Section 3.01(i).

 

“PBGC” means the Pension Benefit Guaranty Corporation
established pursuant to Subtitle A of Title IV of ERISA or any successor
thereto.

 

“Permitted Liens” means

 

(a)                                  Liens
for taxes, assessments, governmental charges or levies not yet due or which are
being contested in good faith by appropriate proceedings; provided, however,
that adequate reserves with respect thereto are maintained on the books of the
Borrower or its Consolidated Subsidiaries, as the case may be, in conformity
with GAAP;

 

(b)                                 Landlord
liens for rent not yet due and payable and statutory Liens of carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s or other similar
nonconsensual Liens imposed by law arising in the ordinary course of business
securing obligations which are not overdue for a period of more than 60 days or
which are being contested in good faith by appropriate proceedings;

 

(c)                                  pledges
or deposits in connection with workers’ compensation, unemployment insurance
and other social security legislation;

 

(d)                                 (i)
deposits securing liability to insurance carriers under insurance or
self-insurance arrangements in the ordinary course of business, and (ii)
deposits to secure true operating leases, performance of bids, trade contracts
(other than for Debt), statutory obligations, surety and appeal bonds,
performance bonds and other obligations of a like nature incurred in the ordinary
course of business;

 

(e)                                  easements,
rights-of-way, restrictions and other similar encumbrances incurred in the
ordinary course of business which, individually or in the aggregate, do not
materially detract from the value of any property (except immaterial property)
subject thereto or materially adversely interfere with the ordinary conduct of
the business of the Borrower and its Subsidiaries;

 

(f)                                    any
attachment or judgment Lien not constituting an Event of Default under Section
6.01(h);

 

(g)                                 Liens
granted in connection with (i) asset sales or (ii) transactions designed to
restructure or otherwise exit the merchant contracts entered into by the
Borrower or its Subsidiaries;

 

12

 

(h)                                 Liens
on accounts receivables (and all rights, titles, security and guarantees with
respect thereto) of the Borrower securing Indebtedness permitted to be
outstanding pursuant to Section 5.02(j)(viii);

 

(i)                                     Liens
on assets of the Borrower and assets of the Borrower’s Subsidiaries, in each
case, securing Indebtedness permitted to be outstanding pursuant to Section
5.02(j)(iv),(v),(vii), (ix), or (xi) and Section 5.02(k);

 

(j)                                     any
Lien vested in any licensor or permitter for obligations or acts to be
performed, the performance of which obligations or acts is required under
licenses or permits, so long as the performance of such obligations or acts is
not delinquent or is being contested in good faith and by appropriate
proceedings;

 

(k)                                  Liens
existing on the date hereof;

 

(l)                                     Liens
securing reimbursement obligations with respect to letters of credit (which
either do not relate to Indebtedness or relate to Indebtedness that has not
been incurred in contravention of the terms of this Agreement) that encumber
documents and other property relating to the letters of credit and the proceeds
and products thereof; or

 

(m)                               Liens
(i) on cash deposits in the nature of a right to set off, banker’s liens,
counterclaim on netting of cash amounts owed arising in the ordinary course of
business on deposit accounts, commodity accounts or securities accounts or (ii)
granted in connection with obligations or liabilities of the Borrower that have
been cash collateralized.

 

“Person” means an individual, partnership, corporation
(including a business trust), limited liability company, business trust, joint
stock company, trust, unincorporated association, joint venture, Governmental
Authority or other entity of whatever nature.

 

“Plan” means a Single Employer Plan or a Multiple Employer Plan.

 

“Pricing Schedule” means the schedule attached as Schedule III.

 

“Properties” has the meaning specified in Section 4.01(p)(i).

 

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

 

“Register” has the meaning specified in Section 8.07(d).

 

13

 

“Release” means any release, pumping, pouring, emptying,
injecting, escaping, leaching, migrating, dumping, seepage, spill, leak, flow,
discharge, disposal or emission.

 

“Reorganization” means with respect to any Multiemployer Plan,
the condition that such plan is in reorganization within the meaning of
Section 4241 of ERISA.

 

“Reportable Event” means any of the events set forth in
Section 4043(c) of ERISA other than those events for which the notice
requirement has been waived under applicable regulations.

 

“Required Lenders” means at any time Lenders owed more than 50%
in interest of the then aggregate unpaid principal amount of the Revolving
Credit Advances owing to Lenders, or, if no such principal amount is then
outstanding, Lenders having more than 50% in interest of the Commitments
outstanding at such time.

 

“Requirement of Law” as to any Person means the articles of
organization and by-laws or other organizational or governing documents of such
Person, and any law, treaty, rule or regulation or determination of an
arbitrator or a court or other Governmental Authority (including the Public
Utility Holding Company Act of 1935, as amended, any of the foregoing relating to
public utilities and any Environmental Law), in each case, applicable to or
binding upon such Person or any of its property or to which such Person or any
of its property is subject.

 

“Responsible Officer” means, with respect to a Person, the
chairman of the board of directors, the chief executive officer, the president,
any vice-president or, with respect to financial matters, the chief financial
officer or treasurer of such Person.

 

“Restricted Payments” has the meaning specified in Section
5.02(i).

 

“Revolving Credit Advance” means an advance by a Lender to the
Borrower as part of a Revolving Credit Borrowing and refers to a Alternate Base
Rate Advance or a Eurodollar Rate Advance (each of which shall be a “Type” of
Revolving Credit Advance).

 

“Revolving Credit Borrowing” means a borrowing consisting of
simultaneous Revolving Credit Advances of the same Type made by each of the
Lenders pursuant to Section 2.01.

 

“SEC” means the Securities and Exchange Commission.

 

“SEC Reports” means public reports, notices or other filings of
the Borrower filed with the SEC.

 

“Securities Act” means the Securities Act of 1933, as amended
from time to time.

 

“Single Employer Plan” means a single employer plan, as defined
in Section 4001(a)(15) of ERISA, that (a) is maintained for employees of any
Borrower or any of its ERISA Affiliates and no Person other than such Borrower
and its ERISA Affiliates or (b) 

 

14

 

was so
maintained and in respect of which any Borrower or any of its ERISA Affiliates
could reasonably be expected to have liability under Section 4069 of ERISA in
the event such plan has been or were to be terminated.

 

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

 

“St. Joseph Power & Light Indenture” means the Indenture of
Mortgage and Deed of Trust, dated as of April 1, 1946, among St. Joseph Light
& Power Company, Harris Trust and Savings Bank and Barlet Boder.

 

“Stated Maturity” means when used with respect to any Debt, the
date or dates specified in the instrument governing such Debt as the fixed date
or dates on which each then remaining installment, sinking fund, serial
maturity or other required payments of principal, including payment at final
maturity, in respect of such Debt, or any installment of interest thereon, is
due and payable.

 

“SPC” has the meaning specified in 8.07(h).

 

“Subsidiary” of any Person means any corporation, partnership,
joint venture, limited liability company, trust or estate of which (or in
which) more than 50% of (i) the Capital Stock having ordinary voting power to
elect a majority of the Board of Directors of such corporation (irrespective of
whether, at the time, Capital Stock of any other class or classes of such
corporation shall or might have voting power upon the occurrence of any
contingency), (ii) the interest in the capital or profits of such partnership,
joint venture or limited liability company or (iii) the beneficial interest in
such trust or estate is at the time directly or indirectly owned or controlled
by such Person (whether directly or through one or more other subsidiaries) and
one or more of its other Subsidiaries or by one or more of such Person’s other
Subsidiaries.  Unless otherwise
expressly stated herein, all references to any Subsidiary are to direct or
indirect Subsidiaries of the Borrower.

 

“Taxes” has the meaning specified in Section 2.15(a).

 

“Telecommunications Business” means the telecommunications
business conducted by Everest Global Technologies Group, LLC and its
Subsidiaries.

 

“Term Loan Credit Agreement” means that certain U.S.$ 220,000,000 Credit Agreement dated as of the date hereof
among the Borrower, the lenders party thereto and CSFB, as administrative
agent.

 

“Termination Date” means the earlier of (a) September 19, 2005; provided,
however, that immediately upon delivery by the Borrower to the
Administrative Agent of notice in accordance with Section 5.01(n) that the
Extension Regulatory Approvals have been obtained and so long as each such
Extension Regulatory Approval is in form and substance reasonably satisfactory
to the Administrative Agent, the “Termination Date” under this clause (a) shall
be automatically extended to September 19, 2009 and (b) the date of termination
in whole of the Commitments pursuant to Section 2.04 or 6.01.

 

15

 

“Total Capital” means on any date (a) Debt of the Borrower on
such date plus (b) Consolidated Net Worth as of the end of the most
recent Fiscal Quarter.

 

“Type” has the meaning specified in the definition of Revolving Credit
Advance.

 

“Wholly-Owned Subsidiary” of any Person means any Subsidiary
100% of whose Capital Stock (other than qualifying directors’ shares) is at the
time owned by such Person directly or indirectly through other Wholly Owned
Subsidiaries.

 

Section 1.02.                             Other
Definitional Provisions.  Unless
otherwise specified therein, all terms defined in this Agreement shall have
their respective defined meanings when used in the Notes or any certificate or
other document made or delivered pursuant hereto.

 

As used
herein, in the Notes and in any certificate or other document made or delivered
pursuant hereto, accounting terms relating to the Borrower or any Subsidiary
not defined in Section 1.01 and accounting terms partly defined in Section
1.01, to the extent not defined, shall have the respective meanings given
to them under United States generally accepted accounting principles as in
effect from time to time (“GAAP”).

 

The words
“hereof,” “herein” and “hereunder” and words of similar import when used in
this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement, and Article, Section, Schedule and
Exhibit references are to this Agreement unless otherwise specified.

 

The meanings
given to terms defined herein shall be equally applicable to both the singular
and plural forms of such terms.

 

The words
“include,” “includes” and “including” shall be deemed to be followed by the
phrase “without limitation”.  The word
“or” shall not be exclusive.

 

Unless the
context requires otherwise (i) any definition of or reference to any agreement,
instrument or other document herein shall be construed as referring to such
agreement, instrument or other document as from time to time amended, supplemented
or otherwise modified (subject to any restrictions on such amendments,
supplements or modifications set forth herein), (ii) any reference herein to
any Person shall be construed to include such Person’s successors and assigns,
and (iii) the words “asset” and “property” shall be construed to have the same
meaning and effect and to refer to any and all tangible and intangible assets
and properties, including cash, securities, accounts and contract rights.

 

ARTICLE II

 

AMOUNTS AND TERMS OF THE REVOLVING CREDIT ADVANCES

 

Section 2.01.                             The
Revolving Credit Advances.  Each
Lender severally agrees, on the terms and conditions hereinafter set forth, to
make Revolving Credit Advances to the Borrower from time to time on any
Business Day during the period from the day after the Closing Date until the
Termination Date up to the full amount of such Lender’s Commitment hereunder; provided,
however, that (i) the aggregate amount of such Revolving Credit Advances

 

16

 

made by such
Lender at any time outstanding shall not exceed such Lender’s Commitment and
(ii) the sum of the aggregate outstanding principal amount of the Revolving
Credit Advances made by all Lenders shall not exceed at any time the aggregate
amount of the Commitments of the Lenders. 
Each Revolving Credit Borrowing shall be in an aggregate amount of
$5,000,000 or an integral multiple of $1,000,000 in excess thereof and shall
consist of Revolving Credit Advances of the same Type made on the same day by
the Lenders ratably according to their respective Commitments.  The Borrower may borrow under this Section
2.01 and, subject to limitation set forth in this Section 2.01,
prepay pursuant to Section 2.11 and reborrow under this Section 2.01.

 

Section 2.02.                             Making
the Revolving Credit Advances. 
(a)  Each Revolving Credit
Borrowing shall be made on notice, given not later than 12:00 Noon (New York
City time) on the fifth Business Day prior to the date of the proposed
Revolving Credit Borrowing by the Borrower to the Administrative Agent, which
shall give to each Lender prompt notice thereof.  Each such notice of a Revolving Credit Borrowing (a “Notice of
Revolving Credit Borrowing”) shall be by telephone, confirmed immediately
in writing, or telecopier or telex in substantially the form of Exhibit B
hereto, specifying therein the requested (i) date of such Revolving Credit
Borrowing, (ii) Type of Revolving Credit Advances comprising such Revolving
Credit Borrowing, (iii) aggregate amount of such Revolving Credit Borrowing,
(iv) remittance instructions and (v) in the case of a Revolving Credit
Borrowing consisting of Eurodollar Rate Advances, initial Interest Period for
each such Revolving Credit Advance.  If
no election as to Type of Revolving Credit Advances comprising such Revolving
Credit Borrowing is specified in any such Notice of Revolving Credit Borrowing,
then such Revolving Credit Advances shall be Alternate Base Rate Advances.  If no Interest Period with respect to
Eurodollar Rate Advances is specified in any such Notice of Revolving Credit
Borrowing, then the Borrower shall be deemed to have selected an Interest
Period of one month duration.  Each
Lender shall on the date of such Revolving Credit Borrowing, before 11:00 A.M.
(New York City time), in the case of a Revolving Credit Borrowing to be
comprised of Eurodollar Rate Advances, and before 1:00 P.M. (New York City
time), in the case of a Revolving Credit Borrowing to be comprised of Alternate
Base Rate Advances, make available for the account of its Applicable Lending
Office to the Administrative Agent at the Administrative Agent’s Account, in
same day funds, such Lender’s ratable portion of such Revolving Credit
Borrowing.  After the Administrative
Agent’s receipt of such funds and upon fulfillment of the applicable conditions
set forth in Section 3.02, the Administrative Agent will make such funds
available to the Borrower in the manner specified by the Borrower in the Notice
of Revolving Credit Borrowing.

 

(b)                                 Anything
in subsection (a) above to the contrary notwithstanding, (i) the Borrower may
not select Eurodollar Rate Advances for any Revolving Credit Borrowing if the
obligation of the Lenders to make Eurodollar Rate Advances shall then be
suspended pursuant to Section 2.09 or 2.13 and (ii) the Eurodollar
Rate Advances may not be outstanding as part of more than eight separate
Revolving Credit Borrowings.

 

(c)                                  Each
Notice of Revolving Credit Borrowing shall be irrevocable and binding on the
Borrower.  In the case of any Revolving
Credit Borrowing that the related Notice of Revolving Credit Borrowing
specifies is to be comprised of Eurodollar Rate Advances, the Borrower shall
indemnify each Lender against any loss, cost or expense incurred by such Lender

 

17

 

as a result of any failure to
fulfill on or before the date specified in such Notice of Revolving Credit
Borrowing for such Revolving Credit Borrowing the applicable conditions set
forth in Section 3.02, including any loss, cost or expense incurred by
reason of the liquidation or reemployment of deposits or other funds acquired
by such Lender to fund the Revolving Credit Advance to be made by such Lender
as part of such Revolving Credit Borrowing when such Revolving Credit Advance,
as a result of such failure, is not made on such date.

 

(d)                                 Unless
the Administrative Agent shall have received written notice from a Lender prior
to the date of any Revolving Credit Borrowing that such Lender will not make
available to the Administrative Agent such Lender’s ratable portion of such
Revolving Credit Borrowing, the Administrative Agent may assume that such
Lender has made such portion available to the Administrative Agent on the date
of such Revolving Credit Borrowing in accordance with subsection (a) of this Section
2.02 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 ratable portion 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) in the case of the Borrower, the interest rate applicable at such time to
Revolving Credit Advances comprising such Revolving Credit Borrowing and (ii)
in the case of such Lender, the Federal Funds Rate for the first three days and
Alternate Base Rate thereafter.  If such
Lender shall repay to the Administrative Agent such corresponding amount, such
amount so repaid shall constitute such Lender’s Revolving Credit Advance as
part of such Revolving Credit Borrowing for purposes of this Agreement.

 

(e)                                  The
failure of any Lender to make the Revolving Credit Advance to be made by it as
part of any Revolving Credit Borrowing shall not relieve any other Lender of
its obligation, if any, hereunder to make its Revolving Credit Advance on the
date of such Revolving Credit Borrowing, but no Lender shall be responsible for
the failure of any other Lender to make the Revolving Credit Advance to be made
by such other Lender on the date of any Revolving Credit Borrowing.

 

Section 2.03.                             Fees.  (a)  Commitment
Fee.  The Borrower agrees to pay to
the Administrative Agent for the account of each Lender a Commitment Fee (the “Commitment
Fee”), which shall accrue at a rate per annum in effect from time to time
determined in accordance with the Pricing Schedule, on the daily amount, if
any, of the Commitment of such Lender in excess of the sum of the aggregate
principal amount of such Lender’s Revolving Credit Advances then outstanding
during the period from and including the Closing Date to but excluding the date
on which such Commitment terminates. 
Accrued Commitment Fees shall be payable in arrears quarterly on the
last Business Day of each March, June, September and December, commencing on
December 31, 2004, and on the Termination Date.  All Commitment Fees shall be computed on the basis of a year of
360 days and shall be payable for the actual number of days elapsed (including
the first day but excluding the last day).

 

(b)                                 Administrative
Agent’s Fees.  The Borrower agrees
to pay to the Administrative Agent for its own account such fees specified in
the Fee Letter or as may from time to time be separately agreed between the
Borrower and the Administrative Agent.

 

18

 

(c)                                  All
fees payable hereunder shall be paid on the dates due, in immediately available
funds, to the Administrative Agent for the benefit of the parties entitled
thereto.  Fees paid shall not be
refundable under any circumstances.

 

Section 2.04.                             Voluntary
Termination or Reduction of Commitments. 
The Borrower shall not have the right to terminate in whole or
permanently reduce any portion of the unused portions of the respective
Commitments of the Lenders prior to the Initial Termination Date. In the event
that the Initial Termination Date is extended by the Borrower’s delivery to the
Administrative Agent of the Extension Regulatory Approval Notice, the Borrower
shall not have the right to terminate in whole or permanently reduce any of the
unused portions of the respective Commitments of the Lenders until (and
including) September 20, 2006.  After
September 20, 2006, the Borrower will have the right, upon at least three (3)
Business Days’ notice to the Administrative Agent, to terminate in whole or
permanently reduce ratably in part the unused portions of the respective
Commitments of the Lenders, provided, however, that (i) each
partial reduction shall be in the aggregate amount of $5,000,000 or an integral
multiple of $1,000,000 in excess thereof and (ii) the Borrower shall pay to the
Administrative Agent for the ratable benefit of the Lenders a reduction premium
equal to the Applicable Reduction Premium. The Administrative Agent agrees
promptly to notify the Lenders of any notice of reduction or termination
received by the Administrative Agent.

 

Section 2.05.                             [Intentionally
Omitted]  

 

Section 2.06.                             Repayment
of Revolving Credit Advances.  The
Borrower shall repay to the Administrative Agent for the ratable account of the
Lenders on the Termination Date the aggregate principal amount of the Revolving
Credit Advances then outstanding.

 

Section 2.07.                             Interest
on Revolving Credit Advances. 
(a)  Scheduled Interest.  The Borrower shall pay interest on the
unpaid principal amount of each Revolving Credit Advance owing to each Lender
from the date of such Revolving Credit Advance until such principal amount
shall be paid in full, at the following rates per annum:

 

(i)                                     Alternate Base Rate Advances. 
During such periods as such Revolving Credit Advance is an Alternate
Base Rate Advance, a rate per annum equal at all times to the sum of (A) the
Alternate Base Rate in effect from time to time plus (B) the Applicable
Margin in effect from time to time determined in accordance with the
Pricing Schedule, payable in
arrears quarterly on the last Business Day of each March, June, September and
December during such periods.

 

(ii)                                  Eurodollar Rate Advances. 
During such periods as such Revolving Credit Advance is a Eurodollar
Rate Advance, a rate per annum equal at all times during each Interest Period
for such Revolving Credit Advance to the sum of (A) the Eurodollar Rate for
such Interest Period for such Revolving Credit Advance plus (B) the
Applicable Margin in effect from time to time determined in accordance
with the Pricing Schedule, payable in
arrears on the last day of such Interest Period and, if such Interest Period
has a duration of more than three months, on each day that occurs during such
Interest Period every three months from the first day of such Interest Period and
on the date such Eurodollar Rate Advance shall be Converted or paid in full.

 

19

 

(b)                                 Default Interest.  If
an Event of Default has occurred and is continuing, the Revolving Credit
Advances shall bear interest at a rate per annum equal to the rate that would
otherwise be applicable thereto pursuant to the foregoing provisions of this Section
2.07  plus 2% from the date of occurrence of such Event of Default
until the date such Event of Default is cured or waived (after as well as
before judgment).  In addition, should
any interest on such Revolving Credit Advances or any fees or other amount
(other than principal) payable hereunder not be paid when due (whether at the
Stated Maturity, by acceleration or otherwise), such overdue amount shall bear
interest (to the extent permitted by law in the case of interest on interest)
at a rate per annum as determined pursuant to the preceding sentence which
would be applicable to an Alternate Base Rate Advance, in each case, from the
date of such non-payment until such amount is paid in full (after as well as
before judgment).  Interest accruing
pursuant to this Section 2.07(b) shall be payable from time to time on
demand.

 

Section 2.08.                             Computation of Interest. 
(a)  The Alternate Base Rate
interest (when calculated based upon the prime rate) shall be calculated on the
basis of a 365/366 day year and all other interest shall be calculated on the
basis of a 360-day year for the actual days elapsed.  The Administrative Agent shall as soon as practicable notify the
Borrower and the Lenders of each determination of a Eurodollar Rate.  Any change in the interest rate on a
Revolving Credit Advance resulting from a change in the Alternate Base Rate or
the Eurodollar Reserve Requirements shall become effective as of the opening of
business on the day on which such change becomes effective.  The Administrative Agent shall, as soon as
practicable, notify the Borrower and the Lenders of the effective date and the
amount of each such change in interest rate.

 

(b)                                 Each determination of an interest rate by the
Administrative Agent pursuant to any provision of this Agreement shall be
conclusive and binding on the Borrower and the Lenders in the absence of
manifest error.  The Administrative
Agent, at the request of the Borrower, shall deliver to the Borrower a
statement showing in reasonable detail the supporting calculations used by the
Administrative Agent in determining any interest rate determined by the
Administrative Agent.

 

Section 2.09.                             Inability to Determine Interest Rate.  If
prior to the first day of any Interest Period:

 

(a)                                  the Administrative Agent shall have
reasonably determined (which determination shall be conclusive and binding upon
the Borrower) that, by reason of circumstances affecting the relevant market,
adequate and reasonable means do not exist for ascertaining the Eurodollar Rate
for such Interest Period, or

 

(b)                                 the Administrative Agent shall have received
notice from the Required Lenders that the Eurodollar Rate determined or to be
determined for such Interest Period will not adequately and fairly reflect the
cost to such Lenders (as certified by such Lenders) of making or maintaining
its affected Revolving Credit Advances during such Interest Period,

 

the Administrative Agent shall give telecopy
or telephonic notice thereof to the Borrower and the Lenders as soon as
practicable thereafter (which notice shall include supporting calculations in
reasonable detail).  If such notice is
given, (i) any Eurodollar Rate Advance requested to be made 

 

20

 

on the first day of such Interest Period
shall be made as Alternate Base Rate Advances, (ii) any Revolving Credit
Advances that were to have been Converted on the first day of such Interest
Period to Eurodollar Rate Advances shall be continued as Alternate Base Rate
Advances and (iii) any outstanding Eurodollar Rate Advances shall be Converted,
on the first day of such Interest Period, to Alternate Base Rate Advances.  Until such notice has been withdrawn by the
Administrative Agent, no further Eurodollar Rate Advances shall be made or
continued as such, nor shall the Borrower have the right to Convert Alternate
Base Rate Advances to Eurodollar Rate Advances.

 

Section 2.10.                             Conversion of Revolving Credit Advances. 
(a)  Optional Conversion.  The Borrower may on any Business Day, upon
notice given to the Administrative Agent not later than 11:00 A.M. (New York
City time) on the third Business Day prior to the date of the proposed Conversion
and subject to the provisions of Sections 2.09 and 2.13, Convert
all Revolving Credit Advances of one Type owed by the Borrower and comprising
the same Revolving Credit Borrowing into Revolving Credit Advances of the other
Type; provided, however, that any Conversion of Eurodollar Rate
Advances into Alternate Base Rate Advances shall be made only on the last day
of an Interest Period for such Eurodollar Rate Advances, any Conversion of
Alternate Base Rate Advances into Eurodollar Rate Advances shall be in an
amount not less than the minimum amount specified for Revolving Credit
Borrowings in Section 2.01 and no Conversion of any Revolving Credit
Advances shall result in more separate Revolving Credit Borrowings than
permitted under Section 2.02(b). 
Each such notice of a Conversion shall, within the restrictions
specified above, specify (i) the date of such Conversion, (ii) the Revolving
Credit Advances to be Converted, and (iii) if such Conversion is into Eurodollar
Rate Advances, the duration of the initial Interest Period for each such
Advance.  Each notice of Conversion
shall be irrevocable and binding on the Borrower.

 

(b)                                 Mandatory Conversion. (i) On the date on which the aggregate
unpaid principal amount of Eurodollar Rate Advances comprising any Revolving
Credit Borrowing shall be reduced, by payment or prepayment or otherwise, to
less than $5,000,000, such Advances shall automatically Convert into Alternate
Base Rate Advances, and (ii) upon the occurrence and during the continuance of
any Event of Default, (x) each Eurodollar Rate Advance will automatically, on
the last day of the then existing Interest Period therefor, Convert into a
Alternate Base Rate Advance and (y) the obligation of the Lenders to make, or
to Convert Advances into, Eurodollar Rate Advances shall be suspended.

 

Section 2.11.                             Prepayments of Revolving Credit Advances.  The
Borrower may, upon notice to the Administrative Agent no later than 11:00 A.M.
(New York City time) one Business Day prior to the proposed date of the prepayment
in the case of Alternate Base Rate Advances and on the third Business Day prior
to the proposed date of the prepayment in the case of Eurodollar Rate Advances,
in each case stating the proposed date and aggregate principal amount of the
prepayment, and if such notice is given the Borrower shall, prepay the
outstanding principal amount of the Revolving Credit Advances owing by the
Borrower comprising part of the same Revolving Credit Borrowing in whole or
ratably in part, together with accrued interest to the date of such prepayment
on the principal amount prepaid; provided, however, that (x) each
partial prepayment shall be in an aggregate principal amount not less than
$5,000,000 or an integral multiple of $1,000,000 in excess thereof and (y) in
the event of any such prepayment of

 

21

 

a Eurodollar Rate Advance, the Borrower shall
be obligated to reimburse the Lenders in respect thereof pursuant to Section
8.04(c).

 

Section 2.12.                             Increased Costs.  (a)
 If, due to either (i) the introduction
of or any change in or in the interpretation of any law or regulation after the
date hereof or (ii) the compliance with any guideline or request from any
central bank or other Governmental Authority (whether or not having the force
of law) issued after the date hereof, there shall be any increase in the cost
to any Lender of agreeing to make or making, funding or maintaining Eurodollar
Rate Advances (excluding for purposes of this Section 2.12 any such
increased costs resulting from (i) Taxes or Other Taxes (as to which Section
2.15 shall govern) and (ii) changes in the basis of taxation of overall net
income or overall gross income by the United States or by the foreign
jurisdiction or state under the laws of which such Lender is organized or has
its Applicable Lending Office or any political subdivision thereof), then the
Borrower agrees to pay from time to time, upon demand by such Lender (with a
copy of such demand to the Administrative Agent), to the Administrative Agent
for the account of such Lender additional amounts sufficient to compensate such
Lender for such increased cost provided, however, that any Lender
claiming additional amounts under this Section 2.12 shall use reasonable
efforts (consistent with its internal policy and legal and regulatory
restrictions) to designate a different Applicable Lending Office if such change
would avoid the need for, or reduce the amount of, such increased cost that may
thereafter accrue and would not, in the reasonable judgment of such Lender, be
otherwise disadvantageous to such Lender. 
A certificate as to the amount of such increased cost, submitted to the
Borrower and the Administrative Agent by such Lender, shall be conclusive and
binding for all purposes, absent manifest error.

 

(b)                                 If any Lender determines that compliance with
any law or regulation or any guideline or request from any central bank or
other Governmental Authority enacted or made after the date hereof (whether or
not having the force of law) affects or would affect the amount of capital
required or expected to be maintained by such Lender or any corporation
controlling such Lender and that the amount of such capital is increased by or
based upon the existence of such Lender’s commitment to lend hereunder and
other commitments of this type, then, upon demand by such Lender (with a copy
of such demand to the Administrative Agent), the Borrower agrees to pay to the
Administrative Agent for the account of such Lender (as applicable), from time
to time as specified by such Lender, additional amounts sufficient to
compensate such Lender or such corporation (as applicable) in the light of such
circumstances, to the extent that such Lender reasonably determines such
increase in capital to be allocable to the existence of such Lender’s
commitment to lend hereunder.  A
certificate as to such amounts submitted to the Borrower and the Administrative
Agent by such Lender shall be conclusive and binding for all purposes, absent
manifest error.

 

(c)                                  Failure or delay on the part of any Lender to
demand compensation pursuant to this Section 2.12 shall not constitute a
waiver of such Lender’s right to demand such compensation; provided, however,
that the Borrower shall not be required to compensate a Lender pursuant to this
Section 2.12 for any increased costs or reductions incurred more than
four months prior to the date that such Lender notifies the Borrower of the
change giving rise to such increased costs or reductions and of such Lender’s
intention to claim compensation therefor; provided  further that,
if the change giving rise to such increased costs or reductions is

 

22

 

retroactive, then the four-month period
referred to above shall include the period of retroactive effect thereof.

 

Section 2.13.          Illegality.  Notwithstanding any other provision of this
Agreement, if any Lender shall notify the Administrative Agent that the
introduction of or any change in or in the interpretation of any law or
regulation makes it unlawful, or any central bank or other Governmental
Authority asserts that it is unlawful, for any Lender or its Eurodollar Lending
Office to perform its obligations hereunder to make Eurodollar Rate Advances or
to fund or maintain Eurodollar Rate Advances hereunder, (i) the obligation of
the Lenders to make, or to Convert Revolving Credit Advances into, Eurodollar
Rate Advances shall be suspended until the Administrative Agent shall notify
the Borrower and the Lenders that the circumstances causing such suspension no
longer exist and (ii) the Borrower shall forthwith prepay in full all
Eurodollar Rate Advances then outstanding, together with interest accrued thereon,
unless the Borrower, within five Business Days of notice from the
Administrative Agent, Converts all Eurodollar Rate Advances then outstanding
into Alternate Base Rate Advances in accordance with Section 2.10.

 

Section 2.14.          Payments.  (a) 
The Borrower shall make each payment hereunder, irrespective of any
right of counterclaim or set-off, not later than 12:00 Noon (New York City
time) on the day when due in U.S. dollars to the Administrative Agent at the
Administrative Agent’s Account in same day funds.  The Administrative Agent will promptly thereafter cause to be
distributed like funds relating to the payment of principal or interest or
Commitment Fees ratably (other than amounts payable pursuant to Section 2.12,
2.15 or 8.04(c)) to the Lenders for the account of their
respective Applicable Lending Offices, and like funds relating to the payment
of any other amount payable to any Lender to such Lender for the account of its
Applicable Lending Office, in each case to be applied in accordance with the terms
of this Agreement.  Upon its acceptance
of an Assignment and Acceptance and recording of the information contained
therein in the Register pursuant to Section 8.07(c), from and after the
effective date specified in such Assignment and Acceptance, the Administrative
Agent shall make all payments hereunder and under the Notes in respect of the
interest assigned thereby to the Lender assignor and the Lender assignee
thereunder on a pro rata basis subject to all appropriate adjustments in such
payments for periods prior to such effective date.

 

(b)           Except as otherwise provided herein, whenever any payment
hereunder or under the Notes shall be stated to be due on a day other than a
Business Day, such payment shall be made on the next succeeding Business Day,
and such extension of time shall in such case be included in the computation of
payment, as the case may be.

 

(c)           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 the Borrower shall not
have so made such payment in full to the Administrative Agent, 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 

 

23

 

is distributed to such Lender until the date
such Lender repays such amount to the Administrative Agent, at the Federal
Funds Rate.

 

Section 2.15.          Taxes.  (a) 
Any and all payments by the Borrower to or for the account of any Lender
or the Administrative Agent hereunder, under the Notes, any other Loan Document
or any other documents to be delivered hereunder shall be made, in accordance
with Section 2.14 or the applicable provisions of such other documents,
free and clear of and without deduction for any and all present or future
taxes, levies, imposts, deductions, charges or withholdings, and all
liabilities with respect thereto, excluding, in the case of each Lender
and the Administrative Agent, taxes imposed on its overall net income and
minimum taxes, alternative minimum taxes, doing business taxes, franchise taxes
and value added taxes imposed on it in lieu of net income taxes, by the
jurisdiction under the laws of which such Lender or the Administrative Agent
(as the case may be) is organized (federal or state) or doing business or any
political subdivision thereof and, in the case of each Lender, taxes imposed on
its overall net income and minimum taxes, alternative minimum taxes, doing
business taxes, franchise taxes and value added taxes imposed on it in lieu of
net income taxes, by the jurisdiction of such Lender’s Applicable Lending
Office (federal or state) (all such non-excluded taxes, levies, imposts,
deductions, charges, withholdings and liabilities in respect of payments
hereunder or under the Notes 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
Note or any other documents to be delivered hereunder to any Lender or the
Administrative Agent, (i) the sum payable shall be increased as may be
necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section 2.15) such
Lender 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, (ii)
the Borrower shall make such deductions and (iii) the Borrower shall pay the
full amount deducted to the relevant taxation authority or other authority in
accordance with applicable law.

 

(b)           In addition, the Borrower agrees to pay any present or
future stamp or documentary taxes or any other excise or property taxes,
charges or similar levies that arise from any payment made hereunder, under the
Notes, any other Loan Document or any other documents to be delivered hereunder
or from the execution, delivery or registration of, performing under, or
otherwise with respect to, this Agreement, the Notes, any other Loan Document
or any other documents to be delivered hereunder imposed by the jurisdiction
under the laws of which the Borrower is organized or operates or any political
subdivision thereof, or by the jurisdiction in which the Borrower’s principal
office is located or from which any payments hereunder are made (hereinafter
referred to as “Other Taxes”).

 

(c)           The Borrower will indemnify each Lender and the
Administrative Agent for and hold it harmless against the full amount of Taxes
or Other Taxes (including taxes of any kind imposed or asserted by any
jurisdiction on amounts payable under this Section 2.15) imposed on or
paid by such Lender or the Administrative Agent (as the case may be) and any
liability (including penalties, interest and expenses) arising therefrom or
with respect thereto.  This
indemnification shall be made within 30 days from the date such Lender or the
Administrative Agent (as the case may be) makes written demand therefor; provided,
however, that in no event shall any such indemnification be due earlier
than five Business Days after such Lender or the Administrative Agent (as the
case may be) has paid such Taxes or Other Taxes; 

 

24

 

provided, further, that any such demand shall
be accompanied by copies of all written correspondence to and from the
applicable taxing authority relating to such payment and a copy of the
calculation of such Taxes or Other Taxes.

 

(d)           Within 30 days after the date of any payment of Taxes, the
Borrower will furnish to the Administrative Agent, at its address referred to
in Section 8.02, the original or a certified copy of a receipt
evidencing such payment to the extent such a receipt is issued therefor, or
other written proof of payment thereof that is reasonably satisfactory to the
Administrative Agent.  In the case of any
payment hereunder, under the Notes, any other Loan Document or any other
documents to be delivered hereunder by or on behalf of the Borrower through an
account or branch outside the United States or by or on behalf of the Borrower
by a payor that is not a United States person, if the Borrower determines that
no Taxes are payable in respect thereof, the Borrower shall furnish, or shall
cause such payor to furnish, to the Administrative Agent, at such address, an
opinion of counsel reasonably acceptable to the Administrative Agent stating
that such payment is exempt from Taxes. 
For purposes of this subsection (d) and subsection (e), the terms
“United States” and “United States person” shall have the meanings specified in
Section 7701 of the Code.

 

(e)           Each Lender organized under the laws of a jurisdiction
outside the United States, on or prior to the date of its execution and
delivery of this Agreement in the case of each Lender party to this Agreement
as of the date hereof or on the date of the Assignment and Acceptance pursuant
to which it becomes a Lender in the case of each other Lender, and from time to
time thereafter as reasonably requested in writing by the Borrower (but only so
long as such Lender remains lawfully able to do so), shall provide each of the
Administrative Agent and the Borrower with two original Internal Revenue
Service Forms W-8BEN or W-8ECI, as appropriate, or any successor or other form
prescribed by the Internal Revenue Service, certifying that such Lender is
exempt from or entitled to a reduced rate of United States withholding tax on
payments pursuant to this Agreement or the Notes.  If the form provided by a Lender at the time such Lender first
becomes a party to this Agreement indicates a United States interest
withholding tax rate in excess of zero, withholding tax at such rate shall be
considered excluded from Taxes unless and until such Lender provides the
appropriate forms certifying that a lesser rate applies, whereupon withholding
tax at such lesser rate only shall be considered excluded from Taxes for
periods governed by such form; provided, however, that, if at the
date of the Assignment and Acceptance pursuant to which a Lender assignee
becomes a party to this Agreement, the Lender assignor was entitled to payments
under subsection (a) in respect of United States withholding tax with respect
to interest paid at such date, then, to such extent, the term Taxes shall
include (in addition to withholding taxes that may be imposed in the future or
other amounts otherwise includable in Taxes) United States withholding tax, if
any, applicable with respect to the Lender assignee on such date.  If any form or document referred to in this
subsection (e) requires the disclosure of information, other than information
necessary to compute the tax payable and information required on the date
hereof by Internal Revenue Service Form W-8BEN or W-8ECI, that the Lender
reasonably considers to be confidential, the Lender shall give notice thereof
to the Borrower and shall not be obligated to include in such form or document
such confidential information.

 

(f)            For any period with respect to which a Lender has failed
to provide the Borrower with the appropriate form, certificate or other
document described in Section 2.15(e) 

 

25

 

(other  than if such failure is
due to a change in law, or in the interpretation or application thereof,
occurring subsequent to the date on which a form, certificate or other document
originally was required to be provided, or if such form, certificate or other
document otherwise is not required under subsection (e) above), such Lender
shall not be entitled to indemnification under Section 2.15(a) or (c)
with respect to Taxes imposed by the United States by reason of such failure; provided,
however, that should a Lender become subject to Taxes because of its
failure to deliver a form, certificate or other document required hereunder,
the Borrower shall take such steps as such Lender shall reasonably request to
assist the Lender to recover such Taxes (and such Lender shall reimburse the
Borrower for reasonable out-of-pocket costs and expenses of the Borrower in
connection therewith).

 

(g)           Any Lender claiming any additional amounts payable
pursuant to this Section 2.15 shall use reasonable efforts (consistent
with its internal policy and legal and regulatory restrictions) to change the
jurisdiction of its Eurodollar Lending Office if the making of such a change
would avoid the need for, or reduce the amount of, any such additional amounts
that may thereafter accrue and would not, in the reasonable judgment of such
Lender, be otherwise disadvantageous to such Lender.

 

(h)           If any Lender determines, in its sole discretion, that it
has actually realized, by reason of a refund, deduction or credit of any Taxes
paid or reimbursed by the Borrower pursuant to subsection (a) or (c) above in
respect of payments hereunder or the Notes, a current monetary benefit that it
would otherwise not have obtained, and that would result in the total payments
under this Section 2.15 exceeding the amount needed to make such Lender
whole, such Lender shall pay to the Borrower, with reasonable promptness
following the date on which it realized such benefit, an amount equal to the
lesser of the amount of such benefit or the amount of such excess, in each case
net of all out-of-pocket expenses in securing such refund, deduction or credit,
provided, in the event that any portion of such refund, deduction or
credit is subsequently disallowed, the Borrower shall hold such Lender harmless
(on an after-tax basis) from such disallowance.

 

Section 2.16.          Sharing
of Payments, Etc.  If any Lender
shall obtain any payment (whether voluntary, involuntary, through the exercise
of any right of set-off, or otherwise) on account of the Revolving Credit
Advances owing to it (other than pursuant to Section 2.12, 2.15
or 8.04(c)) in excess of its ratable share of payments on account of the
Revolving Credit Advances obtained by all the Lenders, such Lender shall
forthwith purchase from the other Lenders such participations in the Revolving
Credit Advances owing to them as shall be necessary to cause such purchasing
Lender to share the excess payment ratably with each of them; provided,
however, that if all or any portion of such excess payment is thereafter
recovered from such purchasing Lender, such purchase from each Lender shall be
rescinded and such Lender shall repay to the purchasing Lender the purchase
price to the extent of such recovery together with an amount equal to such
Lender’s ratable share (according to the proportion of (i) the amount of such
Lender’s required repayment to (ii) the total amount so recovered from the
purchasing Lender) of any interest or other amount paid or payable by the
purchasing Lender in respect of the total amount so recovered.  The Borrower agrees that any Lender so
purchasing a participation from another Lender pursuant to this Section 2.16
may, to the fullest extent permitted by law, exercise all its rights of payment
(including the right of set-off) with respect to 

 

26

 

such participation as fully as if such Lender
were the direct creditor of the Borrower in the amount of such participation.

 

Section 2.17.          Evidence
of Debt.  (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 the Revolving Credit Advance owing
to such Lender from time to time, including the amounts of principal and
interest payable and paid to such Lender from time to time hereunder in respect
of Revolving Credit Advances.  The
Borrower agrees that upon notice by any Lender to the Borrower (with a copy of
such notice to the Administrative Agent) to the effect that a Note is required
or appropriate in order for such Lender to evidence (whether for purposes of
pledge, enforcement or otherwise) the Revolving Credit Advances owing to, or to
be made by, such Lender, the Borrower shall promptly execute and deliver to
such Lender a Note payable to the order of such Lender in a principal amount up
to the Commitment of such Lender.

 

(b)           The Register maintained by the Administrative Agent
pursuant to Section 8.07(d) shall include a control account, and a
subsidiary account for each Lender, in which accounts (taken together) shall be
recorded (i) the date and amount of each Revolving Credit Borrowing made
hereunder, the Type of Advances comprising such Revolving Credit Borrowing and,
if appropriate, the Interest Period applicable thereto, (ii) the terms of each
Assignment and Acceptance delivered to and accepted by it, (iii) the amount of
any principal or interest due and payable or to become due and payable from the
Borrower to each Lender hereunder and (iv) the amount of any sum received by
the Administrative Agent from the Borrower hereunder and each Lender’s share
thereof.

 

(c)           Entries made in good faith by the Administrative Agent in
the Register pursuant to subsection (b) above, and by each Lender in its
account or accounts pursuant to subsection (a) above, shall be prima  facie
evidence of the amount of principal and interest due and payable or to become
due and payable from the Borrower to, in the case of the Register, each Lender
and, in the case of such account or accounts, such Lender, under this
Agreement, absent manifest error; provided, however, that the
failure of the Administrative Agent or such Lender to make an entry, or any
finding that an entry is incorrect, in the Register or such account or accounts
shall not limit or otherwise affect the obligations of the Borrower under this
Agreement.

 

Section 2.18.          Use
of Proceeds.  The proceeds of the
Revolving Credit Advances shall be available solely for general corporate
purposes of the Borrower and its Subsidiaries.

 

ARTICLE III

 

CONDITIONS PRECEDENT

 

Section 3.01.          Conditions
Precedent to Closing Date.  This
Agreement shall not become effective until the date on which each of the
following conditions is satisfied (or waived in accordance with Section 8.01):

 

27

 

(a)           Documents. 
The Administrative Agent shall have received each of the following
documents, each of which shall be satisfactory to the Administrative Agent (and
to the extent specified below, to each Lender) in form and substance:

 

(i)            Executed Counterparts.  From each party hereto either (A) multiple
counterparts of this Agreement, signed on behalf of such party or (B) written
evidence satisfactory to the Administrative Agent (which may include telecopy
transmission of a signed signature page to this Agreement) that such party has
signed a counterpart of this Agreement;

 

(ii)           Corporate Documents.  (A) Such documents and certificates as the
Administrative Agent or its counsel may reasonably request, certified as of the
Closing Date as complete and correct copies thereof by the Secretary or an
Assistant Secretary of the Borrower relating to (1) the organization, existence
and good standing of the Borrower, (2) the authorization of the execution,
delivery and performance by the Borrower of the Loan Documents and of the
borrowings hereunder, and (3) certificates as to the incumbency and signature
of each individual signing this Agreement and any other agreement or document
contemplated hereby on behalf of the Borrower;

 

(iii)          Financial Statements.  (A) Copies of (x) the audited Consolidated
balance sheets of the Borrower and its Subsidiaries as of December 31, 2003 and
the related Consolidated statements of income and cash flows for the period
ending as of such date, and (y) the unaudited Consolidated balance sheets of
the Borrower and its Subsidiaries as of June 30, 2004, and the related
Consolidated statements of income and cash flows for the period ending as of
such date; and (B) a pro forma consolidated balance sheet and related pro forma
consolidated statements of income and cash flows of the Borrower as of and for
the twelve-month period ending June 30, 2004, prepared after giving effect to
the Mandatory Prepayment under the Existing Credit Agreement and the other
transactions contemplated hereby as if the Mandatory Prepayment under the
Existing Credit Agreement and the other transactions contemplated hereby had
occurred as of such date (in the case of such balance sheet) or at the
beginning of such period (in the case of such other financial statements),
which financial statements shall not be materially inconsistent with the
forecasts previously provided to the Administrative Agent; and

 

(iv)          Other Documents.  Such other documents as the Administrative
Agent or any Lender (acting through the Administrative Agent) may reasonably
request.

 

(b)           [Intentionally Omitted];

 

(c)           [Intentionally Omitted];

 

(d)           Representations and Warranties.  Each of the representations and warranties
made by the Borrower in or pursuant to the Loan Documents (except to the extent
applicable to an earlier date) shall be true and correct in all material
respects on and as of such date as if made on and as of such date;

 

(e)           No Default. 
No Default or Event of Default shall have occurred and be continuing on
such date;

 

28

 

(f)            Legal Opinions. 
The Administrative Agent shall have received, with a counterpart for
each Lender, the executed legal opinions of (i) Leslie J. Parrette, Jr.,
general counsel of the Borrower and (ii) Abel, Band, Russell, Collier,
Pitchford & Gordon, Chartered, Colorado regulatory counsel to the Borrower,
Dickinson, Mackaman, Tyler & Hagen, P.C., Iowa regulatory counsel to the
Borrower, Anderson, Byrd, Richeson, Flaherty & Henricks, L.L.P., Kansas
regulatory counsel to the Borrower, Dykema Gossett, PLLC, Michigan regulatory
counsel to the Borrower, Moss & Barnett, A Professional Association,
Minnesota and South Dakota regulatory counsel to the Borrower, Brydon,
Swearengen & England, P.C., Missouri regulatory counsel to the Borrower,
Blackwell Sanders Peper Martin LLP, Nebraska regulatory counsel to the
Borrower, and Hogan & Hartson L.L.P., Federal Energy Regulatory Commission
counsel to the Borrower,in each case, dated as of the date hereof and in form
and substance reasonably satisfactory to the Administrative Agent and its
counsel;

 

(g)           Closing Certificate.  The Administrative Agent shall have received a closing
certificate of the Borrower substantially in the form of Exhibit C hereto,
dated as of the Closing Date;

 

(h)           “Know Your Customer” Information.  The Administrative Agent shall have received
documentation and other information required by bank regulatory authorities
under applicable “know your customer” and Anti-Money Laundering rules and
regulations, including the USA PATRIOT Act, Title III of Pub. L. 107-56 (signed
into law October 26, 2001) (the “Patriot Act”).  Such documentation shall include evidence
satisfactory to the Administrative Agent of the listing of Capital Stock of the
Borrower on New York Stock Exchange;

 

(i)            Closing Fees and Expenses.  The Administrative Agent shall have received
the fees to be received on the Closing Date separately agreed to between the
Administrative Agent and the Borrower and shall have received reimbursement of
all reasonable costs and expenses (including reasonable fees and expenses of
counsel to the Administrative Agent, subject to limitations contained in the
other Loan Documents);

 

(j)            Approvals and Consents.  All requisite governmental authorities and third parties shall
have approved or consented to the transactions contemplated hereby to the
extent required and all applicable appeal periods shall have expired; and

 

(k)           Additional Matters.  All corporate and other proceedings, and all documents,
instruments and other legal matters in connection with the transactions
contemplated by this Agreement and the other Loan Documents shall be reasonably
satisfactory in form and substance to the Administrative Agent, and the
Administrative Agent shall have received such other approvals, opinions or
documents as the Administrative Agent, its counsel or any Lender through the
Administrative Agent may reasonable request.

 

Section 3.02.          Conditions
Precedent to Each Loan Event.  The
agreement of each Lender to make any Revolving Credit Advance, including the
initial Revolving Credit Advance, on the occasion of each Revolving Credit
Borrowing (the making of any such Revolving Credit Advance, a “Loan Event”)
is subject to the satisfaction of the following conditions precedent:

 

29

 

(a)           Closing Date. 
The Closing Date shall have occurred;

 

(b)           Notice of Revolving Credit Borrowing.  In the case of Revolving Credit Advances
made pursuant to Section 2.01, the Administrative Agent shall have
received a Notice of Revolving Credit Borrowing in compliance with the terms
hereof;

 

(c)           Representations and Warranties.  Each of the representations and warranties
made by the Borrower in or pursuant to this Agreement and the Loan Documents
shall be true and correct in all material respects on and as of such date as if
made on and as of such date (both before and after giving effect to such Loan
Event); and

 

(d)           No Default. 
No Default or Event of Default shall have occurred and be continuing on
such date or after giving effect to such Loan Event requested to be made on
such date.

 

Each
Loan Event shall constitute a representation and warranty by the Borrower as of
the date of such Loan Event that the statements in any document delivered by
the Borrower in connection with such Loan Event are true and correct and that
the conditions contained in this Section 3.02 have been satisfied.

 

ARTICLE IV

 

REPRESENTATIONS AND WARRANTIES

 

Section 4.01.          Representations
and Warranties of the Borrower.  To
induce the Administrative Agent and the Lenders to enter into this Agreement
and to make or participate in extensions of credit hereunder, the Borrower
represents and warrants as follows:

 

(a)           Financial Condition.  The unaudited consolidated balance sheet of the Borrower as of
December 31, 2003 and the related consolidated statements of income, retained
earnings and cash flows for the fiscal year ended on such date, copies of which
have heretofore been furnished to the Lenders, present fairly the consolidated
financial condition of the Borrower and its Consolidated Subsidiaries as at
such date, and the results of their operations and their retained earnings and
cash flows for each of the fiscal periods then ended.  All such financial statements, including the related schedules
and notes thereto relating to the unaudited financials, have been prepared in
accordance with GAAP applied consistently throughout the periods involved.

 

(b)           No Change. 
Since December 31, 2003, except as disclosed to the Lenders through
documents posted on the Syndtrak internet
website for this transaction prior to the date hereof, or described in the SEC
Reports filed prior to the date hereof, there has been no development or event
which has had, or could reasonably be expected to have, a Material Adverse
Effect.

 

(c)           Corporate Existence; Compliance with Law.  Each of the Borrower and its Subsidiaries
(a) is duly organized, validly existing and in good standing under the laws of
the jurisdiction of its organization, (b) has the corporate or limited
liability company power and authority, and the legal right to own and operate
its property, to lease the property it operates as 

 

30

 

lessee and to conduct the business in which
it is currently engaged, (c) is duly qualified as a foreign corporation or
limited liability company and in good standing under the laws of each
jurisdiction where its ownership, lease or operation of property or the conduct
of its business requires such qualification except to the extent that the failure
to comply therewith could not, in the aggregate, reasonably be expected to have
a Material Adverse Effect and (d) is in compliance with all Requirements of
Law, except to the extent that the failure to comply therewith could not
reasonably be expected to have a Material Adverse Effect.

 

(d)           Corporate Power; Authorization; Enforceable Obligations.  The Borrower has the corporate power and
authority, and the legal right, to make, deliver and perform this Agreement and
the other Loan Documents and to authorize the execution, delivery and
performance of this Agreement and the other Loan Documents, and to borrow
hereunder.  The Borrower has taken all
necessary corporate action to authorize the borrowings on the terms and
conditions set forth in this Agreement and in the Notes and to execute, deliver
and perform its obligations under this Agreement and the Loan Documents.  No consent or authorization of, filing with,
notice to or other act by or in respect of, any Governmental Authority or any
other Person is required in connection with the borrowings hereunder, or with
the execution, delivery or performance by the Borrower, or with the validity or
enforceability against the Borrower of this Agreement and the other Loan
Documents other than (i) as set forth on Schedule 4.01(d) or (ii) any consents,
authorizations and filings in connection with the foregoing that, if not
obtained, could not reasonably be expected to have a Material Adverse
Effect.  On the Closing Date, the
Administrative Agent and each Lender shall have received complete and current
copies of all consents, authorizations and filings listed on Schedule 4.01(d),
which such consents, authorizations and filings shall be in full force and
effect as of the Closing Date.  This
Agreement has been, and each other Loan Document when executed and delivered
will be, duly executed and delivered on behalf of the Borrower.  This Agreement, and each other Loan Document
when executed and delivered will constitute, a legal, valid and binding
obligation of the Borrower enforceable against the Borrower, in accordance with
their respective terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
the enforcement of creditors’ rights generally and by general equitable
principles (whether enforcement is sought by proceedings in equity or at law).

 

(e)           No Legal Bar. 
The execution, delivery and performance of this Agreement and the other
Loan Documents, the borrowings hereunder and the use of the proceeds thereof,
(i) will not violate the articles of incorporation, charter or bylaws or other
organizational documents of the Borrower or any Subsidiary or any other
material Requirement of Law (ii) will not violate any Contractual Obligation of
the Borrower or any Subsidiary which violation could reasonably be expected to
have a Material Adverse Effect, (iii) will not accelerate or result in the
acceleration of any payment obligations of the Borrower or such Subsidiary and
(iv) will not result in, or require, the creation or imposition of any Lien on
any of the respective properties or revenues of the Borrower or any such
Subsidiary pursuant to any such Requirement of Law or Contractual Obligation.

 

(f)            No Material Litigation.  Except as disclosed to the Lenders through documents posted on
the Syndtrak internet website for
this transaction prior to the date hereof or described in the SEC Reports filed
prior to the date hereof, no litigation, investigation or proceeding of or
before any arbitrator or Governmental Authority is pending or, to the 

 

31

 

knowledge of the Borrower, threatened by or
against the Borrower or any Subsidiary or against any of the respective
properties or revenues of the Borrower or any Subsidiary which could reasonably
be expected to have a Material Adverse Effect.

 

(g)           No Default. 
No Default or Event of Default has occurred and is continuing.

 

(h)           Ownership of Property; Liens.  Each of the Borrower and its Subsidiaries
has good and marketable title in fee simple to, or a valid leasehold, easement,
license or other interest in, all its real property, and good title to, or a
valid leasehold, easement, license or other interest in, all its other
property, except for defects in title which could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.  The property of the Borrower and its
Subsidiaries is subject to no Lien other than Permitted Liens.

 

(i)            Subsidiaries. 
Set forth on Schedule 4.01(i) are all Material Subsidiaries of the
Borrower.  Schedule 4.01(i) correctly
sets forth, as of the date hereof, the percentage ownership (direct and
indirect) of the Borrower in voting capital stock or other voting equity
interests of each Material Subsidiary and also identifies the direct owner
thereof.  All outstanding shares of
capital stock of each Material Subsidiary of the Borrower have been duly and
validly issued, are fully paid and non-assessable and have been issued free of
any preemptive rights.  Except as set
forth on Schedule 4.01(i), no Material Subsidiary has outstanding any
securities convertible into or exchangeable for its Capital Stock or
outstanding any right to subscribe for or to purchase, or any options or
warrants for the purchase or, or any agreement providing for the issuance
(contingent or otherwise) of or any calls, commitments or claims of any
character relating to, its Capital Stock or any stock appreciation or similar
rights.

 

(j)            Intellectual Property.  Each of the Borrower and its Subsidiaries owns, or is licensed to
use, all patents, trademarks, trade names, copyrights, and other intellectual
property material to the conduct of its business as currently conducted except
for those which the failure to own or license could not reasonably be expected
to have a Material Adverse Effect (the “Intellectual Property”).  The use of such Intellectual Property by the
Borrower or any Subsidiary does not infringe on the rights of any Person,
except for such claims and infringements that, in the aggregate, could not
reasonably be expected to have a Material Adverse Effect.

 

(k)           Taxes.  Each
of the Borrower and the Subsidiaries has filed or caused to be filed all
federal, state and other material tax returns which are required to be filed
and has paid or caused to be paid all taxes (including interest and penalties)
shown to be due and payable on said returns or on any assessments made against
it or any of its property and all other taxes, fees or other charges imposed on
it or any of its property by any Governmental Authority (other than any tax,
fee or other charge the amount or validity of which is currently being
contested in good faith by appropriate proceedings and with respect to which
reserves in conformity with GAAP have been provided on the books of the
Borrower or such Subsidiary, as the case may be) other than such taxes
described herein of which the failure to pay or file a return with respect
thereto could not reasonably be expected to result in a Material Adverse
Effect; and no tax Lien has been filed, and, to the knowledge of the Borrower,
no claim is being asserted, with respect to any such tax, fee or other charge.

 

32

 

(l)            Margin Stock. 
(i)  The Borrower is not engaged
in the business of extending credit for the purpose of purchasing or carrying
margin stock (within the meaning of Regulation U), and no proceeds of any
extension of credit hereunder will be used to purchase or carry any margin
stock or to extend credit to others for the purpose of purchasing or carrying
any margin stock, except in compliance with applicable law and regulations.
(ii) Following application of the proceeds of each extension of credit
hereunder, not more than 25% of the value of the Consolidated Assets of the
Borrower and its Subsidiaries that are subject to the provisions of Section
5.02(d) will be comprised of margin stock.

 

(m)          Holding Company; Investment Company Act; Other
Regulations.  The Borrower is not
(a) an “investment company” or a company “controlled” by an “investment
company”, within the meaning of the Investment Company Act of 1940, as amended,
or (b) a “holding company”, a “subsidiary company” of a “holding company”, or
an “affiliate” of a “holding company”, as each such term is defined in the
Public Utility Holding Company Act of 1935, as amended.

 

(n)           Purpose of Revolving Credit Advances.  The proceeds of Revolving Credit Advances
will be used solely for general corporate purposes and as permitted hereunder
(in compliance with all Requirements of Law). 
The Borrower does not intend to treat the Revolving Credit Advances and
the related transactions as being a “reportable transaction” (within the
meaning of Treasury Regulation Section 1.6011-4).  In the event the Borrower determines to take any action
inconsistent with such intention, it will promptly notify the Administrative
Agent thereof.

 

(o)           ERISA. 
Neither the Borrower nor any Subsidiary maintains, contributes to or has
material obligations with respect to, any welfare plan (as defined in Section
(3)(1) of ERISA) which provides benefits to employees after termination of
employment other than as required by Part 6 of Title I of ERISA or similar
state laws regarding continuation of benefits and which in the aggregate is not
unduly expensive.  Each Plan has
complied and is in compliance in all respects with the applicable provisions of
ERISA and the Code except where failure to do so could not reasonably be
expected to have a Material Adverse Effect. 
The Borrower and each Subsidiary have not breached any of the
responsibilities, obligations or duties imposed on it by ERISA, the Code, or
regulations promulgated thereunder with respect to any Plan, which breach could
reasonably be expected to have a Material Adverse Effect.  Neither the Borrower nor any Subsidiary nor
any fiduciary of any Plan who is an officer or an employee of the Borrower or
any Subsidiary has engaged in a nonexempt prohibited transaction described in
Section 406 of ERISA or 4975 of the Code with respect to a Plan which could
reasonably be expected to have a Material Adverse Effect.  With respect to any employee benefit plan
(as defined in Section 3(3) of ERISA) currently or formerly maintained or
contributed to by any Commonly Controlled Entity, no liability exists and no event
has occurred which could reasonably be expected to subject the Borrower or any
Subsidiary to any liability which could reasonably be expected to have a
Material Adverse Effect.  None of the
Borrower or any Subsidiary has any liability, direct or indirect, contingent
(including any such liability in connection with a Multiemployer Plan) or
otherwise, under Title IV of ERISA or under Section 412 of the Code which could
reasonably be expected to have a Material Adverse Effect.

 

33

 

(p)           Environmental Matters.  Except as described by the Borrower in the SEC Reports filed
prior to the date hereof or as disclosed to the Lenders through documents
posted on the Syndtrak internet
website for this transaction prior to the date hereof,

 

(i)            The facilities and properties owned,
leased or operated by the Borrower or its Subsidiaries (the “Properties”)
and all operations at the Properties are in, and have been in, compliance in
all material respects with all applicable Environmental Laws, and there is no
contamination in, at, under, from or about the Properties or violation of any
Environmental Law or other circumstance or condition, with respect to the
Properties or the business operated by the Borrower or its Subsidiaries, or to
the knowledge of the Borrower, any predecessor of any of them (the “Business”)
which in either case could reasonably be expected to result in any claims,
liability, investigation or cost pursuant to any Environmental Law and to have
a Material Adverse Effect.

 

(ii)           None of the Borrower or any
Subsidiary, or to the knowledge of the Borrower, any predecessor of any of
them, has received any notice of violation, alleged violation, non-compliance,
liability or potential liability regarding environmental matters or compliance
with Environmental Laws with regard to any of the Properties or the Business,
nor do the Borrower or any Subsidiary have knowledge or reason to believe that
any such notice will be received or is being threatened, in each case which
could reasonably be expected to have a Material Adverse Effect.

 

(iii)          There has been no Release or threat of
Release of Materials of Environmental Concern at or from any of the Properties,
or arising from or related to the operations of the Borrower or any Subsidiary,
or to the knowledge of the Borrower, any predecessor of any of them, in
connection with any of the Properties or otherwise in connection with the
Business that could reasonably be expected to have a Material Adverse Effect.

 

(q)           Insurance.  All
policies of insurance of any kind or nature maintained by or issued to the
Borrower or any Subsidiary, including, without limitation, policies of life,
fire, theft, product liability, public liability, property damage, other
casualty, employee fidelity, worker’s compensation, employee health and
welfare, title, property and liability insurance, are in full force and effect
in all material respects and are of a nature and provide such coverage as is
customarily carried by companies of similar size and character.

 

(r)            Accuracy and Completeness of Information.  The Borrower has filed as exhibits to SEC
Reports, or disclosed to the Lenders through documents posted on the Syndtrak internet website for this
transaction, in each case prior to the date hereof, all agreements, instruments
and corporate or other restrictions existing on the date hereof that are or,
but for the lapse of time, would be required to be filed by the Borrower as
exhibits to any report on Form 10-Q or 10-K under the Exchange Act.  Except as described by the Borrower in the
SEC Reports filed prior to the date hereof or as disclosed to the Lenders
through documents posted on the Syndtrak internet
website for this transaction prior to the date hereof, there are no facts or
other matters known to the Borrower that are or, but for the lapse of time,
would be required to be disclosed by the Borrower on a report on Form 8-K under
the Exchange Act.  No reports, financial
statements, certificates or other information furnished by or on behalf of the
Borrower 

 

34

 

to the Administrative Agent or any Lender
(whether contained in the lender presentation dated September 2004, disclosed
to the Lenders through documents posted on the Syndtrak
internet website for this transaction, or otherwise) in connection
with the negotiation of this Agreement or any other Loan Document or delivered
hereunder (as modified or supplemented by, and taken together with other
information so furnished) contains any misstatement of a material fact or omits
to state any material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading; provided,
however, that, with respect to forward looking statements, the Borrower
represents only that such information was prepared in good faith based upon
assumptions believed to be reasonable at the time and notes that there can be
no assurance that such expectations, beliefs or projections will be achieved or
accomplished and that such projections are subject to an increasing degree of
uncertainty as they relate to later periods of time.

 

(s)           Leaseholds, Permits, etc.  The Borrower possesses or has the right to use, all leaseholds,
easements, franchises and permits and all authorizations and other rights which
are material to and necessary for the conduct of the Business, except where the
failure to obtain such authorizations and other rights could not reasonably be
expected to result in a Material Adverse Effect.  All the foregoing are in full force and effect, and each of the
Borrower and the Subsidiaries is in substantial compliance with the foregoing
without any known conflict with the valid rights of others, except for such
noncompliance with the foregoing which could not reasonably be expected to have
a Material Adverse Effect.  No event has
occurred which permits, or after notice or lapse of time or both would permit,
the revocation or termination of any such leasehold, easement, franchise,
license or other right, which termination or revocation, considered as a whole,
could reasonably be expected to have a Material Adverse Effect.

 

(t)            Liabilities; Contingent Obligations.  The Borrower has no liabilities or other
obligations, including contingent liabilities, unusual forward or long-term
commitments or unrealized or anticipated losses from unfavorable commitments
other than (i) as set forth in the financial statements referred to in Section
4.01(a), (ii) those which are not required to be reflected on such
financial statements in accordance with GAAP, (iii) those liabilities which
have arisen in the ordinary course since the date of the financial statements
referred to in Section 4.01(a) and (iv) those liabilities that in the
aggregate could not reasonably be expected to have a Material Adverse Effect.

 

(u)           Labor Matters. 
To the Borrower’s knowledge, there are no disputes (i) to which the
Borrower is a party, which involves any group of employees, any strikes or
walkouts relating to the Business of the Borrower or (ii) involving the
expiration or termination of any labor contract to which the Borrower is a
party or by which the Borrower is bound, in either case, which dispute could
reasonably be expected to have a Material Adverse Effect.

 

ARTICLE V

 

COVENANTS OF THE BORROWER

 

Section 5.01.          Affirmative
Covenants.  The Borrower hereby
agrees that for so long as any of the Commitments remains in effect, any
Revolving Credit Advance remains outstanding and unpaid or any Obligation of
the Borrower is owing to any Lender or the 

 

35

 

Administrative
Agent hereunder or under any other Loan Document, the Borrower shall and shall
cause each of its Subsidiaries to:

 

(a)           Financial Statements.  Furnish to the Administrative Agent for each Lender:

 

(i)            as soon as available, but in any
event within ninety (90) days after the end of each fiscal year of the
Borrower, a copy of the Consolidated balance sheet of the Borrower and its
Subsidiaries as at the end of such year and the related Consolidated and
consolidating statements of income, retained earnings and cash flows for such
year, setting forth in each case in comparative form the figures as of the end
of and for the previous year, reported on without qualification by KPMG LLP or
other independent certified public accountants of nationally recognized
standing; provided, however, that the submission of the
Borrower’s report on Form 10-K shall satisfy the foregoing requirements; and

 

(ii)           as soon as available, but in any
event within forty five (45) days after the end of each Fiscal Quarter of each
fiscal year of the Borrower, the unaudited Consolidated balance sheet of the
Borrower and its Subsidiaries as at the end of such quarter and the related
unaudited Consolidated statements of income, retained earnings and cash flows
of the Borrower and its Subsidiaries for such quarter and the portion of the
fiscal year through the end of such quarter and setting forth the actual
figures for the corresponding date or period in the previous year, certified by
the chief financial officer or treasurer of the Borrower as being fairly stated
in all material respects (subject to normal year-end audit adjustments); provided,
however, that the submission of the Borrower’s report on Form 10-Q shall
satisfy the foregoing requirements,

 

all
such financial statements shall be complete and correct in all material
respects and shall be prepared in reasonable detail and in accordance with GAAP
applied consistently throughout the periods reflected therein and with prior
periods.

 

(b)           Certificates; Other Information.  Furnish to the Administrative Agent:

 

(i)            concurrently with the delivery of
the financial statements referred to in Section 5.01(a)(i), a
certificate of the independent certified public accountants reporting on such financial
statements stating that in making the examination necessary therefor no
knowledge was obtained of any Event of Default resulting from the Borrower’s
failure to comply with Section 5.02(a), except as specified in such
certificate;

 

(ii)           concurrently with the delivery of the
financial statements referred to in Section 5.01(a)(i) or (ii), a
compliance certificate of the chief financial officer or treasurer of the
Borrower, in form and substance satisfactory to the Administrative Agent (the “Compliance
Certificate”) showing compliance by the Borrower with the covenants
contained in Section 5.02(a);

 

(iii)          within ten (10) days after the filing
thereof, copies of all reports which the Borrower sends to any of its
stockholders, and copies of all registration statements, SEC Reports (or, in
each case, any successor form) which the Borrower or any Subsidiary files 

 

36

 

with the SEC or any
successor or analogous Governmental Authority (other than public offerings of
securities under employee benefit plans or dividend reinvestment plans); provided,
however, that the Borrower shall have satisfied the foregoing
requirement as to any report upon the Administrative Agent receiving such
report from the Borrower in an electronic notification thereof to the
Administrative Agent;

 

(iv)          promptly after either of Moody’s or
S&P has raised or lowered the credit rating of the credit facility
evidenced by this Agreement, a notice as to such effect;

 

(v)           promptly such other information the
Administrative Agent or any Lender may from time to time reasonably request
concerning data, documentation and other information required by bank
regulatory authorities under applicable “know your customer” and Anti-Money
Laundering rules and regulations (including the Patriot Act), including
evidence satisfactory to the Administrative Agent of the listing of Capital
Stock of the Borrower on the New York Stock Exchange; and

 

(vi)          promptly, such additional financial
and other information as the Administrative Agent or any Lender may from time
to time reasonably request.

 

(c)           Payment and Performance of Obligations.  Perform in all respects all of its
obligations under the terms of indentures, mortgages, security agreements and
other agreements evidencing indebtedness for monies borrowed to which it is
party or bound, including pay, discharge or otherwise satisfy at or before
maturity or before they become delinquent, as the case may be, all taxes, fees
or other charges imposed on it or on any of its properties by any Governmental
Authority and all its other obligations of whatever nature except, in each
case, where the amount or validity thereof is currently being diligently
contested in good faith and reserves in conformity with GAAP with respect thereto
have been provided on the books of the Borrower or any of its Subsidiaries, as
the case may be, or where the failure to perform such obligations could not
reasonably be expected to result in a Material Adverse Effect.

 

(d)           Maintenance of Existence.  Renew and keep in full force and effect its
corporate existence, take all reasonable action to maintain all rights,
privileges and franchises necessary or desirable in the normal conduct of its
business except to the extent such failure to maintain could not, in the
aggregate, reasonably be expected to have a Material Adverse Effect and comply
with all Contractual Obligations except to the extent that failure to comply
therewith could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect; provided, however, that any
Subsidiary may merge, consolidate or amalgamate in accordance with Section
5.02(b)  (and such transaction shall
not constitute a breach of this Section 5.01(d)).

 

(e)           Maintenance of Property; Insurance.  Keep all property useful and necessary in its
business in good working order and condition (ordinary wear and tear, and
casualties, excepted), maintain with financially sound and reputable insurance
companies insurance on all its property in at least such amounts and against at
least such risks as are usually insured against in the same general area by
companies engaged in the same or a similar business, and furnish to the
Administrative Agent, upon request, full information as to the insurance 

 

37

 

carried including certified copies of
policies and certificates of insurance from a nationally recognized insurance
broker.

 

(f)            Inspection of Property; Books and Records; Discussions.  Keep proper books of records and accounts,
in which full, true and correct entries in conformity with GAAP and all
Requirements of Law shall be made of all dealings and transactions in relation
to its business and activities; and permit after reasonable notice
representatives of the Administrative Agent or any Lender to visit and inspect
any of its properties and examine and make abstracts from any of its books and
records at any reasonable time and as often as may reasonably be desired, and
to discuss the business, operations, properties and financial and other
condition of the Borrower and each Subsidiary with officers and employees of
the Borrower and such Subsidiary and with their independent certified public
accountants. All costs and expenses relating to any such visitation and
inspection (i) in the case of a Lender, shall be borne by such Lender, and (ii)
in the case of the Administrative Agent, shall be borne by the Administrative
Agent unless a Default or an Event of Default shall have occurred and be
continuing.

 

(g)           Notices.  (i) 
Within five (5) days after the Borrower knows with respect to any notice
under clause (A) or within ten (10) days with respect to any other notice under
this Section 5.01(g)(i), give notice to the Administrative Agent and
each Lender of:

 

(A)          the occurrence of any Default or Event
of Default;

 

(B)           any (x) default or event of default
under any Contractual Obligation of the Borrower or any Subsidiary, or (y)
litigation, investigation or proceeding which may exist at any time between the
Borrower or any such Subsidiary and any Governmental Authority, which in either
case, if not cured or if adversely determined, as the case may be, could
reasonably be expected to have a Material Adverse Effect;

 

(C)           any material labor dispute to which
the Borrower or any Subsidiary may become a party and which involves any group
of employees, any strikes or walkouts relating to any of its plants or
facilities and the expiration or termination of any labor contract to which the
Borrower or such Subsidiary is a party or by which the Borrower or such
Subsidiary is bound and which dispute could reasonably be expected to have a
Material Adverse Effect;

 

(D)          any litigation or proceeding
instituted against the Borrower which, if adversely determined against the
Borrower, could reasonably be expected to have a Material Adverse Effect; or

 

(E)           all written claims, complaints,
notices or inquiries relating to compliance by the Borrower or any of its
Subsidiaries with any Environmental Law that could reasonably be expected to
have a Material Adverse Effect.

 

Each notice pursuant to this Section 5.01(g)(i)
shall be accompanied by a statement of a Responsible Officer setting forth
details of the occurrence referred to therein and stating what action the
Borrower proposes to take with respect thereto.  For the purposes of this Section 5.01(g)(i), the Borrower
shall be deemed to have knowledge 

 

38

 

when
any officer of the Borrower charged with responsibility for any matter that is
the subject of such notice requirement knows or should have known that such
notice was required.

 

(h)           Compliance with Laws; Environmental Compliance.  (i) Comply in all respects with all
applicable laws, rules, regulations and orders of any Governmental Authority (including
Environmental Laws and ERISA), whether now in effect or hereafter enacted
except instances that could not, in the aggregate, reasonably be expected to
result in a Material Adverse Effect; (ii) comply and cause its Subsidiaries to
comply in all material respects with all applicable Environmental Laws and
obtain and comply and cause its Subsidiaries to obtain and comply in all
material respects with and maintain and cause its Subsidiaries to maintain any
and all licenses, approvals, notifications, registrations or permits required
by applicable Environmental Laws except to the extent that failure to do so
could not be reasonably expected to have a Material Adverse Effect; and (iii)
conduct and complete all investigations, studies, sampling and testing, and all
remedial, removal and other actions required under Environmental Laws and
promptly comply in all material respects with all lawful orders and directives
of all Governmental Authorities regarding Environmental Laws except to the
extent that the same are being contested in good faith by appropriate
proceedings and the pendency of such proceedings could not reasonably be
expected to have a Material Adverse Effect.

 

(i)            ERISA. 
Establish, maintain and operate and cause each of its Subsidiaries to
establish, maintain and operate all Plans to comply in all material respects
with the applicable provisions of ERISA, the Code, and all other applicable
laws, and the regulations and interpretations thereunder and the respective
requirements of the governing documents for such Plans except to the extent
that failure to do so could not reasonably be expected to have a Material
Adverse Effect.

 

(j)            Use of Proceeds. 
Use the proceeds of each extension of credit hereunder solely for the
purposes set forth in Section 4.01(n). 
The Borrower acknowledges that one or more of the Lenders may treat its
Revolving Credit Advances as part of a transaction that is subject to Treasury
Regulation Section 301.6112-1, and such Lender or Lenders, as applicable, will
maintain the lists and other records required by such Treasury Regulation.

 

(k)           Margin Stock. 
Not permit the aggregate value of margin stock (as defined in Regulation
U) at any time owned or held by the Borrower or any of its Subsidiaries to
exceed an amount equal to 25% of the value of all Consolidated Assets subject
at such time to any “arrangement” (as such term is used in the definition of
“indirectly secured” in Section 221.2 of Regulation U).

 

(l)            Maintain Ownership of Domestic Utility Business.  Except in connection with sale of assets
permitted pursuant to Section 5.02(g), maintain ownership, directly (and
not through any Subsidiary), of all or substantially all of the assets of the
Domestic Utility Business.

 

(m)          Credit Ratings. 
Cause Moody’s and S&P to maintain long-term senior unsecured debt
ratings with respect to the credit facility evidenced by this Agreement.

 

39

 

(n)           Extension Regulatory Approvals.  Undertake commercially reasonable efforts to
obtain the Extension Regulatory Approvals as promptly as practicable after the
Closing Date and upon receipt thereof, promptly deliver to the Administrative
Agent written notice and evidence of the receipt thereof (such notice and
evidence, the “Extension Regulatory Approval Notice”).

 

Section 5.02.          Negative
Covenants.  The Borrower hereby
agrees that for so long as the Commitments remain in effect, any Revolving
Credit Advance remains outstanding and unpaid or any Obligation is owing to any
Lender or the Administrative Agent hereunder or under any other Loan Document,
the Borrower shall not:

 

(a)           Financial Covenants.

 

(i)            Total Capitalization.  Permit the ratio (expressed as a percentage)
of Debt of the Borrower to Total Capital to exceed on any Covenant Compliance
Date (A) from December 31, 2004 through September 31, 2007, 90%, (B) from
December 31, 2007 through September 30, 2008, 75%, (C) from December 31, 2008
through June 30, 2009, 70%, and (D) thereafter, 65%.

 

(ii)           EBITDA to Interest Expense.  Permit the ratio of (A) EBITDA to (B) the
aggregate amount of Consolidated Interest Expense accrued on Debt of the
Borrower on any Covenant Compliance Date for the period of four consecutive
Fiscal Quarters prior to such Covenant Compliance Date, to be less than, in
respect of any Covenant Compliance Date (1) from December 31, 2004 to September
30, 2005, 1.0 to 1.0, (2) from December 31, 2005 to September 30, 2006, 1.1 to
1.0, (3) from December 31, 2006 to September 30, 2007, 1.3 to 1.0, (4) from
December 31, 2007 to September 30, 2008, 1.4 to 1.0, (5) from December 31, 2008
to June 30, 2009, 1.6 to 1.0 and (6) thereafter, 1.8 to 1.0.

 

(iii)          Debt to EBITDA.  Permit the ratio of (A) the aggregate
principal amount of Debt of the Borrower on any Covenant Compliance Date to (B)
EBITDA for the period of four consecutive Fiscal Quarters prior to such
Covenant Compliance Date, to exceed on any such Covenant Compliance Date
occurring (i) December 31, 2004 to September 30, 2005, 9.5 to 1.0, (ii) from
December 31, 2005 to September 30, 2006, 8.5 to 1.0, (iii) from December 31,
2006 to September 30, 2007, 7.5 to 1.0, (iv) from December 31, 2007 to
September 30, 2008, 6.0 to 1.0, (v) from December 31, 2008 to June 30, 2009,
5.5 to 1.0, and (vi) thereafter, 5.0 to 1.0.

 

In
the Compliance Certificate delivered pursuant to Section 5.01(b)(ii)
following the conclusion of the sale of any asset (other than accounts
receivable) material to the Borrower and used in the Domestic Utility Business
permitted by Section 5.02(g), the Borrower shall calculate the financial
covenants set forth in this Section 5.02(a) on a pro forma basis. In
calculating financial covenants on a pro-forma basis, the Borrower will (A)
exclude income, Debt and other charges associated with the assets subject to
such sale and (B) give effect to the application of the net proceeds generated
by such sale; provided, that if the Borrower has not applied the net
sale proceeds in the manner contemplated in the calculations made pursuant to
clause (B) prior to the immediately following Covenant Compliance Date, the
Borrower will not be permitted to continue to give effect to the application of
such net sale proceeds.

 

40

 

(b)           Limitation on Fundamental Changes.  Enter into any merger, consolidation or
amalgamation, or liquidate, wind up or dissolve itself (or suffer any
liquidation or dissolution), or convey, sell, lease, assign, transfer or
otherwise dispose of, all or substantially all its property, business or
assets, except any Wholly-Owned Subsidiary may be merged or consolidated with
or into the Borrower (provided that the Borrower shall be the continuing
or surviving corporation).

 

(c)           Limitation on Transactions with Affiliates.  Except for transactions providing services
(including group purchases of equipment or energy) at cost to any Subsidiary or
Affiliate, enter into, or permit any Subsidiary to enter into, any transaction,
including any purchase, sale, lease or exchange of property or the rendering of
any service, with any Affiliate unless such transaction is upon fair and
reasonable terms no less favorable to the Borrower (or such Subsidiary) than it
would have obtained in a comparable arm’s-length transaction with a Person
which is not an Affiliate.

 

(d)           Limitation on Liens.  Create, incur, assume or suffer to exist, and shall not permit
any Subsidiary to create, incur, assume or suffer to exist, any Lien upon any
of its properties, assets or revenues, whether now owned or hereafter acquired,
except for Permitted Liens.

 

(e)           Amendments of Organizational Documents.  Amend, modify or change, or permit any
Subsidiary to amend, modify or change, its articles of incorporation or bylaws
in any manner that could reasonably be expected to result in a Material Adverse
Effect.

 

(f)            Limitation on Guarantee Obligations.  Create, incur, assume or suffer to exist,
and shall not permit any Subsidiary to create, incur, assume or suffer to
exist, any Guarantee Obligation except:

 

(i)            guarantees of obligations to third parties made in the
ordinary course of business not relating to Debt;

 

(ii)           Guarantee Obligations existing on the date hereof;

 

(iii)          Guarantee Obligations which by their
terms (either mandatorily or at the unfettered option of the Borrower) are
payable solely in Capital Stock (other than Mandatory Redeemable Stock) of the
Borrower provided that the Borrower agrees that so long as this
Agreement is in effect to cause any payment under any such outstanding
obligation to be made only in such Capital Stock; and

 

(iv)          Guarantee Obligations permitted pursuant to Section
5.02(j)(ix).

 

(g)           Limitation on Sale of Assets.  Convey, sell, lease, assign, transfer or
otherwise dispose of any of, its property, business or assets (including tax
benefits, receivables and leasehold interests), whether now owned or hereafter
acquired, except:

 

(i)            for the sale or other disposition of
any property that, in the reasonable judgment of the Borrower, has become
uneconomic, obsolete or worn out, and which is disposed of in the ordinary
course of business;

 

41

 

(ii)           for sales of inventory made in the ordinary course of
business;

 

(iii)          [Intentionally Omitted];

 

(iv)          for sales or dispositions of assets
(including accounts receivables) by the Borrower after the date hereof; provided,
however, that (A) no Event of Default then exists or would result
therefrom, (B) such sale or other disposition shall be made for fair sale value
on an arm’s-length basis, (C) at least seventy five (75%) of the purchase price
therefor shall be paid in cash and such cash portion of the purchase price
shall be payable at (or prior to) the time of such Disposition, and (D) the
Borrower uses the net cash proceeds for general corporate purposes (including
debt retirement or working capital purposes);

 

(v)           that the Borrower may cancel or make
changes or alterations in or substitutions for any and all easements,
servitudes, rights of way and similar rights or interests;

 

(vi)          that the Borrower may grant easements,
ground leases or rights-of-way in, upon, over or across property or
rights-of-way, provided such grant shall not materially impair the use
of the property or rights-of-way for the purposes for which such property or
rights-of-way are held; or

 

(vii)         for operating leases entered into
ordinary course of business.

 

(h)           Limitation on Investments, Loans and Advances.  Make, and shall not permit any Subsidiary to
make, any advance, loan, extension of credit (excluding Guarantee Obligations
but including any payment by a guarantor thereunder) or capital contribution
to, or purchase any Capital Stock, bonds, notes, debentures or other securities
of, or purchase all or a material part of a business unit or line of business
of (or all or substantially all the assets of), or make any other investment in,
any Person (any of the foregoing, an “Investment”), except:

 

(i)            (A) extensions of trade credit in
the ordinary course of business and (B) Investments (including reinvestments
thereof by any intermediate Subsidiary) to the extent the ultimate proceeds
thereof are applied to maintenance capital expenditures in the ordinary course
of business and required to comply with Section 5.01(e) for merchant
generation plants of any Wholly-Owned Subsidiary;

 

(ii)           [Intentionally Omitted];

 

(iii)          the Borrower may acquire all or a
material part of any domestic regulated business, provided that the aggregate
principal amount of Debt incurred or assumed by the Borrower and its
Subsidiaries in connection with such acquisition (together with the aggregate
principal amount of Indebtedness of such acquired Person) shall not exceed
fifty percent (50%) of the lesser of the fair value or cost of such acquired
assets (and, to the extent such Debt is incurred in connection with such
acquisition or in contemplation of such acquisition, such Debt shall not have a
scheduled maturity, or require any principal payment prior to six months after
the Termination Date);

 

42

 

(iv)          the Borrower and its Subsidiaries may
invest in, acquire and hold Cash Equivalents;

 

(v)           the Borrower or any of its
Subsidiaries may make travel and entertainment advances, relocation loans and
payroll advances in the ordinary course of business to officers and employees
of the Borrower or any such Subsidiary;

 

(vi)          Investments of the Borrower or any
Subsidiary existing on the date hereof and the receipt of any additional
securities constituting payments in kind on such existing Investments;

 

(vii)         Investments in obligations arising out
of bankruptcy of customers and suppliers;

 

(viii)        subject to 5.02(g), Investments
consisting of non-cash consideration received in connection with sales of
assets;

 

(ix)           Investments in a Wholly-Owned
Subsidiary of Borrower in furtherance of the winding down or exiting of the
operations of the unregulated merchant energy business or operations of
Borrower and its Subsidiaries;

 

(x)            in connection with cash management
and tax efficient financing of the Borrower and its Subsidiaries in the
ordinary course of business consistent with past practice, Investments by the
Borrower or any Subsidiary of the Borrower in the Borrower or any Subsidiary of
the Borrower, provided that the proceeds thereof shall not be used to
finance any capital expenditure;

 

(xi)           other Investments of the Borrower or
any Subsidiary after the date hereof of not more than $30,000,000 in the
aggregate; and

 

(xii)          Investments the Borrower or any
Subsidiary is contractually obligated to make on the date hereof.

 

(i)            Limitation on Dividends and Stock Repurchases.  Declare any dividends other than dividends
paid in kind on any shares of any class of Capital Stock of the Borrower, or
make any payment on account of, or set apart assets for a sinking or other
analogous fund for, the purchase, redemption, retirement or other acquisition of
any shares of any class of Capital Stock of the Borrower, whether now or
hereafter outstanding, or make any other distribution in respect thereof,
either directly or indirectly, whether in cash or property or in obligations of
the Borrower or any of its Subsidiaries (all of the foregoing being referred to
herein as “Restricted Payments”); except that the Borrower may make
Restricted Payments on or with respect to its Capital Stock so long as, after
giving effect to such Restricted Payments, (i) no Default or Event of Default
shall have occurred and be continuing or shall result therefrom and (ii) the
Borrower’s senior unsecured credit rating is at least Ba2 by Moody’s and BB by
S&P.

 

(j)            Limitation on Indebtedness or Mandatory Redeemable
Stock.  Create, incur, issue, assume
or suffer to exist, and shall not permit any Subsidiary to create, incur,
issue, 

 

43

 

assume or suffer to exist, any Indebtedness
or Mandatory Redeemable Stock (including any Indebtedness or Mandatory
Redeemable Stock of any of its Subsidiaries), except:

 

(i)            Debt of the Borrower under this Agreement;

 

(ii)           Debt of the Borrower under the Term Loan Credit Agreement;

 

(iii)          Indebtedness of the Borrower or any
Subsidiary incurred in connection with an Investment that is permitted under Section
5.02(h)(iii) (and any refinancing thereof), to the extent such Indebtedness
complies with the terms of Section 5.02(h)(iii), provided that
the Borrower shall not incur, issue or assume any Debt or Mandatory Redeemable
Stock after the date hereof pursuant to this clause (iii) that has a scheduled
maturity, or requires any principal payment, prior to six months after the
Termination Date;

 

(iv)          Indebtedness consisting of
reimbursement obligations under surety, indemnity, performance, release and
appeal bonds and guarantees thereof and letters of credit required in the
ordinary course of business or in connection with the enforcement of rights or
claims of the Borrower or its Subsidiaries (but not in connection with Debt);

 

(v)           Non-Recourse Debt (and any
refinancing thereof, provided that after giving effect thereto, such
Indebtedness constitutes Non-Recourse Debt);

 

(vi)          Indebtedness outstanding on the date
hereof (and any refinancing thereof), provided that, to the extent constituting
Debt or Mandatory Redeemable Stock, such Indebtedness is set forth on Schedule
5.02(j) hereto;

 

(vii)         Indebtedness incurred to provide all or
a portion of the purchase price or costs of construction of fixed assets (and
any refinancing thereof); provided, however, that (A) such
Indebtedness when incurred shall not exceed the purchase price or cost of
construction of such asset and (B) the aggregate outstanding principal amount
of all such Indebtedness shall not exceed $10,000,000 at any one time;

 

(viii)        Indebtedness of the Borrower secured by
accounts receivable of the Borrower (and any refinancing thereof) in an
aggregate outstanding principal amount not to exceed $150,000,000 at any one
time;

 

(ix)           secured or unsecured Indebtedness
(and any refinancing thereof) not otherwise permitted by the preceding clauses
of this Section 5.02(j) not exceeding $150,000,000 in aggregate
principal amount at any one time outstanding (and which may include Guarantee
Obligations of the Borrower with respect to Indebtedness of a Subsidiary);

 

(x)            Indebtedness of the Borrower or any
Subsidiary incurred in connection with an Investment that is permitted under Section
5.02(h)(ii), 5.02(h)(ix) or 5.02(h)(x), in each case, to the extent such
Indebtedness complies with the terms thereof, respectively; and

 

44

 

(xi)           secured or unsecured indebtedness
incurred by the Borrower to finance capital expenditures related to its
regulated utility operations (and any refinancing thereof); provided, however,
that either (A) the capital expenditure is required by applicable law or (B)
the capital expenditure is believed by the Borrower to be reasonably necessary
for the provision of safe and reliable service to the Borrower’s utility
customers and a Responsible Officer of the Borrower certifies in writing to the
Administrative Agent, at least 10 days prior to incurring the indebtedness,
that the incurrence complies with the requirements of this clause (B);

 

provided that in the event of any refinancing
referred to in clauses (iii), (v),(vi),(vii),(viii), (ix) and (xi) of this Section
5.02(j) (to the extent constituting a refinancing and not additional
Indebtedness permitted to be incurred under any such clause), the principal of
the Indebtedness so refinanced is not increased as a result thereof (plus any
premiums required to be paid to such existing debtholders in connection with
such refinancing).

 

(k)           Limitation on Sales and Leasebacks.  Unless otherwise permitted under Section
5.02(j)(xi), enter into any arrangement with any Person providing for the
leasing by the Borrower of real or personal property, in an aggregate amount
for all such property exceeding $10,000,000, which has been or is to be sold or
transferred by the Borrower to such Person or to any other Person to whom funds
have been or are to be advanced by such Person on the security of such property
or rental obligations of the Borrower.

 

(l)            [Intentionally Omitted].

 

(m)          Limitation on Businesses.  Enter into or engage in any business, either directly or through
any Subsidiary, except for businesses of the same general type as those in
which the Borrower and its Subsidiaries are engaged on the date hereof or other
business activities reasonably incidental or related to any of the foregoing.

 

(n)           Limitation on Certain Amendments.  Amend, modify or change, or consent to any
amendment, modification or change to any of the terms relating to the payment
or prepayment of principal of or interest on, any Debt in any manner which
would (i) create or accelerate any amortization of the principal thereof prior
to the sixth month after the Termination Date, (ii) result in the maturity
being earlier than six months after the Termination Date, (iii) increase the
amount of any payment or prepayment of principal thereof (to earlier than six
months after the Termination Date) or increase the rate of interest thereon or
(iv) extend the Lien, if any, granted thereby to extend to any assets not
securing such Debt.

 

(o)           Limitations on Subsidiaries’ Equity Interests.  Permit any Subsidiary to issue any preferred
Capital Stock or any redeemable common stock having mandatory redemption or
other amortizing payments prior to six months after the Termination Date other
than (i) issuances of preferred Capital Stock in payment of regularly accruing
dividends on theretofore outstanding shares of such preferred Capital Stock,
and (ii) in connection with Investments made pursuant to Section 5.02(h)(ix)
or (x).

 

(p)           Hedging Arrangements; Forward Sale or Purchase
Contracts.  (i)  Enter into, and shall not permit any
Subsidiary to enter into, any interest rate protection agreement, 

 

45

 

interest rate future, interest rate option,
interest rate swap, or other interest rate hedge or arrangement, or any other
agreement or arrangement designed to limit or eliminate the risk or exposure to
fluctuations in currency exchange rates, or fuel or other commodity prices,
other than (A) (1) any such agreement or arrangement entered into in the
ordinary course of business to hedge or mitigate risks to such which the
Borrower or any Subsidiary is exposed in the conduct of its business or the
management of its liabilities and (2) not for speculative purposes or (B) in the
case of agreements or arrangements relating to interest rates, entered into to
take advantage of reduced interest rates by converting fixed rate obligations
into floating rate obligations; or (ii) enter into, and shall not permit any
Subsidiary to enter into, any forward purchase and/or sale, or other forward
acquisition or disposition, of energy or transmission rights, or any energy
tolling transactions, as seller of tolling services, in each case, other than
any purchase, sale or other transaction entered into in the ordinary course of
the Borrower’s or any Subsidiary’s business and not for speculative purposes.

 

(q)           Indentures. 
Subject any additional assets (other than pursuant to the any
after-acquired or similar clause) to the Lien of, or issue additional bonds
under, (i) the St. Joseph Power & Light Indenture, (ii) the Indenture or
Mortgage and Deed of Trust dated as of April 1, 2003, between the Borrower and
Bank One Trust Company, NA, as trustee (as amended or supplemented from time to
time), or (iii) any other mortgage indenture entered into by the Borrower,
unless, in each case, done in connection with a transaction permitted by the
terms of this Agreement.

 

ARTICLE VI

 

EVENTS OF DEFAULT

 

Section 6.01.          Events
of Default.  If any of the following
events (“Events of Default”) shall occur and be continuing:

 

(a)           The Borrower shall fail to pay (i) any principal of any
Loan when the same becomes due and payable or (ii) any interest on any Loan or
any fee or any other payment due in connection with this Agreement, any Note or
any other Loan Document within three (3) days after such interest, fee or other
payment becomes due and payable; or

 

(b)           Any representation or warranty made or deemed made by or
on behalf of the Borrower herein or in any other Loan Document or in any
notice, certificate, document or other instrument delivered by the Borrower in
connection with this Agreement or any other Loan Document shall prove to have
been incorrect in any material respect on or as of the date made or deemed
made; or

 

(c)           The Borrower shall default in the observance or
performance of any agreement contained in Section 5.02; or

 

(d)           The Borrower shall default in the observance or
performance of any other agreement contained in this Agreement or any other
Loan Document, and such default shall continue unremedied for a period of
thirty (30) days after the earlier of notice thereof being 

 

46

 

provided by the Administrative Agent or the
Required Lenders or discovery thereof by a Responsible Officer of the Borrower;
or

 

(e)           The Borrower or any Material Subsidiary shall (i) default
in any payment (regardless of amount) of principal of, premium, if any, or
interest on any Debt having an aggregate principal amount in excess of $40,000,000
(other than the Revolving Credit Advances) beyond the grace period, if any,
provided in the instrument or agreement under which such Debt was created or
(ii) default in the observance or performance of any other agreement or
condition relating to any such Debt or contained in any instrument or agreement
evidencing, securing or relating thereto, or any other event shall occur or
condition exist, the effect of which default or other event or condition is to
cause, or to permit the holder or holders of such Debt (or a trustee or agent
on behalf of such holder or holders or beneficiary or beneficiaries) to cause,
with the giving of notice, if required, such Debt to become due prior to its
Stated Maturity; provided, however, that any such default by the
Borrower or any Material Subsidiary under Non-Recourse Debt will not constitute
an Event of Default unless such default also constitutes a default under other
recourse Debt of the Borrower or such Material Subsidiary in an aggregate
outstanding principal amount of $40,000,000 or more; and provided  further,
that, for the avoidance of doubt, any default by the Borrower or any Material
Subsidiary under any indebtedness which, but for being cash collateralized,
would have constituted Debt hereunder will not constitute an Event of Default
unless such default also constitutes a default under other recourse Debt of the
Borrower or such Material Subsidiary in an aggregate outstanding principal
amount of $40,000,000 or more; or

 

(f)            (i) The Borrower or any Material Subsidiary shall
commence any case, proceeding or other action (A) under any existing or future
law of any jurisdiction, domestic or foreign, relating to bankruptcy,
insolvency, reorganization or relief of debtors, seeking to have an order for
relief entered with respect to it, or seeking to adjudicate it a bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment, winding-up,
liquidation, dissolution, composition or other relief with respect to it or its
debts, or (B) seeking appointment of a receiver, trustee, custodian,
conservator or other similar official for it or for all or any substantial part
of its assets, or the Borrower or any such Material Subsidiary shall make a
general assignment for the benefit of its creditors; or (ii) there shall be
commenced against the Borrower or any such Material Subsidiary any case,
proceeding or other action of a nature referred to in clause (i) above which
(A) results in the entry of an order for relief or any such adjudication or
appointment or (B) remains undismissed, undischarged or un-bonded for a period
of 60 days; or (iii) there shall be commenced against the Borrower or any such
Material Subsidiary any case, proceeding or other action seeking issuance of a
warrant of attachment, execution, distrait or similar process against all or
any substantial part of its assets which results in the entry of an order for
any such relief which shall not have been vacated, discharged, or stayed or
bonded pending appeal within 60 days from the entry thereof; or (iv) the
Borrower or any such Material Subsidiary shall take any action in furtherance
of, or indicating its consent to, approval of, or acquiescence in, any of the
acts set forth in clause (i), (ii), or (iii) above; or (v) the Borrower or any
such Material Subsidiary shall generally not, or shall be unable to, or shall
admit in writing its inability to, pay its debts as they become due; or

 

(g)           (i) Any Person shall engage in any nonexempt “prohibited
transaction” (as defined in Section 406 of ERISA or Section 4975 of the Code)
involving any

 

47

 

Plan, (ii) any “accumulated funding deficiency” (as
defined in Section 302 of ERISA), whether or not waived, shall exist with
respect to any Plan or any Lien in favor of the PBGC or a Plan shall arise on
the assets of the Borrower, any Subsidiary or any Commonly Controlled Entity,
(iii) a Reportable Event shall occur with respect to, or proceedings shall
commence to have a trustee appointed, or a trustee shall be appointed, to
administer or to terminate, any Plan, which Reportable Event or commencement of
proceedings or appointment of a trustee is, in the reasonable opinion of the
Required Lenders, likely to result in the termination of such Plan for purposes
of Title IV of ERISA, (iv) any Plan shall terminate for purposes of Title IV of
ERISA, (v) the Borrower, any Subsidiary or any Commonly Controlled Entity
shall, or in the reasonable opinion of the Required Lenders is likely to, incur
any liability in connection with a withdrawal from, or the Insolvency or
Reorganization of, a Multiemployer Plan or (vi) any other event or condition
shall occur or exist with respect to a Plan; and in each case in clauses (i)
through (vi) above, such event or condition, together with all other such
events or conditions, if any, could reasonably be expected to have a Material
Adverse Effect; or

 

(h)                                 One or more judgments or decrees shall be
entered against the Borrower or any of its Material Subsidiaries involving in
the aggregate a liability (to the extent not covered by third-party insurance
as to which the insurer has acknowledged coverage) of $40,000,000 or more and
sufficient judgments or decrees shall not have been vacated, discharged, stayed
or bonded pending appeal within thirty (30) days from the entry thereof to
reduce such amount to less than $40,000,000; or

 

(i)                                     Any Event of Default (as such term is
defined in the Term Loan Credit Agreement ) shall occur; or

 

(j)                                     A Change of Control shall occur;

 

then,
and in any such event, (A) if such event is an Event of Default specified in
clause (i) or (ii) of paragraph (f) above with respect to the Borrower,
automatically the Commitments shall immediately terminate, the Revolving Credit
Advances hereunder (with accrued interest thereon) and all other amounts owing
under this Agreement and the Notes shall immediately become due and payable,
and (B) if such event is any other Event of Default, either or both of the
following actions may be taken: (i) with the consent of the Required Lenders,
the Administrative Agent may, by notice to the Borrower, declare the
Commitments to be terminated forthwith, whereupon the Commitments shall
immediately terminate; and (ii) with the consent of the Required Lenders, the
Administrative Agent may, or upon the request of the Required Lenders the
Administrative Agent shall, by notice to the Borrower, declare the Revolving
Credit Advances hereunder and the Notes to be due and payable forthwith,
whereupon the same shall immediately become due and payable.  Except as expressly provided above in this Section
6.01, presentment, demand, protest and all other notices of any kind are
hereby expressly waived.

 

ARTICLE VII

 

THE ADMINISTRATIVE AGENT

 

Section 7.01.                             Authorization and Action.  Each
Lender hereby appoints and authorizes the Administrative Agent to take such
action as agent on its behalf and to exercise 

 

48

 

such
powers and discretion under the other Loan Documents as are delegated to the
Administrative Agent by the terms thereof, together with such powers and
discretion as are reasonably incidental thereto.  As to any matters not expressly provided for
by the Loan Documents (including enforcement of any Loan Document or collection
of any amounts thereunder), the Administrative Agent shall not be required to exercise
any discretion or take any action. 
Notwithstanding any provision to the contrary elsewhere in this
Agreement, the Administrative Agent shall not have any duties or
responsibilities, except those expressly set forth herein, or any fiduciary
relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against the
Administrative Agent.  The Administrative
Agent shall be fully protected in acting (or refraining from acting) in
accordance with the instructions of the Required Lenders, and such action (or
such refraining from acting) shall be binding upon all Lenders and all holders
of Revolving Credit Advances.  The Administrative
Agent shall be fully justified in failing or refusing to take any action
hereunder and under any other Loan Document unless it shall first be
indemnified to its satisfaction by the Lenders pro rata against any and all
liability, cost and expense that it may incur by reason of taking or continuing
to take any such action.  In no event
shall the Administrative Agent be required to take any action (or refrain from
taking any action) which the Administrative Agent deems in good faith (i) to
expose the Administrative Agent to potential personal liability or (ii) to be
contrary to this Agreement or applicable law. 
The Administrative Agent agrees to give to each Lender prompt notice of
each notice given to it by the Borrower pursuant to the terms of this
Agreement.

 

Section
7.02.                             Administrative Agent’s
Reliance, Etc.  Neither the Administrative Agent nor any of
its directors, officers, agents or employees shall be liable for any action
taken or omitted to be taken by it or them under or in connection with this
Agreement, except for its or their own gross negligence or willful
misconduct.  Without limitation of the
generality of the foregoing, the Administrative Agent:  (i) may treat the Lender that made any Revolving
Credit Advance as the holders of the Debt resulting therefrom until, in the
case of any such Lender, the Administrative Agent receives and accepts an
Assignment and Acceptance entered into by such Lender, as assignor, and an
Eligible Assignee, as assignee, as provided in Section 8.07; (ii) may
consult with legal counsel (including counsel for the Borrower), independent
public accountants and other experts selected by it and shall not be liable for
any action taken or omitted to be taken in good faith by it in accordance with
the advice of such counsel, accountants or experts; (iii) makes no warranty or
representation to any Lender and shall not be responsible to any Lender for any
statements, warranties or representations (whether written or oral) made in or
in connection with any Loan Document; (iv) shall not have any duty to ascertain
or to inquire as to the performance, observance or satisfaction of any of the
terms, covenants or conditions of this Agreement or any other Loan Documents on
the part of the Borrower or the existence at any time of any Default or to
inspect the property (including the books and records) of the Borrower; (v)
shall not be responsible to any Lender for the due execution, legality,
validity, enforceability, genuineness, sufficiency or value of this Agreement,
any of the other Loan Documents or any other instrument or document furnished
pursuant thereto; and (vi) shall incur no liability under or in respect of any
Loan Document by acting upon any notice, consent, certificate or other
instrument or writing (which may be by telecopier, telegram or telex) believed
by it to be genuine and signed or sent by the proper party or parties.

 

49

 

Section 7.03.                             CSFB and Affiliates.  With
respect to its Commitment, the Revolving Credit Advances made by it and the
Note issued to it, CSFB shall have the same rights and powers under this
Agreement 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, include CSFB in its individual capacity.  CSFB and its Affiliates may accept deposits
from, lend money to, act as trustee under indentures of, accept investment
banking engagements from and generally engage in any kind of business with, the
Borrower, any of its Subsidiaries and any Person who may do business with or
own securities of the Borrower or any such Subsidiary, all as if CSFB were not
the Administrative Agent and without any duty to account therefor to the
Lenders.  The Administrative Agent shall
have no duty to disclose information obtained or received by it or any of its
Affiliates relating to the Borrower or its Subsidiaries to the extent such
information was obtained or received in any capacity other than as
Administrative Agent.

 

Section 7.04.                             Lender Credit Decision.  Each
Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender and based on the financial statements
referred to in Section 4.01 and such other documents and information as
it has deemed appropriate, made its own credit analysis and decision to enter
into this Agreement.  Each Lender also
acknowledges 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
decisions in taking or not taking action under this Agreement.

 

Section 7.05.                             Indemnification.  The
Lenders agree to indemnify the Administrative Agent (to the extent not
reimbursed by the Borrower) and its directors, officers, employees and agents
(each, a “Lender Indemnitee”), ratably according to the respective
principal amounts of the Revolving Credit Advances then owed to each of them
(or if no Revolving Credit Advances are at the time outstanding, ratably
according to the respective amounts of their Commitments), from and against any
and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever that may be imposed on, incurred by, or asserted against such Lender
Indemnitee in any way relating to or arising out of any Loan Document or any
action taken or omitted by such Lender Indemnitee thereunder (collectively, the
“Indemnified Costs”), provided that
no Lender shall be liable for any portion of the Indemnified Costs of a Lender
Indemnitee indemnified person resulting from such Lender Indemnitee’s gross
negligence or willful misconduct. 
Without limitation of the foregoing, each Lender agrees to reimburse the
Lender Indemnitee promptly upon demand for its ratable share of any
out-of-pocket expenses (including counsel fees) incurred by such Lender
Indemnitee in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of
rights or responsibilities under, any Loan Document, to the extent that the
Lender Indemnitee is not reimbursed for such expenses by the Borrower.  In the case of any investigation, litigation
or proceeding giving rise to any Indemnified Costs, this Section 7.05
applies whether any such investigation, litigation or proceeding is brought by
the Administrative Agent, any Lender or a third party.

 

50

 

Section 7.06.                             Successor Administrative Agent.  The
Administrative Agent may resign at any time by giving written notice thereof to
the Lenders and the Borrower and may be removed at any time with or without
cause by the Required Lenders.  Upon any
such resignation or removal, the Required Lenders shall have the right to
appoint a successor Administrative Agent, with the consent of the Borrower (which
consent shall not be unreasonably withheld or delayed) if no Event of Default
has occurred and is continuing.  If no
successor Administrative Agent shall have been so appointed by the Required
Lenders, and shall have accepted such appointment, within thirty (30) days
after the retiring Administrative Agent’s giving of notice of resignation or
the Required Lenders’ removal of the retiring Administrative Agent, then the
retiring Administrative Agent may, on behalf of the Lenders, appoint a
successor Administrative Agent, which shall be a commercial bank organized
under the laws of the United States of America or of any State thereof and
having a combined capital and surplus of at least $500,000,000.  Upon the acceptance of any appointment as
Administrative Agent hereunder by a successor Administrative Agent and the
execution and delivery by Borrower and the successor Administrative Agent of an
agreement relating to the annual administration fees to be paid to the
successor Administrative Agent in connection with its acting as Administrative Agent
hereunder, such successor Administrative Agent shall thereupon succeed to and
become vested with all the rights, powers, discretion, privileges and duties of
the retiring Administrative Agent, and the retiring Administrative Agent shall
be discharged from its duties and obligations under this Agreement.  After any retiring Administrative Agent’s
resignation or removal hereunder as Administrative Agent, the provisions of
this Article VII 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.

 

Section 7.07.                             Other Agents.  Each
Lender hereby acknowledges that neither the documentation agent nor any other
Lender designated as any “Agent” on the signature pages hereof has any liability
hereunder other than in its capacity as a Lender.

 

ARTICLE VIII

 

MISCELLANEOUS

 

Section
8.01.                             Amendments, Etc.  No
amendment or waiver of any provision of this Agreement, the Notes or any other
Loan Document nor consent to any departure by the Borrower therefrom, shall in
any event be effective unless the same shall be in writing and signed by the
Required Lenders (or, with the written consent of the Required Lenders, by the
Administrative Agent) and the Borrower, and then such waiver or consent shall
be effective only in the specific instance and for the specific purpose for
which given; provided, however, that no amendment, waiver or consent shall, unless in
writing and signed by each of the Lenders directly affected thereby, do any of
the following: (a) waive any of the conditions specified in Section 3.01,
(b) increase the Commitments of such Lenders or subject such Lenders to any
additional obligations, (c) reduce the principal of, or interest on, the
Revolving Credit Advances or any fees or other amounts payable hereunder, or
(d) postpone any date fixed for any payment of principal of (including final
maturity), or interest on, the Revolving Credit Advances or any fees or other
amounts payable hereunder; provided  further that no amendment,
waiver or consent shall, unless in writing and signed by all the Lenders: (i)
change the percentage of the Commitments or of the aggregate unpaid principal
amount of the Revolving Credit Advances that shall be required for the Lenders
or any of them to take any action hereunder, (ii) change the pro rata
distribution of 

 

51

 

payments
and proceeds to the Lenders, (iii) waive any of the conditions specified in or
amend Section 2.04 or (iv) amend this Section 8.01; provided further that no amendment, waiver or
consent shall, unless in writing and signed by the Administrative Agent in
addition to the Lenders required above to take such action, affect the rights
or duties of the Administrative Agent under this Agreement, any Note or any
other Loan Document; and provided  further no amendment, waiver or
consent shall, unless in writing and signed by Credit Suisse First Boston in
addition to the parties required to sign the foregoing as set forth in this Section
8.01, amend or in any manner affect the rights of Credit Suisse First
Boston under Section 8.07(i).

 

Section 8.02.                             Notices, Etc.  All
notices and other communications provided for hereunder shall be in writing
(including telecopier or telegraphic communication) and mailed, telecopied,
telegraphed or delivered, if to the Borrower, at its address at 20 West Ninth
Street, Kansas City, Missouri 64105, Attention: 
Treasurer, Telecopy No.: (816) 467-3591; if to any Lender party to this Agreement
as of the date hereof, at its Domestic Lending Office specified opposite its
name on Schedule I hereto; if to any other Lender, at its Domestic Lending
Office specified in the Assignment and Acceptance pursuant to which it became a
Lender; and if to the Administrative Agent, at its address at Eleven Madison
Avenue, New York, New York 10010-3629, Attention: Agency Department Manager,
Telecopy No.: (212) 325-8304; or, as to the Borrower or the Administrative
Agent, at such other address as shall be designated by such party in a written notice
to the other parties and, as to each other party, at such other address as
shall be designated by such party in a written notice to the Borrower and the
Administrative Agent.  All such notices
and communications shall, when mailed, telecopied or telegraphed, be effective
when deposited in the mails, telecopied or delivered to the telegraph company,
respectively, except that notices and communications to the Administrative
Agent pursuant to Article II, III or VII shall not be effective until received by
the Administrative Agent.  Delivery by
telecopier of an executed counterpart of any amendment or waiver of any
provision of this Agreement, the Notes or any other Loan Document or of any
Exhibit hereto and thereto to be executed and delivered hereunder and
thereunder shall be effective as delivery of a manually executed counterpart
thereof.  Electronic mail and internet
websites may be used only to distribute routine information such as financial
statements and other information as provided in Section 5.01(a), (b)
and (g) and to distribute this Agreement and the other Loan Documents
for execution by the parties thereto, and may not be used for any other
purpose, except as agreed to by the Administrative Agent.

 

Section 8.03.                             No Waiver; Remedies.  No
failure on the part of any Lender or the Administrative Agent to exercise, and
no delay in exercising, any right hereunder, under any Note or any other Loan
Document shall operate as a waiver thereof; nor shall any single or partial
exercise of any such right preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges
herein provided are cumulative and not exclusive of any rights, remedies,
powers and privileges provided by law.

 

Section 8.04.                             Costs and Expenses.  (a)  Subject to the limitations set forth in the
other Loan Documents, the Borrower agrees to pay on demand all reasonable
out-of-pocket costs and expenses of the Administrative Agent in connection with
the preparation, execution, delivery, administration, waiver or modification
and amendment of this Agreement, the Notes and the other Loan Documents and any
other documents to be delivered hereunder and 

 

52

 

thereunder, including (i) all transportation,
duplication, appraisal, consultant, and audit expenses and (ii) the reasonable
fees, disbursement and other charges of external counsel for the Administrative
Agent with respect thereto and with respect to advising the Administrative
Agent as to its rights and responsibilities under this Agreement or any other
Loan Document.  The Borrower agrees to
pay (i) on demand all reasonable costs and expenses of the Administrative Agent
and the Lenders, if any (including reasonable external counsel fees and
expenses), in connection with the enforcement (whether through negotiations,
legal proceedings or otherwise) of this Agreement, the Notes and the other Loan
Documents and any other documents to be delivered hereunder and thereunder,
including reasonable fees and expenses of external counsel for the
Administrative Agent and each Lender in connection with the enforcement of
rights under this Section 8.04(a), and (ii) and indemnify and hold
harmless the Administrative Agent and each Lender from, any and all present or
future stamp, documentary or excise taxes or similar charges, any and all
recording and filing fees, and any and all liabilities with respect thereto,
which may be payable or determined to be payable in connection with the
execution and delivery of, or consummation or administration of any of the
transactions contemplated by, or payment under, or any amendment, supplement or
modification of, or any waiver or consent under or in respect of, this
Agreement, the Notes, the other Loan Documents and any such other documents.

 

(b)                                 The Borrower agrees to indemnify,
exonerate and hold harmless the Administrative Agent, each Lender and each of
their Affiliates and their officers, directors, employees, agents and
controlling persons (each, an “Indemnified Party”) from and against any
and all claims, damages, losses, liabilities and expenses (including fees,
disbursements and other charges of external counsel) incurred by or asserted or
awarded against any Indemnified Party, in each case arising out of or in
connection with or by reason of (including in connection with any claim,
investigation, litigation or proceeding or preparation of a defense in
connection therewith) (i) the Notes, this Agreement, any other Loan Document or
any other documents related thereto, any extension of credit hereunder, any of
the transactions contemplated herein or the actual or proposed use of the
proceeds of the Revolving Credit Advances or (ii) any actual or alleged
presence or release of Materials of Environmental Concern on or from any
property owned or operated by the Borrower or any of its Subsidiaries, or any
Environmental Liability related in any way to the Borrower or any of its
Subsidiaries, except to the extent such claim, damage, loss, liability or
expense is found in a final, non-appealable judgment by a court of competent
jurisdiction to have resulted from such Indemnified Party’s bad faith, gross
negligence or willful misconduct.  In the
case of any claim, investigation, litigation or other proceeding to which the
indemnity in this Section 8.04(b) applies, such indemnity shall be
effective whether or not such investigation, litigation or proceeding is
brought by the Borrower, its directors, equityholders or creditors or an
Indemnified Party or any other Person, whether or not any Indemnified Party is
otherwise a party thereto and whether or not the transactions contemplated
hereby are consummated.  Each party to
this Agreement agrees not to assert any claim for special, indirect, consequential
or punitive damages against any other party hereto or any of its Affiliates, or
any of its officers, directors, employees, agents and controlling persons, on
any theory of liability, arising out of or otherwise relating to (i) the Notes,
this Agreement, any other Loan Document or any other documents related thereto,
any of the transactions contemplated herein or the actual or proposed use of
the proceeds of the Revolving Credit Advances or (ii) any actual or alleged
presence or release of Materials of Environmental Concern on or from any
property owned or operated by the Borrower or any of its Subsidiaries, or any
Environmental Liability related in any way to the Borrower or any of its
Subsidiaries.

 

53

 

(c)                                  If any payment of principal of, or
Conversion of, any Eurodollar Rate Advance is made by the Borrower to or for
the account of a Lender other than on the last day of the Interest Period for
such Revolving Credit Advance, as a result of a payment or Conversion pursuant
to Section 2.10(a), 2.10(b)(i) or (ii), 2.11 or 2.13,
acceleration of the maturity of the Notes pursuant to Section 6.01 or
for any other reason, the Borrower shall, upon demand by such Lender (with a
copy of such demand to the Administrative Agent), pay to the Administrative
Agent for the account of such Lender any amounts required to compensate such
Lender for any additional losses, costs or expenses that it may reasonably
incur as a result of such payment or Conversion, including any loss (including
loss of anticipated profits), cost or expense incurred by reason of the
liquidation or reemployment of deposits or other funds acquired by any Lender
to fund or maintain such Revolving Credit Advance.

 

(d)                                 Without prejudice to the survival of any
other agreement of the Borrower hereunder, the agreements and obligations of
the parties contained in Sections 2.12, 2.15 and 8.04
shall survive the payment in full of principal, interest and all other amounts
payable hereunder, under the Notes or any other Loan Document.

 

Section 8.05.                             Right of Set-off.  Upon
(i) the occurrence and during the continuance of any Event of Default and (ii)
the making of the request or the granting of the consent specified by Section
6.01 to authorize the Administrative Agent to declare the Notes due and
payable pursuant to the provisions of Section 6.01, each Lender and each
of its Affiliates is hereby authorized at any time and from time to time, to
the fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other indebtedness at any time owing by such Lender or such Affiliate to or for
the credit or the account of the Borrower against any and all of the
obligations of the Borrower now or hereafter existing under this Agreement, the
Note held by such Lender or any other Loan Document, whether or not such Lender
shall have made any demand under this Agreement, such Note or any other such
Loan Document and although such obligations may be unmatured.  Each Lender agrees promptly to notify the
Borrower after any such set-off and application, provided
that the failure to give such notice shall not affect the validity of such
set-off and application.  The rights of
each Lender and its Affiliates under this Section 8.05 are in addition
to other rights and remedies (including other rights of set-off) that such
Lender and its Affiliates may have.

 

Section 8.06.                             Binding Effect.  This
Agreement shall become effective when it shall have been executed by the
Borrower and the Administrative Agent and when the Administrative Agent shall
have been notified by each Lender party to this Agreement as of the date hereof
that such Lender has executed it and the Closing Date shall have occurred and thereafter
shall be binding upon and inure to the benefit of the Borrower, the
Administrative Agent and each such Lender and their respective successors and
assigns, except that the Borrower shall not have the right to assign its rights
or obligations hereunder or any interest herein without the prior written
consent of all the Lenders.

 

Section 8.07.                             Assignments and Participations. 
(a)  Each Lender may assign to one
or more Persons all or a portion of its rights and obligations under this
Agreement (including all or a portion of its Commitment, the Revolving Credit
Advances owing to it and the Note or Notes held by it); provided, however, that (i) such
Lender shall have obtained the prior written 

 

54

 

consent of the Administrative Agent, not to be
unreasonably withheld or delayed, (ii) each such assignment shall be of a
constant, and not a varying, percentage of all rights and obligations under
this Agreement, (iii) except in the case of (x) an assignment to a Person that,
immediately prior to such assignment, was a Lender, (y) assignment to the
Approved Fund of the assigning Lender or (z) an assignment of all of a Lender’s
rights and obligations under this Agreement, the amount of the Commitment of
the assigning Lender being assigned pursuant to each such assignment
(determined as of the date of the Assignment and Acceptance with respect to
such assignment) shall in no event be less than $1,000,000 and shall be an
integral multiple of $1,000,000 unless the Administrative Agent otherwise
agrees, and if the assigning Lender is assigning less than all of its
Commitments after giving effect to such assignment, the amount of the
commitment of the assigning Lender shall be equal to or greater than
$1,000,000, (iv) each such assignment shall be to an Eligible Assignee and (v)
the parties to each such assignment shall (A) electronically execute and
deliver to the Administrative Agent an Assignment and Acceptance via an
electronic settlement system acceptable to the Administrative Agent (which
initially shall be ClearPar, LLC) or (B) manually execute and deliver to the
Administrative Agent an Assignment and Acceptance together with a processing
and recordation fee of $3,500 (such fee payable by the assignor or assignee, as
agreed by the parties), for its acceptance and recording in the Register.  Upon such execution, delivery, acceptance and
recording, from and after the effective date specified in each Assignment and
Acceptance, (x) the assignee thereunder shall be a party hereto and, to the
extent that rights and obligations hereunder have been assigned to it pursuant
to such Assignment and Acceptance, have the rights and obligations of a Lender
hereunder and (y) the Lender assignor thereunder shall, to the extent that rights
and obligations hereunder have been assigned by it pursuant to such Assignment
and Acceptance, relinquish its rights (other than its rights under Section
2.12, 2.15 and 8.04 to the extent any claim thereunder
relates to an event arising prior to such assignment) and be released from its
obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all or the remaining portion of an assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto).

 

(b)                                 By executing and delivering an Assignment
and Acceptance, the Lender assignor thereunder and the assignee thereunder
confirm to and agree with each other and the other parties hereto as follows:
(i) other than as provided in such Assignment and Acceptance, such assigning
Lender makes no representation or warranty and assumes no responsibility with
respect to (A) any statements, warranties or representations made in or in
connection with this Agreement or any other Loan Document, (B) the execution,
legality, validity, enforceability, genuineness, sufficiency or value of this
Agreement or any other Loan Document or any collateral thereunder, (C) the
financial condition of the Borrower, any of its Subsidiaries or Affiliates or
any other Person obligated in respect of this Agreement or any other Loan
Document or (D) the performance or observance by the Borrower, any of its
Subsidiaries or Affiliates or any other Person of any of their respective
obligations under this Agreement or any other Loan Document; (ii) such assignee
(A) represents and warrants that (1) it satisfies the requirements, if any,
specified in this Agreement that are required to be satisfied by it in order to
acquire the Assigned Interest (as defined in such Assignment and Acceptance)
and become a Lender, (2) from and after the Effective Date (specified in such
Assignment and Acceptance), it shall be bound by the provisions of this
Agreement as a Lender thereunder and, to the extent of the Assigned Interest,
shall have the obligations of a Lender thereunder, (3) it has received a copy
of this Agreement, together with copies of the most recent financial statements
referred to 

 

55

 

in Section 4.01 or delivered pursuant to Section
5.01, and such other documents and information as it has deemed appropriate
to make its own credit analysis and decision to enter into such Assignment and
Acceptance and to purchase the Assigned Interest on the basis of which it has
made such analysis and decision independently and without reliance on the
Administrative Agent, the assigning Lender or any other Lender and (4) it is an
Eligible Assignee; and (B) agrees that (1) it will, independently and without
reliance on the Administrative Agent, the assigning Lender or any other Lender,
and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under the Loan Documents, and (2) it will perform in accordance with their
terms all of the obligations which by the terms of this Agreement and the other
Loan Documents are required to be performed by it as a Lender.

 

(c)                                  Upon its receipt of an Assignment and
Acceptance executed by an assigning Lender and an assignee, representing that
it is an Eligible Assignee, the Administrative Agent shall, if such Assignment
and Acceptance has been completed and is in substantially the form of Exhibit D
hereto, (i) accept such Assignment and Acceptance, and (ii) record the information
contained therein in the Register.

 

(d)                                 The Administrative Agent shall maintain
at its address referred to in Section 8.02 a copy of each Assignment and
Acceptance delivered to and accepted by it and a register for the recordation
of the names and addresses of each of the Lenders and the Commitment of, and
principal amount of the Revolving Credit Advances owing to, each Lender from
time to time (the “Register”). 
The entries in the Register shall be conclusive and binding for all
purposes, absent manifest error, and the Borrower, the Administrative Agent and
the Lenders may treat each Person whose name is recorded in the Register as a
Lender hereunder for all purposes of this Agreement.  The Register shall be available for
inspection by the Borrower or any Lender at any reasonable time and from time
to time upon reasonable prior notice.

 

(e)                                  Each Lender may sell participations to
one or more banks or other entities (other than the Borrower or any of its
Affiliates) in or to all or a portion of its rights and obligations under this
Agreement (including all or a portion of its Commitment, the Revolving Credit
Advances owing to it and any Notes held by it); provided, however, that (i) such Lender’s obligations
under this Agreement (including its Commitment to the Borrower hereunder) shall
remain unchanged, (ii) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations, (iii) such Lender shall
remain the holder of any such Note for all purposes of this Agreement, (iv) the
Borrower, the Administrative Agent and the other Lenders shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights
and obligations under this Agreement and (v) no participant under any such
participation shall have any right to approve any amendment or waiver of any
provision of this Agreement, any Note or any other Loan Document, or any
consent to any departure by the Borrower therefrom, except to the extent that
such amendment, waiver or consent would reduce the principal of, or interest
on, the Notes or any fees or other amounts payable hereunder, in each case to
the extent subject to such participation, or postpone any date fixed for any
payment of principal of, or interest on, the Notes or any fees or other amounts
payable hereunder, in each case to the extent subject to such participation.

 

56

 

(f)                                    Any Lender may, in connection with any
assignment or participation or proposed assignment or participation pursuant to
this Section 8.07, disclose to the assignee or participant or proposed
assignee or participant, any information relating to the Borrower furnished to
such Lender by or on behalf of the Borrower; provided,
however, that, prior to any such
disclosure, the assignee or participant or proposed assignee or participant
shall agree to preserve the confidentiality of any Confidential Information
relating to the Borrower received by it from such Lender.

 

(g)                                 Notwithstanding any other provision set forth
in this Agreement, (i) any Lender may at any time grant a security interest (or
any other similar interest) in all or any portion of its rights under this
Agreement (including the Revolving Credit Advances owing to it and any Note or
Notes held by it) to any Federal Reserve Bank in accordance with Regulation A
of the Board of Governors of the Federal Reserve System and (ii) any Lender
that is a fund may grant a security interest in all or any portion of its
rights under this Agreement to any lender or any trustee for, or any other
representative of, holders of obligations owed or securities issued by such
fund as security for such obligations or securities or any institutional
custodian for such fund or for such lender; provided that, in each case, no such
assignment or grant of security interest shall release the assigning Lender
from its obligations and duties hereunder.

 

(h)                                 Notwithstanding anything to the contrary
contained herein, any Lender (a “Granting Bank”) may grant to a special
purpose funding vehicle (a “SPC”), identified as such in writing from
time to time by the Granting Bank to the Administrative Agent and the Borrower,
the option to provide to the Borrower all or any part of any Revolving Credit
Advance that such Granting Bank would otherwise be obligated to make to the
Borrower pursuant to this Agreement; provided,
however,
that (i) nothing herein shall constitute a commitment by any SPC to make
any Revolving Credit Advance, (ii) if a SPC elects not to exercise such option
or otherwise fails to provide all or any part of such Revolving Credit Advance,
the Granting Bank shall be obligated to make such Revolving Credit Advance
pursuant to the terms hereof.  The making
of a Revolving Credit Advance by a SPC hereunder shall utilize the Commitment
of the Granting Bank to the same extent, and as if, such Revolving Credit
Advance were made by such Granting Bank. 
Each party hereto hereby agrees that no SPC shall be liable for any
indemnity or similar payment obligation under this Agreement (all liability for
which shall remain with the Granting Bank). 
In furtherance of the foregoing, each party hereto hereby agrees (which
agreement shall survive the termination of this Agreement) that, prior to the
date that is one year and one day after the payment in full of all outstanding
commercial paper or other senior indebtedness of any SPC, it will not institute
against, or join any other person in instituting against, such SPC any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings
under the laws of the United States or any State thereof.  In addition, notwithstanding anything to the
contrary contained in this Section, any SPC may (i) with notice to, but without
the prior written consent of the Administrative Agent and without paying any
processing fee therefor, assign all or a portion of its interests in any
Revolving Credit Advances to the Granting Bank or to any financial institutions
(consented to by the Administrative Agent) providing liquidity and/or credit
support to or for the account of such SPC to support the funding or maintenance
of Revolving Credit Advances and (ii) disclose on a confidential basis any
non-public information relating to its Revolving Credit Advances to any rating
agency, commercial paper dealer or provider of any surety, guarantee or credit
or liquidity enhancement to such SPC. 
This section may not be amended without the written consent of the SPC.

 

57

 

(i)                                     Notwithstanding any other provision set
forth in this Agreement, each Lender, on behalf of itself and its Approved
Funds, effective on and as of the date on which it becomes a Lender either as a
result of executing this Agreement or pursuant to this Section 8.07, hereby
releases and forever discharges the Borrower and Credit Suisse First Boston (in
its individual capacity and as Administrative Agent under the Existing Credit
Agreement), and their respective directors, officers, employees, attorneys,
agents and affiliates from any and all claims, actions, causes of action,
demands, obligations, and liabilities of every nature and reason in any way
arising out of or in connection with the Existing Credit Agreement (including,
without limitation, any claims, actions, causes of action, demands, obligations,
or liabilities arising out of, or in any way connected with, Section 2.7 or 9.1
of the Existing Credit Agreement).  Each
such Lender further represents and warrants to the Borrower and Credit Suisse
First Boston that any Approved Fund of such Lender, if any, which was a party
to the Existing Credit Agreement has executed and delivered to the Borrower a
written release consistent with the terms of the immediately preceding
sentence.

 

Section 8.08.                             Confidentiality. 
Neither the Administrative Agent nor any Lender shall disclose any
Confidential Information to any other Person without the consent of the
Borrower other than (a) to the Administrative Agent’s or such Lender’s
Affiliates and their officers, directors, employees, agents and advisors and,
as contemplated by Section 8.07(f), to actual or prospective assignees
and participants, and to pledgees referred to in Section 8.07(g), and
then only on a confidential basis, (b) as required by any law, rule or
regulation or judicial process and (c) as requested or required by any state,
federal or foreign authority or examiner regulating banks or banking.  Notwithstanding anything herein to the
contrary, any party hereto (and any employee, representative or other agent of
such party) may disclose to any and all persons, without limitation of any
kind, the tax treatment and tax structure of the transactions contemplated by
this Agreement and all materials of any kind (including opinions or other tax
analyses) that are provided to it relating to such tax treatment and tax
structure, except that tax treatment and tax structure shall not include the
identity of any existing or future party (or any affiliate of such party) to
this Agreement.  For this purpose, the
tax treatment of the transactions contemplated by this Agreement is the
purported or claimed U.S. federal income tax treatment of such transactions and
the tax structure of such transactions is any fact that may be relevant to
understanding the purported or claimed U.S. federal income tax treatment of
such transactions.

 

Section 8.09.                             Governing Law.  THIS
AGREEMENT AND THE NOTES AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER
THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD
TO THE PRINCIPLES OF CONFLICT OF LAWS THEREOF OTHER THAN SECTION 5-1401 OF THE
GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK.

 

Section 8.10.                             Execution in Counterparts.  This
Agreement may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed shall
be deemed to be an original and all of which taken together shall constitute
one and the same agreement.  Delivery of
an executed counterpart of a signature page to this Agreement by telecopier
shall be effective as delivery of a manually executed counterpart of this
Agreement.

 

58

 

Section 8.11.                             Jurisdiction, Etc.  Each of the
parties hereto hereby irrevocably and unconditionally submits, for itself and
its property, to the nonexclusive jurisdiction of any New York State court or
federal court of the United States of America sitting in New York City, and any
appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement, the Notes or the other Loan Documents to which it
is a party, or for recognition or enforcement of any judgment, and each of the
parties hereto hereby irrevocably and unconditionally agrees that all claims in
respect of any such action or proceeding may be heard and determined in any
such New York State court or, to the extent permitted by law, in such federal
court.  Each of the parties hereto agrees
that a final judgment in any such action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law.  Nothing in this
Agreement shall affect any right that any party may otherwise have to bring any
action or proceeding relating to this Agreement, the Notes or the other Loan
Documents to which it is a party in the courts of any jurisdiction.

 

(b)                                 Each of the parties hereto irrevocably
and unconditionally waives, to the fullest extent it may legally and
effectively do so, any objection that it may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to
this Agreement, the Notes or the other Loan Documents to which it is a party in
any New York State or federal court. 
Each of the parties hereto hereby irrevocably waives, to the fullest
extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

 

Section 8.12.                             Waiver of Jury Trial.  EACH
OF THE BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER HEREBY IRREVOCABLY
WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
(WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO
THIS AGREEMENT, THE NOTES OR THE OTHER LOAN DOCUMENTS TO WHICH IT IS A PARTY OR
THE ACTIONS OF THE ADMINISTRATIVE AGENT OR ANY LENDER IN THE NEGOTIATION,
ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF.

 

Section 8.13.                             Survival of Representations and Warranties.  All
representations and warranties made hereunder, in the other Loan Documents and
in any document, certificate or statement delivered pursuant hereto or in
connection herewith shall survive the execution and delivery of this Agreement
and the Notes and the making of the Revolving Credit Advances hereunder.

 

Section 8.14.                             Severability.  Any
provision of this Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other
jurisdiction.

 

Section 8.15.                             Integration.  This Agreement and the other
Loan Documents represent the agreement of the Borrower, the Administrative
Agent and the Lenders with respect to the subject matter hereof and thereof,
and there are no promises, undertakings, representations 

 

59

 

or
warranties by the Administrative Agent or any Lender relative to subject matter
hereof or thereof not expressly set forth or referred to herein or in the other
Loan Documents.

 

Section 8.16.                             Acknowledgement.  The
Borrower hereby acknowledges that:

 

(a)                                  Neither the Administrative Agent nor any
Lender has any fiduciary relationship with or duty to the Borrower arising out
of or in connection with this Agreement or any of the other Loan Documents, and
the relationship between the Administrative Agent and the Lenders, on the one hand,
and the Borrower, on the other hand, in connection herewith or therewith is
solely that of creditor and debtor; and

 

(b)                                 No joint venture is created hereby or by
the other Loan Documents or otherwise exists by virtue of the transactions
contemplated hereby between the Administrative Agent, the Lenders and the
Borrower.

 

60

 

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

 

	
   

  	
  AQUILA,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/
  Randy Miller

  
	
   

  	
   

  	
  Name:  Randy Miller

  
	
   

  	
   

  	
  Title:  Vice President, Finance and Treasurer

  

 

61

 

	
  Commitment

  	
  Lenders

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Administrative
  Agent

  
	
   

  	
   

  
	
  $110,000,000

  	
  CREDIT
  SUISSE FIRST BOSTON, acting through its Cayman Islands Branch

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/
  S. William Fox

  
	
   

  	
   

  	
  Name:  S. William Fox

  
	
   

  	
   

  	
  Title:  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/
  David J. Dodd

  
	
   

  	
   

  	
  Name:  David J. Dodd

  
	
   

  	
   

  	
  Title:  Associate

  

 

 

SCHEDULE I

CASH EQUIVALENTS

 

	
  CASH EQUIVALENTS  

  The portfolio will be 

  limited to:

  	
   

  	
  CONCENTRATION 

  LIMITS  

  Maximum Concentration at 

  time of purchase:

  	
   

  	
  MATURITY 

  LIMITS  

  Maximum maturity 

  at time of purchase:

  	
   

  	
  CREDIT QUALITY  

  Credit rating 

  requirements:

  
	
  Obligations
  issued by the US Government limited to: 

  •   US
  Treasury Bills 

  •   US
  Treasury Notes

  • US Treasury Bonds

  	
   

  	
  •   None

  	
   

  	
  •   Final
  maturity less than 5 years

  	
   

  	
  •   Not
  Applicable

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Obligations
  sponsored by the US Government limited to:

  •   Federal
  Farm Credit Bank

  •   Federal
  Home Loan Bank

  •   Federal
  Home Loan Mortgage Corporation

  •   Federal
  National Mortgage Association 

  •   Student
  Loan Marketing Association

  	
   

  	
  •   None

  	
   

  	
  •   Final
  maturity less than 5 years

  	
   

  	
  •   Not
  Applicable

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Obligations
  collateralized by the US Government
  limited to: 

  •   Repurchase
  agreements

  	
   

  	
  •   25% of
  portfolio 

  •   Any one
  issuer not to exceed the greater of $10 million or 10% of the portfolio

  	
   

  	
  •   Final
  maturity less than 5 years

  	
   

  	
  •   Over
  collateralized (102%) by US Government and agency securities

  

 

 

	
  Obligations
  issued by the US-owned
  commercial banks limited to:

  •   Bankers’
  Acceptances 

  •   Certificates
  of Deposit 

  •   Time
  deposits

  	
   

  	
  •   75% of
  portfolio 

  •   one issuer
  not to exceed the greater of $10 million or 10% of the portfolio

  	
   

  	
  •   Final
  maturity less than 5 years

  	
   

  	
  As
  applicable: 

  •   Short-term
  rating of A-2/P-2/F-2 or higher 

  •   Long-term
  rating of A or higher

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  US-dollar
  denominated obligations issued
  by the non-US commercial banks limited
  to:

  •   Bankers’
  Acceptances 

  •   Certificates
  of Deposit 

  •   Time
  deposits

  	
   

  	
  •   25% of
  portfolio 

  •   Any one
  issuer not to exceed the greater of $10 million or 10% of the portfolio

  	
   

  	
  •   Final
  maturity less than 5 years

  	
   

  	
  As
  applicable: 

  •   Short-term
  rating of A-2/P-2/F-2 or higher 

  •   Long-term
  rating of A or higher

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Obligations
  of major US corporations and US holding companies limited to: 

  •   Commercial
  paper 

  •   Medium
  term notes 

  •   Floating
  rate notes 

  •   Corporate
  bonds 

  •   Auction
  rate securities

  	
   

  	
  •   75% of
  portfolio 

  •   Any one
  issuer or affiliate not to exceed the greater of $10 million or 10% of the
  portfolio 

  •   Auction
  rate securities limited to the lower of 10% of portfolio or $5 million

  	
   

  	
  •   Final
  maturity less than 5 years

  	
   

  	
  As
  applicable: 

  •   Short-term
  rating of A-2/P-2/F-2 or higher 

  •   Long-term
  rating of A or higher

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  US-dollar
  denominated obligations of major corporations and holding companies limited to: 

   

  	
   

  	
  •   25% of
  portfolio 

  •   Any one
  issuer or affiliate not to exceed the greater of $10 million or 10% of the
  portfolio 

  	
   

  	
  •   Final
  maturity less than 5 years

  	
   

  	
  As
  applicable: 

  •   Short-term
  rating of A-2/P-2/F-2 or higher 

  •   Long-term
  rating of A or higher

  

 

2

 

	
  •   Commercial
  paper 

  •   Medium
  term notes 

  •   Floating
  rate notes 

  •   Corporate
  bonds 

  •   Auction
  rate securities

  	
   

  	
  •   Auction
  rate securities limited to the lower of 10% of portfolio or $5 million

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pooled
  investments limited to: 

  •   2a-7 Money
  market funds 

  •   Bond funds

  	
   

  	
  •   Consistent
  with the Company’s liquidity requirements

  	
   

  	
  •   Final
  maturity less than 5 years

  	
   

  	
  •   AA or
  higher

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International
  Money Market Instruments limited to: 

  •   Eurodollar
  certificates of deposit and bonds 

  •   Eurodollar
  time deposits 

  •   Yankee
  certificates of deposit

  	
   

  	
  •   20% of
  portfolio 

  •   Any one
  country not to exceed 10% of portfolio

  	
   

  	
  •   Final
  maturity less than 5 years

  	
   

  	
  As
  applicable:

  •   Short-term
  rating of A-1/P-1/F-1 or higher 

  •   Long-term
  rating of A or higher

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tax
  exempt investments limited to: 

  •   Commercial
  paper 

  •   Municipal
  notes and bonds 

  •   Floating
  rate put bonds 

  •   Floating
  rate put notes 

   

  	
   

  	
  •   50% of
  portfolio 

  •   Consistent
  with the limitations assigned to a similar taxable instrument 

  •   Any one
  issuer not to exceed the greater of $10 million or 10% of the portfolio

  	
   

  	
  •   Final
  maturity less than 5 years

  	
   

  	
  •   MIG-1/VMIG-1
  

  •   Credit
  enhanced (letter of credit or insured by someone like MBIA)

  

 

3

 

	
  •   Money
  market preferred stock 

  •   Money
  market funds 

  •   Variable
  rate auction rate notes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

4

 

SCHEDULE II

APPLICABLE LENDING OFFICES

 

	
  Name of Initial Lender

  	
   

  	
  Domestic Lending Office

  	
   

  	
  Eurodollar Lending Office

  
	
  Credit
  Suisse First Boston

  	
   

  	
  Eleven
  Madison Avenue 

  New York, NY 10010 

  Attention: Agency 

  Department Manager, 

  Telecopy No.: 

  (212) 325-8304

  	
   

  	
  Eleven
  Madison Avenue 

  New York, NY 10010 

  Attention: Agency 

  Department Manager, 

  Telecopy No.: 

  (212) 325-8304

  

 

 

SCHEDULE III

PRICING SCHEDULE

 

PRICING SCHEDULE

 

	
  STATUS

  	
   

  	
  LEVEL I

  STATUS

  	
   

  	
  LEVEL II

  STATUS

  	
   

  	
  LEVEL III

  STATUS

  	
   

  	
  LEVEL IV

  STATUS

  	
   

  
	
  Applicable Margin for Eurodollar Rate
  Advances

  	
   

  	
  1.50

  	
  %

  	
  3.00

  	
  %

  	
  5.50

  	
  %

  	
  5.75

  	
  %

  
	
  Applicable Margin for Alternate Base Rate
  Advances

  	
   

  	
  0.50

  	
  %

  	
  2.00

  	
  %

  	
  4.50

  	
  %

  	
  4.75

  	
  %

  
	
  Commitment Fee

  	
   

  	
  0.375

  	
  %

  	
  0.50

  	
  %

  	
  0.875

  	
  %

  	
  1.00

  	
  %

  

 

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, the Borrower’s Moody’s
Rating is Baa3 or better and the Borrower’s S&P Rating is BBB- or better.

 

“Level
II Status” exists at any date if, on such date, (i) the Borrower has not
qualified for Level I Status and (ii) the Borrower’s Moody’s Rating is Ba2 or
better and the Borrower’s S&P Rating is BB or better.

 

“Level
III Status” exists at any date if, on such date, (i) the Borrower has not
qualified for Level II Status and (ii) the Borrower’s Moody’s Rating is B1 or
better and the Borrower’s S&P Rating is B+ or better.

 

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

 

“Moody’s
Rating” means, at any time, the rating issued by Moody’s Investors Service,
Inc. and then in effect with respect to the credit facility evidenced by this
Agreement.

 

“S&P
Rating” means, at any time, the rating issued by Standard & Poor’s
Rating Services, a division of The McGraw-Hill Companies, Inc. and then in
effect with respect to the credit facility evidenced by this Agreement.

 

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

 

 

The
Applicable Margin and the Commitment Fee shall be determined in accordance with
the foregoing table based on the Borrower’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 the credit facility evidenced
by this Agreement does not have a Moody’s Rating or S&P Rating, Level IV
Status shall exist; provided, however, that if either S&P or
Moody’s shall no longer provide debt ratings for companies in the Borrower’s
industry generally, the Borrower may substitute for either such rating
organization another nationally recognized statistical rating organization, the
corresponding ratings of which shall be used to determine the Borrower’s
Status.  If the Borrower is split-rated,
the lower rating will apply in all cases.

 

2

 

SCHEDULE 4.01(d)

CONSENTS, AUTHORIZATION, FILINGS

 

The
April 16, 2004 order of the Federal Energy Regulatory Commission (“FERC”) in
FERC Docket No. ES03-43-000, ES03-43-001, ES03-43-002, ES03-43-003,
ES03-43-004, ES04-13-000, Aquila, Inc., 107 FERC 61,044 (2004).

 

 

SCHEDULE 4.01(i)

MATERIAL SUBSIDIARIES

 

None.

 

 

SCHEDULE 5.01(n)

EXTENSION REGULATORY APPROVAL

 

1.               Approval of the Colorado Public Utilities
Commission.

 

2.               Approval of the Federal Energy Regulatory
Commission.

 

3.               Approval of the Kansas Corporation
Commission.

 

4.               Approval of any other regulatory authority
having proper jurisdiction over the Borrower, to the extent that such approval
is not known by the Borrower to be required as of the date hereof.

 

SCHEDULE 5.02(j)

EXISTING
DEBT

 

Aquila

Debt Position

16-Sep-04

 

	
   

  	
   

  	
  ISSUE DATE

  YR/MO/DAY

  	
   

  	
  DUE DATE

  YR/MO/DAY

  	
   

  	
  AMOUNT

  OUTSTANDING

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SJLP FMB

  	
   

  	
  February 1, 1991

  	
   

  	
  February 1, 2021

  	
   

  	
  19,125,000

  	
   

  
	
  Senior Notes

  	
   

  	
  October 7, 1997

  	
   

  	
  October 1, 2004

  	
   

  	
  150,000,000

  	
   

  
	
  SJLP Unsecured
  MTN

  	
   

  	
  March 15, 1995

  	
   

  	
  March 15, 2005

  	
   

  	
  20,000,000

  	
   

  
	
  Senior Notes

  	
   

  	
  March 31, 1999

  	
   

  	
  December 1, 2005

  	
   

  	
  19,057,000

  	
   

  
	
  Senior Notes

  	
   

  	
  October 17, 1996

  	
   

  	
  October 15, 2006

  	
   

  	
  85,900,000

  	
   

  
	
  Senior Notes

  	
   

  	
  January 29, 1992

  	
   

  	
  January 15, 2007

  	
   

  	
  36,905,000

  	
   

  
	
  Manidorily
  Convertible Senior Notes (PIES)

  	
   

  	
  August 24, 2004

  	
   

  	
  September 15, 2007

  	
   

  	
  345,000,000

  	
   

  
	
  Senior Notes

  	
   

  	
  November 15, 1999

  	
   

  	
  November 15, 2009

  	
   

  	
  199,000,000

  	
   

  
	
  Sanwa Bus CC

  	
   

  	
  December 9, 1995

  	
   

  	
  December 9, 2009

  	
   

  	
  4,022,290

  	
   

  
	
  Senior Notes

  	
   

  	
  February 1, 2001

  	
   

  	
  February 1, 2011

  	
   

  	
  250,000,000

  	
   

  
	
  Debentures

  	
   

  	
  July 24, 1986

  	
   

  	
  July 1, 2011

  	
   

  	
  2,366,232

  	
   

  
	
  Senior Notes

  	
   

  	
  July 3, 2002

  	
   

  	
  July 1, 2012

  	
   

  	
  500,000,000

  	
   

  
	
  SJLP Unsecured
  Pollution Control Bonds

  	
   

  	
  June 4, 1995

  	
   

  	
  February 1, 2013

  	
   

  	
  5,600,000

  	
   

  
	
  SJLP Unsecured
  MTN

  	
   

  	
  November 30, 1993

  	
   

  	
  November 29, 2013

  	
   

  	
  9,000,000

  	
   

  
	
  SJLP Unsecured
  MTN

  	
   

  	
  November 30, 1993

  	
   

  	
  November 29, 2013

  	
   

  	
  1,000,000

  	
   

  
	
  Senior Notes

  	
   

  	
  March 31, 1999

  	
   

  	
  November 15, 2021

  	
   

  	
  80,850,000

  	
   

  
	
  Senior Notes

  	
   

  	
  November 25, 1991

  	
   

  	
  November 15, 2021

  	
   

  	
  5,000,000

  	
   

  
	
  Senior Notes

  	
   

  	
  March 3, 1993

  	
   

  	
  March 1, 2023

  	
   

  	
  51,500,000

  	
   

  
	
  SJLP Unsecured
  MTN

  	
   

  	
  November 30, 1993

  	
   

  	
  November 30, 2023

  	
   

  	
  3,000,000

  	
   

  
	
  SJLP Unsecured
  MTN

  	
   

  	
  December 6, 1993

  	
   

  	
  December 1, 2023

  	
   

  	
  7,000,000

  	
   

  
	
  Senior Notes

  	
   

  	
  June 20, 2001

  	
   

  	
  June 15, 2011

  	
   

  	
  197,000,000

  	
   

  
	
  Wamego Ser.1996

  	
   

  	
  March 1, 1996

  	
   

  	
  March 1, 2026

  	
   

  	
  7,300,000

  	
   

  
	
  State Envi.1993

  	
   

  	
  May 26, 1993

  	
   

  	
  May 1, 2028

  	
   

  	
  5,000,000

  	
   

  
	
  Senior Notes
  (Retail QUIBS)

  	
   

  	
  February 28, 2002

  	
   

  	
  March 1, 2032

  	
   

  	
  287,500,000

  	
   

  
	
  Gold Bank (Everest
  Revolver)

  	
   

  	
  April 28, 2004

  	
   

  	
  April 1, 2007

  	
   

  	
  1,500,000

  	
   

  
	
  Gold Bank
  (Everest Term Loan)

  	
   

  	
  April 28, 2004

  	
   

  	
  April 1, 2007

  	
   

  	
  5,500,000

  	
   

  
	
  Capital Lease
  Obligations

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,319,762

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,300,445,284

  	
   

  

 

 

EXHIBIT A - FORM OF

REVOLVING CREDIT

PROMISSORY NOTE

 

	
  U.S.$                          

  	
  Dated:
                       ,
  200 

  

 

FOR VALUE RECEIVED, the undersigned, AQUILA, INC., a
Delaware corporation (the “Borrower”), HEREBY PROMISES TO PAY to the
order of
                                                  
(the “Lender”) for the account of its Applicable Lending Office on the
Termination Date (each as defined in the Credit Agreement referred to below)
the principal sum of U.S.$[amount of the Lender’s Commitment in figures] on the
Termination Date pursuant to the Revolving Credit Agreement dated as of
September 20, 2004 among the Borrower, the Lender and certain other lenders
parties thereto from time to time and Credit Suisse First Boston, acting
through its Cayman Islands Branch (“CSFB”), as Administrative Agent for
the Lender and such other lenders (as amended or modified from time to time,
the “Credit Agreement”; the terms defined therein being used herein as
therein defined).

 

The Borrower promises to pay interest on the unpaid
principal amount of each Revolving Credit Advance from the date of such
Revolving Credit Advance until such principal amount is paid in full, at such
interest rates, and payable at such times, as are specified in the Credit
Agreement.

 

Both principal and interest are payable in lawful
money of the United States of America to CSFB, as Administrative Agent, at The
Bank of New York, ABA No. 02100018, Account No. 8900492627, Account Name: CSFB
Agency Cayman, Reference: Aquila or such other account in the United States as
the Administrative Agent may designate from time to time by notice to the
Borrower, in same day funds.  Each
Revolving Credit Advance made by the Lender to the Borrower pursuant to the
Credit Agreement, and all payments made on account of principal thereof, shall
be recorded by the Lender and, prior to any transfer hereof, endorsed on the
grid attached hereto which is part of this Promissory Note.

 

This Promissory Note is one of the Notes referred to
in, and is entitled to the benefits of, the Credit Agreement.  The Credit Agreement, among other things, (i)
provides for the making of Revolving Credit Advances by the Lender to the
Borrower from time to time in an aggregate amount not to exceed at any time
outstanding the U.S. dollar amount first above mentioned, the indebtedness of
the Borrower resulting from each such Revolving Credit Advance being evidenced
by this Promissory Note, (ii) contains provisions for acceleration of the
maturity hereof upon the happening of certain stated events and also for
prepayments on account of principal hereof prior to the maturity hereof upon
the terms and conditions therein specified, and (iii) contains transfer
restrictions applicable to this Promissory Note..

 

The Borrower hereby waives presentment, demand,
protest and notice of any kind.  No
failure to exercise, and no delay in exercising, any rights hereunder on the
part of the holder hereof shall operate as a waiver of such rights.

 

This Promissory Note shall be governed by, and
construed in accordance with, the laws of the State of New York.

 

A-1

 

	
   

  	
  AQUILA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-2

 

ADVANCES AND PAYMENTS OF
PRINCIPAL

 

	
  Date

  	
   

  	
  Amount of

  Revolving Credit

  Advance

  	
   

  	
  Amount of

  Principal Paid or

  Prepaid

  	
   

  	
  Unpaid Principal

  Balance

  	
   

  	
  Notation Made

  By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-3

 

EXHIBIT B - FORM OF NOTICE OF

REVOLVING CREDIT BORROWING

 

[Date]

 

Credit Suisse First Boston,

acting through its Cayman Islands Branch,

as
Administrative Agent

for the Lenders parties

to the Credit Agreement

referred to below

Eleven Madison Avenue

New York, New York 10010

 

Attention: [Agency Department Manager]

 

Ladies and Gentlemen:

 

The undersigned refers to the Revolving Credit
Agreement, dated as of September 20, 2004 (as amended or modified from time to
time, the “Credit Agreement”, the terms defined therein being used
herein as therein defined), among Aquila, Inc., certain Lenders parties thereto
and Credit Suisse First Boston, acting through its Cayman Islands Branch (“CSFB”),
as Administrative Agent for said Lenders, and hereby gives you notice,
irrevocably, pursuant to Section 2.02 of the Credit Agreement that the
undersigned hereby requests a Revolving Credit Borrowing under the Credit
Agreement, and in that connection sets forth below the information relating to
such Revolving Credit Borrowing (the “Proposed Revolving Credit Borrowing”)
as required by Section 2.02(a) of the Credit Agreement:

 

(i)            The Business Day of the Proposed
Revolving Credit Borrowing is
                              ,
200  .

 

(ii)           The Type of Advances comprising the
Proposed Revolving Credit Borrowing is [Alternate Base Rate Advances]
[Eurodollar Rate Advances].

 

(iii)          The aggregate amount of the Proposed
Revolving Credit Borrowing is
$                              .

 

 

B-1

 

(iv)          Proceeds of the Proposed Revolving
Credit Borrowing are to be wire -transferred in accordance with the following
instructions:

 

 

 

 

[(v)          The initial Interest Period for each
Eurodollar Rate Advance made as part of the Proposed Revolving Credit Borrowing
is            month[s].]

 

B-2

 

The undersigned hereby certifies that, as of the
Proposed Revolving Credit Borrowing, all the applicable conditions contained in
Section 3.02 of the Credit Agreement have been satisfied (or waived pursuant to
Section 8.01 of the Credit Agreement).

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  AQUILA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

B-3

 

EXHIBIT C - FORM OF

CLOSING CERTIFICATE

 

AQUILA, INC.

 

Pursuant to Section 3.01(g) of the Revolving Credit
Agreement dated as of September 20, 2004 among Aquila, Inc. (the “Borrower”),
the lenders parties thereto, and Credit Suisse First Boston, acting through its
Cayman Islands Branch (“CSFB”), as Administrative Agent for the lenders
(as amended or modified from time to time, the “Credit Agreement”; the
terms defined therein being used herein as therein defined), the undersigned
hereby certifies that [he or she] is the
                          
of the Borrower and in such capacity further certifies as follows:

 

1.             The
representations and warranties of the Borrower set forth in the Credit
Agreement and each of the other Loan Documents to which the Borrower is a
party, are true and correct in all material respects on and as of the date
hereof.

 

2.             No
Default or Event of Default has occurred and is continuing as of the date
hereof or after giving effect to the transactions to be consummated on the date
hereof.

 

IN WITNESS WHEREOF, the undersigned has hereunto set
his name.

 

 

	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

Date: 
                              ,
200  

 

C-1

 

EXHIBIT D - FORM OF

ASSIGNMENT AND ACCEPTANCE

 

This Assignment and Acceptance (the “Assignment and
Acceptance”) is dated as of the date set forth below (the “Effective
Date”) and is entered into by and between the Assignor (as defined below)
and the Assignee (as defined below). 
Capitalized terms used in this Assignment and Acceptance and not
otherwise defined herein have the meanings specified in the Revolving Credit Agreement dated as of
September 20, 2004 (as amended or modified from time to time, the “Credit
Agreement”) among Aquila, Inc. (the “Borrower”), the Lenders (as
defined in the Credit Agreement), and Credit Suisse First Boston, acting
through its Cayman Islands Branch (“CSFB”), as Administrative Agent for
the Lenders (the “Administrative Agent”).  Receipt of a copy of the Credit Agreement is
hereby acknowledged by the Assignee.  The
Standard Terms and Conditions set forth in Annex I attached hereto are hereby
agreed to and incorporated herein by reference and made a part of this
Assignment and Acceptance as if set forth herein in full.

 

For an agreed consideration, the Assignor hereby
irrevocably sells and assigns to the Assignee, and the Assignee hereby
irrevocably purchases and assumes from the Assignor, 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 the Assignor’s rights and obligations in its capacity as a Lender
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 under the facility identified below 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) 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 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 pursuant to clauses (i) and (ii) above being
referred to herein collectively as the “Assigned Interest”).  Such sale and assignment is without recourse
to the Assignor and, except as expressly provided in this Assignment and
Acceptance, without representation or warranty by the Assignor.

 

1.             Assignor
(the “Assignor”):

 

2.             Assignee
(the “Assignee”):

 

3.             Assigned
Interest:

 

D-1

 

	
  Facility Assigned

  	
   

  	
  Aggregate Amount of

  Commitment/

  Revolving Credit

  Advances of all

  Lenders

  	
   

  	
  Amount of

  Commitment/

  Revolving Credit

  Advances Assigned

  	
   

  	
  Percentage Assigned

  of Commitment/

  Revolving Credit

  Advances(1)

  	
   

  
	
  Revolving Credit
  Advance

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
  %

  	
   

  

 

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

 

 

(1)  Set forth,
to at least 9 decimals, as a percentage of the Commitment/Revolving Credit
Advances of all Lenders thereunder.

 

D-2

 

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

 

	
   

  	
  [NAME OF ASSIGNOR], as Assignor,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNEE], as Assignee,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
						

 

D-3

 

Consented
to and Accepted:

 

CREDIT SUISSE FIRST
BOSTON, acting through
its

Cayman Islands Branch, as Administrative Agent,

 

 

	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  [Consented
  to:

  	
   

  
	
   

  	
   

  
	
  AQUILA, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:](2)

  	
   

  

 

(2)  To the extent required by the Credit
Agreement.

 

D-4

 

ANNEX
1

 

STANDARD TERMS AND
CONDITIONS FOR

ASSIGNMENT AND ACCEPTANCE

 

1.             Representations
and Warranties.

 

1.1           Assignor.  The Assignor (a) represents and warrants that
(i) it is the legal and beneficial owner of the Assigned Interest, (ii) the
Assigned Interest is free and clear of any lien, encumbrance or other adverse
claim created by the Assignor and (iii) it has full power and authority, and
has taken all action necessary, to execute and deliver this Assignment and
Acceptance 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 Credit Agreement and any other Loan
Document or any collateral thereunder, (iii) the financial condition of the
Borrower, any of its Subsidiaries or Affiliates or any other Person obligated
in respect of the Credit Agreement and any other Loan Document or (iv) the
performance or observance by the Borrower, any of its Subsidiaries or
Affiliates or any other Person of any of their respective obligations under the
Credit Agreement and any other Loan Document.

 

1.2           Assignee.  The 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 Acceptance and to consummate the
transactions contemplated hereby and to become a Lender under the Credit
Agreement, (ii) it satisfies the requirements, if any, specified in the Credit
Agreement that are required to be satisfied by it in order to acquire the
Assigned Interest and become a Lender, (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 Assigned Interest, shall have the obligations
of a Lender thereunder, (iv) it has received a copy of the Credit Agreement,
together with copies of the most recent financial statements referred to in
Section 4.01 of the Credit Agreement or delivered pursuant to Section 5.01 of
the Credit Agreement, and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment and Acceptance and to purchase the Assigned Interest on the basis of
which it has made such analysis and decision independently and without reliance
on the Administrative Agent, the Assignor or any other Lender, (v) it is an
Eligible Assignee and (vi) if it is a Lender organized under the laws of a
jurisdiction outside the United States, attached to this Assignment and
Acceptance is any documentation required to be delivered by it pursuant to
Section 2.15(e) of the Credit Agreement, duly completed and executed by the
Assignee; (b) agrees that (i) it will, independently and without reliance on
the Administrative Agent, the Assignor or any other Lender, and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under the Loan
Documents, and (ii) it will perform in accordance with their terms all of the
obligations which by the terms of the Credit Agreement and any other Loan
Document that are required to be performed by it as a Lender; and (c) on behalf
of itself and its Approved Funds hereby releases and forever discharges the
Borrower and Credit Suisse First Boston (in its individual capacity and as
Administrative Agent under the Existing Credit Agreement), and their

 

D-5

 

respective directors, officers, employees, attorneys, agents and
affiliates from any and all claims, actions, causes of action, demands,
obligations, and liabilities of every nature and reason in any way arising out
of or in connection with the Existing Credit Agreement (including, without
limitation, any claims, actions, causes of action, demands, obligations, or
liabilities arising out of, or in any way connected with, Section 2.7 or 9.1 of
the Existing Credit Agreement).  The
Assignee further represents and warrants to the Borrower and Credit Suisse First
Boston that any Approved Fund of the Assignee, if any, which was a party to the
Existing Credit Agreement has executed and delivered to the Borrower a written
release consistent with the terms of clause (c) above.

 

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

 

3.             General Provisions.  This Assignment and Acceptance shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.  This
Assignment and Acceptance may be executed in counterparts (and by different
parties hereto on different counterparts), each of which shall constitute an
original, but all of which when taken together shall constitute a single
contract.  Delivery of an executed
counterpart of a signature page of this Assignment and Acceptance by facsimile
or other electronic transmission shall be as effective as delivery of a
manually executed counterpart of this Assignment and Acceptance.  This Assignment and Acceptance shall be
construed in accordance with and governed by the law of the State of New York.

 

D-6Exhibit 10.2

 

EXECUTION COPY

 

 

U.S.
$220,000,000

 

CREDIT
AGREEMENT

 

Among

 

AQUILA,
INC.,

as Borrower,

 

The Several
Lenders from Time to Time Parties Hereto

 

and

 

CREDIT
SUISSE FIRST BOSTON,

acting through its Cayman Islands Branch,

as Administrative Agent

 

 

 

CREDIT
SUISSE FIRST BOSTON,

acting through its Cayman Islands Branch,

as Joint Lead Arranger and Sole Bookrunner

 

CITIGROUP
GLOBAL MARKETS INC. 

as Joint Lead Arranger and Documentation Agent

 

LEHMAN
BROTHERS INC.,

as Joint Lead Arranger and Syndication Agent

 

Dated as of
September 20, 2004

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I DEFINITIONS AND ACCOUNTING TERMS

  	
   

  
	
   

  	
   

  
	
  Section 1.01.

  	
  Certain Defined Terms

  	
   

  
	
  Section 1.02.

  	
  Other Definitional Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  II AMOUNTS AND TERMS OF THE LOANS

  	
   

  
	
   

  	
   

  
	
  Section 2.01.

  	
  Loans

  	
   

  
	
  Section 2.02.

  	
  Making Loans

  	
   

  
	
  Section 2.03.

  	
  Fees

  	
   

  
	
  Section 2.04.

  	
  Voluntary Prepayments of Loans

  	
   

  
	
  Section 2.05.

  	
  Mandatory Offers of Prepayment

  	
   

  
	
  Section 2.06.

  	
  Repayment of Loans

  	
   

  
	
  Section 2.07.

  	
  Interest on Loans

  	
   

  
	
  Section 2.08.

  	
  Computation of Interest

  	
   

  
	
  Section 2.09.

  	
  Inability to Determine Interest Rate

  	
   

  
	
  Section 2.10.

  	
  Conversion of Loans

  	
   

  
	
  Section 2.11.

  	
  [Intentionally Omitted]

  	
   

  
	
  Section 2.12.

  	
  Increased Costs

  	
   

  
	
  Section 2.13.

  	
  Illegality

  	
   

  
	
  Section 2.14.

  	
  Payments

  	
   

  
	
  Section 2.15.

  	
  Taxes

  	
   

  
	
  Section 2.16.

  	
  Sharing of Payments, Etc.

  	
   

  
	
  Section 2.17.

  	
  Evidence of Debt

  	
   

  
	
  Section 2.18.

  	
  Use of Proceeds

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III CONDITIONS PRECEDENT

  	
   

  
	
   

  	
   

  
	
  Section 3.01.

  	
  Conditions Precedent to Closing Date

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV REPRESENTATIONS AND WARRANTIES

  	
   

  
	
   

  	
   

  
	
  Section 4.01.

  	
  Representations and Warranties of the
  Borrower

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V COVENANTS OF THE BORROWER

  	
   

  
	
   

  	
   

  
	
  Section 5.01.

  	
  Affirmative
  Covenants

  	
   

  
	
  Section 5.02.

  	
  Negative Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI EVENTS OF DEFAULT

  	
   

  
	
   

  	
   

  
	
  Section 6.01.

  	
  Events of Default

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII THE ADMINISTRATIVE AGENT

  	
   

  
	
   

  	
   

  
	
  Section 7.01.

  	
  Authorization and Action

  	
   

  
	
  Section 7.02.

  	
  Administrative Agent’s Reliance, Etc.

  	
   

  

 

i

 

	
  Section 7.03.

  	
  CSFB and Affiliates

  	
   

  
	
  Section 7.04.

  	
  Lender Credit Decision

  	
   

  
	
  Section 7.05.

  	
  Indemnification

  	
   

  
	
  Section 7.06.

  	
  Successor Administrative Agent

  	
   

  
	
  Section 7.07.

  	
  Other Agents

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII MISCELLANEOUS

  	
   

  
	
   

  	
   

  
	
  Section 8.01.

  	
  Amendments, Etc.

  	
   

  
	
  Section 8.02.

  	
  Notices, Etc.

  	
   

  
	
  Section 8.03.

  	
  No Waiver; Remedies

  	
   

  
	
  Section 8.04.

  	
  Costs and Expenses

  	
   

  
	
  Section 8.05.

  	
  Right of Set-off

  	
   

  
	
  Section 8.06.

  	
  Binding Effect

  	
   

  
	
  Section 8.07.

  	
  Assignments and Participations

  	
   

  
	
  Section 8.08.

  	
  Confidentiality

  	
   

  
	
  Section 8.09.

  	
  Governing Law

  	
   

  
	
  Section 8.10.

  	
  Execution in Counterparts

  	
   

  
	
  Section 8.11.

  	
  Jurisdiction, Etc.

  	
   

  
	
  Section 8.12.

  	
  Waiver of Jury Trial

  	
   

  
	
  Section
  8.13.

  	
  Survival
  of Representations and Warranties

  	
   

  
	
  Section 8.14.

  	
  Severability

  	
   

  
	
  Section 8.15.

  	
  Integration

  	
   

  
	
  Section 8.16.

  	
  Acknowledgement

  	
   

  

 

	
  Schedules

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule I

  	
  –

  	
  Cash Equivalents

  	
   

  
	
  Schedule II

  	
  –

  	
  List of Applicable Lending Offices

  	
   

  
	
  Schedule III

  	
  –

  	
  Pricing Schedule

  	
   

  
	
  Schedule 4.01(d)

  	
  –

  	
  Consents, Authorizations, Filings

  	
   

  
	
  Schedule 4.01(i)

  	
  –

  	
  Material Subsidiaries

  	
   

  
	
  Schedule 5.01(n)

  	
  –

  	
  Extension Regulatory Approvals

  	
   

  
	
  Schedule 5.02(j)

  	
  –

  	
  Existing Debt

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibits

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  –

  	
  Form of Term Promissory Note

  	
   

  
	
  Exhibit B

  	
  –

  	
  Form of Notice of Borrowing

  	
   

  
	
  Exhibit C

  	
  –

  	
  Form of Closing Certificate

  	
   

  
	
  Exhibit D

  	
  –

  	
  Form of Assignment and Acceptance

  	
   

  

 

ii

 

CREDIT
AGREEMENT, dated as of September 20, 2004 (this “Agreement”), among
AQUILA, INC., a Delaware corporation (the “Borrower”), the several banks
and other financial institutions from time to time party hereto (the “Lenders”)
and CREDIT SUISSE FIRST BOSTON, acting through its Cayman Islands Branch, as
Administrative Agent (in such capacity, the “Administrative Agent”).

 

PRELIMINARY STATEMENTS

 

1.             The Borrower has requested that the
Lenders extend credit on an unsecured basis to the Borrower in an aggregate
principal amount of up to $220,000,000 in the form of term loans.

 

2.             In consideration of the foregoing
and the mutual covenants herein contained and for other good and valuable
consideration the receipt and sufficiency of which are hereby acknowledged, the
parties hereto, intending to be legally bound, hereby agree as follows:

 

ARTICLE
I

 

DEFINITIONS AND ACCOUNTING TERMS

 

Section 1.01.          Certain
Defined Terms.  As used in this Agreement,
the following terms shall have the following meanings (such meanings to be
equally applicable to both the singular and plural forms of the terms defined):

 

“Administrative Agent’s Account” means the
account of the Administrative Agent maintained by the Administrative Agent at
The Bank of New York, ABA No. 02100018, Account No. 8900492627, Account Name:
CSFB Agency Cayman, Reference: Aquila or such other account as the
Administrative Agent may designate from time to time by notice to the Borrower
and the Lenders.

 

“Affiliate” means, as to any Person, any
other Person which, directly or indirectly, is in control of (including all
directors and officers of such Person), is controlled by, or is under common
control with, such Person.  For purposes
of this definition, “control” of a Person shall mean the power, directly or
indirectly, to direct or cause the direction of the management and policies of
such Person, whether by ownership of voting securities, by contract or
otherwise.

 

“Agreement” has the meaning specified in the
first paragraph of this Agreement.

 

“Alternate Base Rate” means, on any
particular date, a rate of interest per annum equal to the higher of

 

(a)                                  the rate of interest most recently announced
by CSFB as its prime rate in effect at its principal office in New York City;
and

 

(b)                                 the Federal Funds Rate for such date plus
0.50%.

 

 

“Alternate Base Rate Loan” means a Loan that
bears interest as provided in Section 2.07(a)(i).

 

“Applicable Lending Office” means, with
respect to each Lender, such Lender’s Domestic Lending Office in the case of an
Alternate Base Rate Loan and such Lender’s Eurodollar Lending Office in the
case of a Eurodollar Rate Loan.

 

“Applicable Margin” means, for any day, with
respect to any Alternate Base Rate Loan or Eurodollar Rate Loan, as the case
may be, the applicable rate per annum
determined pursuant to the Pricing Schedule.

 

“Applicable Prepayment Premium” means, in
respect of any prepayment of the Loans pursuant to Section 2.04, a
prepayment premium equal to (1) during the time period commencing on September
21, 2006 and ending on (and including) September 20, 2007, 2.5% of the
aggregate principal amount of the Loans being prepaid, (2) during the time
period commencing on September 21, 2007 and ending on (and including) September
20, 2008, 1.5% of the aggregate principal amount of the Loans being prepaid or
terminated and (3) thereafter, 0% of the aggregate principal amount of the
Loans being prepaid.

 

“Approved Fund” means an Affiliate of a
Lender or any fund or similar investment vehicle that is administered or
managed by a Lender or an Affiliate of a Lender.

 

“Asset Sale Event” has the meaning specified
in Section 2.05(b).

 

“Assignment and Acceptance” means an
assignment and acceptance entered into by a Lender and an assignee, and
accepted by the Administrative Agent, in the form of Exhibit D hereto (or such
other form as may be acceptable to the Administrative Agent).

 

“Borrower” has the meaning specified in the
first paragraph of this Agreement.

 

“Business” has the meaning specified in Section
4.01(p)(i).

 

“Business Day” means a day other than a
Saturday, Sunday or other day on which commercial banks in New York City are
authorized or required by law to close; provided, however, that,
when used in connection with a Eurodollar Rate Loan, the term “Business Day”
excludes any day on which banks are not open for dealings in Dollars in the
interbank market in London, England.

 

“Capital Stock” shall mean any and all
shares, interests, participations or other equivalents (however designated) of
capital stock of a corporation, any and all equivalent ownership interests in a
Person (other than a corporation) and any and all warrants or options to
purchase any of the foregoing.

 

“Cash Equivalents” means the cash equivalents
specified on Schedule I.

 

2

 

“Change of Control” means the occurrence of
any of the following:

 

(a)           any
Person or “group” (within the meaning of Section 13(d) or 14(d)
of the Securities Exchange Act of 1934) (i) shall have acquired beneficial
ownership of 40% or more of the aggregate outstanding classes of Capital Stock
having voting power in the election of directors of the Borrower or (ii) shall
obtain the power (whether or not exercised) to elect a majority of the
Borrower’s directors;

 

(b)           a
majority of the Original Directors cease to constitute a majority of the board
of directors of the Borrower (unless replaced by individuals nominated or
proposed by the Original Directors); or

 

(c)           the
Borrower shall be liquidated or dissolved.

 

“Closing Date” means the date on which the
conditions precedent set forth in Section 3.01 shall be satisfied or
waived by the Required Lenders.

 

“Code” means the Internal Revenue Code of
1986, as amended from time to time, and the regulations promulgated thereunder.

 

“Compliance Certificate” has the meaning
specified in Section 5.01(b)(ii).

 

“Commonly Controlled Entity” shall mean an
entity, whether or not incorporated, which is under common control with the
Borrower or any Subsidiary within the meaning of Section 4001(a)(14) of
ERISA or is part of a group which includes the Borrower and which is treated as
a single employer under Section 414 of the Code.

 

“Confidential Information” means information
that the Borrower furnishes to the Administrative Agent or any Lender in a
writing designated as confidential, but does not include any such information
that is or becomes generally available to the public or that is or becomes
available to the Administrative Agent or such Lender from a source other than
the Borrower, that is not acting in violation of a confidentiality agreement
with the Borrower.

 

“Consolidated” refers to the consolidation of
accounts in accordance with GAAP.

 

“Consolidated Assets” means on any date of
determination, all amounts that are or should, in accordance with GAAP, be
included under assets on a Consolidated balance sheet of any Person and its
Subsidiaries determined in accordance with GAAP.

 

“Consolidated Interest Expense” means, with
reference to any period, interest on all Debt of the Borrower and its
Subsidiaries, as determined on a consolidated basis in accordance with GAAP
(except excluding amortization of Debt issuance costs).

 

“Consolidated Net Worth” means, as of any
Covenant Compliance Date, the amount of the common equity of the Borrower less
accumulated other comprehensive gains (or, if applicable, plus accumulated
other comprehensive losses) as of such day, determined on a consolidated basis
in accordance with GAAP.

 

3

 

“Consolidated Net Income” means, with
reference to any period, the net income (or loss) of Borrower and its
Subsidiaries for such period determined on a consolidated basis in accordance
with GAAP (except excluding extraordinary gains and losses).

 

“Contractual Obligation” means, with respect
to the Domestic Utility Business and the Telecommunications Business, any
agreement, instrument or other undertaking to which Borrower is a party or by
which the Borrower or its property is bound.

 

“Convert”, “Conversion” and “Converted”
each refers to a conversion of Loans of one Type into Loans of the other Type
pursuant to Section 2.10.

 

“Covenant Compliance Date” means the last
date of each Fiscal Quarter.

 

“CSFB” means Credit Suisse First Boston,
acting through its Cayman Islands Branch.

 

“Debt” means, with respect to any Person, the
aggregate principal amount of all obligations that, in accordance with GAAP
consistently applied and without duplication, would be classified as debt on
its Consolidated balance sheet; provided, however, that with
respect to the Borrower, “Debt” excludes obligations to the extent that such
obligations are cash collateralized.

 

“Debt Issuance Event” has the meaning
specified in Section 2.05(c).

 

“Default” means any Event of Default or any
event that would constitute an Event of Default but for the requirement for the
giving of notice, the lapse of time or both has been satisfied.

 

“Disposition” has the meaning specified in Section
2.05.

 

“Dollars” and “$” means dollars in the
lawful currency of the United States of America.

 

“Domestic Lending Office” means, with respect
to any Lender, the office of such Lender specified as its “Domestic Lending
Office” opposite its name on Schedule II hereto or in the Assignment and Acceptance
pursuant to which it became a Lender, or such other office of such Lender as
such Lender may from time to time specify by notice from such Lender to the
Borrower and the Administrative Agent.

 

“Domestic Utility Business” means the
regulated electric and natural gas assets and businesses owned and operated by
the Borrower in the United States.

 

“Domestic Utility Business Event” has the
meaning specified in Section 2.05(a).

 

“EBITDA” means, for any period, the total of
the following calculated without duplication: (a) Consolidated Net Income (or
loss) of the Domestic Utility Business and the Telecommunications Business for
such period plus (b)(i) Consolidated Interest Expense, (ii) Federal, state,
county and local income and franchise Taxes, and (iii)

 

4

 

depreciation,
amortization, unallocated corporate costs and other non-cash charges, in each
case, of such Domestic Utility Business and the Telecommunications Business for
such period, but only to the extent deducted in the determination of
Consolidated Net Income of the Domestic Utility Business and the
Telecommunications Business for such period less (c) all expenses of the
Borrower not related to the Domestic Utility Business, the Telecommunications
Business or the business conducted by Aquila Merchant Services, Inc. and its
Subsidiaries (except excluding (x) extraordinary gains and losses, (y)
$8,500,000 of payments in connection with the recombination of the Borrower and
Aquila Merchant Services, Inc. and (z) fees and expenses related to the
Amendment No. 1 to the Existing Credit Agreement).

 

“Environmental Laws” means any and all
foreign, Federal, state, local or municipal laws, rules, orders, regulations,
statutes, ordinances, codes, decrees, judgments, permits, licenses,
registrations or authorizations or requirements of any Governmental Authority
or other Requirements of Law (including common law) regulating, relating to or
imposing liability or standards of conduct concerning the health and safety of
humans and other living organisms as it relates to exposures to Materials of
Environmental Concern, protection of natural resources or the environment,
including the manufacture, distribution in commerce, and use of, or Release to
the environment of, Materials of Environmental Concern, as now or may at any
time hereafter be in effect.

 

“Environmental Liability” means any
liability, contingent or otherwise (including any liability for damages, costs
of environmental remediation, fines, penalties or indemnities), of the Borrower
or any Subsidiary 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 Materials of
Environmental Concern, (c) exposure to any Materials of Environmental Concern,
(d) the release or threatened release of any Materials of Environmental Concern
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.

 

“Equity Issuance Event” has the meaning
specified in Section 2.05(d).

 

“ERISA” means the Employee Retirement Income
Security Act of 1974, as amended from time to time, and the regulations
promulgated and rulings issued thereunder.

 

“ERISA Affiliate” means any Person that for
purposes of Title IV of ERISA is a member of the Borrower’s controlled group,
or under common control with the Borrower, within the meaning of Section 414 of
the Code.

 

“Eurodollar Base Rate” means, with respect to
any Eurodollar Rate Loan for any Interest Period, the rate per annum determined
by the Administrative Agent at approximately 11:00 a.m. (London time) on the
date which is two (2) Business Days prior to the beginning of such Interest
Period by reference to the British Bankers’ Association Interest Settlement
Rates for deposits in Dollars (as set forth by any service selected by the
Administrative Agent which has been nominated by the British Bankers’

 

5

 

Association
as an authorized information vendor for the purpose of displaying such rates)
for a period equal to such Interest Period; provided, however,
that, to the extent that an interest rate is not ascertainable pursuant to the
foregoing provisions of this definition, the “Eurodollar Base Rate” shall be
the interest rate per annum determined by the Administrative Agent to be the
average of the rates per annum at which deposits in Dollars are offered for
such Interest Period to major banks in the London interbank market in London,
England by the Administrative Agent at approximately 11:00 a.m. (London time)
on the date which is two (2) Business Days prior to the beginning of such
Interest Period.

 

“Eurodollar Lending Office” means, with
respect to any Lender, the office of such Lender specified as its “Eurodollar
Lending Office” opposite its name on Schedule II hereto or in the Assignment
and Acceptance pursuant to which it became a Lender (or, if no such office is
specified, its Domestic Lending Office), or such other office of such Lender as
such Lender may from time to time specify by notice from such Lender to the
Borrower and the Administrative Agent.

 

“Eurodollar Rate” means with respect to each
day during each Interest Period pertaining to a Eurodollar Rate Loan, a rate
per annum determined for such day in accordance with the following formula:

 

	
   

  	
  Eurodollar
  Base Rate

  	
   

  
	
  1.00
  - Eurodollar Reserve Requirements

  

 

“Eurodollar Rate Loan” means a Loan that
bears interest as provided in Section 2.07(a)(ii).

 

“Eurodollar Reserve Requirements” means, for
any day as applied to a Eurodollar Rate Loan, the aggregate (without
duplication) of the rates (expressed as a decimal) of reserve requirements in
effect on such day (including, without limitation, basic, supplemental,
marginal and emergency reserves) under any regulations of the Board of
Governors of the Federal Reserve System or other Governmental Authority having
jurisdiction with respect thereto) dealing with reserve requirements prescribed
for eurocurrency funding (currently referred to as “Eurocurrency Liabilities”
in Regulation D of such Board) maintained by a member bank of such System.

 

“Event of Default” has the meaning specified
in Section 6.01.

 

“Exchange Act” means the Securities Exchange
Act of 1934, as amended from time to time.

 

“Existing Credit Agreement” means the Credit
Agreement dated as of April 9, 2003, among the Borrower, the several banks and
other financial institutions from time to time party thereto, and Credit Suisse
First Boston, acting through its Cayman Islands Branch, as administrative
agent, lead arranger and sole book runner.

 

“Extension Regulatory Approvals” means the
regulatory approvals specified on Schedule 5.01(n).

 

6

 

“Extension Regulatory Approval Notice” has
the meaning specified in Section 5.01(n).

 

“Federal Funds Rate” means for any particular
date, 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,
however, 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 charged to the Administrative Agent
(in its individual capacity) on such day on such transactions as determined by
the Administrative Agent.

 

“Fee Letter” means the Fee Letter dated
September 1, 2004 among the Borrower, CSFB, Citigroup Global Markets Inc. and
Lehman Brothers Inc.

 

“Financing Lease” means any lease of
property, real or personal, the obligations of the lessee in respect of which
are required in accordance with GAAP to be capitalized on a balance sheet of
the lessee.

 

“Fiscal Quarter” means each consecutive three
calendar month period ending March 31, June 30, September 30 or December 31 of
any fiscal year.

 

“GAAP” has the meaning specified in Section
1.02.

 

“Governmental Authority” means any national
government (United States or foreign), any state or other political subdivision
thereof, any entity exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government and any agency,
authority, instrumentality, or regulatory body of any thereof.

 

“Granting Bank” has the meaning specified in
Section 8.07(h).

 

“Guarantee Obligation” means as to any Person
(the “guaranteeing person”), any obligation of the guaranteeing person
(including any reimbursement, counter-indemnity or similar obligation),
guaranteeing or in effect guaranteeing any Indebtedness, lease, dividend or
other similar obligation (the “primary obligation”) of any other third
Person (the “primary obligor”) in any manner, whether directly or indirectly,
including any obligation of the guaranteeing person, whether or not contingent,
(i) to purchase any such primary obligation or any property constituting direct
or indirect security therefor, (ii) to advance or supply funds (x) for the
purchase or payment of any such primary obligation or (y) to maintain working
capital or equity capital of the primary obligor or otherwise to maintain the
net worth, liquidity or solvency of the primary obligor, (iii) to purchase
property, securities or services primarily for the purpose of assuring the
owner of any such primary obligation of the ability of the primary obligor to
make payment of such primary obligation or (iv) otherwise to assure or hold
harmless the owner of any such primary obligation against loss in respect
thereof; provided, however, that the term

 

7

 

Guarantee
Obligation shall not include endorsements of instruments for deposit or
collection in the ordinary course of business.

 

“Indebtedness” of any Person at any date
means, without duplication, (a) all obligations of such Person for borrowed
money, (b) all obligations of such Person evidenced by bonds, debentures, notes
or similar instruments, (c) all Financing Lease obligations of such Person, (d)
all obligations of such Person under synthetic leases, tax retention operating
leases, off-balance sheet loans or other off-balance sheet financing products
that, for tax purposes, are considered indebtedness for borrowed money of the
lessee but are classified as operating leases under GAAP, (e) all indebtedness
of such Person for the deferred purchase price of property or services (other
than current trade liabilities incurred in the ordinary course of business),
(f) all outstanding reimbursement obligations of such Person in respect of
outstanding letters of credit, acceptances and similar obligations issued or
created for the account of such Person, (g) all liabilities secured by any Lien
on any property owned by such Person even though such Person has not assumed or
otherwise become liable for the payment thereof, and (h) all Guarantee
Obligations of such Person and (i) all Mandatory Redeemable Stock of the
Borrower and Subsidiaries; provided, however, that “Indebtedness”
of the Borrower excludes liabilities or other obligations to the extent cash
collateralized.

 

“Indemnified Costs” has the meaning specified
in Section 7.05.

 

“Indemnified Party” has the meaning specified
in Section 8.04(b).

 

“Initial Maturity Date” means September 19,
2005.

 

“Insolvency” means with respect to any
Multiemployer Plan, the condition that such plan is insolvent within the
meaning of Section 4245 of ERISA.

 

“Intellectual Property” has the meaning
specified in Section 4.01(j).

 

“Interest Period” means, for each Eurodollar
Rate Loan, the period commencing on the date of such Eurodollar Rate Loan or
the date of the Conversion of any Alternate Base Rate Loan into such Eurodollar
Rate Loan and ending on the last day of the period selected by the Borrower
pursuant to the provisions in this definition below and, thereafter, each
subsequent period commencing on the last day of the immediately preceding
Interest Period and ending on the last day of the period selected by the
Borrower pursuant to the provisions below, provided, however, that
if the Borrower fails to select the duration of such subsequent period pursuant
to the provisions below, such Eurodollar Rate Loan shall be automatically
converted to an Alternate Base Rate Loan on the last day of such then expiring
Interest Period.  The duration of each
Interest Period shall be one, two, three or six months, as the Borrower may,
upon notice received by the Administrative Agent not later than 12:00 Noon (New
York City time) on the third Business Day prior to the first day of such Interest
Period, select; provided, however, that:

 

(a)           the
Borrower may not select any Interest Period that ends after the Maturity Date;

 

8

 

(b)           Interest
Periods commencing on the same date for Eurodollar Rate Loans shall be of the
same duration;

 

(c)           whenever
the last day of any Interest Period would otherwise occur on a day other than a
Business Day, the last day of such Interest Period shall be extended to occur
on the next succeeding Business Day, provided, however, that, if
such extension would cause the last day of such Interest Period to occur in the
next following calendar month, the last day of such Interest Period shall occur
on the next preceding Business Day; and

 

(d)           whenever
the first day of any Interest Period occurs on a day of an initial calendar
month for which there is no numerically corresponding day in the calendar month
that succeeds such initial calendar month by the number of months equal to the
number of months in such Interest Period, such Interest Period shall end on the
last Business Day of such succeeding calendar month.

 

“Investment” has the meaning specified in Section
5.02(h).

 

“Lenders” means the Lenders party hereto and
each Person that becomes a party hereto pursuant to Section 8.07.

 

“Lender Indemnitee” has the meaning specified
in Section 7.05.

 

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

 

“Loans” has the meaning specified in Section
2.01.

 

“Loan Documents” means collectively, this
Agreement, the Fee Letter, the Notes (if any) and each other instrument or
certificate (other than an Assignment and Acceptance, pursuant to which the
assignor therein sells and/or assigns an interest under this Agreement)
delivered to the Administrative Agent or the Lenders hereunder or pursuant
hereto (in each case as the same may be amended, restated, supplemented,
extended, renewed or replaced from time to time), and “Loan Document” means any
one of them.

 

“Mandatory Offer Prepayment Amount” means an
amount equal to (a) 100% of the Net Cash Proceeds received by the Borrower in
connection with a Domestic Utility Business Event; (b) 100% of the Net Cash
Proceeds received by the Borrower in connection with an Asset Sale Event,
subject to the reinvestment provisions set forth in Section 2.05; (c)
(i) 100% of the Net Cash Proceeds received by the Borrower or any of its
Subsidiaries in connection with a Debt Issuance Event, if, on the date of
determination, the credit ratings assigned to the credit facility evidenced by
this Agreement are below Ba3 by Moody’s or below BB- by S&P, or (ii) 50% of
the Net Cash 

 

9

 

Proceeds
received by the Borrower or any of its Subsidiaries in connection with a Debt
Issuance Event, if, on the date of determination, the credit ratings assigned
to the credit facility evidenced by this Agreement are Ba3 or higher by Moody’s
and BB- or higher by S&P; and (d) (i) 50% of the Net Cash Proceeds received
by the Borrower or any of its Subsidiaries in connection with an Equity
Issuance Event, if, on the date of determination, the credit ratings assigned
to the credit facility evidenced by this Agreement are below Ba3 by Moody’s or
below BB- by S&P, or (ii) 0% of the Net Cash Proceeds received by the
Borrower or any of its Subsidiaries in connection with an Equity Issuance
Event, if, on the date of determination, the credit ratings assigned to the
credit facility evidenced by this Agreement are Ba3 or higher by Moody’s and
BB- or higher by S&P.

 

“Mandatory Prepayment under the Existing Credit
Agreement” means the mandatory prepayment of all amounts due or outstanding
under, and termination of commitments under, the Existing Credit Agreement.

 

“Mandatory Redeemable Stock” means, with
respect to any Person, any share of such Person’s Capital Stock, to the extent
that it is (a) redeemable, payable or required to be purchased or otherwise
retired or extinguished, or convertible into any Indebtedness or other
liability, obligation, covenant or duty of or binding upon, or any term or
condition to be observed by or binding upon such Person or any of its assets,
(i) at a fixed or determinable date, whether by operation of a sinking fund or
otherwise, (ii) at the option of any other Person or (iii) upon the occurrence
of a condition not solely within the control of such Person such as a
redemption required to be made utilizing future earnings, or (b) convertible
into Capital Stock which has the features set forth in clause (a).

 

“Material Adverse Effect” shall mean any
material adverse effect (a) on the business, operations, property, condition
(financial or otherwise) or prospects of the Borrower and its Subsidiaries
(taken as a whole) or (b) on the legality, validity or enforceability of this
Agreement, any of the other Loan Documents, or any of the rights or remedies of
the Administrative Agent thereunder, respectively.

 

“Materials of Environmental Concern” means
any gasoline or petroleum (including crude oil or any fraction thereof) or
petroleum products or any other pollutant, contaminant, hazardous substance,
hazardous waste, special waste, toxic substance, radioactive material, or other
compound, element, material or substance in any form whatsoever (including
products) regulated, restricted or addressed by or under any Environmental Law,
including asbestos, polychlorinated biphenyls and urea-formaldehyde insulation.

 

“Material Subsidiary” means, as at any time
of determination, each Subsidiary of the Borrower which, in the aggregate, as
at the end of the Fiscal Quarter immediately preceding such time of
determination, has Consolidated Assets equal to or greater than 10% of the
total Consolidated Assets of the Borrower and its Subsidiaries as at the end of
such Fiscal Quarter, as determined in accordance with GAAP; provided, that
neither Aquila Merchant Services, Inc. nor any of its Subsidiaries will
constitute a Material Subsidiaries for the purpose of this definition.

 

10

 

“Maturity Date” means September 19, 2005; provided,
however, that immediately upon delivery by the Borrower to the
Administrative Agent of notice in accordance with Section 5.01(n) that the
Extension Regulatory Approvals have been obtained and so long as each such
Extension Regulatory Approval is in form and substance reasonably satisfactory
to the Administrative Agent, the “Maturity Date” shall be automatically
extended to September 19, 2009.

 

“Maximum Amount” has the meaning specified in
Section 2.05.

 

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

 

“Multiemployer Plan” means a multiemployer
plan, as defined in Section 4001(a)(3) of ERISA, to which the Borrower or any
of its ERISA Affiliates is making or accruing an obligation to make
contributions, or has within any of the preceding five plan years made or
accrued an obligation to make contributions.

 

“Multiple Employer Plan” means a single
employer plan, as defined in Section 4001(a)(15) of ERISA, that (a) is
maintained for employees of the Borrower or any ERISA Affiliate and at least
one Person other than such Borrower and its ERISA Affiliates or (b) was so
maintained and in respect of which any Borrower or any of its ERISA Affiliates
could have liability under Section 4064 or 4069 of ERISA in the event such plan
has been or were to be terminated.

 

“Net Cash Proceeds” means, with respect to
any Reduction Event, an amount equal to the cash proceeds from or in respect of
such Reduction Event (including any cash received by way of deferred payment
pursuant to a promissory note, receivable or otherwise, but only as and when
received), less (a) any investment banking, auditing and legal fees, printing
costs, rating agency fees and any other fees and expenses reasonably incurred
in respect of such Reduction Event, (b) if such Reduction Event is a
Disposition of assets, the amount of any contractually required payments,
including Debt, and associated costs which become due and owing as a result of
such Disposition, and (c) any taxes actually paid or to be payable (as
estimated by a senior financial or accounting officer of the Borrower) in
respect of such Reduction Event.

 

“Non-Recourse Debt” means either (a) Debt as
to which the Borrower has no direct or indirect liability whether as primary
obligor, guarantor, surety, provider of collateral security or through any
other right or arrangement of any nature (including any election by the holder
of such indebtedness) providing direct or indirect assurance of payment or
performance of any such obligations in whole or in part, or (b) Debt of the
Borrower that funded the purchase or construction of Domestic Utility Business
assets, whereby the recourse of the lenders is limited solely to the assets
purchased or constructed with such Debt (and, therefore, the lenders are not
contractually entitled to recourse against the general assets of the Borrower
if an event of default were to occur with respect to such Debt).

 

“Note” means a term promissory note of the
Borrower payable to the order of any Lender, delivered pursuant to a request
made under Section 2.17, in substantially the 

 

11

 

form
of Exhibit A hereto, evidencing the aggregate indebtedness of the Borrower to
such Lender resulting from the Loans made by such Lender.

 

“Notice of Borrowing” has the meaning
specified in Section 2.02(a).

 

“Original Directors” means the individuals
named to, and serving as directors on, the Borrower’s board of directors on the
date hereof.

 

“Other Taxes” has the meaning specified in Section
2.15(b).

 

“Patriot Act” has the meaning specified in Section
3.01(i).

 

“PBGC” means the Pension Benefit Guaranty
Corporation established pursuant to Subtitle A of Title IV of ERISA or any
successor thereto.

 

“Permitted Liens” means

 

(a)                                  Liens for taxes, assessments, governmental
charges or levies not yet due or which are being contested in good faith by
appropriate proceedings; provided, however, that adequate
reserves with respect thereto are maintained on the books of the Borrower or
its Consolidated Subsidiaries, as the case may be, in conformity with GAAP;

 

(b)                                 Landlord liens for rent not yet due and
payable and statutory Liens of carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s or other similar nonconsensual Liens imposed by law
arising in the ordinary course of business securing obligations which are not
overdue for a period of more than 60 days or which are being contested in good
faith by appropriate proceedings;

 

(c)                                  pledges or deposits in connection with
workers’ compensation, unemployment insurance and other social security
legislation;

 

(d)                                 (i) deposits securing liability to insurance
carriers under insurance or self-insurance arrangements in the ordinary course
of business, and (ii) deposits to secure true operating leases, performance of
bids, trade contracts (other than for Debt), statutory obligations, surety and
appeal bonds, performance bonds and other obligations of a like nature incurred
in the ordinary course of business;

 

(e)                                  easements, rights-of-way, restrictions and
other similar encumbrances incurred in the ordinary course of business which,
individually or in the aggregate, do not materially detract from the value of
any property (except immaterial property) subject thereto or materially
adversely interfere with the ordinary conduct of the business of the Borrower
and its Subsidiaries;

 

(f)                                    any attachment or judgment Lien not
constituting an Event of Default under Section 6.01(h);

 

12

 

(g)                                 Liens granted in connection with (i) asset
sales or (ii) transactions designed to restructure or otherwise exit the
merchant contracts entered into by the Borrower or its Subsidiaries;

 

(h)                                 Liens on accounts receivables (and all
rights, titles, security and guarantees with respect thereto) of the Borrower
securing Indebtedness permitted to be outstanding pursuant to Section
5.02(j)(viii);

 

(i)                                     Liens on assets of the Borrower and assets of
the Borrower’s Subsidiaries, in each case, securing Indebtedness permitted to
be outstanding pursuant to Section 5.02(j)(iv),(v),(vii), (ix), or (xi)
and Section 5.02(k);

 

(j)                                     any Lien vested in any licensor or permitter
for obligations or acts to be performed, the performance of which obligations
or acts is required under licenses or permits, so long as the performance of
such obligations or acts is not delinquent or is being contested in good faith
and by appropriate proceedings;

 

(k)                                  Liens existing on the date hereof;

 

(l)                                     Liens securing reimbursement obligations with
respect to letters of credit (which either do not relate to Indebtedness or
relate to Indebtedness that has not been incurred in contravention of the terms
of this Agreement) that encumber documents and other property relating to the
letters of credit and the proceeds and products thereof; or

 

(m)                               Liens (i) on cash deposits in the nature of a
right to set off, banker’s liens, counterclaim on netting of cash amounts owed
arising in the ordinary course of business on deposit accounts, commodity accounts
or securities accounts or (ii) granted in connection with obligations or
liabilities of the Borrower that have been cash collateralized.

 

“Person” means an individual, partnership,
corporation (including a business trust), limited liability company, business
trust, joint stock company, trust, unincorporated association, joint venture,
Governmental Authority or other entity of whatever nature.

 

“Plan” means a Single Employer Plan or a
Multiple Employer Plan.

 

“Pricing Schedule” means the schedule attached
as Schedule III.

 

“Properties” has the meaning specified in Section
4.01(p)(i).

 

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

 

13

 

“Reduction Event” means any Domestic Utility
Business Event, Asset Sale Event, Debt Issuance Event or Equity Issuance Event.

 

“Register” has the meaning specified in Section
8.07(d).

 

“Reinvestment Notice” means a written notice
executed by a Responsible Officer stating that no Default or Event of Default
has occurred and is continuing and that the Borrower (directly or indirectly
through a Subsidiary) intends and expects to use all or a specified portion of
the Net Cash Proceeds of an Asset Sale Event to acquire, repair or construct
assets useful to the Domestic Utility Business.

 

“Release” means any release, pumping,
pouring, emptying, injecting, escaping, leaching, migrating, dumping, seepage,
spill, leak, flow, discharge, disposal or emission.

 

“Reorganization” means with respect to any
Multiemployer Plan, the condition that such plan is in reorganization within
the meaning of Section 4241 of ERISA.

 

“Reportable Event” means any of the events
set forth in Section 4043(c) of ERISA other than those events for which the
notice requirement has been waived under applicable regulations.

 

“Required Lenders” means at any time Lenders
owed more than 50% in interest of the then aggregate unpaid principal amount of
the Loans outstanding.

 

“Requirement of Law” as to any Person means
the articles of organization and by-laws or other organizational or governing
documents of such Person, and any law, treaty, rule or regulation or
determination of an arbitrator or a court or other Governmental Authority
(including the Public Utility Holding Company Act of 1935, as amended, any of
the foregoing relating to public utilities and any Environmental Law), in each
case, applicable to or binding upon such Person or any of its property or to
which such Person or any of its property is subject.

 

“Responsible Officer” means, with respect to
a Person, the chairman of the board of directors, the chief executive officer,
the president, any vice-president or, with respect to financial matters, the
chief financial officer or treasurer of such Person.

 

“Restricted Payments” has the meaning
specified in Section 5.02(i).

 

“Revolving Credit Agreement” means that
certain U.S. $110,000,000 Credit Agreement dated as of the date hereof among
the Borrower, the lenders party thereto and CSFB, as administrative agent.

 

“SEC” means the Securities and Exchange
Commission.

 

“SEC Reports” means public reports, notices
or other filings of the Borrower filed with the SEC.

 

14

 

“Single Employer Plan” means a single
employer plan, as defined in Section 4001(a)(15) of ERISA, that (a) is
maintained for employees of any Borrower or any of its ERISA Affiliates and no
Person other than such Borrower and its ERISA Affiliates or (b) was so
maintained and in respect of which any Borrower or any of its ERISA Affiliates
could reasonably be expected to have liability under Section 4069 of ERISA in
the event such plan has been or were to be terminated.

 

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

 

“6.875% Senior Notes” means the 6.875% senior
notes of the Borrower maturing on October 1, 2004.

 

“St. Joseph Power & Light Indenture”
means the Indenture of Mortgage and Deed of Trust, dated as of April 1, 1946,
among St. Joseph Light & Power Company, Harris Trust and Savings Bank and
Barlet Boder.

 

“Stated Maturity” means when used with
respect to any Debt, the date or dates specified in the instrument governing
such Debt as the fixed date or dates on which each then remaining installment,
sinking fund, serial maturity or other required payments of principal,
including payment at final maturity, in respect of such Debt, or any
installment of interest thereon, is due and payable.

 

“SPC” has the meaning specified in 8.07(h).

 

“Subsidiary” of any Person means any
corporation, partnership, joint venture, limited liability company, trust or
estate of which (or in which) more than 50% of (i) the Capital Stock having
ordinary voting power to elect a majority of the Board of Directors of such
corporation (irrespective of whether, at the time, Capital Stock of any other
class or classes of such corporation shall or might have voting power upon the
occurrence of any contingency), (ii) the interest in the capital or profits of
such partnership, joint venture or limited liability company or (iii) the
beneficial interest in such trust or estate is at the time directly or
indirectly owned or controlled by such Person (whether directly or through one
or more other subsidiaries) and one or more of its other Subsidiaries or by one
or more of such Person’s other Subsidiaries. 
Unless otherwise expressly stated herein, all references to any
Subsidiary are to direct or indirect Subsidiaries of the Borrower.

 

“Taxes” has the meaning specified in Section
2.15(a).

 

“Telecommunications Business” means the
telecommunications business conducted by Everest Global Technologies Group, LLC
and its Subsidiaries.

 

“Total Capital” means on any date (a) Debt of
the Borrower on such date plus (b) Consolidated Net Worth as of the end
of the most recent Fiscal Quarter.

 

“Type” shall mean as to any Loan, its nature
as an Alternate Base Rate Loan or a Eurodollar Rate Loan, as the context may
require.

 

15

 

“Wholly-Owned Subsidiary” of any Person means
any Subsidiary 100% of whose Capital Stock (other than qualifying directors’
shares) is at the time owned by such Person directly or indirectly through
other Wholly Owned Subsidiaries.

 

Section 1.02.          Other
Definitional Provisions.  Unless
otherwise specified therein, all terms defined in this Agreement shall have
their respective defined meanings when used in the Notes or any certificate or
other document made or delivered pursuant hereto.

 

As
used herein, in the Notes and in any certificate or other document made or
delivered pursuant hereto, accounting terms relating to the Borrower or any
Subsidiary not defined in Section 1.01 and accounting terms partly
defined in Section 1.01, to the extent not defined, shall have the
respective meanings given to them under United States generally accepted
accounting principles as in effect from time to time (“GAAP”).

 

The
words “hereof,” “herein” and “hereunder” and words of similar import when used
in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement, and Article, Section, Schedule and
Exhibit references are to this Agreement unless otherwise specified.

 

The
meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

 

The
words “include,” “includes” and “including” shall be deemed to be followed by
the phrase “without limitation”.  The
word “or” shall not be exclusive.

 

Unless
the context requires otherwise (i) any definition of or reference to any agreement,
instrument or other document herein shall be construed as referring to such
agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (ii) any reference
herein to any Person shall be construed to include such Person’s successors and
assigns, and (iii) the words “asset” and “property” shall be construed to have
the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and contract
rights.

 

ARTICLE II

 

AMOUNTS
AND TERMS OF THE LOANS

 

Section
2.01.          Loans.  Each Lender severally agrees, on the terms
and conditions hereinafter set forth, to make a term loan (each, a “Loan”)
to the Borrower on the Closing Date in a principal amount not to exceed the
amount set forth opposite such Lender’s name on the signature pages
hereof.  The Loans (i) at the option of
the Borrower may be incurred and maintained as, or converted into, Alternate
Base Rate Loans or Eurodollar Rate Loans in accordance with the provisions
hereof and (ii) shall be repaid or prepaid in accordance with the provisions
hereof, but once repaid or prepaid, may not be reborrowed.

 

Section
2.02.          Making Loans.     (a) 
As a condition precedent to borrowing of the Loans hereunder, the
Borrower shall give the Administrative Agent a notice of borrowing (the 

 

16

 

“Notice of Borrowing”) on or prior
to the Closing Day (which notice must be received by the Administrative Agent
prior to 10:00 a.m. (New York City time) on the Closing Date), and the
Administrative Agent shall give to each Lender prompt notice thereof.  The Notice of Borrowing shall be by
telephone, confirmed immediately in writing, or telecopier or telex in
substantially the form of Exhibit B hereto, specifying therein the requested
(i) Closing Date, (ii) Type of Loans comprising the borrowing and the aggregate
amount of the borrowing, (iii) remittance instructions and (iv) in the case of
a borrowing consisting of Eurodollar Rate Loans, initial Interest Period for
each such Loan.  If no election as to
Type of Loans is specified in the Notice of Borrowing, then the Loans shall be Alternate
Base Rate Loans.  If no Interest Period
with respect to Eurodollar Rate Loans is specified in the Notice of Borrowing,
then the Borrower shall be deemed to have selected an Interest Period of one
month duration.  Each Lender shall on
the date requested by the Borrower, before 11:00 A.M. (New York City time), in
the case of a borrowing to be comprised of Eurodollar Rate Loans, and before
1:00 P.M. (New York City time), in the case of a borrowing to be comprised of
Alternate Base Rate Loans, make available for the account of its Applicable
Lending Office to the Administrative Agent at the Administrative Agent’s
Account, in same day funds, such Lender’s ratable portion of such
borrowing.  After the Administrative
Agent’s receipt of such funds and upon fulfillment of the applicable conditions
set forth in Section 3.01, the Administrative Agent will make such funds
available to the Borrower in the manner specified by the Borrower in the Notice
of Borrowing.

 

(b)           Anything
in subsection (a) above to the contrary notwithstanding, the Borrower may not
select Eurodollar Rate Loans for the borrowing if the obligation of the Lenders
to make Eurodollar Rate Loans shall then be suspended pursuant to Section
2.09 or 2.13 (and the borrowing shall be deemed to be comprised of
Alternate Base Rate Loans).

 

(c)           The
Notice of Borrowing shall be irrevocable and binding on the Borrower.  If the Notice of Borrowing specifies that
the borrowing is to be comprised of Eurodollar Rate Loans, the Borrower shall
indemnify each Lender against any loss, cost or expense incurred by such Lender
as a result of any failure by the Borrower to fulfill on or before the date
specified in the Notice of Borrowing the applicable conditions set forth in Section
3.01, including any loss, cost or expense incurred by reason of the
liquidation or reemployment of deposits or other funds acquired by such Lender
to fund the Loan to be made by such Lender as part of such borrowing, when such
Loan, as a result of such failure, is not made on such date.

 

(d)           Unless
the Administrative Agent shall have received written notice from a Lender prior
to the date of the borrowing that such Lender will not make available to the
Administrative Agent such Lender’s ratable portion of the borrowing, the
Administrative Agent may assume that such Lender has made such portion
available to the Administrative Agent on the date of the borrowing in
accordance with subsection (a) of this Section 2.02 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
ratable portion 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) in the case of the Borrower,
the interest rate applicable at such time to the Loans and (ii) in the case of
such Lender, the Federal Funds Rate for the first three days and Alternate Base
Rate thereafter.

 

17

 

If such Lender shall repay to the Administrative Agent such
corresponding amount, such amount so repaid shall constitute such Lender’s Loan
as part of the borrowing for purposes of this Agreement.

 

(e)           The
failure of any Lender to make the Loan to be made by it as part of the borrowing
shall not relieve any other Lender of its obligation, if any, hereunder to make
its Loan on the date of the 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 the date of the borrowing.

 

Section 2.03.          Fees.  (a) 
The Borrower agrees to pay to the Administrative Agent for its own
account such fees specified in the Fee Letter or as may from time to time be
separately agreed between the Borrower and the Administrative Agent.

 

(b)           All
fees payable hereunder shall be paid on the dates due, in immediately available
funds, to the Administrative Agent for the benefit of the parties entitled
thereto.  Fees paid shall not be
refundable under any circumstances.

 

Section
2.04.          Voluntary
Prepayments of Loans.  The Borrower
shall not have the right to prepay the Loans prior to the Initial Maturity
Date. In the event that the Initial Maturity Date is extended by the Borrower’s
delivery to the Administrative Agent of the Extension Regulatory Approval
Notice, the Borrower shall not have the right to prepay the Loans until (and
including) September 20, 2006.  After
September 20, 2006, the Borrower will have the right, upon at least three (3)
Business Days’ notice to the Administrative Agent, to prepay the Loans, provided,
however, that (i) each partial prepayment shall be in the aggregate amount
of $5,000,000 or an integral multiple of $1,000,000 in excess thereof and (ii)
the Borrower shall pay to the Administrative Agent for the ratable benefit of
the Lenders a prepayment premium equal to the Applicable Prepayment Premium.
Each notice of prepayment delivered pursuant to this Section 2.04 shall specify
the date and amount of prepayment and whether such prepayment is of Eurodollar
Rate Loans, Alternate Base Rate Loans or a combination thereof, and, in each
case of a combination thereof, the amount allocable to each.  The Administrative Agent agrees promptly to
notify the Lenders of any notice of prepayment received by the Administrative
Agent.

 

Each prepayment of the Loans pursuant to
this Section 2.04 shall be accompanied by payment in full of, with respect to
Eurodollar Rate Loans, accrued and unpaid interest to such date on the amount
prepaid, together with any additional amounts owing pursuant to Section 8.04(c)
and any outstanding fees and expenses due and owing with respect to the amount
prepaid.

 

Section
2.05.          Mandatory
Offers of Prepayment.  If, at any
time, or from time to time, after the date hereof:

 

(a)           the Borrower receives any Net Cash
Proceeds in respect of any conveyance, sale, lease, assignment, transfer or
other disposition (including any such transaction effected by way of merger or
consolidation) (any such transaction or series of such related transactions, a
“Disposition”), by the Borrower, of all or substantially all of the
Domestic Utility Business in any State of the United States of America or
District of Columbia (each event, a “Domestic Utility Business Event”);

 

18

 

(b)           the Borrower receives Net Cash Proceeds
in excess of $15,000,000 in a single transaction or series of related
transactions in respect of (i) any Disposition by the Borrower of Domestic
Utility Business assets (other than accounts receivable) or (ii) insurance
proceeds, condemnation awards (or payments in lieu thereof) or indemnity
payments payable by reason of theft, loss, physical destruction or damage,
taking or similar event with respect to Domestic Utility Business assets (each
event, an “Asset Sale Event”);

 

(c)           the Borrower or any of its Subsidiaries
receives any Net Cash Proceeds in respect of issuances of Debt, excluding Debt
permitted to be incurred by the Borrower or any of its Subsidiaries pursuant to
Section 5.02(j) or Section 5.02(k) hereof (each event, an “Debt
Issuance Event”); or

 

(d)           the Borrower or any of its Subsidiaries
shall receive any Net Cash Proceeds in respect of the sale of treasury or
authorized (whether prior to or after of the date hereof) but unissued shares
of the Capital Stock of the Borrower or any of its Subsidiaries (other than
equity interests or warrants, rights or options issued in connection with the
exercise by a present or former employee, officer or director under a stock
incentive plan, stock option plan or other equity-based compensation plan or
arrangement), excluding Investments permitted under Section 5.02(h)
hereof (each event, an “Equity Issuance Event”);

 

then, on or before the second Business Day
immediately succeeding the date of such receipt, the Borrower shall, by written
notice to the Administrative Agent, offer to apply an amount equal to the
Mandatory Offer Prepayment Amount to the prepayment of the Loans then
outstanding to the extent and in the manner as provided below in this Section
2.05.  No Lender shall be obligated
to accept such offer.  Any Lender may in
its discretion accept such offer by written notice to the Administrative Agent
(which notice (y) must be received by the Administrative Agent no later than
5:00 p.m.(New York City time) on the third Business Day after the date the
Administrative Agent received the Borrower’s notice of such offer and (z) shall
also state the maximum principal amount of prepayment such Lender is willing to
accept (such Lender’s “Maximum Amount”)).  Any Lender that shall have failed to respond to an offer
described in this Section 2.05 in the manner and by the time required
above shall be deemed to have rejected such offer.  The Administrative Agent shall promptly notify the Borrower of
each accepting Lender and its Maximum Amount. 
On the fifth Business Day after the date the Administrative Agent
received the Borrower’s notice of such offer, the Borrower shall prepay the
Loans of the accepting Lenders pro rata (based upon each accepting Lender’s
Maximum Amount) in an aggregate amount equal to the lesser of the Mandatory
Offer Prepayment Amount and the aggregate amount of all Maximum Amounts of the
accepting Lenders.  No Applicable
Prepayment Premium shall be due to any accepting Lender as a result of such
mandatory prepayment of its Loan.  The
Borrower may apply the portion of the Mandatory Offer Prepayment Amount
rejected by the Lenders as set forth in this Section 2.05, if any, to
voluntary prepay the Loans in accordance with Section 2.04.  Notwithstanding any other provisions set
forth in this Section 2.05, with respect to any Net Cash Proceeds
received by the Borrower in connection with an Asset Sale Event, the Borrower
may (in lieu of applying the Net Cash Proceeds toward the mandatory offer to
prepay the Loans, as described above) elect to reinvest the Net Cash Proceeds
in the Domestic Utility Business by delivering to the Administration Agent a
Reinvestment Notice within two Business Days after the receipt of the Net Cash
Proceeds; provided, that if such Net Cash Proceeds are not reinvested in
the Domestic Utility Business within 180 days after

 

19

 

the receipt thereof (or, if earlier, the date
on which the Borrower determines not to, or otherwise ceases to, reinvest in
the Domestic Utility Business all or any portion of the Net Cash Proceeds), the
Borrower shall offer to apply such amounts to the prepayment of the Loans then
outstanding in the manner provided above.

 

Each prepayment of the Loans pursuant to this
Section 2.05 shall be accompanied by payment in full of, with respect to
Eurodollar Rate Loans, accrued and unpaid interest to such date on the amount
prepaid, together with any additional amounts owing pursuant to Section 8.04(c)
and any outstanding fees and expenses due and owing with respect to the amount
prepaid.

 

Section 2.06.          Repayment of Loans.  The Borrower shall repay to the
Administrative Agent for the ratable account of the Lenders on the Maturity
Date the aggregate principal amount of the Loans then outstanding.

 

Section 2.07.          Interest on Loans.  (a)  Scheduled Interest.  The Borrower shall pay interest on the
unpaid principal amount of each Loan owing to each Lender from the date of such
Loan until such principal amount shall be paid in full, at the following rates
per annum:

 

(i)            Alternate Base Rate Loans. 
During such periods as such Loan is an Alternate Base Rate Loan, a rate
per annum equal at all times to the sum of (A) the Alternate Base Rate in
effect from time to time plus (B) the Applicable Margin in effect from time to
time determined in accordance with the Pricing Schedule, payable in arrears
quarterly on the last Business Day of each March, June, September and December
during such periods.

 

(ii)           Eurodollar Rate Loans. 
During such periods as such Loan is a Eurodollar Rate Loan, a rate per
annum equal at all times during each Interest Period for such Loan to the sum
of (A) the Eurodollar Rate for such Interest Period for such Loan plus (B) the
Applicable Margin in effect from time to time determined in accordance with the
Pricing Schedule, payable in arrears on the last day of such Interest Period
and, if such Interest Period has a duration of more than three months, on each
day that occurs during such Interest Period every three months from the first
day of such Interest Period and on the date such Eurodollar Rate Loan shall be
Converted or paid in full.

 

(b)           Default Interest. 
If an Event of Default has occurred and is continuing, the Loans shall
bear interest at a rate per annum equal to the rate that would otherwise be
applicable thereto pursuant to the foregoing provisions of this Section 2.07
plus 2% from the date of occurrence of such Event of Default until the
date such Event of Default is cured or waived (after as well as before judgment).  In addition, should any interest on such
Loans or any fees or other amount (other than principal) payable hereunder not
be paid when due (whether at the Stated Maturity, by acceleration or
otherwise), such overdue amount shall bear interest (to the extent permitted by
law in the case of interest on interest) at a rate per annum as determined
pursuant to the preceding sentence which would be applicable to an Alternate
Base Rate Loan, in each case, from the date of such non-payment until such amount
is paid in full (after as well as before judgment).  Interest accruing pursuant to this Section 2.07(b) shall
be payable from time to time on demand.

 

20

 

Section 2.08.          Computation of Interest.  (a) 
The Alternate Base Rate interest (when calculated based upon the prime
rate) shall be calculated on the basis of a 365/366 day year and all other
interest shall be calculated on the basis of a 360-day year for the actual days
elapsed.  The Administrative Agent shall
as soon as practicable notify the Borrower and the Lenders of each
determination of a Eurodollar Rate.  Any
change in the interest rate on a Loan resulting from a change in the Alternate
Base Rate or the Eurodollar Reserve Requirements shall become effective as of
the opening of business on the day on which such change becomes effective.  The Administrative Agent shall, as soon as
practicable, notify the Borrower and the Lenders of the effective date and the
amount of each such change in interest rate.

 

(b)           Each determination of an interest rate by
the Administrative Agent pursuant to any provision of this Agreement shall be
conclusive and binding on the Borrower and the Lenders in the absence of
manifest error.  The Administrative
Agent, at the request of the Borrower, shall deliver to the Borrower a
statement showing in reasonable detail the supporting calculations used by the
Administrative Agent in determining any interest rate determined by the
Administrative Agent.

 

Section 2.09.          Inability to Determine
Interest Rate.  If prior to the
first day of any Interest Period:

 

(a)           the Administrative Agent shall have
reasonably determined (which determination shall be conclusive and binding upon
the Borrower) that, by reason of circumstances affecting the relevant market,
adequate and reasonable means do not exist for ascertaining the Eurodollar Rate
for such Interest Period, or

 

(b)           the Administrative Agent shall have
received notice from the Required Lenders that the Eurodollar Rate determined
or to be determined for such Interest Period will not adequately and fairly
reflect the cost to such Lenders (as certified by such Lenders) of making or
maintaining its affected Loans during such Interest Period,

 

the Administrative Agent shall give telecopy or telephonic notice
thereof to the Borrower and the Lenders as soon as practicable thereafter
(which notice shall include supporting calculations in reasonable detail).  If such notice is given, (i) any Eurodollar
Rate Loan requested to be made on the first day of such Interest Period shall
be made as Alternate Base Rate Loans, (ii) any Loans that were to have been
Converted on the first day of such Interest Period to Eurodollar Rate Loans
shall be continued as Alternate Base Rate Loans and (iii) any outstanding Eurodollar
Rate Loans shall be Converted, on the first day of such Interest Period, to
Alternate Base Rate Loans.  Until such
notice has been withdrawn by the Administrative Agent, no further Eurodollar
Rate Loans shall be made or continued as such, nor shall the Borrower have the
right to Convert Alternate Base Rate Loans to Eurodollar Rate Loans.

 

Section 2.10.          Conversion of Loans.  (a)  Optional Conversion.  The Borrower may on any Business Day, upon
notice given to the Administrative Agent not later than 11:00 A.M. (New York
City time) on the third Business Day prior to the date of the proposed
Conversion and subject to the provisions of Sections 2.09 and 2.13,
Convert all Loans of one Type owed by the Borrower into Loans of the other
Type; provided, however, that any Conversion of Eurodollar Rate
Loans into Alternate Base Rate Loans shall be made only on the

 

21

 

last day of an
Interest Period for such Eurodollar Rate Loans.  Each such notice of a Conversion shall, within the restrictions
specified above, specify (i) the date of such Conversion, (ii) the Loans to be
Converted, and (iii) if such Conversion is into Eurodollar Rate Loans, the
duration of the initial Interest Period for such Loans.  Each notice of Conversion shall be
irrevocable and binding on the Borrower.

 

(b)           Mandatory Conversion. (i) On the date on which the aggregate
unpaid principal amount of Eurodollar Rate Loans shall be reduced, by payment
or prepayment or otherwise, to less than $5,000,000, such Loans shall
automatically Convert into Alternate Base Rate Loans, and (ii) upon the
occurrence and during the continuance of any Event of Default, (x) each
Eurodollar Rate Loan will automatically, on the last day of the then existing
Interest Period therefor, Convert into a Alternate Base Rate Loan and (y) the
obligation of the Lenders to make, or to Convert Advances into, Eurodollar Rate
Loans shall be suspended.

 

Section 2.11.          [Intentionally
Omitted]

 

Section 2.12.          Increased Costs.  (a)  If, due to either (i) the introduction of or
any change in or in the interpretation of any law or regulation after the date
hereof or (ii) the compliance with any guideline or request from any central
bank or other Governmental Authority (whether or not having the force of law)
issued after the date hereof, there shall be any increase in the cost to any
Lender of agreeing to make or making, funding or maintaining Eurodollar Rate
Loans (excluding for purposes of this Section 2.12 any such increased
costs resulting from (i) Taxes or Other Taxes (as to which Section 2.15
shall govern) and (ii) changes in the basis of taxation of overall net income
or overall gross income by the United States or by the foreign jurisdiction or
state under the laws of which such Lender is organized or has its Applicable
Lending Office or any political subdivision thereof), then the Borrower agrees
to pay from time to time, upon demand by such Lender (with a copy of such
demand to the Administrative Agent), to the Administrative Agent for the
account of such Lender additional amounts sufficient to compensate such Lender
for such increased cost provided, however, that any Lender
claiming additional amounts under this Section 2.12 shall use reasonable
efforts (consistent with its internal policy and legal and regulatory
restrictions) to designate a different Applicable Lending Office if such change
would avoid the need for, or reduce the amount of, such increased cost that may
thereafter accrue and would not, in the reasonable judgment of such Lender, be
otherwise disadvantageous to such Lender. 
A certificate as to the amount of such increased cost, submitted to the
Borrower and the Administrative Agent by such Lender, shall be conclusive and
binding for all purposes, absent manifest error.

 

(b)           If any Lender determines that compliance
with any law or regulation or any guideline or request from any central bank or
other Governmental Authority enacted or made after the date hereof (whether or
not having the force of law) affects or would affect the amount of capital
required or expected to be maintained by such Lender or any corporation
controlling such Lender and that the amount of such capital is increased by or
based upon existence of such Lender’s commitment to lend hereunder and other
commitments of this type, then, upon demand by such Lender (with a copy of such
demand to the Administrative Agent), the Borrower agrees to pay to the
Administrative Agent for the account of such Lender (as applicable), from time
to time as specified by such Lender, additional amounts sufficient to
compensate such Lender or such corporation (as applicable) in the light of such
circumstances, to the extent that such Lender 

 

22

 

reasonably determines such increase in capital to be
allocable to the existence of such Lender’s commitment to lend hereunder.  A certificate as to such amounts submitted
to the Borrower and the Administrative Agent by such Lender shall be conclusive
and binding for all purposes, absent manifest error.

 

(c)           Failure or delay on the part of any
Lender to demand compensation pursuant to this Section 2.12 shall not
constitute a waiver of such Lender’s right to demand such compensation; provided,
however, that the Borrower shall not be required to compensate a Lender
pursuant to this Section 2.12 for any increased costs or reductions
incurred more than four months prior to the date that such Lender notifies the
Borrower of the change giving rise to such increased costs or reductions and of
such Lender’s intention to claim compensation therefor; provided  further
that, if the change giving rise to such increased costs or reductions is
retroactive, then the four-month period referred to above shall include the
period of retroactive effect thereof.

 

Section 2.13.          Illegality.  Notwithstanding any other provision herein,
if the adoption of or any change in any Requirement of Law after the date
hereof or in the interpretation or application thereof shall make it unlawful
for any Lender to make or maintain Eurodollar Loans as contemplated by this
Agreement, (a) the commitment of such Lender hereunder to make Eurodollar
Loans, continue Eurodollar Loans as such and convert Alternate Base Rate Loans
to Eurodollar Loans shall forthwith be suspended until such condition shall
cease to exist and (b) such Lender’s Loans then outstanding as Eurodollar
Loans, if any, shall be converted automatically to Alternate Base Rate Loans on
the respective last days of the then current Interest Periods with respect to
such Loans or within such earlier period as required by law.  If any such conversion of a Eurodollar Loan
occurs on a day which is not the last day of the then current Interest Period
with respect thereto, the Borrower shall pay to such Lender such amounts, if
any, as may be required pursuant to Section 8.04(c).

 

Section 2.14.          Payments.  (a) 
The Borrower shall make each payment hereunder, irrespective of any
right of counterclaim or set-off, not later than 12:00 Noon (New York City
time) on the day when due in U.S. dollars to the Administrative Agent at the
Administrative Agent’s Account in same day funds.  The Administrative Agent will promptly thereafter cause to be
distributed like funds relating to the payment of principal or interest ratably
(other than amounts payable pursuant to Section 2.12, 2.15 or 8.04(c))
to the Lenders for the account of their respective Applicable Lending Offices,
and like funds relating to the payment of any other amount payable to any
Lender to such Lender for the account of its Applicable Lending Office, in each
case to be applied in accordance with the terms of this Agreement.  Upon its acceptance of an Assignment and
Acceptance and recording of the information contained therein in the Register
pursuant to Section 8.07(c), from and after the effective date specified
in such Assignment and Acceptance, the Administrative Agent shall make all
payments hereunder and under the Notes in respect of the interest assigned
thereby to the Lender assignor and the Lender assignee thereunder on a pro rata
basis subject to all appropriate adjustments in such payments for periods prior
to such effective date.

 

(b)           Except as otherwise provided herein,
whenever any payment hereunder or under the Notes shall be stated to be due on
a day other than a Business Day, such payment shall 

 

23

 

be made on the next succeeding Business Day, and such
extension of time shall in such case be included in the computation of payment,
as the case may be.

 

(c)           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 the Borrower shall not
have so made such payment in full to the Administrative Agent, 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 2.15.          Taxes.  (a) 
Any and all payments by the Borrower to or for the account of any Lender
or the Administrative Agent hereunder, under the Notes, any other Loan Document
or any other documents to be delivered hereunder shall be made, in accordance
with Section 2.14 or the applicable provisions of such other documents,
free and clear of and without deduction for any and all present or future
taxes, levies, imposts, deductions, charges or withholdings, and all
liabilities with respect thereto, excluding, in the case of each Lender
and the Administrative Agent, taxes imposed on its overall net income and
minimum taxes, alternative minimum taxes, doing business taxes, franchise taxes
and value added taxes imposed on it in lieu of net income taxes, by the
jurisdiction under the laws of which such Lender or the Administrative Agent
(as the case may be) is organized (federal or state) or doing business or any
political subdivision thereof and, in the case of each Lender, taxes imposed on
its overall net income and minimum taxes, alternative minimum taxes, doing
business taxes, franchise taxes and value added taxes imposed on it in lieu of
net income taxes, by the jurisdiction of such Lender’s Applicable Lending
Office (federal or state) (all such non-excluded taxes, levies, imposts,
deductions, charges, withholdings and liabilities in respect of payments
hereunder or under the Notes 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
Note or any other documents to be delivered hereunder to any Lender or the Administrative
Agent, (i) the sum payable shall be increased as may be necessary so that after
making all required deductions (including deductions applicable to additional
sums payable under this Section 2.15) such Lender 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, (ii) the Borrower shall make such
deductions and (iii) the Borrower shall pay the full amount deducted to the
relevant taxation authority or other authority in accordance with applicable
law.

 

(b)           In addition, the Borrower agrees to pay
any present or future stamp or documentary taxes or any other excise or
property taxes, charges or similar levies that arise from any payment made
hereunder, under the Notes, any other Loan Document or any other documents to
be delivered hereunder or from the execution, delivery or registration of,
performing under, or otherwise with respect to, this Agreement, the Notes, any
other Loan Document or any other documents to be delivered hereunder imposed by
the jurisdiction under the laws of which the Borrower is organized or operates
or any political subdivision thereof, or 

 

24

 

by the jurisdiction in which the Borrower’s principal
office is located or from which any payments hereunder are made (hereinafter
referred to as “Other Taxes”).

 

(c)           The Borrower will indemnify each Lender
and the Administrative Agent for and hold it harmless against the full amount
of Taxes or Other Taxes (including taxes of any kind imposed or asserted by any
jurisdiction on amounts payable under this Section 2.15) imposed on or
paid by such Lender or the Administrative Agent (as the case may be) and any
liability (including penalties, interest and expenses) arising therefrom or
with respect thereto.  This
indemnification shall be made within 30 days from the date such Lender or the
Administrative Agent (as the case may be) makes written demand therefor; provided,
however, that in no event shall any such indemnification be due earlier
than five Business Days after such Lender or the Administrative Agent (as the
case may be) has paid such Taxes or Other Taxes; provided, further,
that any such demand shall be accompanied by copies of all written correspondence
to and from the applicable taxing authority relating to such payment and a copy
of the calculation of such Taxes or Other Taxes.

 

(d)           Within 30 days after the date of any
payment of Taxes, the Borrower will furnish to the Administrative Agent, at its
address referred to in Section 8.02, the original or a certified copy of
a receipt evidencing such payment to the extent such a receipt is issued
therefor, or other written proof of payment thereof that is reasonably
satisfactory to the Administrative Agent. 
In the case of any payment hereunder, under the Notes, any other Loan
Document or any other documents to be delivered hereunder by or on behalf of
the Borrower through an account or branch outside the United States or by or on
behalf of the Borrower by a payor that is not a United States person, if the
Borrower determines that no Taxes are payable in respect thereof, the Borrower
shall furnish, or shall cause such payor to furnish, to the Administrative
Agent, at such address, an opinion of counsel reasonably acceptable to the
Administrative Agent stating that such payment is exempt from Taxes.  For purposes of this subsection (d) and
subsection (e), the terms “United States” and “United States person” shall have
the meanings specified in Section 7701 of the Code.

 

(e)           Each Lender organized under the laws of a
jurisdiction outside the United States, on or prior to the date of its
execution and delivery of this Agreement in the case of each Lender party to
this Agreement as of the date hereof or on the date of the Assignment and
Acceptance pursuant to which it becomes a Lender in the case of each other
Lender, and from time to time thereafter as reasonably requested in writing by
the Borrower (but only so long as such Lender remains lawfully able to do so),
shall provide each of the Administrative Agent and the Borrower with two
original Internal Revenue Service Forms W-8BEN or W-8ECI, as appropriate, or
any successor or other form prescribed by the Internal Revenue Service,
certifying that such Lender is exempt from or entitled to a reduced rate of
United States withholding tax on payments pursuant to this Agreement or the
Notes.  If the form provided by a Lender
at the time such Lender first becomes a party to this Agreement indicates a
United States interest withholding tax rate in excess of zero, withholding tax
at such rate shall be considered excluded from Taxes unless and until such
Lender provides the appropriate forms certifying that a lesser rate applies,
whereupon withholding tax at such lesser rate only shall be considered excluded
from Taxes for periods governed by such form; provided, however,
that, if at the date of the Assignment and Acceptance pursuant to which a
Lender assignee becomes a party to this Agreement, the Lender assignor was entitled
to payments under subsection (a) in respect of 

 

25

 

United States withholding tax with respect to interest
paid at such date, then, to such extent, the term Taxes shall include (in
addition to withholding taxes that may be imposed in the future or other
amounts otherwise includable in Taxes) United States withholding tax, if any,
applicable with respect to the Lender assignee on such date.  If any form or document referred to in this
subsection (e) requires the disclosure of information, other than information
necessary to compute the tax payable and information required on the date
hereof by Internal Revenue Service Form W-8BEN or W-8ECI, that the Lender
reasonably considers to be confidential, the Lender shall give notice thereof
to the Borrower and shall not be obligated to include in such form or document
such confidential information.

 

(f)            For any period with respect to which a
Lender has failed to provide the Borrower with the appropriate form, certificate
or other document described in Section 2.15(e) (other  than
if such failure is due to a change in law, or in the interpretation or
application thereof, occurring subsequent to the date on which a form,
certificate or other document originally was required to be provided, or if
such form, certificate or other document otherwise is not required under
subsection (e) above), such Lender shall not be entitled to indemnification
under Section 2.15(a) or (c) with respect to Taxes imposed by the
United States by reason of such failure; provided, however, that
should a Lender become subject to Taxes because of its failure to deliver a
form, certificate or other document required hereunder, the Borrower shall take
such steps as such Lender shall reasonably request to assist the Lender to
recover such Taxes (and such Lender shall reimburse the Borrower for reasonable
out-of-pocket costs and expenses of the Borrower in connection therewith).

 

(g)           Any Lender claiming any additional
amounts payable pursuant to this Section 2.15 shall use reasonable
efforts (consistent with its internal policy and legal and regulatory
restrictions) to change the jurisdiction of its Eurodollar Lending Office if
the making of such a change would avoid the need for, or reduce the amount of,
any such additional amounts that may thereafter accrue and would not, in the
reasonable judgment of such Lender, be otherwise disadvantageous to such
Lender.

 

(h)           If any Lender determines, in its sole
discretion, that it has actually realized, by reason of a refund, deduction or
credit of any Taxes paid or reimbursed by the Borrower pursuant to subsection
(a) or (c) above in respect of payments hereunder or the Notes, a current
monetary benefit that it would otherwise not have obtained, and that would result
in the total payments under this Section 2.15 exceeding the amount
needed to make such Lender whole, such Lender shall pay to the Borrower, with
reasonable promptness following the date on which it realized such benefit, an
amount equal to the lesser of the amount of such benefit or the amount of such
excess, in each case net of all out-of-pocket expenses in securing such refund,
deduction or credit, provided, in the event that any portion of such
refund, deduction or credit is subsequently disallowed, the Borrower shall hold
such Lender harmless (on an after-tax basis) from such disallowance.

 

Section 2.16.          Sharing of Payments, Etc.  If any Lender shall obtain any payment
(whether voluntary, involuntary, through the exercise of any right of set-off,
or otherwise) on account of the Loans owing to it (other than pursuant to Section
2.12, 2.15 or 8.04(c)) in excess of its ratable share of
payments on account of the Loans obtained by all the Lenders, such Lender shall
forthwith purchase from the other Lenders such participations in the Loans
owing to them 

 

26

 

as shall be
necessary to cause such purchasing Lender to share the excess payment ratably
with each of them; provided, however, that if all or any portion
of such excess payment is thereafter recovered from such purchasing Lender,
such purchase from each Lender shall be rescinded and such Lender shall repay
to the purchasing Lender the purchase price to the extent of such recovery
together with an amount equal to such Lender’s ratable share (according to the
proportion of (i) the amount of such Lender’s required repayment to (ii) the
total amount so recovered from the purchasing Lender) of any interest or other
amount paid or payable by the purchasing Lender in respect of the total amount
so recovered.  The Borrower agrees that
any Lender so purchasing a participation from another Lender pursuant to this Section
2.16 may, to the fullest extent permitted by law, exercise all its rights
of payment (including the right of set-off) with respect to such participation
as fully as if such Lender were the direct creditor of the Borrower in the
amount of such participation.

 

Section 2.17.          Evidence
of Debt.  (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 the Loan owing to such Lender from
time to time, including the amounts of principal and interest payable and paid
to such Lender from time to time hereunder in respect of Loans.  The Borrower agrees that upon notice by any
Lender to the Borrower (with a copy of such notice to the Administrative Agent)
to the effect that a Note is required or appropriate in order for such Lender
to evidence (whether for purposes of pledge, enforcement or otherwise) the
Loans owing to, or to be made by, such Lender, the Borrower shall promptly
execute and deliver to such Lender a Note payable to the order of such Lender
in a principal amount of the Loans of such Lender.

 

(b)           The Register maintained by the
Administrative Agent pursuant to Section 8.07(d) shall include a control
account, and a subsidiary account for each Lender, in which accounts (taken
together) shall be recorded (i) the date and amount of the borrowing made
hereunder, the Type of Loans and, if appropriate, the Interest Period
applicable thereto, (ii) the terms of each Assignment and Acceptance delivered
to and accepted by it, (iii) the amount of any principal or interest due and
payable or to become due and payable from the Borrower to each Lender hereunder
and (iv) the amount of any sum received by the Administrative Agent from the
Borrower hereunder and each Lender’s share thereof.

 

(c)           Entries made in good faith by the
Administrative Agent in the Register pursuant to subsection (b) above, and by
each Lender in its account or accounts pursuant to subsection (a) above, shall
be prima  facie evidence of the amount of principal and interest
due and payable or to become due and payable from the Borrower to, in the case
of the Register, each Lender and, in the case of such account or accounts, such
Lender, under this Agreement, absent manifest error; provided,
however, that the failure of the Administrative Agent or such Lender to
make an entry, or any finding that an entry is incorrect, in the Register or
such account or accounts shall not limit or otherwise affect the obligations of
the Borrower under this Agreement.

 

Section 2.18.          Use of Proceeds.  The proceeds of the Loans shall be available
(a) first, to repay in full (or to defease) all of 6.875% Senior Notes and (b)
thereafter, for general corporate purposes of the Borrower and its
Subsidiaries.

 

27

 

ARTICLE
III

 

CONDITIONS PRECEDENT

 

Section 3.01.          Conditions Precedent to Closing Date.  The obligations of the Lenders to make Loans
shall not become effective until the date on which each of the following
conditions is satisfied (or waived in accordance with Section 8.01):

 

(a)           Documents.  The
Administrative Agent shall have received each of the following documents, each
of which shall be satisfactory to the Administrative Agent (and to the extent
specified below, to each Lender) in form and substance:

 

(i)            Executed Counterparts. 
From each party hereto either (A) multiple counterparts of this
Agreement, signed on behalf of such party or (B) written evidence satisfactory
to the Administrative Agent (which may include telecopy transmission of a
signed signature page to this Agreement) that such party has signed a counterpart
of this Agreement;

 

(ii)           Corporate Documents. 
(A) Such documents and certificates as the Administrative Agent or its
counsel may reasonably request, certified as of the Closing Date as complete
and correct copies thereof by the Secretary or an Assistant Secretary of the
Borrower relating to (1) the organization, existence and good standing of the
Borrower, (2) the authorization of the execution, delivery and performance by
the Borrower of the Loan Documents and of the borrowings hereunder, and (3)
certificates as to the incumbency and signature of each individual signing this
Agreement and any other agreement or document contemplated hereby on behalf of
the Borrower;

 

(iii)          Financial
Statements.  (A) Copies of (x) the audited Consolidated
balance sheets of the Borrower and its Subsidiaries as of December 31, 2003 and
the related Consolidated statements of income and cash flows for the period
ending as of such date, and (y) the unaudited Consolidated balance sheets of
the Borrower and its Subsidiaries as of June 30, 2004, and the related
Consolidated statements of income and cash flows for the period ending as of
such date; and (B) a pro forma consolidated balance sheet and related pro forma
consolidated statements of income and cash flows of the Borrower as of and for
the twelve-month period ending June 30, 2004, prepared after giving effect to
the Mandatory Prepayment under the Existing Credit Agreement and the other
transactions contemplated hereby as if the Mandatory Prepayment under the
Existing Credit Agreement and the other transactions contemplated hereby had
occurred as of such date (in the case of such balance sheet) or at the
beginning of such period (in the case of such other financial statements),
which financial statements shall not be materially inconsistent with the
forecasts previously provided to the Administrative Agent; and

 

(iv)          Other Documents. 
Such other documents as the Administrative Agent or any Lender (acting
through the Administrative Agent) may reasonably request.

 

(b)           [Intentionally Omitted];

 

(c)           [Intentionally Omitted];

 

28

 

(d)           Representations and Warranties. 
Each of the representations and warranties made by the Borrower in or
pursuant to the Loan Documents (except to the extent applicable to an earlier
date) shall be true and correct in all material respects on and as of such date
as if made on and as of such date;

 

(e)           No Default.  No Default
or Event of Default shall have occurred and be continuing on such date;

 

(f)            Legal Opinions. 
The Administrative Agent shall have received, with a counterpart for
each Lender, the executed legal opinions of (i) Leslie J. Parrette, Jr.,
general counsel of the Borrower and (ii) Abel, Band, Russell, Collier,
Pitchford & Gordon, Chartered, Colorado regulatory counsel to the Borrower,
Dickinson, Mackaman, Tyler & Hagen, P.C., Iowa regulatory counsel to the
Borrower, Anderson, Byrd, Richeson, Flaherty & Henricks, L.L.P., Kansas
regulatory counsel to the Borrower, Dykema Gossett, PLLC, Michigan regulatory
counsel to the Borrower, Moss & Barnett, A Professional Association,
Minnesota and South Dakota regulatory counsel to the Borrower, Brydon,
Swearengen & England, P.C., Missouri regulatory counsel to the Borrower,
Blackwell Sanders Peper Martin LLP, Nebraska regulatory counsel to the
Borrower, and Hogan & Hartson L.L.P., Federal Energy Regulatory Commission
counsel to the Borrower,in each case, dated as of the date hereof and in form
and substance reasonably satisfactory to the Administrative Agent and its
counsel;

 

(g)           Closing Certificate. 
The Administrative Agent shall have received a closing certificate of
the Borrower substantially in the form of Exhibit C hereto, dated as of the
Closing Date;

 

(h)           “Know Your Customer” Information. 
The Administrative Agent shall have received documentation and other
information required by bank regulatory authorities under applicable “know your
customer” and Anti-Money Laundering rules and regulations, including the USA
PATRIOT Act, Title III of Pub. L. 107-56 (signed into law October 26, 2001)
(the “Patriot Act”).  Such
documentation shall include evidence satisfactory to the Administrative Agent
of the listing of Capital Stock of the Borrower on New York Stock Exchange;

 

(i)            Closing Fees and Expenses. 
The Administrative Agent shall have received the fees to be received on
the Closing Date separately agreed to between the Administrative Agent and the
Borrower and shall have received reimbursement of all reasonable costs and
expenses (including reasonable fees and expenses of counsel to the
Administrative Agent, subject to limitations contained in the other Loan
Documents);

 

(j)            Approvals and Consents. 
All requisite governmental authorities and third parties shall have
approved or consented to the transactions contemplated hereby to the extent
required and all applicable appeal periods shall have expired; and

 

(k)           Additional Matters. 
All corporate and other proceedings, and all documents, instruments and
other legal matters in connection with the transactions contemplated by this
Agreement and the other Loan Documents shall be reasonably satisfactory in form
and substance to the Administrative Agent, and the Administrative Agent shall
have received such 

 

29

 

other approvals, opinions or documents as the
Administrative Agent, its counsel or any Lender through the Administrative
Agent may reasonable request.

 

ARTICLE
IV

 

REPRESENTATIONS AND WARRANTIES

 

Section 4.01.          Representations and Warranties of the Borrower.  To induce the Administrative Agent and the
Lenders to enter into this Agreement and to make or participate in extensions
of credit hereunder, the Borrower represents and warrants as follows:

 

(a)           Financial Condition. 
The unaudited consolidated balance sheet of the Borrower as of December
31, 2003 and the related consolidated statements of income, retained earnings
and cash flows for the fiscal year ended on such date, copies of which have
heretofore been furnished to the Lenders, present fairly the consolidated
financial condition of the Borrower and its Consolidated Subsidiaries as at
such date, and the results of their operations and their retained earnings and
cash flows for each of the fiscal periods then ended.  All such financial statements, including the related schedules
and notes thereto relating to the unaudited financials, have been prepared in
accordance with GAAP applied consistently throughout the periods involved.

 

(b)           No Change.  Since
December 31, 2003, except as disclosed to the Lenders through documents posted
on the Syndtrak internet website
for this transaction prior to the date hereof, or described in the SEC Reports
filed prior to the date hereof, there has been no development or event which
has had, or could reasonably be expected to have, a Material Adverse Effect.

 

(c)           Corporate Existence; Compliance with Law. 
Each of the Borrower and its Subsidiaries (a) is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization, (b) has the corporate or limited liability company power and
authority, and the legal right to own and operate its property, to lease the
property it operates as lessee and to conduct the business in which it is
currently engaged, (c) is duly qualified as a foreign corporation or limited
liability company and in good standing under the laws of each jurisdiction
where its ownership, lease or operation of property or the conduct of its
business requires such qualification except to the extent that the failure to
comply therewith could not, in the aggregate, reasonably be expected to have a
Material Adverse Effect and (d) is in compliance with all Requirements of Law,
except to the extent that the failure to comply therewith could not reasonably
be expected to have a Material Adverse Effect.

 

(d)           Corporate Power; Authorization;
Enforceable Obligations.  The Borrower has the
corporate power and authority, and the legal right, to make, deliver and
perform this Agreement and the other Loan Documents and to authorize the
execution, delivery and performance of this Agreement and the other Loan
Documents, and to borrow hereunder.  The
Borrower has taken all necessary corporate action to authorize the borrowings
on the terms and conditions set forth in this Agreement and in the Notes and to
execute, deliver and perform its obligations under this Agreement and the Loan
Documents.  No consent or authorization
of, filing with, notice to or other act by or in respect of, any Governmental
Authority or any other 

 

30

 

Person is required in connection with the borrowings
hereunder, or with the execution, delivery or performance by the Borrower, or
with the validity or enforceability against the Borrower of this Agreement and
the other Loan Documents other than (i) as set forth on Schedule 4.01(d) or
(ii) any consents, authorizations and filings in connection with the foregoing
that, if not obtained, could not reasonably be expected to have a Material
Adverse Effect.  On the Closing Date,
the Administrative Agent and each Lender shall have received complete and
current copies of all consents, authorizations and filings listed on Schedule
4.01(d), which such consents, authorizations and filings shall be in full force
and effect as of the Closing Date.  This
Agreement has been, and each other Loan Document when executed and delivered
will be, duly executed and delivered on behalf of the Borrower.  This Agreement, and each other Loan Document
when executed and delivered will constitute, a legal, valid and binding
obligation of the Borrower enforceable against the Borrower, in accordance with
their respective terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
the enforcement of creditors’ rights generally and by general equitable
principles (whether enforcement is sought by proceedings in equity or at law).

 

(e)           No Legal Bar. 
The execution, delivery and performance of this Agreement and the other
Loan Documents, the borrowings hereunder and the use of the proceeds thereof,
(i) will not violate the articles of incorporation, charter or bylaws or other
organizational documents of the Borrower or any Subsidiary or any other
material Requirement of Law (ii) will not violate any Contractual Obligation of
the Borrower or any Subsidiary which violation could reasonably be expected to
have a Material Adverse Effect, (iii) will not accelerate or result in the
acceleration of any payment obligations of the Borrower or such Subsidiary and
(iv) will not result in, or require, the creation or imposition of any Lien on
any of the respective properties or revenues of the Borrower or any such
Subsidiary pursuant to any such Requirement of Law or Contractual Obligation.

 

(f)            No Material Litigation. 
Except as disclosed to the Lenders through documents posted on the Syndtrak internet website for this
transaction prior to the date hereof or described in the SEC Reports filed
prior to the date hereof, no litigation, investigation or proceeding of or
before any arbitrator or Governmental Authority is pending or, to the knowledge
of the Borrower, threatened by or against the Borrower or any Subsidiary or
against any of the respective properties or revenues of the Borrower or any
Subsidiary which could reasonably be expected to have a Material Adverse
Effect.

 

(g)           No Default.  No Default
or Event of Default has occurred and is continuing.

 

(h)           Ownership of Property; Liens. 
Each of the Borrower and its Subsidiaries has good and marketable title in
fee simple to, or a valid leasehold, easement, license or other interest in,
all its real property, and good title to, or a valid leasehold, easement,
license or other interest in, all its other property, except for defects in
title which could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.  The
property of the Borrower and its Subsidiaries is subject to no Lien other than
Permitted Liens.

 

(i)            Subsidiaries. 
Set forth on Schedule 4.01(i) are all Material Subsidiaries of the
Borrower.  Schedule 4.01(i) correctly
sets forth, as of the date hereof, the percentage 

 

31

 

ownership (direct and indirect) of the Borrower in
voting capital stock or other voting equity interests of each Material
Subsidiary and also identifies the direct owner thereof.  All outstanding shares of capital stock of
each Material Subsidiary of the Borrower have been duly and validly issued, are
fully paid and non-assessable and have been issued free of any preemptive
rights.  Except as set forth on Schedule
4.01(i), no Material Subsidiary has outstanding any securities convertible into
or exchangeable for its Capital Stock or outstanding any right to subscribe for
or to purchase, or any options or warrants for the purchase or, or any
agreement providing for the issuance (contingent or otherwise) of or any calls,
commitments or claims of any character relating to, its Capital Stock or any
stock appreciation or similar rights.

 

(j)            Intellectual Property. 
Each of the Borrower and its Subsidiaries owns, or is licensed to use,
all patents, trademarks, trade names, copyrights, and other intellectual
property material to the conduct of its business as currently conducted except
for those which the failure to own or license could not reasonably be expected
to have a Material Adverse Effect (the “Intellectual Property”).  The use of such Intellectual Property by the
Borrower or any Subsidiary does not infringe on the rights of any Person,
except for such claims and infringements that, in the aggregate, could not
reasonably be expected to have a Material Adverse Effect.

 

(k)           Taxes.  Each of the
Borrower and the Subsidiaries has filed or caused to be filed all federal,
state and other material tax returns which are required to be filed and has
paid or caused to be paid all taxes (including interest and penalties) shown to
be due and payable on said returns or on any assessments made against it or any
of its property and all other taxes, fees or other charges imposed on it or any
of its property by any Governmental Authority (other than any tax, fee or other
charge the amount or validity of which is currently being contested in good
faith by appropriate proceedings and with respect to which reserves in conformity
with GAAP have been provided on the books of the Borrower or such Subsidiary,
as the case may be) other than such taxes described herein of which the failure
to pay or file a return with respect thereto could not reasonably be expected
to result in a Material Adverse Effect; and no tax Lien has been filed, and, to
the knowledge of the Borrower, no claim is being asserted, with respect to any
such tax, fee or other charge.

 

(l)            Margin Stock. 
(i)  The Borrower is not engaged
in the business of extending credit for the purpose of purchasing or carrying
margin stock (within the meaning of Regulation U), and no proceeds of any
extension of credit hereunder will be used to purchase or carry any margin
stock or to extend credit to others for the purpose of purchasing or carrying
any margin stock, except in compliance with applicable law and regulations.
(ii) Following application of the proceeds of each extension of credit
hereunder, not more than 25% of the value of the Consolidated Assets of the
Borrower and its Subsidiaries that are subject to the provisions of Section
5.02(d) will be comprised of margin stock.

 

(m)          Holding Company; Investment Company Act;
Other Regulations.  The Borrower is not (a) an “investment
company” or a company “controlled” by an “investment company”, within the
meaning of the Investment Company Act of 1940, as amended, or (b) a “holding
company”, a “subsidiary company” of a “holding company”, or an “affiliate” of a
“holding company”, as each such term is defined in the Public Utility Holding
Company Act of 1935, as amended.

 

32

 

(n)           [Intentionally Omitted].

 

(o)           ERISA.  Neither the
Borrower nor any Subsidiary maintains, contributes to or has material
obligations with respect to, any welfare plan (as defined in Section (3)(1)
of ERISA) which provides benefits to employees after termination of employment
other than as required by Part 6 of Title I of ERISA or similar state laws
regarding continuation of benefits and which in the aggregate is not unduly
expensive.  Each Plan has complied and
is in compliance in all respects with the applicable provisions of ERISA and
the Code except where failure to do so could not reasonably be expected to have
a Material Adverse Effect.  The Borrower
and each Subsidiary have not breached any of the responsibilities, obligations
or duties imposed on it by ERISA, the Code, or regulations promulgated
thereunder with respect to any Plan, which breach could reasonably be expected
to have a Material Adverse Effect. 
Neither the Borrower nor any Subsidiary nor any fiduciary of any Plan
who is an officer or an employee of the Borrower or any Subsidiary has engaged
in a nonexempt prohibited transaction described in Section 406 of ERISA or 4975
of the Code with respect to a Plan which could reasonably be expected to have a
Material Adverse Effect.  With respect
to any employee benefit plan (as defined in Section 3(3) of ERISA) currently or
formerly maintained or contributed to by any Commonly Controlled Entity, no liability
exists and no event has occurred which could reasonably be expected to subject
the Borrower or any Subsidiary to any liability which could reasonably be
expected to have a Material Adverse Effect. 
None of the Borrower or any Subsidiary has any liability, direct or
indirect, contingent (including any such liability in connection with a
Multiemployer Plan) or otherwise, under Title IV of ERISA or under Section 412
of the Code which could reasonably be expected to have a Material Adverse
Effect.

 

(p)           Environmental Matters. 
Except as described by the Borrower in the SEC Reports filed prior to
the date hereof or as disclosed to the Lenders through documents posted on the Syndtrak internet website for this
transaction prior to the date hereof,

 

(i)            The facilities and properties owned,
leased or operated by the Borrower or its Subsidiaries (the “Properties”)
and all operations at the Properties are in, and have been in, compliance in
all material respects with all applicable Environmental Laws, and there is no
contamination in, at, under, from or about the Properties or violation of any
Environmental Law or other circumstance or condition, with respect to the
Properties or the business operated by the Borrower or its Subsidiaries, or to
the knowledge of the Borrower, any predecessor of any of them (the “Business”)
which in either case could reasonably be expected to result in any claims,
liability, investigation or cost pursuant to any Environmental Law and to have
a Material Adverse Effect.

 

(ii)           None of the Borrower or any Subsidiary,
or to the knowledge of the Borrower, any predecessor of any of them, has
received any notice of violation, alleged violation, non-compliance, liability
or potential liability regarding environmental matters or compliance with Environmental
Laws with regard to any of the Properties or the Business, nor do the Borrower
or any Subsidiary have knowledge or reason to believe that any such notice will
be received or is being threatened, in each case which could reasonably be
expected to have a Material Adverse Effect.

 

33

 

(iii)          There
has been no Release or threat of Release of Materials of Environmental Concern
at or from any of the Properties, or arising from or related to the operations
of the Borrower or any Subsidiary, or to the knowledge of the Borrower, any
predecessor of any of them, in connection with any of the Properties or
otherwise in connection with the Business that could reasonably be expected to
have a Material Adverse Effect.

 

(q)           Insurance.  All policies
of insurance of any kind or nature maintained by or issued to the Borrower or
any Subsidiary, including, without limitation, policies of life, fire, theft,
product liability, public liability, property damage, other casualty, employee
fidelity, worker’s compensation, employee health and welfare, title, property
and liability insurance, are in full force and effect in all material respects
and are of a nature and provide such coverage as is customarily carried by
companies of similar size and character.

 

(r)            Accuracy and Completeness of Information. 
The Borrower has filed as exhibits to SEC Reports, or disclosed to the
Lenders through documents posted on the Syndtrak
internet website for this transaction, in each case prior to the
date hereof, all agreements, instruments and corporate or other restrictions
existing on the date hereof that are or, but for the lapse of time, would be
required to be filed by the Borrower as exhibits to any report on Form 10-Q or
10-K under the Exchange Act.  Except as
described by the Borrower in the SEC Reports filed prior to the date hereof or
as disclosed to the Lenders through documents posted on the Syndtrak internet website for this
transaction prior to the date hereof, there are no facts or other matters known
to the Borrower that are or, but for the lapse of time, would be required to be
disclosed by the Borrower on a report on Form 8-K under the Exchange Act.  No reports, financial statements, certificates
or other information furnished by or on behalf of the Borrower to the
Administrative Agent or any Lender (whether contained in the lender
presentation dated September 2004, disclosed to the Lenders through documents
posted on the Syndtrak internet
website for this transaction, or otherwise) in connection with the negotiation
of this Agreement or any other Loan Document or delivered hereunder (as
modified or supplemented by, and taken together with other information so
furnished) contains any misstatement of a material fact or omits to state any
material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided, however,
that, with respect to forward looking statements, the Borrower represents only
that such information was prepared in good faith based upon assumptions
believed to be reasonable at the time and notes that there can be no assurance
that such expectations, beliefs or projections will be achieved or accomplished
and that such projections are subject to an increasing degree of uncertainty as
they relate to later periods of time.

 

(s)           Leaseholds, Permits, etc. 
The Borrower possesses or has the right to use, all leaseholds,
easements, franchises and permits and all authorizations and other rights which
are material to and necessary for the conduct of the Business, except where the
failure to obtain such authorizations and other rights could not reasonably be
expected to result in a Material Adverse Effect.  All the foregoing are in full force and effect, and each of the
Borrower and the Subsidiaries is in substantial compliance with the foregoing
without any known conflict with the valid rights of others, except for such
noncompliance with the foregoing which could not reasonably be expected to have
a Material Adverse Effect.  No event has
occurred which permits, or after notice or lapse of time or both would permit,
the revocation or termination of

 

34

 

any such leasehold, easement, franchise, license or
other right, which termination or revocation, considered as a whole, could
reasonably be expected to have a Material Adverse Effect.

 

(t)            Liabilities; Contingent Obligations. 
The Borrower has no liabilities or other obligations, including
contingent liabilities, unusual forward or long-term commitments or unrealized
or anticipated losses from unfavorable commitments other than (i) as set forth
in the financial statements referred to in Section 4.01(a), (ii) those
which are not required to be reflected on such financial statements in
accordance with GAAP, (iii) those liabilities which have arisen in the ordinary
course since the date of the financial statements referred to in Section
4.01(a) and (iv) those liabilities that in the aggregate could not
reasonably be expected to have a Material Adverse Effect.

 

(u)           Labor Matters. 
To the Borrower’s knowledge, there are no disputes (i) to which the
Borrower is a party, which involves any group of employees, any strikes or
walkouts relating to the Business of the Borrower or (ii) involving the
expiration or termination of any labor contract to which the Borrower is a
party or by which the Borrower is bound, in either case, which dispute could
reasonably be expected to have a Material Adverse Effect.

 

ARTICLE
V

 

COVENANTS OF THE BORROWER

 

Section 5.01.          Affirmative Covenants.  The Borrower hereby agrees that for so long
as any Loan remains outstanding and unpaid or any Obligation of the Borrower is
owing to any Lender or the Administrative Agent hereunder or under any other
Loan Document, the Borrower shall and shall cause each of its Subsidiaries to:

 

(a)           Financial Statements. 
Furnish to the Administrative Agent for each Lender:

 

(i)            as soon as available, but in any event
within ninety (90) days after the end of each fiscal year of the Borrower, a
copy of the Consolidated balance sheet of the Borrower and its Subsidiaries as
at the end of such year and the related Consolidated and consolidating
statements of income, retained earnings and cash flows for such year, setting forth
in each case in comparative form the figures as of the end of and for the
previous year, reported on without qualification by KPMG LLP or other
independent certified public accountants of nationally recognized standing; provided,
however, that the submission of the Borrower’s report on Form 10-K shall
satisfy the foregoing requirements; and

 

(ii)           as soon as available, but in any event
within forty five (45) days after the end of each Fiscal Quarter of each fiscal
year of the Borrower, the unaudited Consolidated balance sheet of the Borrower
and its Subsidiaries as at the end of such quarter and the related unaudited
Consolidated statements of income, retained earnings and cash flows of the
Borrower and its Subsidiaries for such quarter and the portion of the fiscal
year through the end of such quarter and setting forth the actual figures for
the corresponding date or period in the previous year, certified by the chief
financial officer 

 

35

 

or treasurer of
the Borrower as being fairly stated in all material respects (subject to normal
year-end audit adjustments); provided, however, that the
submission of the Borrower’s report on Form 10-Q shall satisfy the foregoing
requirements,

 

all such financial statements shall be
complete and correct in all material respects and shall be prepared in
reasonable detail and in accordance with GAAP applied consistently throughout
the periods reflected therein and with prior periods.

 

(b)           Certificates; Other Information.  Furnish to the Administrative Agent:

 

(i)            concurrently with the delivery of the
financial statements referred to in Section 5.01(a)(i), a certificate of
the independent certified public accountants reporting on such financial
statements stating that in making the examination necessary therefor no
knowledge was obtained of any Event of Default resulting from the Borrower’s
failure to comply with Section 5.02(a), except as specified in such
certificate;

 

(ii)           concurrently with the delivery of the
financial statements referred to in Section 5.01(a)(i) or (ii), a
compliance certificate of the chief financial officer or treasurer of the
Borrower, in form and substance satisfactory to the Administrative Agent (the “Compliance
Certificate”) (i) showing compliance by the Borrower with the covenants
contained in Section 5.02(a) and (ii) setting forth the description of
any Reduction Event occurring during such period and the aggregate amount of
Net Cash Proceeds received during such period with respect to any Reduction
Event;

 

(iii)          within
ten (10) days after the filing thereof, copies of all reports which the
Borrower sends to any of its stockholders, and copies of all registration
statements, SEC Reports (or, in each case, any successor form) which the
Borrower or any Subsidiary files with the SEC or any successor or analogous
Governmental Authority (other than public offerings of securities under
employee benefit plans or dividend reinvestment plans); provided, however,
that the Borrower shall have satisfied the foregoing requirement as to any
report upon the Administrative Agent receiving such report from the Borrower in
an electronic notification thereof to the Administrative Agent;

 

(iv)          promptly after either of Moody’s or
S&P has raised or lowered the credit rating of the credit facility
evidenced by this Agreement, a notice as to such effect;

 

(v)           promptly such other information the
Administrative Agent or any Lender may from time to time reasonably request
concerning data, documentation and other information required by bank
regulatory authorities under applicable “know your customer” and Anti-Money
Laundering rules and regulations (including the Patriot Act), including
evidence satisfactory to the Administrative Agent of the listing of Capital
Stock of the Borrower on the New York Stock Exchange; and

 

(vi)          promptly, such additional financial and
other information as the Administrative Agent or any Lender may from time to
time reasonably request.

 

(c)           Payment and Performance of Obligations. 
Perform in all respects all of its obligations under the terms of
indentures, mortgages, security agreements and other agreements 

 

36

 

evidencing indebtedness for monies borrowed to which
it is party or bound, including pay, discharge or otherwise satisfy at or
before maturity or before they become delinquent, as the case may be, all
taxes, fees or other charges imposed on it or on any of its properties by any
Governmental Authority and all its other obligations of whatever nature except,
in each case, where the amount or validity thereof is currently being
diligently contested in good faith and reserves in conformity with GAAP with
respect thereto have been provided on the books of the Borrower or any of its
Subsidiaries, as the case may be, or where the failure to perform such
obligations could not reasonably be expected to result in a Material Adverse
Effect.

 

(d)           Maintenance of Existence. 
Renew and keep in full force and effect its corporate existence, take
all reasonable action to maintain all rights, privileges and franchises
necessary or desirable in the normal conduct of its business except to the
extent such failure to maintain could not, in the aggregate, reasonably be
expected to have a Material Adverse Effect and comply with all Contractual
Obligations except to the extent that failure to comply therewith could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect; provided, however, that any Subsidiary may merge,
consolidate or amalgamate in accordance with Section 5.02(b)  (and such transaction shall not constitute a
breach of this Section 5.01(d)).

 

(e)           Maintenance of Property; Insurance. 
Keep all property useful and necessary in its business in good working
order and condition (ordinary wear and tear, and casualties, excepted),
maintain with financially sound and reputable insurance companies insurance on
all its property in at least such amounts and against at least such risks as
are usually insured against in the same general area by companies engaged in
the same or a similar business, and furnish to the Administrative Agent, upon
request, full information as to the insurance carried including certified
copies of policies and certificates of insurance from a nationally recognized
insurance broker.

 

(f)            Inspection of Property; Books and
Records; Discussions.  Keep proper books of records and accounts,
in which full, true and correct entries in conformity with GAAP and all
Requirements of Law shall be made of all dealings and transactions in relation
to its business and activities; and permit after reasonable notice
representatives of the Administrative Agent or any Lender to visit and inspect
any of its properties and examine and make abstracts from any of its books and
records at any reasonable time and as often as may reasonably be desired, and
to discuss the business, operations, properties and financial and other
condition of the Borrower and each Subsidiary with officers and employees of
the Borrower and such Subsidiary and with their independent certified public
accountants. All costs and expenses relating to any such visitation and
inspection (i) in the case of a Lender, shall be borne by such Lender, and (ii)
in the case of the Administrative Agent, shall be borne by the Administrative
Agent unless a Default or an Event of Default shall have occurred and be
continuing.

 

(g)           Notices  (i).  Within five (5) days after the Borrower knows with respect to any
notice under clause (A) or within ten (10) days with respect to any other
notice under this Section 5.01(g)(i), give notice to the Administrative
Agent and each Lender of:

 

(A)          the occurrence of any Default or Event of
Default;

 

37

 

(B)           any (x) default or event of default under
any Contractual Obligation of the Borrower or any Subsidiary, or (y)
litigation, investigation or proceeding which may exist at any time between the
Borrower or any such Subsidiary and any Governmental Authority, which in either
case, if not cured or if adversely determined, as the case may be, could
reasonably be expected to have a Material Adverse Effect;

 

(C)           any material labor dispute to which the
Borrower or any Subsidiary may become a party and which involves any group of
employees, any strikes or walkouts relating to any of its plants or facilities
and the expiration or termination of any labor contract to which the Borrower
or such Subsidiary is a party or by which the Borrower or such Subsidiary is
bound and which dispute could reasonably be expected to have a Material Adverse
Effect;

 

(D)          any litigation or proceeding instituted
against the Borrower which, if adversely determined against the Borrower, could
reasonably be expected to have a Material Adverse Effect; or

 

(E)           all written claims, complaints, notices
or inquiries relating to compliance by the Borrower or any of its Subsidiaries
with any Environmental Law that could reasonably be expected to have a Material
Adverse Effect.

 

Each notice pursuant to this Section 5.01(g)(i) shall be
accompanied by a statement of a Responsible Officer setting forth details of
the occurrence referred to therein and stating what action the Borrower
proposes to take with respect thereto. 
For the purposes of this Section 5.01(g)(i), the Borrower shall
be deemed to have knowledge when any officer of the Borrower charged with
responsibility for any matter that is the subject of such notice requirement
knows or should have known that such notice was required.

 

(ii)           At least two (2) days prior to such event
(to the extent practicable), give notice to the Administrative Agent of the
occurrence of (A) any Reduction Event (other than an Asset Sale Event) and (B)
any Asset Sale Event the Net Cash Proceeds of which are (or are scheduled to
be) in excess of $15,000,000.

 

(h)           Compliance with Laws; Environmental
Compliance.  (i) Comply in all respects with all
applicable laws, rules, regulations and orders of any Governmental Authority
(including Environmental Laws and ERISA), whether now in effect or hereafter
enacted except instances that could not, in the aggregate, reasonably be
expected to result in a Material Adverse Effect; (ii) comply and cause its
Subsidiaries to comply in all material respects with all applicable
Environmental Laws and obtain and comply and cause its Subsidiaries to obtain
and comply in all material respects with and maintain and cause its
Subsidiaries to maintain any and all licenses, approvals, notifications,
registrations or permits required by applicable Environmental Laws except to
the extent that failure to do so could not be reasonably expected to have a
Material Adverse Effect; and (iii) conduct and complete all investigations,
studies, sampling and testing, and all remedial, removal and other actions
required under Environmental Laws and promptly comply in all material respects
with all lawful orders and directives of all

 

38

 

Governmental Authorities regarding Environmental Laws
except to the extent that the same are being contested in good faith by
appropriate proceedings and the pendency of such proceedings could not
reasonably be expected to have a Material Adverse Effect.

 

(i)            ERISA.  Establish, maintain and operate and cause
each of its Subsidiaries to establish, maintain and operate all Plans to comply
in all material respects with the applicable provisions of ERISA, the Code, and
all other applicable laws, and the regulations and interpretations thereunder
and the respective requirements of the governing documents for such Plans
except to the extent that failure to do so could not reasonably be expected to
have a Material Adverse Effect.

 

(j)            Use
of Proceeds.  Use the proceeds of
the extension of credit hereunder solely for the purposes set forth in Section
2.18, in compliance with all Requirements of Law.  The Borrower acknowledges that one or more of the Lenders may
treat its Loans as part of a transaction that is subject to Treasury Regulation
Section 301.6112-1, and such Lender or Lenders, as applicable, will maintain
the lists and other records required by such Treasury Regulation.

 

(k)           Margin
Stock.  Not permit the aggregate
value of margin stock (as defined in Regulation U) at any time owned or held by
the Borrower or any of its Subsidiaries to exceed an amount equal to 25% of the
value of all Consolidated Assets subject at such time to any “arrangement” (as
such term is used in the definition of “indirectly secured” in Section 221.2 of
Regulation U).

 

(l)            Maintain
Ownership of Domestic Utility Business. 
Except in connection with sale of assets permitted pursuant to Section
5.02(g), maintain ownership, directly (and not through any Subsidiary), of
all or substantially all of the assets of the Domestic Utility Business.

 

(m)          Credit
Ratings.  Cause Moody’s and S&P
to maintain long-term senior unsecured debt ratings with respect to the credit
facility evidenced by this Agreement.

 

(n)           Extension
Regulatory Approvals.  Undertake
commercially reasonable efforts to obtain the Extension Regulatory Approvals as
promptly as practicable after the Closing Date and upon receipt thereof,
promptly deliver to the Administrative Agent written notice and evidence of the
receipt thereof (such notice and evidence, the “Extension Regulatory
Approval Notice”).

 

Section 5.02.          Negative Covenants.  The Borrower hereby agrees that for so long
as any Loan remains outstanding and unpaid or any Obligation is owing to any
Lender or the Administrative Agent hereunder or under any other Loan Document,
the Borrower shall not:

 

(a)           Financial Covenants.

 

(i)            Total
Capitalization.  Permit the ratio
(expressed as a percentage) of Debt of the Borrower to Total Capital to exceed
on any Covenant Compliance Date (A) from December 31, 2004 through September
31, 2007, 90%, (B) from December 31, 2007 through September 30, 2008, 75%, (C)
from December 31, 2008 through June 30, 2009, 70%, and (D) thereafter, 65%.

 

39

 

(ii)           EBITDA
to Interest Expense.  Permit the
ratio of (A) EBITDA to (B) the aggregate amount of Consolidated Interest
Expense accrued on Debt of the Borrower on any Covenant Compliance Date for the
period of four consecutive Fiscal Quarters prior to such Covenant Compliance
Date, to be less than, in respect of any Covenant Compliance Date (1) from
December 31, 2004 to September 30, 2005, 1.0 to 1.0, (2) from December 31, 2005
to September 30, 2006, 1.1 to 1.0, (3) from December 31, 2006 to September 30, 2007,
1.3 to 1.0, (4) from December 31, 2007 to September 30, 2008, 1.4 to 1.0, (5)
from December 31, 2008 to June 30, 2009, 1.6 to 1.0 and (6) thereafter, 1.8 to
1.0.

 

(iii)          Debt
to EBITDA.  Permit the ratio of (A)
the aggregate principal amount of Debt of the Borrower on any Covenant
Compliance Date to (B) EBITDA for the period of four consecutive Fiscal
Quarters prior to such Covenant Compliance Date, to exceed on any such Covenant
Compliance Date occurring (i) December 31, 2004 to September 30, 2005, 9.5 to
1.0, (ii) from December 31, 2005 to September 30, 2006, 8.5 to 1.0, (iii) from
December 31, 2006 to September 30, 2007, 7.5 to 1.0, (iv) from December 31,
2007 to September 30, 2008, 6.0 to 1.0, (v) from December 31, 2008 to June 30,
2009, 5.5 to 1.0, and (vi) thereafter, 5.0 to 1.0.

 

In the Compliance Certificate delivered
pursuant to Section 5.01(b)(ii) following the conclusion of the sale of
any asset (other than accounts receivable) material to the Borrower and used in
the Domestic Utility Business or the Telecommunications Business permitted by Section
5.02(g), the Borrower shall calculate the financial covenants set forth in
this Section 5.02(a) on a pro forma basis. In calculating financial
covenants on a pro-forma basis, the Borrower will (A) exclude income, Debt and
other charges associated with the assets subject to such sale and (B) give
effect to the application of the net proceeds generated by such sale; provided,
that if the Borrower has not applied the net sale proceeds in the manner contemplated
in the calculations made pursuant to clause (B) prior to the immediately
following Covenant Compliance Date, the Borrower will not be permitted to
continue to give effect to the application of such net sale proceeds.

 

(b)           Limitation
on Fundamental Changes.  Enter into
any merger, consolidation or amalgamation, or liquidate, wind up or dissolve
itself (or suffer any liquidation or dissolution), or convey, sell, lease,
assign, transfer or otherwise dispose of, all or substantially all its
property, business or assets, except any Wholly-Owned Subsidiary may be merged
or consolidated with or into the Borrower (provided that the Borrower
shall be the continuing or surviving corporation).

 

(c)           Limitation
on Transactions with Affiliates. 
Except for transactions providing services (including group purchases of
equipment or energy) at cost to any Subsidiary or Affiliate, enter into, or
permit any Subsidiary to enter into, any transaction, including any purchase,
sale, lease or exchange of property or the rendering of any service, with any
Affiliate unless such transaction is upon fair and reasonable terms no less
favorable to the Borrower (or such Subsidiary) than it would have obtained in a
comparable arm’s-length transaction with a Person which is not an Affiliate.

 

(d)           Limitation
on Liens.  Create, incur, assume or
suffer to exist, and shall not permit any Subsidiary to create, incur, assume
or suffer to exist, any Lien upon any of its 

 

40

 

properties, assets or revenues, whether now owned or
hereafter acquired, except for Permitted Liens.

 

(e)           Amendments
of Organizational Documents.  Amend,
modify or change, or permit any Subsidiary to amend, modify or change, its
articles of incorporation or bylaws in any manner that could reasonably be
expected to result in a Material Adverse Effect.

 

(f)            Limitation
on Guarantee Obligations.  Create,
incur, assume or suffer to exist, and shall not permit any Subsidiary to
create, incur, assume or suffer to exist, any Guarantee Obligation except:

 

(i)            guarantees
of obligations to third parties made in the ordinary course of business not
relating to Debt;

 

(ii)           Guarantee
Obligations existing on the date hereof;

 

(iii)          Guarantee
Obligations which by their terms (either mandatorily or at the unfettered
option of the Borrower) are payable solely in Capital Stock (other than
Mandatory Redeemable Stock) of the Borrower provided that the Borrower
agrees that so long as this Agreement is in effect to cause any payment under
any such outstanding obligation to be made only in such Capital Stock; and

 

(iv)          Guarantee
Obligations permitted pursuant to Section 5.02(j)(ix).

 

(g)           Limitation
on Sale of Assets.  Convey, sell,
lease, assign, transfer or otherwise dispose of any of, its property, business
or assets (including tax benefits, receivables and leasehold interests),
whether now owned or hereafter acquired, except:

 

(i)            for
the sale or other disposition of any property that, in the reasonable judgment
of the Borrower, has become uneconomic, obsolete or worn out, and which is
disposed of in the ordinary course of business;

 

(ii)           for
sales of inventory made in the ordinary course of business;

 

(iii)          [Intentionally
Omitted];

 

(iv)          for
sales or dispositions of assets (including accounts receivables) by the
Borrower after the date hereof; provided, however, that (A) no
Event of Default then exists or would result therefrom, (B) such sale or other
disposition shall be made for fair sale value on an arm’s-length basis, (C) at
least seventy five (75%) of the purchase price therefor shall be paid in cash
and such cash portion of the purchase price shall be payable at (or prior to)
the time of such Disposition, (D) the Borrower uses the net cash proceeds for
general corporate purposes (including debt retirement or working capital
purposes) and (E) the Borrower shall comply with Section 2.05, if
applicable;

 

(v)           that
the Borrower may cancel or make changes or alterations in or substitutions for
any and all easements, servitudes, rights of way and similar rights or
interests;

 

41

 

(vi)          that
the Borrower may grant easements, ground leases or rights-of-way in, upon, over
or across property or rights-of-way, provided such grant shall not
materially impair the use of the property or rights-of-way for the purposes for
which such property or rights-of-way are held; or

 

(vii)         for
operating leases entered into ordinary course of business.

 

(h)           Limitation
on Investments, Loans and Advances. 
Make, and shall not permit any Subsidiary to make, any advance, loan,
extension of credit (excluding Guarantee Obligations but including any payment
by a guarantor thereunder) or capital contribution to, or purchase any Capital
Stock, bonds, notes, debentures or other securities of, or purchase all or a
material part of a business unit or line of business of (or all or
substantially all the assets of), or make any other investment in, any Person
(any of the foregoing, an “Investment”), except:

 

(i)            (A)
extensions of trade credit in the ordinary course of business and (B)
Investments (including reinvestments thereof by any intermediate Subsidiary) to
the extent the ultimate proceeds thereof are applied to maintenance capital
expenditures in the ordinary course of business and required to comply with Section
5.01(e) for merchant generation plants of any Wholly-Owned Subsidiary;

 

(ii)           [Intentionally
Omitted];

 

(iii)          the
Borrower may acquire all or a material part of any domestic regulated business,
provided that the aggregate principal amount of Debt incurred or assumed by the
Borrower and its Subsidiaries in connection with such acquisition (together
with the aggregate principal amount of Indebtedness of such acquired Person)
shall not exceed fifty percent (50%) of the lesser of the fair value or cost of
such acquired assets (and, to the extent such Debt is incurred in connection
with such acquisition or in contemplation of such acquisition, such Debt shall
not have a scheduled maturity, or require any principal payment prior to six
months after the Maturity Date);

 

(iv)          the
Borrower and its Subsidiaries may invest in, acquire and hold Cash Equivalents;

 

(v)           the
Borrower or any of its Subsidiaries may make travel and entertainment advances,
relocation loans and payroll advances in the ordinary course of business to
officers and employees of the Borrower or any such Subsidiary;

 

(vi)          Investments
of the Borrower or any Subsidiary existing on the date hereof and the receipt
of any additional securities constituting payments in kind on such existing
Investments;

 

(vii)         Investments
in obligations arising out of bankruptcy of customers and suppliers;

 

(viii)        subject
to 5.02(g), Investments consisting of non-cash consideration received in
connection with sales of assets;

 

42

 

(ix)           Investments
in a Wholly-Owned Subsidiary of Borrower in furtherance of the winding down or
exiting of the operations of the unregulated merchant energy business or
operations of Borrower and its Subsidiaries;

 

(x)            in
connection with cash management and tax efficient financing of the Borrower and
its Subsidiaries in the ordinary course of business consistent with past
practice, Investments by the Borrower or any Subsidiary of the Borrower in the
Borrower or any Subsidiary of the Borrower, provided that the proceeds
thereof shall not be used to finance any capital expenditure;

 

(xi)           other
Investments of the Borrower or any Subsidiary after the date hereof of not more
than $30,000,000 in the aggregate; and

 

(xii)          Investments
the Borrower or any Subsidiary is contractually obligated to make on the date
hereof.

 

(i)            Limitation
on Dividends and Stock Repurchases. 
Declare any dividends other than dividends paid in kind on any shares of
any class of Capital Stock of the Borrower, or make any payment on account of,
or set apart assets for a sinking or other analogous fund for, the purchase,
redemption, retirement or other acquisition of any shares of any class of
Capital Stock of the Borrower, whether now or hereafter outstanding, or make
any other distribution in respect thereof, either directly or indirectly,
whether in cash or property or in obligations of the Borrower or any of its
Subsidiaries (all of the foregoing being referred to herein as “Restricted
Payments”); except that the Borrower may make Restricted Payments on or
with respect to its Capital Stock so long as, after giving effect to such
Restricted Payments, (i) no Default or Event of Default shall have occurred and
be continuing or shall result therefrom and (ii) the Borrower’s senior
unsecured credit rating is at least Ba2 by Moody’s and BB by S&P.

 

(j)            Limitation
on Indebtedness or Mandatory Redeemable Stock.  Create, incur, issue, assume or suffer to exist, and shall not
permit any Subsidiary to create, incur, issue, assume or suffer to exist, any
Indebtedness or Mandatory Redeemable Stock (including any Indebtedness or
Mandatory Redeemable Stock of any of its Subsidiaries), except:

 

(i)            Debt
of the Borrower under this Agreement;

 

(ii)           Debt
of the Borrower under the Revolving Credit Agreement;

 

(iii)          Indebtedness
of the Borrower or any Subsidiary incurred in connection with an Investment
that is permitted under Section 5.02(h)(iii) (and any refinancing
thereof), to the extent such Indebtedness complies with the terms of Section
5.02(h)(iii), provided that the Borrower shall not incur, issue or
assume any Debt or Mandatory Redeemable Stock after the date hereof pursuant to
this clause (iii) that has a scheduled maturity, or requires any principal
payment, prior to six months after the Maturity Date;

 

(iv)          Indebtedness
consisting of reimbursement obligations under surety, indemnity, performance,
release and appeal bonds and guarantees thereof and letters of credit required
in the ordinary course of business or in connection with the enforcement of
rights or claims of the Borrower or its Subsidiaries (but not in connection
with Debt);

 

43

 

(v)           Non-Recourse
Debt (and any refinancing thereof, provided that after giving effect
thereto, such Indebtedness constitutes Non-Recourse Debt);

 

(vi)          Indebtedness
outstanding on the date hereof (and any refinancing thereof), provided
that, to the extent constituting Debt or Mandatory Redeemable Stock, such
Indebtedness is set forth on Schedule 5.02(j) hereto;

 

(vii)         Indebtedness
incurred to provide all or a portion of the purchase price or costs of
construction of fixed assets (and any refinancing thereof); provided, however,
that (A) such Indebtedness when incurred shall not exceed the purchase price or
cost of construction of such asset and (B) the aggregate outstanding principal
amount of all such Indebtedness shall not exceed $10,000,000 at any one time;

 

(viii)        Indebtedness
of the Borrower secured by accounts receivable of the Borrower (and any
refinancing thereof) in an aggregate outstanding principal amount not to exceed
$150,000,000 at any one time;

 

(ix)           secured
or unsecured Indebtedness (and any refinancing thereof) not otherwise permitted
by the preceding clauses of this Section 5.02(j) not exceeding
$150,000,000 in aggregate principal amount at any one time outstanding (and
which may include Guarantee Obligations of the Borrower with respect to
Indebtedness of a Subsidiary);

 

(x)            Indebtedness
of the Borrower or any Subsidiary incurred in connection with an Investment
that is permitted under Section 5.02(h)(ii), 5.02(h)(ix) or 5.02(h)(x),
in each case, to the extent such Indebtedness complies with the terms thereof,
respectively; and

 

(xi)           secured
or unsecured indebtedness incurred by the Borrower to finance capital
expenditures related to its regulated utility operations (and any refinancing
thereof); provided, however, that either (A) the capital
expenditure is required by applicable law or (B) the capital expenditure is
believed by the Borrower to be reasonably necessary for the provision of safe
and reliable service to the Borrower’s utility customers and a Responsible
Officer of the Borrower certifies in writing to the Administrative Agent, at
least 10 days prior to incurring the indebtedness, that the incurrence complies
with the requirements of this clause (B);

 

provided that in the event of any refinancing
referred to in clauses (iii), (v),(vi),(vii),(viii), (ix) and (xi) of this Section
5.02(j) (to the extent constituting a refinancing and not additional
Indebtedness permitted to be incurred under any such clause), the principal of
the Indebtedness so refinanced is not increased as a result thereof (plus any
premiums required to be paid to such existing debtholders in connection with such
refinancing).

 

(k)           Limitation
on Sales and Leasebacks.  Unless
otherwise permitted under Section 5.02(j)(xi), enter into any
arrangement with any Person providing for the leasing by the Borrower of real
or personal property, in an aggregate amount for all such property exceeding
$10,000,000, which has been or is to be sold or transferred by the Borrower to
such Person or to 

 

44

 

any other Person to whom funds have been or are to be
advanced by such Person on the security of such property or rental obligations
of the Borrower.

 

(l)            [Intentionally
Omitted].

 

(m)          Limitation
on Businesses.  Enter into or engage
in any business, either directly or through any Subsidiary, except for
businesses of the same general type as those in which the Borrower and its
Subsidiaries are engaged on the date hereof or other business activities
reasonably incidental or related to any of the foregoing.

 

(n)           Limitation
on Certain Amendments.  Amend,
modify or change, or consent to any amendment, modification or change to any of
the terms relating to the payment or prepayment of principal of or interest on,
any Debt in any manner which would (i) create or accelerate any amortization of
the principal thereof prior to the sixth month after the Maturity Date, (ii)
result in the maturity being earlier than six months after the Maturity Date,
(iii) increase the amount of any payment or prepayment of principal thereof (to
earlier than six months after the Maturity Date) or increase the rate of
interest thereon or (iv) extend the Lien, if any, granted thereby to extend to
any assets not securing such Debt.

 

(o)           Limitations
on Subsidiaries’ Equity Interests. 
Permit any Subsidiary to issue any preferred Capital Stock or any
redeemable common stock having mandatory redemption or other amortizing
payments prior to six months after the Maturity Date other than (i) issuances
of preferred Capital Stock in payment of regularly accruing dividends on
theretofore outstanding shares of such preferred Capital Stock, and (ii) in
connection with Investments made pursuant to Section 5.02(h)(ix) or (x).

 

(p)           Hedging
Arrangements; Forward Sale or Purchase Contracts.  (i)  Enter into, and shall
not permit any Subsidiary to enter into, any interest rate protection
agreement, interest rate future, interest rate option, interest rate swap, or
other interest rate hedge or arrangement, or any other agreement or arrangement
designed to limit or eliminate the risk or exposure to fluctuations in currency
exchange rates, or fuel or other commodity prices, other than (A) (1) any such
agreement or arrangement entered into in the ordinary course of business to
hedge or mitigate risks to such which the Borrower or any Subsidiary is exposed
in the conduct of its business or the management of its liabilities and (2) not
for speculative purposes or (B) in the case of agreements or arrangements
relating to interest rates, entered into to take advantage of reduced interest
rates by converting fixed rate obligations into floating rate obligations; or
(ii) enter into, and shall not permit any Subsidiary to enter into, any forward
purchase and/or sale, or other forward acquisition or disposition, of energy or
transmission rights, or any energy tolling transactions, as seller of tolling
services, in each case, other than any purchase, sale or other transaction
entered into in the ordinary course of the Borrower’s or any Subsidiary’s
business and not for speculative purposes.

 

(q)           Indentures.  Subject any additional assets (other than pursuant
to the any after-acquired or similar clause) to the Lien of, or issue
additional bonds under, (i) the St. Joseph Power & Light Indenture, (ii)
the Indenture or Mortgage and Deed of Trust dated as of April 1, 2003, between
the Borrower and Bank One Trust Company, NA, as trustee (as amended or
supplemented from time to time), or (iii) any other mortgage indenture entered
into by the 

 

45

 

Borrower, unless, in each case, done in connection
with a transaction permitted by the terms of this Agreement.

 

ARTICLE
VI

 

EVENTS OF DEFAULT

 

Section 6.01.          Events
of Default.  If any of
the following events (“Events of Default”) shall occur and be
continuing:

 

(a)           The
Borrower shall fail to pay (i) any principal of any Loan when the same becomes
due and payable or (ii) any interest on any Loan or any fee or any other
payment due in connection with this Agreement, any Note or any other Loan
Document within three (3) days after such interest, fee or other payment becomes
due and payable; or

 

(b)           Any
representation or warranty made or deemed made by or on behalf of the Borrower
herein or in any other Loan Document or in any notice, certificate, document or
other instrument delivered by the Borrower in connection with this Agreement or
any other Loan Document shall prove to have been incorrect in any material
respect on or as of the date made or deemed made; or

 

(c)           The
Borrower shall default in the observance or performance of any agreement
contained in Section 5.02; or

 

(d)           The
Borrower shall default in the observance or performance of any other agreement
contained in this Agreement or any other Loan Document, and such default shall
continue unremedied for a period of thirty (30) days after the earlier of
notice thereof being provided by the Administrative Agent or the Required
Lenders or discovery thereof by a Responsible Officer of the Borrower; or

 

(e)           The
Borrower or any Material Subsidiary shall (i) default in any payment
(regardless of amount) of principal of, premium, if any, or interest on any
Debt having an aggregate principal amount in excess of $40,000,000 (other than
the Loans) beyond the grace period, if any, provided in the instrument or
agreement under which such Debt was created or (ii) default in the observance
or performance of any other agreement or condition relating to any such Debt or
contained in any instrument or agreement evidencing, securing or relating
thereto, or any other event shall occur or condition exist, the effect of which
default or other event or condition is to cause, or to permit the holder or
holders of such Debt (or a trustee or agent on behalf of such holder or holders
or beneficiary or beneficiaries) to cause, with the giving of notice, if
required, such Debt to become due prior to its Stated Maturity; provided,
however, that any such default by the Borrower or any Material
Subsidiary under Non-Recourse Debt will not constitute an Event of Default
unless such default also constitutes a default under other recourse Debt of the
Borrower or such Material Subsidiary in an aggregate outstanding principal
amount of $40,000,000 or more; and provided  further, that, for
the avoidance of doubt, any default by the Borrower or any Material Subsidiary
under any indebtedness which, but for being cash collateralized, would have
constituted Debt hereunder will not constitute an Event of Default 

 

46

 

unless such default also constitutes a default under
other recourse Debt of the Borrower or such Material Subsidiary in an aggregate
outstanding principal amount of $40,000,000 or more; or

 

(f)            (i)
The Borrower or any Material Subsidiary shall commence any case, proceeding or
other action (A) under any existing or future law of any jurisdiction, domestic
or foreign, relating to bankruptcy, insolvency, reorganization or relief of
debtors, seeking to have an order for relief entered with respect to it, or
seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization,
arrangement, adjustment, winding-up, liquidation, dissolution, composition or
other relief with respect to it or its debts, or (B) seeking appointment of a
receiver, trustee, custodian, conservator or other similar official for it or
for all or any substantial part of its assets, or the Borrower or any such
Material Subsidiary shall make a general assignment for the benefit of its
creditors; or (ii) there shall be commenced against the Borrower or any such
Material Subsidiary any case, proceeding or other action of a nature referred
to in clause (i) above which (A) results in the entry of an order for relief or
any such adjudication or appointment or (B) remains undismissed, undischarged
or un-bonded for a period of 60 days; or (iii) there shall be commenced against
the Borrower or any such Material Subsidiary any case, proceeding or other
action seeking issuance of a warrant of attachment, execution, distrait or
similar process against all or any substantial part of its assets which results
in the entry of an order for any such relief which shall not have been vacated,
discharged, or stayed or bonded pending appeal within 60 days from the entry
thereof; or (iv) the Borrower or any such Material Subsidiary shall take any
action in furtherance of, or indicating its consent to, approval of, or acquiescence
in, any of the acts set forth in clause (i), (ii), or (iii) above; or (v) the
Borrower or any such Material Subsidiary shall generally not, or shall be
unable to, or shall admit in writing its inability to, pay its debts as they
become due; or

 

(g)           (i)
Any Person shall engage in any nonexempt “prohibited transaction” (as defined
in Section 406 of ERISA or Section 4975 of the Code) involving any Plan, (ii)
any “accumulated funding deficiency” (as defined in Section 302 of ERISA),
whether or not waived, shall exist with respect to any Plan or any Lien in
favor of the PBGC or a Plan shall arise on the assets of the Borrower, any
Subsidiary or any Commonly Controlled Entity, (iii) a Reportable Event shall
occur with respect to, or proceedings shall commence to have a trustee
appointed, or a trustee shall be appointed, to administer or to terminate, any
Plan, which Reportable Event or commencement of proceedings or appointment of a
trustee is, in the reasonable opinion of the Required Lenders, likely to result
in the termination of such Plan for purposes of Title IV of ERISA, (iv) any
Plan shall terminate for purposes of Title IV of ERISA, (v) the Borrower, any
Subsidiary or any Commonly Controlled Entity shall, or in the reasonable
opinion of the Required Lenders is likely to, incur any liability in connection
with a withdrawal from, or the Insolvency or Reorganization of, a Multiemployer
Plan or (vi) any other event or condition shall occur or exist with respect to
a Plan; and in each case in clauses (i) through (vi) above, such event or
condition, together with all other such events or conditions, if any, could
reasonably be expected to have a Material Adverse Effect; or

 

(h)           One
or more judgments or decrees shall be entered against the Borrower or any of
its Material Subsidiaries involving in the aggregate a liability (to the extent
not covered by third-party insurance as to which the insurer has acknowledged
coverage) of $40,000,000 or more and sufficient judgments or decrees shall not
have been vacated, discharged, stayed or 

 

 

47

 

bonded pending appeal within thirty (30) days from the
entry thereof to reduce such amount to less than $40,000,000; or

 

(i)            Any
Event of Default (as such term is defined in the Revolving Credit Agreement )
shall occur; or

 

(j)            A
Change of Control shall occur;

 

then, and in any such event, (A) if such
event is an Event of Default specified in clause (i) or (ii) of paragraph (f)
above with respect to the Borrower, automatically the Loans hereunder (with
accrued interest thereon) and all other amounts owing under this Agreement and
the Notes shall immediately become due and payable, and (B) if such event is
any other Event of Default, with the consent of the Required Lenders, the
Administrative Agent may, or upon the request of the Required Lenders the
Administrative Agent shall, by notice to the Borrower, declare the Loans
hereunder and the Notes to be due and payable forthwith, whereupon the same
shall immediately become due and payable. 
Except as expressly provided above in this Section 6.01,
presentment, demand, protest and all other notices of any kind are hereby
expressly waived.

 

ARTICLE
VII

 

THE ADMINISTRATIVE AGENT

 

Section 7.01.          Authorization
and Action.  Each
Lender hereby appoints and authorizes the Administrative Agent to take such
action as agent on its behalf and to exercise such powers and discretion under
the other Loan Documents as are delegated to the Administrative Agent by the
terms thereof, together with such powers and discretion as are reasonably
incidental thereto.  As to any matters
not expressly provided for by the Loan Documents (including enforcement of any
Loan Document or collection of any amounts thereunder), the Administrative
Agent shall not be required to exercise any discretion or take any action.  Notwithstanding any provision to the
contrary elsewhere in this Agreement, the Administrative Agent shall not have
any duties or responsibilities, except those expressly set forth herein, or any
fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against the
Administrative Agent.  The
Administrative Agent shall be fully protected in acting (or refraining from
acting) in accordance with the instructions of the Required Lenders, and such
action (or such refraining from acting) shall be binding upon all Lenders and
all holders of Loans.  The Administrative
Agent shall be fully justified in failing or refusing to take any action
hereunder and under any other Loan Document unless it shall first be
indemnified to its satisfaction by the Lenders pro rata against any and all
liability, cost and expense that it may incur by reason of taking or continuing
to take any such action.  In no event
shall the Administrative Agent be required to take any action (or refrain from
taking any action) which the Administrative Agent deems in good faith (i) to
expose the Administrative Agent to potential personal liability or (ii) to be
contrary to this Agreement or applicable law. 
The Administrative Agent agrees to give to each Lender prompt notice of
each notice given to it by the Borrower pursuant to the terms of this Agreement.

 

48

 

Section 7.02.          Administrative
Agent’s Reliance, Etc. 
Neither the Administrative Agent nor any of its directors, officers,
agents or employees shall be liable for any action taken or omitted to be taken
by it or them under or in connection with this Agreement, except for its or
their own gross negligence or willful misconduct.  Without limitation of the generality of the foregoing, the
Administrative Agent:  (i) may treat the
Lender that made any Loan as the holders of the Debt resulting therefrom until,
in the case of any such Lender, the Administrative Agent receives and accepts
an Assignment and Acceptance entered into by such Lender, as assignor, and an
assignee, as provided in Section 8.07; (ii) may consult with legal
counsel (including counsel for the Borrower), independent public accountants
and other experts selected by it and shall not be liable for any action taken
or omitted to be taken in good faith by it in accordance with the advice of such
counsel, accountants or experts; (iii) makes no warranty or representation to
any Lender and shall not be responsible to any Lender for any statements,
warranties or representations (whether written or oral) made in or in
connection with any Loan Document; (iv) shall not have any duty to ascertain or
to inquire as to the performance, observance or satisfaction of any of the
terms, covenants or conditions of this Agreement or any other Loan Documents on
the part of the Borrower or the existence at any time of any Default or to
inspect the property (including the books and records) of the Borrower; (v)
shall not be responsible to any Lender for the due execution, legality,
validity, enforceability, genuineness, sufficiency or value of this Agreement,
any of the other Loan Documents or any other instrument or document furnished
pursuant thereto; and (vi) shall incur no liability under or in respect of any
Loan Document by acting upon any notice, consent, certificate or other
instrument or writing (which may be by telecopier, telegram or telex) believed
by it to be genuine and signed or sent by the proper party or parties.

 

Section 7.03.          CSFB
and Affiliates.  With
respect to the Loans made by it and the Note issued to it, CSFB shall have the
same rights and powers under this Agreement 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, include CSFB
in its individual capacity.  CSFB and
its Affiliates may accept deposits from, lend money to, act as trustee under
indentures of, accept investment banking engagements from and generally engage
in any kind of business with, the Borrower, any of its Subsidiaries and any
Person who may do business with or own securities of the Borrower or any such
Subsidiary, all as if CSFB were not the Administrative Agent and without any
duty to account therefor to the Lenders. 
The Administrative Agent shall have no duty to disclose information
obtained or received by it or any of its Affiliates relating to the Borrower or
its Subsidiaries to the extent such information was obtained or received in any
capacity other than as Administrative Agent.

 

Section 7.04.          Lender
Credit Decision.  Each
Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender and based on the financial statements
referred to in Section 4.01 and such other documents and information as
it has deemed appropriate, made its own credit analysis and decision to enter
into this Agreement.  Each Lender also
acknowledges 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 decisions in taking or not taking action under this Agreement.

 

49

 

Section 7.05.          Indemnification.  The Lenders agree to indemnify the
Administrative Agent (to the extent not reimbursed by the Borrower) and its
directors, officers, employees and agents (each, a “Lender Indemnitee”),
ratably according to the respective principal amounts of the Loans then owed to
each of them from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever that may be imposed on, incurred by, or
asserted against such Lender Indemnitee in any way relating to or arising out
of any Loan Document or any action taken or omitted by such Lender Indemnitee
thereunder (collectively, the “Indemnified Costs”), provided that
no Lender shall be liable for any portion of the Indemnified Costs of a Lender
Indemnitee indemnified person resulting from such Lender Indemnitee’s gross
negligence or willful misconduct. 
Without limitation of the foregoing, each Lender agrees to reimburse the
Lender Indemnitee promptly upon demand for its ratable share of any out-of-pocket
expenses (including counsel fees) incurred by such Lender Indemnitee in
connection with the preparation, execution, delivery, administration,
modification, amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights or responsibilities
under, any Loan Document, to the extent that the Lender Indemnitee is not
reimbursed for such expenses by the Borrower. 
In the case of any investigation, litigation or proceeding giving rise
to any Indemnified Costs, this Section 7.05 applies whether any such
investigation, litigation or proceeding is brought by the Administrative Agent,
any Lender or a third party.

 

Section 7.06.          Successor
Administrative Agent. 
The Administrative Agent may resign at any time by giving written notice
thereof to the Lenders and the Borrower and may be removed at any time with or
without cause by the Required Lenders. 
Upon any such resignation or removal, the Required Lenders shall have
the right to appoint a successor Administrative Agent, with the consent of the
Borrower (which consent shall not be unreasonably withheld or delayed) if no
Event of Default has occurred and is continuing.  If no successor Administrative Agent shall have been so appointed
by the Required Lenders, and shall have accepted such appointment, within
thirty (30) days after the retiring Administrative Agent’s giving of notice of
resignation or the Required Lenders’ removal of the retiring Administrative
Agent, then the retiring Administrative Agent may, on behalf of the Lenders,
appoint a successor Administrative Agent, which shall be a commercial bank
organized under the laws of the United States of America or of any State
thereof and having a combined capital and surplus of at least
$500,000,000.  Upon the acceptance of
any appointment as Administrative Agent hereunder by a successor Administrative
Agent and the execution and delivery by Borrower and the successor
Administrative Agent of an agreement relating to the annual administration fees
to be paid to the successor Administrative Agent in connection with its acting
as Administrative Agent hereunder, such successor Administrative Agent shall
thereupon succeed to and become vested with all the rights, powers, discretion,
privileges and duties of the retiring Administrative Agent, and the retiring
Administrative Agent shall be discharged from its duties and obligations under
this Agreement.  After any retiring
Administrative Agent’s resignation or removal hereunder as Administrative
Agent, the provisions of this Article VII 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.

 

Section 7.07.          Other
Agents.  Each Lender
hereby acknowledges that neither the documentation agent nor any other Lender
designated as any “Agent” on the signature pages hereof has any liability
hereunder other than in its capacity as a Lender.

 

50

 

ARTICLE
VIII

 

MISCELLANEOUS

 

Section 8.01.          Amendments,
Etc.  No amendment or
waiver of any provision of this Agreement, the Notes or any other Loan Document
nor consent to any departure by the Borrower therefrom, shall in any event be
effective unless the same shall be in writing and signed by the Required
Lenders (or, with the written consent of the Required Lenders, by the
Administrative Agent) and the Borrower, and then such waiver or consent shall
be effective only in the specific instance and for the specific purpose for
which given; provided, however, that no amendment, waiver or
consent shall, unless in writing and signed by each of the Lenders directly
affected thereby, do any of the following: (a) waive any of the conditions
specified in Section 3.01, (b) subject such Lenders to any additional
obligations, (c) reduce the principal of, or interest on, the Loans or any fees
or other amounts payable hereunder, or (d) postpone any date fixed for any
payment of principal of (including final maturity), or interest on, the Loans
or any fees or other amounts payable hereunder; provided  further
that no amendment, waiver or consent shall, unless in writing and signed by all
the Lenders: (i) change the aggregate unpaid principal amount of the Loans that
shall be required for the Lenders or any of them to take any action hereunder,
(ii) change the pro rata distribution of payments and proceeds to the Lenders,
(iii) waive any of the conditions specified in or amend Sections 2.04
and 2.05 or (iv) amend this Section 8.01; provided further
that no amendment, waiver or consent shall, unless in writing and signed by the
Administrative Agent in addition to the Lenders required above to take such
action, affect the rights or duties of the Administrative Agent under this
Agreement, any Note or any other Loan Document; and provided  further
no amendment, waiver or consent shall, unless in writing and signed by Credit
Suisse First Boston in addition to the parties required to sign the foregoing
as set forth in this Section 8.01, amend or in any manner affect the
rights of Credit Suisse First Boston under Section 8.07(i).

 

Section 8.02.          Notices,
Etc.  All notices and
other communications provided for hereunder shall be in writing (including
telecopier or telegraphic communication) and mailed, telecopied, telegraphed or
delivered, if to the Borrower, at its address at 20 West Ninth Street, Kansas
City, Missouri 64105, Attention: 
Treasurer, Telecopy No.: (816) 467-3591; if to any Lender party to this
Agreement as of the date hereof, at its Domestic Lending Office specified
opposite its name on Schedule I hereto; if to any other Lender, at its Domestic
Lending Office specified in the Assignment and Acceptance pursuant to which it
became a Lender; and if to the Administrative Agent, at its address at Eleven
Madison Avenue, New York, New York 10010-3629, Attention: Agency Department
Manager, Telecopy No.: (212) 325-8304; or, as to the Borrower or the
Administrative Agent, at such other address as shall be designated by such
party in a written notice to the other parties and, as to each other party, at
such other address as shall be designated by such party in a written notice to
the Borrower and the Administrative Agent. 
All such notices and communications shall, when mailed, telecopied or
telegraphed, be effective when deposited in the mails, telecopied or delivered
to the telegraph company, respectively, except that notices and communications
to the Administrative Agent pursuant to Article II, III or VII shall not be
effective until received by the Administrative Agent.  Delivery by telecopier of an executed counterpart of any
amendment or waiver of any provision of this Agreement, the Notes or any other
Loan Document or of any Exhibit hereto and thereto to be executed and delivered
hereunder and thereunder shall be effective as delivery of a manually executed 

 

51

 

counterpart
thereof.  Electronic mail and internet
websites may be used only to distribute routine information such as financial
statements and other information as provided in Section 5.01(a), (b)
and (g) and to distribute this Agreement and the other Loan Documents
for execution by the parties thereto, and may not be used for any other
purpose, except as agreed to by the Administrative Agent.

 

Section 8.03.          No
Waiver; Remedies.  No
failure on the part of any Lender or the Administrative Agent to exercise, and
no delay in exercising, any right hereunder, under any Note or any other Loan
Document shall operate as a waiver thereof; nor shall any single or partial
exercise of any such right preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges
herein provided are cumulative and not exclusive of any rights, remedies,
powers and privileges provided by law.

 

Section 8.04.          Costs and Expenses.  (a) 
Subject to the limitations set forth in the other Loan Documents, the
Borrower agrees to pay on demand all reasonable out-of-pocket costs and
expenses of the Administrative Agent in connection with the preparation,
execution, delivery, administration, waiver or modification and amendment of
this Agreement, the Notes and the other Loan Documents and any other documents
to be delivered hereunder and thereunder, including (i) all transportation,
duplication, appraisal, consultant, and audit expenses and (ii) the reasonable
fees, disbursement and other charges of external counsel for the Administrative
Agent with respect thereto and with respect to advising the Administrative
Agent as to its rights and responsibilities under this Agreement or any other
Loan Document.  The Borrower agrees to
pay (i) on demand all reasonable costs and expenses of the Administrative Agent
and the Lenders, if any (including reasonable external counsel fees and
expenses), in connection with the enforcement (whether through negotiations,
legal proceedings or otherwise) of this Agreement, the Notes and the other Loan
Documents and any other documents to be delivered hereunder and thereunder,
including reasonable fees and expenses of external counsel for the Administrative
Agent and each Lender in connection with the enforcement of rights under this Section
8.04(a), and (ii) and indemnify and hold harmless the Administrative Agent
and each Lender from, any and all present or future stamp, documentary or
excise taxes or similar charges, any and all recording and filing fees, and any
and all liabilities with respect thereto, which may be payable or determined to
be payable in connection with the execution and delivery of, or consummation or
administration of any of the transactions contemplated by, or payment under, or
any amendment, supplement or modification of, or any waiver or consent under or
in respect of, this Agreement, the Notes, the other Loan Documents and any such
other documents.

 

(b)           The
Borrower agrees to indemnify, exonerate and hold harmless the Administrative
Agent, each Lender and each of their Affiliates and their officers, directors,
employees, agents and controlling persons (each, an “Indemnified Party”)
from and against any and all claims, damages, losses, liabilities and expenses
(including fees, disbursements and other charges of external counsel) incurred
by or asserted or awarded against any Indemnified Party, in each case arising
out of or in connection with or by reason of (including in connection with any
claim, investigation, litigation or proceeding or preparation of a defense in
connection therewith) (i) the Notes, this Agreement, any other Loan Document or
any other documents related thereto, any extension of credit hereunder, any of
the transactions contemplated herein or the actual or proposed use of the
proceeds of the Loans or (ii) any actual or alleged presence or release of 

 

52

 

Materials of Environmental Concern on or from any
property owned or operated by the Borrower or any of its Subsidiaries, or any
Environmental Liability related in any way to the Borrower or any of its
Subsidiaries, except to the extent such claim, damage, loss, liability or
expense is found in a final, non-appealable judgment by a court of competent
jurisdiction to have resulted from such Indemnified Party’s bad faith, gross
negligence or willful misconduct.  In
the case of any claim, investigation, litigation or other proceeding to which
the indemnity in this Section 8.04(b) applies, such indemnity shall be
effective whether or not such investigation, litigation or proceeding is
brought by the Borrower, its directors, equityholders or creditors or an
Indemnified Party or any other Person, whether or not any Indemnified Party is
otherwise a party thereto and whether or not the transactions contemplated
hereby are consummated.  Each party to
this Agreement agrees not to assert any claim for special, indirect,
consequential or punitive damages against any other party hereto or any of its
Affiliates, or any of its officers, directors, employees, agents and
controlling persons, on any theory of liability, arising out of or otherwise
relating to (i) the Notes, this Agreement, any other Loan Document or any other
documents related thereto, any of the transactions contemplated herein or the
actual or proposed use of the proceeds of the Loans or (ii) any actual or
alleged presence or release of Materials of Environmental Concern on or from
any property owned or operated by the Borrower or any of its Subsidiaries, or
any Environmental Liability related in any way to the Borrower or any of its
Subsidiaries.

 

(c)           If
any payment of principal of, or Conversion of, any Eurodollar Rate Loan is made
by the Borrower to or for the account of a Lender other than on the last day of
the Interest Period for such Loan, as a result of a payment or Conversion
pursuant to Section 2.10(a), 2.10(b)(i) or (ii), or 2.13,
acceleration of the maturity of the Notes pursuant to Section 6.01 or
for any other reason, the Borrower shall, upon demand by such Lender (with a
copy of such demand to the Administrative Agent), pay to the Administrative
Agent for the account of such Lender any amounts required to compensate such
Lender for any additional losses, costs or expenses that it may reasonably
incur as a result of such payment or Conversion, including any loss (including
loss of anticipated profits), cost or expense incurred by reason of the
liquidation or reemployment of deposits or other funds acquired by any Lender
to fund or maintain such Loan.

 

(d)           Without
prejudice to the survival of any other agreement of the Borrower hereunder, the
agreements and obligations of the parties contained in Sections 2.12, 2.15
and 8.04 shall survive the payment in full of principal, interest and
all other amounts payable hereunder, under the Notes or any other Loan
Document.

 

Section 8.05.          Right
of Set-off.  Upon (i)
the occurrence and during the continuance of any Event of Default and (ii) the
making of the request or the granting of the consent specified by Section
6.01 to authorize the Administrative Agent to declare the Notes due and
payable pursuant to the provisions of Section 6.01, each Lender and each
of its Affiliates is hereby authorized at any time and from time to time, to
the fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other indebtedness at any time owing by such Lender or such Affiliate to or for
the credit or the account of the Borrower against any and all of the
obligations of the Borrower now or hereafter existing under this Agreement, the
Note held by such Lender or any other Loan Document, whether or not such Lender
shall have made any demand under this Agreement, such Note or any other such
Loan Document and although such obligations may be 

 

53

 

unmatured.  Each Lender agrees promptly to notify the
Borrower after any such set-off and application, provided that the
failure to give such notice shall not affect the validity of such set-off and
application.  The rights of each Lender
and its Affiliates under this Section 8.05 are in addition to other
rights and remedies (including other rights of set-off) that such Lender and
its Affiliates may have.

 

Section 8.06.          Binding
Effect.  This
Agreement shall become effective when it shall have been executed by the
Borrower and the Administrative Agent and when the Administrative Agent shall
have been notified by each Lender party to this Agreement as of the date hereof
that such Lender has executed it and the Closing Date shall have occurred and
thereafter shall be binding upon and inure to the benefit of the Borrower, the
Administrative Agent and each such Lender and their respective successors and
assigns, except that the Borrower shall not have the right to assign its rights
or obligations hereunder or any interest herein without the prior written
consent of all the Lenders.

 

Section 8.07.          Assignments and Participations.  (a) 
Each Lender may assign to one or more Persons all or a portion of its
rights and obligations under this Agreement (including the Loans owing to it
and the Note or Notes held by it); provided, however, that (i)
such Lender shall have obtained the prior written consent of the Administrative
Agent, not to be unreasonably withheld or delayed, (ii) each such assignment
shall be of a constant, and not a varying, percentage of all rights and
obligations under this Agreement, (iii) except in the case of (x) an assignment
to a Person that, immediately prior to such assignment, was a Lender, (y)
assignment to the Approved Fund of the assigning Lender or (z) an assignment of
all of a Lender’s rights and obligations under this Agreement, the amount of
the Loans of the assigning Lender being assigned pursuant to each such
assignment (determined as of the date of the Assignment and Acceptance with
respect to such assignment) shall in no event be less than $1,000,000 and shall
be an integral multiple of $1,000,000 unless the Administrative Agent otherwise
agrees, and if the assigning Lender is assigning less than all of its Loans
after giving effect to such assignment, the amount of the Loans of the
assigning Lender shall be equal to or greater than $1,000,000 and (iv) the
parties to each such assignment shall (A) electronically execute and deliver to
the Administrative Agent an Assignment and Acceptance via an electronic
settlement system acceptable to the Administrative Agent (which initially shall
be ClearPar, LLC) or (B) manually execute and deliver to the Administrative
Agent an Assignment and Acceptance together with a processing and recordation
fee of $3,500 (such fee payable by the assignor or assignee, as agreed by the
parties), for its acceptance and recording in the Register.  Upon such execution, delivery, acceptance
and recording, from and after the effective date specified in each Assignment
and Acceptance, (x) the assignee thereunder shall be a party hereto and, to the
extent that rights and obligations hereunder have been assigned to it pursuant
to such Assignment and Acceptance, have the rights and obligations of a Lender
hereunder and (y) the Lender assignor thereunder shall, to the extent that
rights and obligations hereunder have been assigned by it pursuant to such
Assignment and Acceptance, relinquish its rights (other than its rights under Section
2.12, 2.15 and 8.04 to the extent any claim thereunder
relates to an event arising prior to such assignment) and be released from its
obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all or the remaining portion of an assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto).

 

54

 

(b)           By
executing and delivering an Assignment and Acceptance, the Lender assignor
thereunder and the assignee thereunder confirm to and agree with each other and
the other parties hereto as follows: (i) other than as provided in such
Assignment and Acceptance, such assigning Lender makes no representation or
warranty and assumes no responsibility with respect to (A) any statements,
warranties or representations made in or in connection with this Agreement or
any other Loan Document, (B) the execution, legality, validity, enforceability,
genuineness, sufficiency or value of this Agreement or any other Loan Document
or any collateral thereunder, (C) the financial condition of the Borrower, any
of its Subsidiaries or Affiliates or any other Person obligated in respect of
this Agreement or any other Loan Document or (D) the performance or observance
by the Borrower, any of its Subsidiaries or Affiliates or any other Person of
any of their respective obligations under this Agreement or any other Loan
Document; (ii) such assignee (A) represents and warrants that (1) it satisfies
the requirements, if any, specified in this Agreement that are required to be
satisfied by it in order to acquire the Assigned Interest (as defined in such
Assignment and Acceptance) and become a Lender, (2) from and after the
Effective Date (specified in such Assignment and Acceptance), it shall be bound
by the provisions of this Agreement as a Lender thereunder and, to the extent
of the Assigned Interest, shall have the obligations of a Lender thereunder and
(3) it has received a copy of this Agreement, together with copies of the most
recent financial statements referred to in Section 4.01 or delivered
pursuant to Section 5.01, and such other documents and information as it
has deemed appropriate to make its own credit analysis and decision to enter
into such Assignment and Acceptance and to purchase the Assigned Interest on
the basis of which it has made such analysis and decision independently and
without reliance on the Administrative Agent, the assigning Lender or any other
Lender; and (B) agrees that (1) it will, independently and without reliance on
the Administrative Agent, the assigning Lender or any other Lender, and based
on such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
the Loan Documents, and (2) it will perform in accordance with their terms all
of the obligations which by the terms of this Agreement and the other Loan
Documents are required to be performed by it as a Lender.

 

(c)           Upon
its receipt of an Assignment and Acceptance executed by an assigning Lender and
an assignee, the Administrative Agent shall, if such Assignment and Acceptance
has been completed and is in substantially the form of Exhibit D hereto, (i)
accept such Assignment and Acceptance, and (ii) record the information
contained therein in the Register.

 

(d)           The
Administrative Agent shall maintain at its address referred to in Section
8.02 a copy of each Assignment and Acceptance delivered to and accepted by
it and a register for the recordation of the names and addresses of each of the
Lenders and principal amount of the Loans owing to, each Lender from time to
time (the “Register”).  The
entries in the Register shall be conclusive and binding for all purposes,
absent manifest error, and the Borrower, the Administrative Agent and the
Lenders may treat each Person whose name is recorded in the Register as a
Lender hereunder for all purposes of this Agreement.  The Register shall be available for inspection by the Borrower or
any Lender at any reasonable time and from time to time upon reasonable prior
notice.

 

(e)           Each
Lender may sell participations to one or more banks or other entities (other
than the Borrower or any of its Affiliates) in or to all or a portion of its
rights and 

 

55

 

obligations under this Agreement (including all or a
portion of the Loans owing to it and any Notes held by it); provided,
however, 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, (iii) such Lender shall
remain the holder of any such Note for all purposes of this Agreement, (iv) the
Borrower, the Administrative Agent and the other Lenders shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights
and obligations under this Agreement and (v) no participant under any such
participation shall have any right to approve any amendment or waiver of any
provision of this Agreement, any Note or any other Loan Document, or any
consent to any departure by the Borrower therefrom, except to the extent that
such amendment, waiver or consent would reduce the principal of, or interest
on, the Notes or any fees or other amounts payable hereunder, in each case to
the extent subject to such participation, or postpone any date fixed for any payment
of principal of, or interest on, the Notes or any fees or other amounts payable
hereunder, in each case to the extent subject to such participation.

 

(f)            Any
Lender may, in connection with any assignment or participation or proposed
assignment or participation pursuant to this Section 8.07, disclose to
the assignee or participant or proposed assignee or participant, any
information relating to the Borrower furnished to such Lender by or on behalf
of the Borrower; provided, however, that, prior to any such
disclosure, the assignee or participant or proposed assignee or participant
shall agree to preserve the confidentiality of any Confidential Information
relating to the Borrower received by it from such Lender.

 

(g)           Notwithstanding
any other provision set forth in this Agreement, (i) any Lender may at any time
grant a security interest (or any other similar interest) in all or any portion
of its rights under this Agreement (including the Loans owing to it and any
Note or Notes held by it) to any Federal Reserve Bank in accordance with
Regulation A of the Board of Governors of the Federal Reserve System and (ii)
any Lender that is a fund may grant a security interest in all or any portion
of its rights under this Agreement to any lender or any trustee for, or any
other representative of, holders of obligations owed or securities issued by
such fund as security for such obligations or securities or any institutional
custodian for such fund or for such lender; provided that, in each case, no
such assignment or grant of security interest shall release the assigning
Lender from its obligations and duties hereunder.

 

(h)           Notwithstanding
anything to the contrary contained herein, any Lender (a “Granting Bank”)
may grant to a special purpose funding vehicle (a “SPC”), identified as
such in writing from time to time by the Granting Bank to the Administrative
Agent and the Borrower, the option to provide to the Borrower all or any part
of any Loan that such Granting Bank would otherwise be obligated to make to the
Borrower pursuant to this Agreement; provided, however, that
(i) nothing herein shall constitute a commitment by any SPC to make any Loan,
(ii) if a SPC elects not to exercise such option or otherwise fails to provide
all or any part of such Loan, the Granting Bank shall be obligated to make such
Loan pursuant to the terms hereof.  The
making of a Loan by a SPC hereunder shall utilize the commitment of the
Granting Bank to the same extent, and as if, such Loan were made by such
Granting Bank.  Each party hereto hereby
agrees that no SPC shall be liable for any indemnity or similar payment
obligation under this Agreement (all liability for which shall remain with the
Granting Bank).  In furtherance of the
foregoing, each party hereto hereby agrees (which agreement shall survive the
termination of this 

 

56

 

Agreement) that, prior to the date that is one year
and one day after the payment in full of all outstanding commercial paper or
other senior indebtedness of any SPC, it will not institute against, or join
any other person in instituting against, such SPC any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings under the
laws of the United States or any State thereof.  In addition, notwithstanding anything to the contrary contained
in this Section, any SPC may (i) with notice to, but without the prior written
consent of the Administrative Agent and without paying any processing fee
therefor, assign all or a portion of its interests in any Loans to the Granting
Bank or to any financial institutions (consented to by the Administrative
Agent) providing liquidity and/or credit support to or for the account of such
SPC to support the funding or maintenance of Loans and (ii) disclose on a confidential
basis any non-public information relating to its Loans to any rating agency,
commercial paper dealer or provider of any surety, guarantee or credit or
liquidity enhancement to such SPC.  This
section may not be amended without the written consent of the SPC.

 

(i)            Notwithstanding
any other provision set forth in this Agreement, each Lender, on behalf of
itself and its Approved Funds, effective on and as of the date on which it
becomes a Lender either as a result of executing this Agreement or pursuant to
this Section 8.07, hereby releases and forever discharges the Borrower and
Credit Suisse First Boston (in its individual capacity and as Administrative
Agent under the Existing Credit Agreement), and their respective directors,
officers, employees, attorneys, agents and affiliates from any and all claims,
actions, causes of action, demands, obligations, and liabilities of every
nature and reason in any way arising out of or in connection with the Existing
Credit Agreement (including, without limitation, any claims, actions, causes of
action, demands, obligations, or liabilities arising out of, or in any way
connected with, Section 2.7 or 9.1 of the Existing Credit Agreement).  Each such Lender further represents and
warrants to the Borrower and Credit Suisse First Boston that any Approved Fund
of such Lender, if any, which was a party to the Existing Credit Agreement has
executed and delivered to the Borrower a written release consistent with the
terms of the immediately preceding sentence.

 

Section 8.08.          Confidentiality.  Neither the Administrative Agent nor any
Lender shall disclose any Confidential Information to any other Person without
the consent of the Borrower other than (a) to the Administrative Agent’s or
such Lender’s Affiliates and their officers, directors, employees, agents and
advisors and, as contemplated by Section 8.07(f), to actual or
prospective assignees and participants, and to pledgees referred to in Section
8.07(g), and then only on a confidential basis, (b) as required by any law,
rule or regulation or judicial process and (c) as requested or required by any
state, federal or foreign authority or examiner regulating banks or
banking.  Notwithstanding anything
herein to the contrary, any party hereto (and any employee, representative or
other agent of such party) may disclose to any and all persons, without
limitation of any kind, the tax treatment and tax structure of the transactions
contemplated by this Agreement and all materials of any kind (including
opinions or other tax analyses) that are provided to it relating to such tax
treatment and tax structure, except that tax treatment and tax structure shall
not include the identity of any existing or future party (or any affiliate of
such party) to this Agreement.  For this
purpose, the tax treatment of the transactions contemplated by this Agreement
is the purported or claimed U.S. federal income tax treatment of such
transactions and the tax structure of such transactions is any fact that may be
relevant to understanding the purported or claimed U.S. federal income tax
treatment of such transactions.

 

57

 

Section 8.09.          Governing
Law.  THIS AGREEMENT
AND THE NOTES AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS
AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO THE
PRINCIPLES OF CONFLICT OF LAWS THEREOF OTHER THAN SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK.

 

Section 8.10.          Execution
in Counterparts.  This
Agreement may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed shall
be deemed to be an original and all of which taken together shall constitute
one and the same agreement.  Delivery of
an executed counterpart of a signature page to this Agreement by telecopier
shall be effective as delivery of a manually executed counterpart of this Agreement.

 

Section 8.11.          Jurisdiction, Etc. Each of the parties hereto hereby
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of any New York State court or federal court of the
United States of America sitting in New York City, and any appellate court from
any thereof, in any action or proceeding arising out of or relating to this
Agreement, the Notes or the other Loan Documents to which it is a party, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in any such New York
State court or, to the extent permitted by law, in such federal court.  Each of the parties hereto agrees that a
final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.  Nothing in this
Agreement shall affect any right that any party may otherwise have to bring any
action or proceeding relating to this Agreement, the Notes or the other Loan
Documents to which it is a party in the courts of any jurisdiction.

 

(b)           Each
of the parties hereto irrevocably and unconditionally waives, to the fullest
extent it may legally and effectively do so, any objection that it may now or
hereafter have to the laying of venue of any suit, action or proceeding arising
out of or relating to this Agreement, the Notes or the other Loan Documents to
which it is a party in any New York State or federal court.  Each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such
court.

 

Section 8.12.          Waiver
of Jury Trial.  EACH
OF THE BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER HEREBY IRREVOCABLY
WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
(WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO
THIS AGREEMENT, THE NOTES OR THE OTHER LOAN DOCUMENTS TO WHICH IT IS A PARTY OR
THE ACTIONS OF THE ADMINISTRATIVE AGENT OR ANY LENDER IN THE NEGOTIATION,
ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF.

 

58

 

Section 8.13.          Survival
of Representations and Warranties.  All representations and warranties made
hereunder, in the other Loan Documents and in any document, certificate or
statement delivered pursuant hereto or in connection herewith shall survive the
execution and delivery of this Agreement and the Notes and the making of the
Loans hereunder.

 

Section 8.14.          Severability.  Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

Section 8.15.          Integration.  This Agreement and the other Loan Documents
represent the agreement of the Borrower, the Administrative Agent and the
Lenders with respect to the subject matter hereof and thereof, and there are no
promises, undertakings, representations or warranties by the Administrative
Agent or any Lender relative to subject matter hereof or thereof not expressly
set forth or referred to herein or in the other Loan Documents.

 

Section 8.16.          Acknowledgement.  The Borrower hereby acknowledges that:

 

(a)           Neither the Administrative Agent nor
any Lender has any fiduciary relationship with or duty to the Borrower arising
out of or in connection with this Agreement or any of the other Loan Documents,
and the relationship between the Administrative Agent and the Lenders, on the
one hand, and the Borrower, on the other hand, in connection herewith or
therewith is solely that of creditor and debtor; and

 

(b)           No joint venture is created hereby or
by the other Loan Documents or otherwise exists by virtue of the transactions
contemplated hereby between the Administrative Agent, the Lenders and the
Borrower.

 

 

59

 

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

 

	
   

  	
  AQUILA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Randy Miller

  
	
   

  	
   

  	
  Name:  Randy Miller

  
	
   

  	
   

  	
  Title:  Vice President, Finance
  and Treasurer

  

 

60

 

	
  Commitment

  	
   

  	
  Lenders

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Administrative
  Agent

  
	
   

  	
   

  	
   

  
	
  $220,000,000

  	
   

  	
  CREDIT
  SUISSE FIRST BOSTON, acting through its Cayman Islands Branch 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/
  S. William Fox

  
	
   

  	
   

  	
  Name:  S. William Fox

  
	
   

  	
   

  	
  Title:  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/
  David J. Dodd

  
	
   

  	
   

  	
  Name:  David J. Dodd

  
	
   

  	
   

  	
  Title:  Associate

  

 

 

SCHEDULE
I

CASH EQUIVALENTS

 

	
  CASH

  EQUIVALENTS

  The portfolio will

  be limited to:

  	
   

  	
  CONCENTRATION

  LIMITS

  Maximum

  Concentration at

  time of purchase:

  	
   

  	
  MATURITY

  LIMITS

  Maximum maturity

  at time of purchase:

  	
   

  	
  CREDIT QUALITY

  Credit rating

  requirements:

  
	
  Obligations
  issued by the US Government limited to:  

  • US Treasury Bills 

  • US Treasury Notes 

  • US Treasury Bonds

  	
   

  	
  • None

  	
   

  	
  • Final maturity less than 5 years

  	
   

  	
  • Not Applicable

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Obligations
  sponsored by the US Government limited to: 

  • Federal Farm Credit Bank 

  • Federal Home Loan Bank 

  • Federal Home Loan Mortgage Corporation 

  • Federal National Mortgage Association 

  • Student Loan Marketing Association

  	
   

  	
  • None

  	
   

  	
  • Final maturity less than 5
  years

  	
   

  	
  • Not Applicable

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Obligations
  collateralized by the US
  Government limited to: 

  • Repurchase agreements

  	
   

  	
  • 25% of portfolio 

  • Any one issuer not to exceed
  the greater of $10 million or 10% of the portfolio

  	
   

  	
  • Final maturity less than 5 years

  	
   

  	
  • Over collateralized (102%) by US Government
  and agency securities

  

 

 

	
  Obligations issued by
  the US-owned commercial banks limited
  to: 

  • Bankers’ Acceptances 

  • Certificates of Deposit 

  • Time deposits

  	
   

  	
  • 75% of portfolio 

  • Any one issuer not to exceed the greater of
  $10 million or 10% of the portfolio

  	
   

  	
  • Final maturity less than 5 years

  	
   

  	
  As applicable: 

  • Short-term rating of A-2/P-2/F-2 or higher 

  • Long-term rating of A or higher

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  US-dollar denominated obligations issued
  by the non-US commercial banks limited
  to: 

  • Bankers’ Acceptances 

  • Certificates of Deposit 

  • Time deposits

  	
   

  	
  • 25% of portfolio 

  • Any one issuer not to exceed the greater of
  $10 million or 10% of the portfolio

  	
   

  	
  • Final maturity less than 5
  years

  	
   

  	
  As applicable: 

  • Short-term rating of A-2/P-2/F-2 or higher 

  • Long-term rating of A or higher

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Obligations
  of major US corporations and US holding companies limited to: 

  • Commercial paper 

  • Medium term notes 

  • Floating rate notes 

  • Corporate bonds 

  • Auction rate securities

  	
   

  	
  • 75% of portfolio 

  • Any one issuer or affiliate not to exceed
  the greater of $10 million or 10% of the portfolio 

  • Auction rate securities limited to the
  lower of 10% of portfolio or $5 million

  	
   

  	
  • Final maturity less than 5 years

  	
   

  	
  As applicable: 

  • Short-term rating of A-2/P-2/F-2 or higher 

  • Long-term rating of A or higher

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  US-dollar denominated
  obligations of major corporations and holding companies limited to:

  	
   

  	
  • 25% of portfolio 

  • Any one issuer or affiliate not to exceed
  the greater of $10 million or 10% of the portfolio

  	
   

  	
  • Final maturity less than 5 years

  	
   

  	
  As applicable: 

  • Short-term rating of A-2/P-2/F-2 or higher 

  • Long-term rating of A or higher

  

 

2

 

	
  • Commercial paper 

  • Medium term notes 

  • Floating rate notes 

  • Corporate bonds 

  • Auction rate securities

  	
   

  	
  • Auction rate securities limited to the
  lower of 10% of portfolio or $5 million

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pooled
  investments limited to:

  • 2a-7 Money market funds

  • Bond funds

  	
   

  	
  • Consistent with the Company’s liquidity
  requirements

  	
   

  	
  • Final maturity less than 5 years

  	
   

  	
  • AA or higher

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International
  Money Market Instruments limited to: 

  • Eurodollar certificates of deposit and
  bonds 

  • Eurodollar time deposits 

  • Yankee certificates of deposit

  	
   

  	
  • 20% of portfolio 

  • Any one country not to exceed 10% of
  portfolio

  	
   

  	
  • Final maturity less than 5 years

  	
   

  	
  As applicable: 

  • Short-term rating of A-1/P-1/F-1 or higher 

  • Long-term rating of A or higher

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tax
  exempt investments limited to: 

  • Commercial paper 

  • Municipal notes and bonds

  • Floating rate put bonds 

  • Floating rate put notes 

  • Money market preferred stock

  	
   

  	
  • 50% of portfolio 

  • Consistent with the limitations assigned to
  a similar taxable instrument

  • Any one issuer not to exceed the greater of
  $10 million or 10% of the portfolio

  	
   

  	
  • Final maturity less than 5 years

  	
   

  	
  • MIG-1/VMIG-1 

  • Credit enhanced (letter of credit or
  insured by someone like MBIA)

  

 

3

 

	
  • Money market funds 

  • Variable rate auction rate
  notes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

4

 

SCHEDULE II

APPLICABLE LENDING OFFICES

 

	
  Name of Initial Lender

  	
   

  	
  Domestic Lending Office

  	
   

  	
  Eurodollar Lending Office

  
	
  Credit
  Suisse First Boston

  	
   

  	
  Eleven
  Madison Avenue New York, NY 10010 Attention: Agency Department Manager,
  Telecopy No.: (212) 325-8304

  	
   

  	
  Eleven
  Madison Avenue New York, NY 10010 Attention: Agency Department Manager,
  Telecopy No.: (212) 325-8304

  

 

 

SCHEDULE III

PRICING SCHEDULE

 

PRICING SCHEDULE

 

	
  STATUS

  	
   

  	
  LEVEL I

  STATUS

  	
   

  	
  LEVEL II

  STATUS

  	
   

  	
  LEVEL III

  STATUS

  	
   

  	
  LEVEL IV

  STATUS

  	
   

  
	
  Applicable Margin for Eurodollar Rate
  Advances

  	
   

  	
  1.50

  	
  %

  	
  3.00

  	
  %

  	
  5.50

  	
  %

  	
  5.75

  	
  %

  
	
  Applicable Margin for Alternate Base Rate
  Advances

  	
   

  	
  0.50

  	
  %

  	
  2.00

  	
  %

  	
  4.50

  	
  %

  	
  4.75

  	
  %

  

 

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, the
Borrower’s Moody’s Rating is Baa3 or better and the Borrower’s S&P Rating
is BBB- or better.

 

“Level II Status” exists at any date if, on such date, (i) the
Borrower has not qualified for Level I Status and (ii) the Borrower’s Moody’s
Rating is Ba2 or better and the Borrower’s S&P Rating is BB or better.

 

“Level III Status” exists at any date if, on such date, (i) the
Borrower has not qualified for Level II Status and (ii) the Borrower’s Moody’s
Rating is B1 or better and the Borrower’s S&P Rating is B+ or better.

 

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

 

“Moody’s Rating” means, at any time, the rating issued by
Moody’s Investors Service, Inc. and then in effect with respect to the credit
facility evidenced by this Agreement.

 

“S&P Rating” means, at any time, the rating issued by
Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies,
Inc. and then in effect with respect to the credit facility evidenced by this
Agreement.

 

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

 

The
Applicable Margin shall be determined in accordance with the foregoing table
based on the Borrower’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 the credit facility evidenced by this Agreement does not have a
Moody’s Rating or S&P Rating, Level IV Status shall exist; provided,
however, that if either S&P or Moody’s shall no longer provide debt
ratings for companies in the Borrower’s industry generally, the Borrower may
substitute for either such rating organization another nationally recognized
statistical rating organization, the corresponding ratings of which shall be
used to determine the Borrower’s Status. 
If the Borrower is split-rated, the lower rating will apply in all
cases.

 

 

SCHEDULE 4.01(d)

CONSENTS, AUTHORIZATION,
FILINGS

 

The
April 16, 2004 order of the Federal Energy Regulatory Commission (“FERC”) in
FERC Docket No. ES03-43-000, ES03-43-001, ES03-43-002, ES03-43-003,
ES03-43-004, ES04-13-000, Aquila, Inc., 107 FERC ¶ 61,044 (2004).

 

 

SCHEDULE 4.01(i)

MATERIAL SUBSIDIARIES

 

None.

 

 

SCHEDULE 5.01(n)

EXTENSION REGULATORY APPROVAL

 

1.               Approval of the Colorado Public Utilities
Commission.

 

2.               Approval of the Federal Energy Regulatory
Commission.

 

3.               Approval of the Kansas Corporation
Commission.

 

4.               Approval of any other regulatory authority
having proper jurisdiction over the Borrower, to the extent that such approval
is not known by the Borrower to be required as of the date hereof.

 

 

 SCHEDULE 5.02(j)

EXISTING DEBT

 

Aquila

Debt Position

16-Sep-04

 

	
   

  	
   

  	
  ISSUE DATE

  YR/MO/DAY

  	
   

  	
  DUE DATE

  YR/MO/DAY

  	
   

  	
  AMOUNT

  OUTSTANDING

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SJLP FMB

  	
   

  	
  February 1, 1991

  	
   

  	
  February 1, 2021

  	
   

  	
  19,125,000

  	
   

  
	
  Senior Notes

  	
   

  	
  October 7, 1997

  	
   

  	
  October 1, 2004

  	
   

  	
  150,000,000

  	
   

  
	
  SJLP Unsecured MTN

  	
   

  	
  March 15, 1995

  	
   

  	
  March 15, 2005

  	
   

  	
  20,000,000

  	
   

  
	
  Senior Notes

  	
   

  	
  March 31, 1999

  	
   

  	
  December 1, 2005

  	
   

  	
  19,057,000

  	
   

  
	
  Senior Notes

  	
   

  	
  October 17, 1996

  	
   

  	
  October 15, 2006

  	
   

  	
  85,900,000

  	
   

  
	
  Senior Notes

  	
   

  	
  January 29, 1992

  	
   

  	
  January 15, 2007

  	
   

  	
  36,905,000

  	
   

  
	
  Manidorily Convertible Senior Notes (PIES)

  	
   

  	
  August 24, 2004

  	
   

  	
  September 15, 2007

  	
   

  	
  345,000,000

  	
   

  
	
  Senior Notes

  	
   

  	
  November 15, 1999

  	
   

  	
  November 15, 2009

  	
   

  	
  199,000,000

  	
   

  
	
  Sanwa Bus CC

  	
   

  	
  December 9, 1995

  	
   

  	
  December 9, 2009

  	
   

  	
  4,022,290

  	
   

  
	
  Senior Notes

  	
   

  	
  February 1, 2001

  	
   

  	
  February 1, 2011

  	
   

  	
  250,000,000

  	
   

  
	
  Debentures

  	
   

  	
  July 24, 1986

  	
   

  	
  July 1, 2011

  	
   

  	
  2,366,232

  	
   

  
	
  Senior Notes

  	
   

  	
  July 3, 2002

  	
   

  	
  July 1, 2012

  	
   

  	
  500,000,000

  	
   

  
	
  SJLP Unsecured Pollution Control Bonds

  	
   

  	
  June 4, 1995

  	
   

  	
  February 1, 2013

  	
   

  	
  5,600,000

  	
   

  
	
  SJLP Unsecured MTN

  	
   

  	
  November 30, 1993

  	
   

  	
  November 29, 2013

  	
   

  	
  9,000,000

  	
   

  
	
  SJLP Unsecured MTN

  	
   

  	
  November 30, 1993

  	
   

  	
  November 29, 2013

  	
   

  	
  1,000,000

  	
   

  
	
  Senior Notes

  	
   

  	
  March 31, 1999

  	
   

  	
  November 15, 2021

  	
   

  	
  80,850,000

  	
   

  
	
  Senior Notes

  	
   

  	
  November 25, 1991

  	
   

  	
  November 15, 2021

  	
   

  	
  5,000,000

  	
   

  
	
  Senior Notes

  	
   

  	
  March 3, 1993

  	
   

  	
  March 1, 2023

  	
   

  	
  51,500,000

  	
   

  
	
  SJLP Unsecured MTN

  	
   

  	
  November 30, 1993

  	
   

  	
  November 30, 2023

  	
   

  	
  3,000,000

  	
   

  
	
  SJLP Unsecured MTN

  	
   

  	
  December 6, 1993

  	
   

  	
  December 1, 2023

  	
   

  	
  7,000,000

  	
   

  
	
  Senior Notes

  	
   

  	
  June 20, 2001

  	
   

  	
  June 15, 2011

  	
   

  	
  197,000,000

  	
   

  
	
  Wamego Ser.1996

  	
   

  	
  March 1, 1996

  	
   

  	
  March 1, 2026

  	
   

  	
  7,300,000

  	
   

  
	
  State Envi.1993

  	
   

  	
  May 26, 1993

  	
   

  	
  May 1, 2028

  	
   

  	
  5,000,000

  	
   

  
	
  Senior Notes (Retail QUIBS)

  	
   

  	
  February 28, 2002

  	
   

  	
  March 1, 2032

  	
   

  	
  287,500,000

  	
   

  
	
  Gold Bank (Everest Revolver)

  	
   

  	
  April 28, 2004

  	
   

  	
  April 1, 2007

  	
   

  	
  1,500,000

  	
   

  
	
  Gold Bank (Everest Term Loan)

  	
   

  	
  April 28, 2004

  	
   

  	
  April 1, 2007

  	
   

  	
  5,500,000

  	
   

  
	
  Capital Lease Obligations

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,319,762

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,300,445,284

  	
   

  

 

B-1

 

EXHIBIT A - FORM OF

TERM PROMISSORY NOTE

 

	
  U.S.$_________

  	
   

  	
  Dated:                              ,
  200 

  

 

FOR
VALUE RECEIVED, the undersigned, AQUILA, INC., a Delaware corporation (the “Borrower”),
HEREBY PROMISES TO PAY to the order of
                                     
(the “Lender”) for the account of its Applicable Lending Office on the
Maturity Date (each as defined in the Credit Agreement referred to below) the
principal sum of U.S.$[amount of the Lender’s Loans in figures] on the Maturity
Date pursuant to the Credit Agreement dated as of September 20, 2004 among the
Borrower, the Lender and certain other lenders parties thereto from time to
time and Credit Suisse First Boston, acting through its Cayman Islands Branch
(“CSFB”), as Administrative Agent for the Lender and such other lenders
(as amended or modified from time to time, the “Credit Agreement”; the
terms defined therein being used herein as therein defined).

 

The
Borrower promises to pay interest on the unpaid principal amount of each Loan
from the date of such Loan until such principal amount is paid in full, at such
interest rates, and payable at such times, as are specified in the Credit
Agreement.

 

Both
principal and interest are payable in lawful money of the United States of
America to CSFB, as Administrative Agent, at The Bank of New York, ABA No.
02100018, Account No. 8900492627, Account Name: CSFB Agency Cayman, Reference: Aquila
or such other account in the United States as the Administrative Agent may
designate from time to time by notice to the Borrower, in same day funds.  Each Loan made by the Lender to the Borrower
pursuant to the Credit Agreement, and all payments made on account of principal
thereof, shall be recorded by the Lender and, prior to any transfer hereof,
endorsed on the grid attached hereto which is part of this Promissory Note.

 

This
Promissory Note is one of the Notes referred to in, and is entitled to the
benefits of, the Credit Agreement.  The
Credit Agreement, among other things, (i) provides for the making of Loans by
the Lender to the Borrower on the Closing Date in an aggregate amount not to
exceed at any time outstanding the U.S. dollar amount first above mentioned,
the indebtedness of the Borrower resulting from each such Loan being evidenced
by this Promissory Note, (ii) contains provisions for acceleration of the
maturity hereof upon the happening of certain stated events and also for
prepayments on account of principal hereof prior to the maturity hereof upon
the terms and conditions therein specified, and (iii) contains transfer
restrictions applicable to this Promissory Note..

 

The
Borrower hereby waives presentment, demand, protest and notice of any
kind.  No failure to exercise, and no
delay in exercising, any rights hereunder on the part of the holder hereof
shall operate as a waiver of such rights.

 

This
Promissory Note shall be governed by, and construed in accordance with, the
laws of the State of New York.

 

A-1

 

	
   

  	
  AQUILA, INC.

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-2

 

ADVANCES AND PAYMENTS OF PRINCIPAL

 

	
  Date

  	
   

  	
  Amount of Loan

  	
   

  	
  Amount of

  Principal Paid or

  Prepaid

  	
   

  	
  Unpaid Principal

  Balance

  	
   

  	
  Notation Made

  By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-3

 

EXHIBIT B - FORM OF NOTICE

OF BORROWING

 

 

[Date]

 

Credit Suisse First Boston,

acting through its Cayman Islands Branch,

as Administrative Agent
  for the Lenders parties
  to the Credit Agreement
  referred to below
  Eleven Madison Avenue
  New York, New York 10010

 

Attention: [Agency Department Manager]

 

Ladies and Gentlemen:

 

The undersigned refers to the Credit Agreement, dated as of September
20, 2004 (as amended or modified from time to time, the “Credit Agreement”,
the terms defined therein being used herein as therein defined), among Aquila,
Inc., certain Lenders parties thereto and Credit Suisse First Boston, acting
through its Cayman Islands Branch (“CSFB”), as Administrative Agent for
said Lenders, and hereby gives you notice, irrevocably, pursuant to Section
2.02 of the Credit Agreement that the undersigned hereby requests a Borrowing
under the Credit Agreement, and in that connection sets forth below the
information relating to such borrowing (the “Proposed Borrowing”) as
required by Section 2.02(a) of the Credit Agreement:

 

(i)            The
Business Day of the Proposed Borrowing is
                       ,
200.

 

(ii)           The
Type of Loan comprising the Proposed Borrowing is [Alternate Base Rate Loans]
[Eurodollar Rate Loans].

 

(iii)          The
aggregate amount of the Proposed Borrowing is
$                        .

 

(iv)          Proceeds
of the Proposed Borrowing are to be wire-transferred in accordance with the
following instructions:

 

 

[(v)          The
initial Interest Period for each Eurodollar Rate Loan made as part of the
Proposed Borrowing is         
month[s].]

 

B-1

 

The undersigned hereby certifies that, as of the Proposed Borrowing,
all the applicable conditions contained in Section 3.01 of the Credit Agreement
have been satisfied (or waived pursuant to Section 8.01 of the Credit
Agreement).

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  AQUILA, INC.

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

B-2

 

EXHIBIT C -
FORM OF

CLOSING CERTIFICATE

 

AQUILA, INC.

 

Pursuant to Section 3.01(g) of the Credit Agreement dated as of
September 20, 2004 among Aquila, Inc. (the “Borrower”), the lenders
parties thereto, and Credit Suisse First Boston, acting through its Cayman
Islands Branch (“CSFB”), as Administrative Agent for the lenders (as
amended or modified from time to time, the “Credit Agreement”; the terms
defined therein being used herein as therein defined), the undersigned hereby
certifies that [he or she] is the
                   
of the Borrower and in such capacity further certifies as follows:

 

1.             The representations
and warranties of the Borrower set forth in the Credit Agreement and each of
the other Loan Documents to which the Borrower is a party, are true and correct
in all material respects on and as of the date hereof.

 

2.             No Default or Event
of Default has occurred and is continuing as of the date hereof or after giving
effect to the transactions to be consummated on the date hereof.

 

IN WITNESS WHEREOF, the undersigned has hereunto set his name.

 

	
   

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:                      ,
  200_

  	
   

  

 

C-1

 

EXHIBIT D - FORM OF

ASSIGNMENT AND ACCEPTANCE

 

This Assignment and Acceptance (the “Assignment and Acceptance”)
is dated as of the date set forth below (the “Effective Date”) and is
entered into by and between the Assignor (as defined below) and the Assignee (as
defined below).  Capitalized terms used
in this Assignment and Acceptance and not otherwise defined herein have the
meanings specified in the Credit Agreement dated as of September 20, 2004 (as
amended or modified from time to time, the “Credit Agreement”) among
Aquila, Inc. (the “Borrower”), the Lenders (as defined in the Credit
Agreement), and Credit Suisse First Boston, acting through its Cayman Islands
Branch (“CSFB”), as Administrative Agent for the Lenders (the “Administrative
Agent”).  Receipt of a copy of the
Credit Agreement is hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth
in Annex I attached hereto are hereby agreed to and incorporated herein by
reference and made a part of this Assignment and Acceptance as if set forth
herein in full.

 

For an agreed consideration, the Assignor hereby irrevocably sells and
assigns to the Assignee, and the Assignee hereby irrevocably purchases and
assumes from the Assignor, 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 the Assignor’s rights
and obligations in its capacity as a Lender 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 under the facility
identified below 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) 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 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 pursuant to clauses (i) and (ii) above being referred to herein
collectively as the “Assigned Interest”).  Such sale and assignment is without recourse
to the Assignor and, except as expressly provided in this Assignment and
Acceptance, without representation or warranty by the Assignor.

 

1.             Assignor (the “Assignor”):

 

2.             Assignee (the “Assignee”):

 

3.             Assigned Interest:

 

D-1

 

	
  Facility
  Assigned

  	
   

  	
  Aggregate Amount of

  Loans of all Lenders

  	
   

  	
  Amount of Loans

  Assigned

  	
   

  	
  Percentage Assigned

  of Loans (1)

  	
   

  
	
  Loans

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
   

  	
  %

  

 

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

 

 

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

 

D-2

 

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

 

	
   

  	
  [NAME OF ASSIGNOR], as Assignor,

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNEE], as Assignee,

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

D-3

 

Consented
to and Accepted:

 

CREDIT
SUISSE FIRST BOSTON, acting through its

Cayman Islands Branch, as Administrative Agent,

 

	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

D-4

 

ANNEX 1

 

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ACCEPTANCE

 

1.             Representations
and Warranties.

 

1.1           Assignor.  The Assignor (a) represents and warrants that
(i) it is the legal and beneficial owner of the Assigned Interest, (ii) the
Assigned Interest is free and clear of any lien, encumbrance or other adverse
claim created by the Assignor and (iii) it has full power and authority, and
has taken all action necessary, to execute and deliver this Assignment and
Acceptance 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 Credit Agreement and any other Loan
Document or any collateral thereunder, (iii) the financial condition of the
Borrower, any of its Subsidiaries or Affiliates or any other Person obligated
in respect of the Credit Agreement and any other Loan Document or (iv) the
performance or observance by the Borrower, any of its Subsidiaries or
Affiliates or any other Person of any of their respective obligations under the
Credit Agreement and any other Loan Document.

 

1.2           Assignee.  The 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 Acceptance and to consummate the
transactions contemplated hereby and to become a Lender under the Credit
Agreement, (ii) it satisfies the requirements, if any, specified in the Credit
Agreement that are required to be satisfied by it in order to acquire the
Assigned Interest and become a Lender, (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 Assigned Interest, shall have the
obligations of a Lender thereunder, (iv) it has received a copy of the Credit
Agreement, together with copies of the most recent financial statements
referred to in Section 4.01 of the Credit Agreement or delivered pursuant to
Section 5.01 of the Credit Agreement, and such other documents and information
as it has deemed appropriate to make its own credit analysis and decision to
enter into this Assignment and Acceptance and to purchase the Assigned Interest
on the basis of which it has made such analysis and decision independently and
without reliance on the Administrative Agent, the Assignor or any other Lender
and (v) if it is a Lender organized under the laws of a jurisdiction outside
the United States, attached to this Assignment and Acceptance is any
documentation required to be delivered by it pursuant to Section 2.15(e) of the
Credit Agreement, duly completed and executed by the Assignee; (b) agrees that
(i) it will, independently and without reliance on the Administrative Agent,
the Assignor or any other Lender, and based on such documents and information
as it shall deem appropriate at the time, continue to make its own credit
decisions in taking or not taking action under the Loan Documents, and (ii) it
will perform in accordance with their terms all of the obligations which by the
terms of the Credit Agreement and any other Loan Document that are required to
be performed by it as a Lender; and (c) on behalf of itself and its Approved
Funds hereby releases and forever discharges the Borrower and Credit Suisse
First Boston (in its individual capacity and as Administrative Agent under the
Existing Credit Agreement), and their respective

 

D-5

 

directors, officers, employees, attorneys, agents and affiliates from
any and all claims, actions, causes of action, demands, obligations, and
liabilities of every nature and reason in any way arising out of or in
connection with the Existing Credit Agreement (including, without limitation,
any claims, actions, causes of action, demands, obligations, or liabilities
arising out of, or in any way connected with, Section 2.7 or 9.1 of the
Existing Credit Agreement).  The Assignee
further represents and warrants to the Borrower and Credit Suisse First Boston
that any Approved Fund of the Assignee, if any, which was a party to the Existing
Credit Agreement has executed and delivered to the Borrower a written release
consistent with the terms of clause (c) above.

 

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

 

3.             General
Provisions.  This Assignment and
Acceptance shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. 
This Assignment and Acceptance may be executed in counterparts (and by
different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a
single contract.  Delivery of an executed
counterpart of a signature page of this Assignment and Acceptance by facsimile
or other electronic transmission shall be as effective as delivery of a
manually executed counterpart of this Assignment and Acceptance.  This Assignment and Acceptance shall be
construed in accordance with and governed by the law of the State of New York.

 

D-6

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