Document:

Three Year Credit Agreement

Exhibit 10.2 
 
$750,000,000 
 
THREE-YEAR CREDIT AGREEMENT 
 
among 
 
DOMINION RESOURCES, INC., 
VIRGINIA ELECTRIC
AND POWER COMPANY, 
CONSOLIDATED NATURAL GAS COMPANY, 
 
The Several Lenders from Time to Time Parties Hereto, 
 
JPMORGAN CHASE BANK, 
as Administrative Agent, 
 
BANK OF AMERICA, N.A. AND 
THE BANK OF NOVA SCOTIA, 
as Co-Syndication Agents, 
 
and 
 
BARCLAYS BANK PLC AND 
CITIBANK, N.A., 
as Co-Documentation Agents 
 

 
J.P. MORGAN SECURITIES INC., 
as Lead Arranger and Bookrunner 
 
Dated as of May 30, 2002 

 
Table of
Contents 
 

	 	  	 Page

	
	 SECTION 1. DEFINITIONS AND ACCOUNTING TERMS
	  	 1

	
	 1.1 Definitions
	  	 1

	 1.2 Computation of Time Periods; Other Definitional Provisions.
	  	 13

	 1.3 Accounting Terms.
	  	 13

	 1.4 Time.
	  	 13

	
	 SECTION 2. LOANS
	  	 14

	
	 2.1 Revolving Loan Commitment.
	  	 14

	 2.2 Method of Borrowing for Revolving Loans
	  	 16

	 2.3 Funding of Revolving Loans
	  	 17

	 2.4 Minimum Amounts of Revolving Loans
	  	 18

	 2.5 Reductions of Revolving Loan Commitment
	  	 18

	 2.6 Notes
	  	 18

	
	 SECTION 3. PAYMENTS
	  	 19

	
	 3.1 Interest
	  	 19

	 3.2 Prepayments
	  	 19

	 3.3 Payment in Full at Maturity
	  	 20

	 3.4 Fees
	  	 20

	 3.5 Place and Manner of Payments
	  	 21

	 3.6 Pro Rata Treatment
	  	 21

	 3.7 Computations of Interest and Fees
	  	 21

	 3.8 Sharing of Payments.
	  	 22

	 3.9 Evidence of Debt
	  	 22

	
	 SECTION 4. ADDITIONAL PROVISIONS REGARDING LOANS
	  	 23

	
	 4.1 Eurodollar Loan Provisions
	  	 23

	 4.2 Capital Adequacy
	  	 24

	 4.3 Compensation
	  	 25

	 4.4 Taxes
	  	 25

	 4.5 Mitigation; Mandatory Assignment.
	  	 27

	
	 SECTION 5. LETTERS OF CREDIT
	  	 28

	
	 5.1 L/C Commitment
	  	 28

	 5.2 Procedure for Issuance of Letter of Credit
	  	 28

	 5.3 Fees and Other Charges
	  	 28

	 5.4 L/C Participations
	  	 29

	 5.5 Reimbursement Obligation of the Borrower
	  	 30

 

i 

 

	 	  	 Page

	 5.6 Obligations Absolute
	  	 30

	 5.7 Letter of Credit Payments
	  	 30

	 5.8 Applications
	  	 31

	
	 SECTION 6. CONDITIONS PRECEDENT
	  	 31

	
	 6.1 Closing Conditions
	  	 31

	 6.2 Conditions to Loans
	  	 33

	
	 SECTION 7. REPRESENTATIONS AND WARRANTIES
	  	 33

	
	 7.1 Organization and Good Standing.
	  	 33

	 7.2 Due Authorization
	  	 34

	 7.3 No Conflicts
	  	 34

	 7.4 Consents
	  	 34

	 7.5 Enforceable Obligations
	  	 34

	 7.6 Financial Condition
	  	 35

	 7.7 No Default
	  	 35

	 7.8 Indebtedness
	  	 35

	 7.9 Litigation
	  	 35

	 7.10 Taxes
	  	 35

	 7.11 Compliance with Law
	  	 36

	 7.12 ERISA
	  	 36

	 7.13 Use of Proceeds
	  	 36

	 7.14 Government Regulation
	  	 36

	 7.15 Solvency
	  	 37

	
	 SECTION 8. AFFIRMATIVE COVENANTS
	  	 37

	
	 8.1 Information Covenants
	  	 37

	 8.2 Preservation of Existence and Franchises
	  	 38

	 8.3 Books and Records.
	  	 38

	 8.4 Compliance with Law.
	  	 38

	 8.5 Payment of Taxes.
	  	 39

	 8.6 Insurance
	  	 39

	 8.7 Performance of Obligations
	  	 39

	 8.8 ERISA.
	  	 39

	 8.9 Use of Proceeds
	  	 40

	 8.10 Audits/Inspections
	  	 40

	 8.11 Total Funded Debt to Capitalization
	  	 40

	
	 SECTION 9. NEGATIVE COVENANTS
	  	 40

	
	 9.1 Nature of Business
	  	 40

	 9.2 Consolidation and Merger
	  	 40

	 9.3 Sale or Lease of Assets
	  	 41

	 9.4 Limitation on Liens
	  	 41

 

ii 

	 	  	 Page

	 9.5 Fiscal Year
	  	 42

	
	 SECTION 10. EVENTS OF DEFAULT
	  	 42

	
	 10.1 Events of Default
	  	 42

	 10.2 Acceleration; Remedies.
	  	 44

	 10.3 Allocation of Payments After Event of Default
	  	 45

	
	 SECTION 11. AGENCY PROVISIONS
	  	 46

	
	 11.1 Appointment
	  	 46

	 11.2 Delegation of Duties
	  	 46

	 11.3 Exculpatory Provisions
	  	 47

	 11.4 Reliance on Communications
	  	 47

	 11.5 Notice of Default
	  	 48

	 11.6 Non-Reliance on Administrative Agent and Other Lenders
	  	 48

	 11.7 Indemnification
	  	 49

	 11.8 Administrative Agent in Its Individual Capacity
	  	 49

	 11.9 Successor Administrative Agent
	  	 49

	
	 SECTION 12. MISCELLANEOUS
	  	 50

	
	 12.1 Notices
	  	 50

	 12.2 Right of Set-Off; Adjustments
	  	 50

	 12.3 Benefit of Agreement
	  	 51

	 12.4 No Waiver; Remedies Cumulative
	  	 54

	 12.5 Payment of Expenses, etc.
	  	 54

	 12.6 Amendments, Waivers and Consents
	  	 55

	 12.7 Counterparts; Telecopy
	  	 55

	 12.8 Headings
	  	 56

	 12.9 Defaulting Lender
	  	 56

	 12.10 Survival of Indemnification and Representations and Warranties
	  	 56

	 12.11 GOVERNING LAW
	  	 56

	 12.12 WAIVER OF JURY TRIAL
	  	 56

	 12.13 Severability
	  	 56

	 12.14 Entirety
	  	 57

	 12.15 Binding Effect
	  	 57

	 12.16 Submission to Jurisdiction
	  	 57

	 12.17 Confidentiality
	  	 58

	 12.18 Designation of SPVs
	  	 58

 

iii 

 

	SCHEDULES	  	 	  	 Page

	
	 Schedule 1.1
	  	 Commitment Percentages
	  	 
	 Schedule 7.8
	  	 Indebtedness
	  	 
	 Schedule 12.1
	  	 Notices
	  	 
	
	 EXHIBITS
	  	 	  	 
	
	 Exhibit 2.1(b)
	  	 Form of Competitive Bid Request
	  	 
	 Exhibit 2.2(a)
	  	 Form of Notice of Borrowing
	  	 
	 Exhibit 2.2(c)
	  	 Form of Notice of Conversion/Continuation
	  	 
	 Exhibit 2.6(a)
	  	 Form of Revolving Loan Note
	  	 
	 Exhibit 2.6(b)
	  	 Form of Competitive Bid Loan Note
	  	 
	 Exhibit 6.1(c)
	  	 Form of Closing Certificate
	  	 
	 Exhibit 6.1(f)
	  	 Form of Legal Opinion
	  	 
	 Exhibit 8.1(c)
	  	 Form of Officer’s Certificate
	  	 
	 Exhibit 12.3
	  	 Form of Assignment Agreement
	  	 

 

iv 

THREE-YEAR 
CREDIT AGREEMENT 
 
THREE-YEAR CREDIT AGREEMENT (this “Credit Agreement”), dated as of May 30, 2002 among DOMINION RESOURCES, INC., a Virginia corporation, VIRGINIA ELECTRIC AND POWER COMPANY, a Virginia
corporation, CONSOLIDATED NATURAL GAS COMPANY, a Delaware corporation (each of the above, individually, a “Borrower” and collectively, the “Borrowers”), the several banks and other financial institutions from time
to time parties to this Credit Agreement (each a “Lender” and, collectively, the “Lenders”), JPMORGAN CHASE BANK, a New York banking corporation, as administrative agent for the Lenders hereunder (in such capacity,
the “Administrative Agent”), BANK OF AMERICA, N.A. and THE BANK OF NOVA SCOTIA, as Co-Syndication Agents, and BARCLAYS BANK PLC and CITIBANK, N.A., as Co-Documentation Agents. 
 
The parties hereto hereby agree as follows: 
 
SECTION 1.    DEFINITIONS AND
ACCOUNTING TERMS 
 
1.1  Definitions 
 
As used herein, the following terms shall have the meanings herein specified unless the context otherwise requires. Defined terms herein shall include in the singular number the plural and in the plural the singular: 
 
“Absolute Rate Competitive Bid Loan” means a
Competitive Bid Loan bearing interest at a fixed percentage rate per annum as requested by the relevant Borrower and as specified in the Competitive Bid made by the Lender in connection with such Competitive Bid Loan. 
 
“Adjusted Base Rate” means with respect to
any Borrower the Base Rate plus the Applicable Percentage for Base Rate Loans for the relevant Borrower. 
 
“Adjusted Eurodollar Rate” means with respect to any Borrower the Eurodollar Rate plus the Applicable Percentage for
Eurodollar Loans for the relevant Borrower. 
 
“Administrative Agent” means JPMorgan Chase Bank and any successors and assigns in such capacity. 
 
“Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling (including but not
limited to all directors and officers of such Person), controlled by or under direct or indirect common control with such Person. A Person shall be deemed to control a corporation if such Person possesses, directly or indirectly, the power (i) to
vote 20% or more of the securities having ordinary voting power for the election of directors of such corporation or (ii) to direct or cause direction of the management and policies of such corporation, whether through the ownership of voting
securities, by contract or otherwise. 

 
“Applicable Percentage” means, for Revolving Loans made to, and Utilization Fees payable by, each Borrower, the appropriate applicable percentages, in each case, corresponding to the long-term, unsecured, senior, non
–credit-enhanced debt rating of the relevant Borrower in effect from time to time as shown below: 
 

	 Pricing
 Level

	  	 Long-Term Senior Unsecured
 Non-Credit Enhanced
 Debt Rating of Borrower

	    	 Applicable
 Percentage for
 Base Rate Loans

	    	 Applicable
 Percentage for
 Eurodollar Loans

	    	 Applicable Percentage for Facility Fees

	    	 Applicable Percentage for Utilization Fees

	 I.
	  	 3A from S&P or
	    	 0%
	    	 .325%
	    	 .100%
	    	 .125%

	 	  	 3A2 from Moody’s
	    	 	    	 	    	 	    	 
	 II.
	  	 A- from S&P or
	    	 0%
	    	 .425%
	    	 .125%
	    	 .125%

	 	  	 A3 from Moody’s
	    	 	    	 	    	 	    	 
	 III.
	  	 BBB+ from S&P or
	    	 0%
	    	 .600%
	    	 .150%
	    	 .125%

	 	  	 Baa1 from Moody’s
	    	 	    	 	    	 	    	 
	 IV.
	  	 BBB from S&P or
	    	 0%
	    	 .675%
	    	 .200%
	    	 .125%

	 	  	 Baa2 from Moody’s
	    	 	    	 	    	 	    	 
	 V.
	  	 £BBB- from S&P or
	    	 0%
	    	 .875%
	    	 .250%
	    	 .125%

	 	  	 £Baa3 from Moody’s
	    	 	    	 	    	 	    	 

 
Notwithstanding the
above, if at any time there is a split in ratings between S&P and Moody’s of one level, the Applicable Percentage will be determined based upon the higher rating, and if at any time there is a split in ratings between S&P and
Moody’s of two or more levels, the Applicable Percentage shall be determined based upon the ratings level that is one level below the higher of the S&P or Moody’s rating. 
 
The Applicable Percentages shall be determined and adjusted on the date of any applicable change in the long
term unsecured senior, non –credit-enhanced debt rating of the relevant Borrower. Any adjustment in the Applicable Percentages shall be applicable to all existing Loans as well as any new Loans. 
 
The Applicable Percentage for the Facility Fees payable by DRI
shall be the appropriate applicable percentages from time to time, as shown above, calculated based on the rating index of the lowest rated Borrower at such time. This lowest rating index shall be determined based upon the long term unsecured,
senior, non-credit enhanced public debt rating for the relevant Borrower in effect on such day as published by S&P and Moody’s; it being understood that the initial Applicable Percentages for Facility Fees are based on Pricing Level III (as
shown above) and shall remain at Pricing Level III until an applicable change in the rating index of the lowest rated Borrower. In the event that such ratings differ by only one level, the 

 

2 

higher rating shall apply. In the event that such ratings differ by two or more levels, the rating one level below the higher rating shall
apply. 
 
Each Borrower shall promptly deliver to
the Administrative Agent, at the address set forth on Schedule 12.1, information regarding any change in the long-term, unsecured senior, non-credit enhanced debt rating of such Borrower that would change the existing Pricing Level (as set
forth in the chart above) with respect to such Borrower and/or the Facility Fees. 
 
“Application” means an application, in such form as the Issuing Lender may specify from time to time, requesting the Issuing Lender to issue a Letter of Credit. 
 
“Bankruptcy Code” means the Bankruptcy Code
in Title 11 of the United States Code, as amended, modified, succeeded or replaced from time to time. 
 
“Base Rate” means, for any day, a simple rate per annum equal to the greater of (a) the Prime Rate for such day or (b)
the sum of one-half of one percent (.50%) plus the Federal Funds Rate for such day. 
 
“Base Rate Loan” means a Loan that bears interest at an Adjusted Base Rate. 
 
“Borrower” has the meaning set forth in the preamble hereof. 
 
“Business Day” means any day other than a Saturday, a Sunday, a legal holiday or a day on
which banking institutions are authorized or required by law or other governmental action to close in New York, New York; provided that in the case of Eurodollar Loans, such day is also a day on which dealings between banks are carried on in
U.S. dollar deposits in the London interbank market. 
 
“Capital Stock” means 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, rights or options to purchase any of the foregoing. 
 
“Capitalization” means the sum of (a) Total Funded Debt plus (b) Net Worth. 
 
“Change of Control” means with respect to Dominion Resources the direct or indirect acquisition by any person (as such
term is defined in Section 13(d) of the Securities and Exchange Act of 1934, as amended) of beneficial ownership of more than 50% of the outstanding shares of the capital stock of Dominion Resources entitled to vote generally for the election of
directors of Dominion Resources, and with respect to any other Borrower, either such Borrower shall cease to be a Subsidiary of Dominion Resources or a Change of Control shall occur with respect to Dominion Resources. 
 
“Closing Date” means the date hereof.

 
“CNG” means Consolidated
Natural Gas Company, a Delaware corporation and its successors and permitted assigns. 
 

3 

 
“Code” means the Internal Revenue Code of 1986, as amended from time to time. 
 
“Commitment Percentage” means, for each Lender, the percentage identified as its Commitment Percentage opposite such
Lender’s name on Schedule 1.1 attached hereto, as such percentage may be modified by assignment in accordance with the terms of this Credit Agreement. 
 
“Commitment” means, with respect to each Lender, such Lender’s share of the Revolving Loan Commitment based upon
such Lender’s Commitment Percentage. 
 
“Competitive Bid” means an offer by a Lender to make a Competitive Bid Loan to a Borrower pursuant to the terms of Section 2.1(b) hereof. 
 
“Competitive Bid Loan” means a loan made by a Lender to a Borrower in its discretion
pursuant to the provisions of Section 2.1(b) hereof. 
 
“Competitive Bid Loan Notes” means with respect to any Borrower the promissory notes of such Borrower in favor of each Lender evidencing the Competitive Bid Loans made to such Borrower and substantially in the form
of Exhibit 2.6(b), as such promissory notes may be amended, modified, supplemented or replaced from time to time. 
 
“Competitive Bid Rate” means, as to any Competitive Bid made by a Lender to a Borrower in accordance with the provisions
of Section 2.1(b) hereof, the rate of interest offered by the Lender making the Competitive Bid (which for a Eurodollar Competitive Bid Loan shall be a rate of interest determined by reference to the Eurodollar Rate). 
 
“Competitive Bid Request” means a request by
a Borrower for Competitive Bids in the form of Exhibit 2.1(b). 
 
“Competitive Bid Request Fee” means $2500 for each Competitive Bid Request made by a Borrower. 
 
“Consolidated Subsidiary” means, as to any Person, each Subsidiary of such Person (whether now existing or hereafter
created or acquired), the financial statements of which are consolidated with the financial statements of such Person in accordance with GAAP, including principles of consolidation. 
 
“Controlled Group” means with respect to each Borrower (i) the controlled group of
corporations as defined in Section 414(b) of the Code and the applicable regulations thereunder or (ii) the group of trades or businesses under common control as defined in Section 414(c) of the Code and the applicable regulations thereunder, of
which such Borrower is a part or may become a part. 
 
“Credit Documents” means this Credit Agreement, the Notes, and all other related agreements and documents issued or delivered hereunder or thereunder or pursuant hereto or thereto. 
 

4 

 
“Credit Exposure” has the meaning set forth in the definition of “Required Lenders” below. 
 
“Default” means with respect to each Borrower any event, act or condition which with notice or lapse of time, or both,
would constitute an Event of Default by such Borrower. 
 
“Defaulting Lender” means, at any time, any Lender that, at such time (a) has failed to make a Loan required pursuant to the terms of this Credit Agreement, (b) has failed to pay to the Administrative Agent or any
Lender an amount owed by such Lender pursuant to the terms of this Credit Agreement or (c) has been deemed insolvent or has become subject to a bankruptcy or insolvency proceeding or to a receiver, trustee or similar official. 
 
“Dominion Resources or DRI” means Dominion
Resources, Inc., a Virginia corporation, and its successors and permitted assigns. 
 
“Effective Date” has the meaning set forth in Section 12.15 hereof. 
 
“Eligible Assignee” means (a) any Lender or Affiliate or Subsidiary of a Lender and (b) any other commercial bank,
financial institution or “accredited investor” (as defined in Regulation D) that is either a bank organized or licensed under the laws of the United States of America or any State thereof or that has agreed to provide the information
listed in Section 4.4(d) to the extent that it may lawfully do so and that is approved by the Administrative Agent and the Borrowers (such approval not to be unreasonably withheld or delayed); providedthat (i) the Borrowers’ consent is not
required during the existence and continuation of a Default or an Event of Default and (ii) neither the Borrowers nor any Affiliate or Subsidiary of the Borrowers shall qualify as an Eligible Assignee. 
 
“ERISA” means the Employee Retirement Income
Security Act of 1974, as amended from time to time, and the regulations promulgated and the rulings issued thereunder. 
 
“ERISA Affiliate” means with respect to each Borrower each person (as defined in Section 3(9) of ERISA) which together
with such Borrower or any Subsidiary of such Borrower would be deemed to be a member of the same “controlled group” within the meaning of Section 414(b), (c), (m) and (o) of the Code. 
 
“Eurodollar Competitive Bid Loan” means a
Competitive Bid Loan bearing interest at a fixed rate of interest determined by reference to the Eurodollar Rate as requested by the relevant Borrower and as specified in the Competitive Bid made by the Lender in connection with such Competitive Bid
Loan. 
 
“Eurodollar Loans” means
a Loan that bears interest at the Eurodollar Rate (including a Eurodollar Competitive Bid Loan). 
 
“Eurodollar Rate” means with respect to any Eurodollar Loan, for the Interest Period applicable thereto, a rate per annum determined pursuant to the following formula: 
 

	 “Eurodollar Rate”

	 	 =
	 	 Interbank Offered Ratep

	 	 	 	 	 1 - Eurodollar Reserve Percentage

 

5 

 
“Eurodollar Reserve Percentage” means, for any day, that percentage (expressed as a decimal) which is in effect from time to time under Regulation D, as such regulation may be amended from time to time or any
successor regulation, as the maximum reserve requirement (including, without limitation, any basic, supplemental, emergency, special, or marginal reserves) applicable with respect to Eurocurrency liabilities as that term is defined in Regulation D
(or against any other category of liabilities that includes deposits by reference to which the interest rate of Eurodollar Loans is determined), whether or not any Lender has any Eurocurrency liabilities subject to such reserve requirement at that
time. Eurodollar Loans shall be deemed to constitute Eurocurrency liabilities and as such shall be deemed subject to reserve requirements without benefits of credits for proration, exceptions or offsets that may be available from time to time to a
Lender. The Eurodollar Rate shall be adjusted automatically on and as of the effective date of any change in the Eurodollar Reserve Percentage. 
 
“Eurodollar Revolving Loan” means a Revolving Loan bearing interest at a rate of interest determined by reference to the
Eurodollar Rate. 
 
“Event of
Default” with respect to any Borrower has the meaning specified in Section 10.1. 
 
“Exchange Act” means the Securities and Exchange Act of 1934, as amended. 
 
“Facility Fees” has the meaning set forth in Section 3.4(a). 
 
“Federal Funds Rate” means for any day the rate per annum (rounded upward to the nearest
1/100th of 1%) equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the
Business Day next succeeding such day; provided that (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 immediately preceding 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 quoted to the Administrative Agent on such day on such transactions as determined by the Administrative Agent. 
 
“First Mortgage Bond Indenture” means the
first mortgage bond indenture, dated November 1, 1935, by and between VaPower and The Chase Manhattan Bank, as supplemented and amended. 
 
“Funded Debt” means, as to any Person, without duplication: (a) all Indebtedness of such Person for borrowed money or
which has been incurred in connection with the acquisition of assets (excluding letters of credit, bankers’ acceptances, Non-Recourse Debt, Mandatorily Convertible Securities and Trust Preferred Securities), (b) all capital lease obligations
(including Synthetic Lease Obligations) of such Person and (c) all Guaranty Obligations of Funded Debt of other Persons. 
 
“GAAP” means generally accepted accounting principles in the United States applied on a consistent basis and subject to
Section 1.3. 
 

6 

 
“Governmental Authority” means any Federal, state, local or foreign court or governmental agency, authority, instrumentality or regulatory body. 
 
“Granting Lender” has the meaning set forth in Section 12.17 hereof. 
 
“Guaranty Obligations” means, in respect of
any Person, any obligation, contingent or otherwise, of such Person directly or indirectly guaranteeing any Indebtedness of another Person, including, without limitation, any obligation (a) to purchase or pay, or advance or supply funds for the
purchase or payment of, such Indebtedness or (b) entered into primarily for the purpose of assuring the owner of such Indebtedness of the payment thereof (such as, for example, but without limitation, an agreement to advance or provide funds or
other support for the payment or purchase of such Indebtedness or to maintain working capital, solvency or other balance sheet conditions of such other Person, including, without limitation, maintenance agreements, comfort letters or similar
agreements or arrangements, or to lease or purchase property, securities or services) if such obligation would constitute an indirect guarantee of indebtedness of others, the disclosure of which would be required in the relevant Borrower’s
financial statements under GAAP; provided, however, that the term Guaranty Obligations shall not include (i) endorsements for deposit or collection in the ordinary course of business, (ii) obligations under purchased power contracts or
(iii) obligations of such Borrower otherwise constituting Guaranty Obligations under this definition to provide contingent equity support, to keep well, to purchase assets, goods, securities or services, to take or pay or to maintain financial
statement conditions or otherwise in respect of any Subsidiary or Affiliate of such Borrower in connection with the non-utility nonrecourse financing activities of such Subsidiary or Affiliate. 
 
“Indebtedness” means, as to any Person,
without duplication: (a) all obligations of such Person for borrowed money or evidenced by bonds, debentures, notes or similar instruments; (b) all obligations of such Person for the deferred purchase price of property or services (except trade
accounts payable arising in the ordinary course of business, customer deposits, provisions for rate refunds, deferred fuel expenses and obligations in respect of pensions and other post-retirement benefits); (c) all capital lease obligations of such
Person; (d) all Indebtedness of others secured by a Lien on any properties, assets or revenues of such Person (other than stock, partnership interests or other equity interests of a Borrower or any of its Subsidiaries in other entities) to the
extent of the lesser of the value of the property subject to such Lien or the amount of such Indebtedness; (e) all Guaranty Obligations; and (f) all non-contingent obligations of such Person under any letters of credit or bankers’ acceptances.

 
“Indenture” means the Indenture
dated as of April 1, 1995 between CNG and United States Trust Company of New York, as Trustee, as in effect on the date hereof and without giving effect to any modifications or supplements thereto, or terminations thereof, after the date hereof.

 
“Interbank Offered Rate” means,
for any Eurodollar Loan for any Interest Period therefor, the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on Telerate Page 3750 (or any successor page) as the London interbank offered rate for deposits in
U.S. dollars at approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period for a term comparable to such Interest Period; provided, however, if more than one rate is specified on Telerate Page 3750, the
applicable rate shall be the 

 

7 

arithmetic mean of all such rates. If, for any reason, such rate is not available, the term “Interbank Offered Rate” shall mean,
for any Eurodollar Loan for any Interest Period therefor, the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on Reuters Screen LIBO Page as the London interbank offered rate for deposits in Dollars at
approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period for a term comparable to such Interest Period; provided, however, if more than one rate is specified on Reuters Screen LIBO Page,
the applicable rate shall be the arithmetic mean of all such rates (rounded upwards, if necessary, to the nearest 1/100 of 1%). 
 
“Interest Payment Date” means (a) as to Base Rate Loans of any Borrower, the last day of each fiscal quarter of such
Borrower and on the Maturity Date, (b) as to Eurodollar Loans of any Borrower, on the last day of each applicable Interest Period and on the Maturity Date and (c) as to Absolute Rate Competitive Bid Loans of any Borrower, on the last day of the
Interest Period for each Absolute Rate Competitive Bid Loan and on the Maturity Date, and, in addition, where the applicable Interest Period for a Eurodollar Loan of any Borrower is greater than three months, then also on the last day of each
three-month period during such Interest Period. If an Interest Payment Date falls on a date which is not a Business Day, such Interest Payment Date shall be deemed to be the next succeeding Business Day, except that in the case of Eurodollar Loans
where the next succeeding Business Day falls in the next succeeding calendar month, then such Interest Payment Date shall be deemed to be the immediately preceding day. 
 
“Interest Period” means, (a) as to Eurodollar Loans, a period of one, two, three or six
months’ duration, as the relevant Borrower may elect, commencing, in each case, on the date of the borrowing (including continuations and conversions of Eurodollar Revolving Loans) and (b) with respect to Absolute Rate Competitive Bid Loans, a
period beginning on the date the Absolute Rate Competitive Bid Loan is made and ending on the date specified in the respective Competitive Bid whereby the offer to make such Absolute Rate Competitive Loan was extended, which shall not be less than 7
days nor more than 360 days duration; provided, however, (i) if any Interest Period would end on a day which is not a Business Day, such Interest Period shall be extended to the next succeeding Business Day (except that where the next
succeeding Business Day falls in the next succeeding calendar month, then such Interest Period shall end on the next preceding Business Day), (ii) no Interest Period shall extend beyond the Maturity Date and (iii) with respect to Eurodollar Loans,
where an Interest Period begins on a day for which there is no numerically corresponding day in the calendar month in which the Interest Period is to end, such Interest Period shall end on the last Business Day of such calendar month. 
 
“Issuing Lender” means JPMCB, in its capacity
as issuer of any Letter of Credit. 
 
“JPMCB” means JPMorgan Chase Bank. 
 
“L/C Commitment” means $200,000,000. 
 
“L/C Fee Payment Date” means the first Business Day of each January, April, July and October (as well as on the Maturity Date). 
 
“L/C Obligations” means at any time, an
amount equal to the sum of (a) the aggregate then undrawn and unexpired amount of the then outstanding Letters of Credit and (b) 

 

8 

the aggregate amount of drawings under Letters of Credit that have not then been reimbursed pursuant to Section 5.5. 
 
“L/C Participants” means the collective
reference to all the Lenders other than the Issuing Lender. 
 
“Lead Arranger” means J.P. Morgan Securities Inc. 
 
“Lenders” means those banks and other financial institutions identified as such on the signature pages hereto and such other institutions that may become Lenders pursuant to Section
12.3. 
 
“Letters of Credit” has
the meaning set forth in Section 5.1(a) hereof. 
 
“Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement, security interest, encumbrance, lien (statutory or otherwise), preference, priority or charge of any kind (including any agreement to
give any of the foregoing, any conditional sale or other title retention agreement, any financing or similar statement or notice filed under the Uniform Commercial Code as adopted and in effect in the relevant jurisdiction or other similar recording
or notice statute, and any lease in the nature thereof). 
 
“Loan” means any loan made by any Lender pursuant to this Agreement. 
 
“Mandatorily Convertible Securities” means any mandatorily convertible equity-linked securities issued by a Borrower, so
long as the terms of such securities require no repayments or prepayments and no mandatory redemptions or repurchases, in each case prior to at least 91 days after the later of the termination of the Commitments and the repayment in full of the
Loans and all other amounts due under the Credit Agreement. 
 
“Material Adverse Effect” means with respect to any Borrower a material adverse effect, after taking into account applicable insurance, if any, on (a) the operations, financial condition or business of such Borrower,
(b) the ability of such Borrower to perform its obligations under this Credit Agreement or (c) the validity or enforceability of this Credit Agreement or any of the other Credit Documents against such Borrower, or the rights and remedies of the
Lenders against such Borrower hereunder or thereunder; provided, however, that a transfer of assets permitted under and in compliance with Section 9.3 shall not be considered to have a Material Adverse Effect. 
 
“Material Subsidiary” shall mean with respect
to any Borrower, a Subsidiary of such Borrower whose total assets (as determined in accordance with GAAP) represent at least 20% of the total assets of such Borrower, on a consolidated basis. 
 
“Maturity Date” means the date three years
after the Closing Date. 
 
“Moody’s” means Moody’s Investors Service, Inc., or any successor or assignee of the business of such company in the business of rating securities. 
 

9 

 
“Multiemployer Plan” means at any time an employee pension benefit plan within the meaning of Section 4001(a)(3) of ERISA to which any member of the Controlled Group is then making or accruing an obligation to make
contributions or has within the preceding five plan years made contributions, including for these purposes any Person which ceased to be a member of the Controlled Group during such five year period but only with respect to the period during which
such Person was a member of the Controlled Group. 
 
“Net Worth” means with respect to any Borrower, as of any date, the shareholders’ equity or net worth of such Borrower and its Consolidated Subsidiaries, on a consolidated basis, as determined in accordance with
GAAP. 
 
“Non-Recourse Debt” means
Indebtedness (a) as to which no Borrower (i) provides credit support of any kind (including any undertaking, agreement or instrument that would constitute Indebtedness), (ii) is directly or indirectly liable as a guarantor or otherwise, or (iii)
constitutes the lender; (b) no default with respect to which would permit upon notice, lapse of time or both any holder of any other Indebtedness (other than the Loans or the Notes) of any Borrower to declare a default on such other Indebtedness or
cause the payment thereof to be accelerated or payable prior to its stated maturity; and (c) as to which the lenders have been notified in writing that they will not have any recourse to the stock or assets of any Borrower. 
 
“Notes” means the collective reference to the
Revolving Loan Notes and the Competitive Bid Loan Notes of the Borrowers. 
 
“Notice of Borrowing” means a request by a Borrower for a Loan in the form of Exhibit 2.2(a). 
 
“Notice of Continuation/Conversion” means a request by a Borrower for the continuation or conversion of a Loan in the
form of Exhibit 2.2(c). 
 
“Other
Taxes” has the meaning set forth in Section 4.4(b) hereof. 
 
“PBGC” means the Pension Benefit Guaranty Corporation established under ERISA and any successor thereto. 
 
“Pension Plans” has the meaning set forth in Section 8.8 hereof. 
 
“Person” means any individual, partnership,
joint venture, firm, corporation, limited liability company, association, trust or other enterprise (whether or not incorporated), or any government or political subdivision or any agency, department or instrumentality thereof. 
 
“Plan” means any single-employer plan as
defined in Section 4001 of ERISA, which is maintained, or at any time during the five calendar years preceding the date of this Credit Agreement was maintained, for employees of a Borrower, any Subsidiary of a Borrower or any ERISA Affiliate of a
Borrower. 
 
“Prime Rate” means
the per annum rate of interest established from time to time by JPMCB at its principal office in New York, New York as its Prime Rate. Any change in the interest rate resulting from a change in the Prime Rate shall become effective as of 12:01 a.m.
of 

 

10 

the Business Day on which each change in the Prime Rate is announced by the Administrative Agent. The Prime Rate is a reference rate used by
the Administrative Agent in determining interest rates on certain loans and is not intended to be the lowest rate of interest charged on any extension of credit to any debtor. 
 
“Register” has the meaning set forth in Section 12.3(c). 
 
“Regulation A, D, T, U or X” means Regulation
A, D, T, U or X, respectively, of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor to all or a portion thereof. 
 
“Reimbursement Obligation” means the obligation of the Borrower to reimburse the Issuing
Lender pursuant to Section 5.5 for amounts drawn under Letters of Credit. 
 
“Reportable Event” means a “reportable event” as defined in Section 4043 of ERISA with respect to which the notice requirements to the PBGC have not been waived. 
 
“Required Lenders” means Lenders whose
aggregate Credit Exposure (as hereinafter defined) constitutes more than 50% of the aggregate Credit Exposure of all Lenders at such time; provided, however, that if any Lender shall be a Defaulting Lender at such time then there shall
be excluded from the determination of Required Lenders the aggregate principal amount of Credit Exposure of such Lender at such time. For purposes of the preceding sentence, the term “Credit Exposure” as applied to each Lender shall mean
(a) at any time prior to the termination of the Commitments, the Commitment Percentage of such Lender multiplied times the Revolving Loan Commitment and (b) at any time after the termination of the Commitments, the outstanding amount of Loans
owed to such Lender. 
 
“Revolving Loan
Commitment” means Seven Hundred and Fifty Million Dollars ($750,000,000), which amount includes the L/C Commitment, as such amount may be otherwise reduced in accordance with Section 2.5. 
 
“Revolving Loan” means a Loan made by the
Lenders to a Borrower pursuant to Section 2.1(a) hereof. 
 
“Revolving Loan Notes” means with respect to any Borrower the promissory notes of such Borrower in favor of each Lender evidencing the Revolving Loans made to such Borrower and substantially in the form of Exhibit
2.6(a), as such promissory notes may be amended, modified, supplemented or replaced from time to time. 
 
“S&P” means Standard & Poor’s Ratings Group, a division of McGraw Hill, Inc., or any successor or assignee
of the business of such division in the business of rating securities. 
 
“Solvent” means, with respect to any Person as of a particular date, that on such date (a) the fair saleable value (on a going concern basis) of such Person’s assets exceeds its liabilities, contingent
or otherwise, fairly valued, (b) such Person will be able to pay its debts as they become due, (c) such Person does not have unreasonably small capital with which to satisfy all of its current and reasonably anticipated obligations and (d) such
Person does not intend to 

 

11 

incur nor does it reasonably anticipate that it will incur debts beyond its ability to pay as such debts become due. 
 
“SPV” has the meaning set forth in Section
12.17 hereof. 
 
“Subsidiary”
means, as to any Person, (a) any corporation more than 50% of whose stock of any class or classes having by the terms thereof ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time,
any class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time owned by such Person directly or indirectly through Subsidiaries and (b) any partnership, association, joint
venture or other entity in which such person directly or indirectly through Subsidiaries has more than 50% equity interest at any time. 
 
“Synthetic Lease” means each arrangement, however described, under which the obligor accounts for its interest in the
property covered thereby under GAAP as lessee of a lease which is not a capital lease under GAAP and accounts for its interest in the property covered thereby for federal income tax purposes as the owner. 
 
“Synthetic Lease Obligation” means, as to any
Person with respect to any Synthetic Lease at any time of determination, the amount of the liability of such Person in respect of such Synthetic Lease that would (if such lease was required to be classified and accounted for as a capital lease on a
balance sheet of such Person in accordance with GAAP) be required to be capitalized on the balance sheet of such Person at such time. 
 
“Taxes” has the meaning set forth in Section 4.4(a). 
 
“364-Day Credit Agreement” means the 364-Day Credit Agreement, dated as of the date hereof,
among the Borrowers, the several banks and other financial institutions from time to time parties thereto, JPMorgan Chase Bank, as administrative agent, and the other agents party thereto. 
 
“Total Funded Debt” means with respect to each Borrower all Funded Debt of such Borrower and
its Consolidated Subsidiaries, on a consolidated basis, as determined in accordance with GAAP. 
 
“Trust Preferred Securities” means the trust preferred securities issued by one of the five subsidiary capital trusts established by any of the Borrowers outstanding on the date hereof
and reflected as such in the financial statements of Dominion Resources for the fiscal year ended December 31, 2001, and any additional trust preferred securities that are substantially similar thereto, along with the junior subordinated debt
obligations of the Borrowers, so long as (a) the terms thereof require no repayments or prepayments and no mandatory redemptions or repurchases, in each case prior to at least 91 days after the later of the termination of the Commitments and the
repayment in full of the Loans and all other amounts due under the Credit Agreement, (b) such securities are subordinated and junior in right of payment to all obligations of the Borrowers for or in respect of borrowed money and (c) the obligors in
respect of such preferred securities and subordinated debt have the right to defer interest and dividend payments, in each case to substantially the same extent as such currently outstanding preferred securities or 

 

12 

on similar terms customary for trust preferred securities and not materially less favorable to the interests of the Borrowers or the
Lenders. 
 
“Utilization
Fees” has the meaning set forth in Section 3.4(b). 
 
“Utilized Revolving Commitment” means, for any Borrower for any day from the Closing Date to the Maturity Date, an amount equal to the sum of (a) the aggregate principal amount of all Loans outstanding on such
day to such Borrower and (b) the aggregate L/C Obligations then outstanding. 
 
“VaPower” means Virginia Electric and Power Company, a Virginia corporation and its successors and assigns. 
 
“Wholly Owned Subsidiary” means, as to any Person, any other Person all of the Capital Stock
of which (other than de minimis directors’ qualifying shares or local ownership shares required by law and outstanding publicly owned preferred stock of VaPower) is owned by such Person directly and/or through other Wholly Owned Subsidiaries.

 
1.2  Computation of Time Periods;
Other Definitional Provisions. 
 
For purposes
of computation of periods of time hereunder, the word “from” means “from and including” and the words “to” and “until” each mean “to but excluding.” References in this Credit Agreement to
“Sections”, “Schedules” and “Exhibits” shall be to Sections, Schedules or Exhibits of or to this Credit Agreement unless otherwise specified. 
 
1.3  Accounting Terms. 
 
Except as otherwise expressly provided herein, all accounting terms used herein shall be interpreted, and all
financial statements and certificates and reports as to financial matters required to be delivered to the Lenders hereunder shall be prepared, in accordance with GAAP applied on a consistent basis. All calculations made for the purposes of
determining compliance with this Credit Agreement shall (except as otherwise expressly provided herein) be made by application of GAAP applied on a basis consistent with the most recent annual or quarterly financial statements delivered pursuant to
Section 8.1 (or, prior to the delivery of the first financial statements pursuant to Section 8.1, consistent with the financial statements described in Section 6.1(g)); provided, however , if (a) a Borrower shall object to determining
such compliance on such basis at the time of delivery of such financial statements due to any change in GAAP or the rules promulgated with respect thereto or (b) the Administrative Agent or the Required Lenders shall so object in writing within 30
days after delivery of such financial statements, then such calculations shall be made on a basis consistent with the most recent financial statements delivered by such Borrower to the Lenders as to which no such objection shall have been made.

 
1.4  Time. 
 
All references to time herein shall be references to Eastern
Standard Time or Eastern Daylight time, as the case may be, unless specified otherwise. 
 

13 

 
SECTION 2.
LOANS 
 
2.1  Revolving Loan
Commitment. 
 
(a)    Revolving Loans. Subject to the terms and conditions set forth herein, each Lender severally agrees to make revolving loans to each Borrower in U.S. dollars, at any time and from time to time, during
the period from the Closing Date to the Maturity Date (each a “Revolving Loan” and collectively the “Revolving Loans”); provided that (i) the sum of the aggregate amount of Revolving Loans plus the
aggregate amount of Competitive Bid Loans outstanding to the Borrowers plus the L/C Obligations then outstanding on any day shall not exceed the Revolving Loan Commitment and (ii) with respect to each individual Lender, the Lender’s
pro rata share of the sum of outstanding Revolving Loans plus the L/C Obligations then outstanding on any day shall not exceed such Lender’s Commitment Percentage of the Revolving Loan Commitment. Revolving Loans made to
any Borrower shall be the several obligations of such Borrower. Subject to the terms and conditions of this Credit Agreement, each Borrower may borrow, repay and reborrow the amount of the Revolving Loan Commitment made to it. 
 
(b)    Competitive Bid Loans
Subfacility. 
 
(i)    Competitive Bid Loans. Subject to the terms and conditions set forth herein, a Borrower may, from time to time, during the period from the Closing Date until the date occurring seven days prior to
the Maturity Date, request and each Lender may, in its sole discretion, agree to make Competitive Bid Loans to such Borrower; provided, however, that (A) the sum of the aggregate amount of Revolving Loans outstanding plus the aggregate
amount of Competitive Bid Loans outstanding to the Borrowers on any day shall not exceed the Revolving Loan Commitment and (B) if a Lender makes a Competitive Bid Loan, such Lender’s obligation to make its pro rata share of any
Revolving Loan shall not be reduced thereby. 
 
(ii)    Competitive Bid Requests. Each Borrower may solicit Competitive Bids by delivery of a Competitive Bid Request to the Administrative Agent by 10:00 a.m. (A) with respect to a request for a Eurodollar
Competitive Bid Loan, on a Business Day four Business Days prior to the date of a requested Eurodollar Competitive Bid Loan and (B) with respect to a request for an Absolute Rate Competitive Bid Loan, on a Business Day not less than one nor more
than five Business Days prior to the date of the requested Absolute Rate Competitive Bid Loan. A Competitive Bid Request must be substantially in the form of Exhibit 2.1(b), shall be accompanied by the Competitive Bid Request Fee and shall
specify (I) the date of the requested Competitive Bid Loan (which shall be a Business Day), (II) the amount of the requested Competitive Bid Loan, (III) whether such Borrower is requesting a Eurodollar Competitive Bid Loan or an Absolute Rate
Competitive Bid Loan and (IV) the applicable Interest Period or Interest Periods requested. The Administrative Agent shall notify the Lenders of its receipt of a Competitive Bid Request and the contents thereof and invite the Lenders to submit
Competitive Bids in response thereto. Such Borrower may not request a Competitive Bid for more than three different Interest Periods per Competitive Bid Request nor request Competitive Bid Requests more frequently than four times every calendar
month. 
 

14 

 
(iii)    Competitive Bid Procedure. Each Lender may, in its sole discretion, make one or more Competitive Bids to the relevant Borrower in response to a Competitive Bid Request. Each Competitive Bid must be
received by the Administrative Agent not later than 10:00 a.m. (A) with respect to a request for a Eurodollar Competitive Bid Loan, three Business Days prior to the date of the requested Eurodollar Competitive Bid Loan and (B) with respect to a
request for an Absolute Rate Competitive Bid Loan, on the proposed date of the requested Absolute Rate Competitive Bid Loan; provided, however, that should the Administrative Agent, in its capacity as a Lender, desire to submit a
Competitive Bid it shall notify such Borrower of its Competitive Bid and the terms thereof not later than 15 minutes prior to the time the other Lenders are required to submit their Competitive Bids. A Lender may offer to make all or part of the
requested Competitive Bid Loan and may submit multiple Competitive Bids in response to a Competitive Bid Request. Any Competitive Bid must specify (I) the particular Competitive Bid Request as to which the Competitive Bid is submitted, (II) the
minimum (which shall be not less than $5,000,000 and integral multiples of $1,000,000 in excess thereof) and maximum principal amounts of the requested Competitive Bid Loan or Loans which the Lender is willing to make and (III) the applicable
interest rate or rates and Interest Period or Interest Periods therefor. A Competitive Bid submitted by a Lender in accordance with the provisions hereof shall be irrevocable. The Administrative Agent shall promptly notify the relevant Borrower of
all Competitive Bids made and the terms thereof. The Administrative Agent shall send a copy of each of the Competitive Bids to such Borrower and each of the Lenders for their respective records as soon as practicable. 
 
(iv)    Acceptance of
Competitive Bids. Each Borrower may, in its sole discretion, subject only to the provisions of this subsection (iv), accept or refuse any Competitive Bid offered to it. To accept a Competitive Bid, the relevant Borrower shall give oral
notification of its acceptance of any or all such Competitive Bids (which shall be promptly confirmed in writing) to the Administrative Agent by 11:00 a.m. (A) with respect to a request for a Eurodollar Competitive Bid Loan, three Business Days
prior to the date of the requested Eurodollar Competitive Bid Loan and (B) with respect to a request for an Absolute Rate Competitive Bid Loan, on the proposed date of the Absolute Rate Competitive Bid Loan; provided, however, (I) the
failure by such Borrower to give timely notice of its acceptance of a Competitive Bid shall be deemed to be a refusal thereof, (II) to the extent Competitive Bids are for comparable Interest Periods, such Borrower may accept Competitive Bids only in
ascending order of rates, (III) the aggregate amount of Competitive Bids accepted by such Borrower shall not exceed the principal amount specified in the Competitive Bid Request, (IV) if such Borrower shall accept a bid or bids made at a particular
Competitive Bid Rate, but the amount of such bid or bids shall cause the total amount of bids to be accepted by such Borrower to be in excess of the amount specified in the Competitive Bid Request, then such Borrower shall accept a portion of such
bid or bids in an amount equal to the amount specified in the Competitive Bid Request less the amount of all other Competitive Bids accepted with respect to such Competitive Bid Request, which acceptance in the case of multiple bids at such
Competitive Bid Rate, shall be made pro rata in accordance with the amount of each such bid at such Competitive Bid Rate and (V) no bid shall be accepted for a Competitive Bid Loan unless such Competitive Bid Loan is in a minimum
principal amount of 

 

15 

$5,000,000 and integral multiples of $1,000,000 in excess thereof, except that where a portion of a Competitive Bid is accepted in accordance
with the provisions of clause (IV) of subsection (iv) hereof, then in a minimum principal amount of $500,000 and integral multiples of $100,000 (but not in any event less than the minimum amount specified in the Competitive Bid), and in calculating
the prorata allocation of acceptances of portions of multiple bids at a particular Competitive Bid Rate pursuant to clause (IV) of subsection (iv) hereof, the amounts shall be rounded to integral multiples of $100,000 in a manner which shall be in
the discretion of such Borrower. A notice of acceptance of a Competitive Bid given by a Borrower in accordance with the provisions hereof shall be irrevocable. The Administrative Agent shall, not later than noon (A) with respect to a Eurodollar
Competitive Bid Loan, three Business Days prior to the date of such Eurodollar Competitive Bid Loan and (B) with respect to a Absolute Rate Competitive Bid Loan, on the proposed date of such Competitive Bid Loan, notify each bidding Lender whether
or not its Competitive Bid has been accepted (and if so, in what amount and at what Competitive Bid Rate), and each successful bidder will thereupon become bound, subject to the other applicable conditions hereof, to make the Competitive Bid Loan in
respect of which its bid has been accepted. 
 
(v)    Funding of Competitive Bid Loans.    Each Lender which is to make a Competitive Bid Loan shall make its Competitive Bid Loan available to the Administrative Agent by 2:00 p.m. on
the date specified in the Competitive Bid Request by deposit of immediately available funds at the office of the Administrative Agent in New York, New York or at such other address as the Administrative Agent may designate in writing. The
Administrative Agent will, upon receipt, make the proceeds of such Competitive Bid Loans available to the relevant Borrower. 
 
(vi)    Maturity of Competitive Bid Loans.    Each Competitive Bid Loan
shall mature and be due and payable in full on the last day of the Interest Period applicable thereto. Unless the relevant Borrower shall give notice to the Administrative Agent otherwise (or repays such Competitive Bid Loan), or a Default or Event
of Default with respect to such Borrower exists and is continuing, such Borrower shall be deemed to have requested Revolving Loans from all of the Lenders (in the amount of the maturing Competitive Bid Loan and accruing interest at the Base Rate),
the proceeds of which will be used to repay such Competitive Bid Loan. 
 
2.2  Method of Borrowing for Revolving Loans. 
 
(a)    Base Rate Loans.    By no later than 11:00 a.m. on the date of a Borrower’s request for the borrowing (or for the conversion of Eurodollar
Revolving Loans to Base Rate Loans), such Borrower shall submit a Notice of Borrowing to the Administrative Agent setting forth (i) the amount requested, (ii) the desire to have such Revolving Loans accrue interest at the Base Rate and (iii) except
in the case of conversions of Eurodollar Revolving Loans to Base Rate Loans, complying in all respects with Section 6.2 hereof. 
 
(b)    Eurodollar Revolving Loans.    By no later than 11:00 a.m. three Business Days prior
to the date of a Borrower’s request for the borrowing (or for the conversion of Base Rate Loans to Eurodollar Revolving Loans or the continuation of existing Eurodollar Loans), 

 

16 

such Borrower shall submit a Notice of Borrowing to the Administrative Agent setting forth (i) the amount requested, (ii) the desire to have
such Revolving Loans accrue interest at the Adjusted Eurodollar Rate, (iii) the Interest Period applicable thereto, and (iv) except in the case of conversions of Base Rate Loans to Eurodollar Revolving Loans or the continuation of existing
Eurodollar Loans, to complying in all respects with Section 6.2 hereof. 
 
(c)    Continuation and Conversion.    Each Borrower shall have the option, on any Business Day, to continue existing Eurodollar Revolving Loans made to it for a subsequent
Interest Period, to convert Base Rate Loans made to it into Eurodollar Revolving Loans or to convert Eurodollar Revolving Loans made to it into Base Rate Loans. By no later than 11:00 a.m. (a) on the date of the requested conversion of a Eurodollar
Revolving Loan to a Base Rate Loan or (b) three Business Days prior to the date for a requested continuation of a Eurodollar Revolving Loan or conversion of a Base Rate Loan to a Eurodollar Revolving Loan, the relevant Borrower shall provide
telephonic notice to the Administrative Agent, followed promptly by a written Notice of Continuation/Conversion, setting forth (i) whether the relevant Borrower wishes to continue or convert such Loans and (ii) or if the request is to continue a
Eurodollar Revolving Loan or convert a Base Rate Loan to a Eurodollar Revolving Loan, the Interest Period applicable thereto. Notwithstanding anything herein to the contrary, (i) except as provided in Section 4.1 hereof, Eurodollar Revolving Loans
may be converted to Base Rate Loans only on the last day of an Interest Period applicable thereto; (ii) Eurodollar Revolving Loans may be continued and Base Rate Loans may be converted to Eurodollar Revolving Loans only if no Default or Event of
Default with respect to the relevant Borrower is in existence on the date of such extension or conversion; (iii) any continuation or conversion must comply with Sections 2.2(a) or 2.2(b) hereof, as applicable; and (iv) failure by such Borrower to
properly continue Eurodollar Revolving Loans at the end of an Interest Period shall be deemed a conversion to Base Rate Loans. 
 
2.3  Funding of Revolving Loans. 
 
Upon receipt of a Notice of Borrowing, the Administrative Agent shall promptly inform the Lenders as to the
terms thereof. Each Lender will make its prorata share of the Revolving Loans available to the Administrative Agent by 1:00 p.m. on the date specified in the Notice of Borrowing by deposit (in U.S. dollars) of immediately available funds at the
offices of the Administrative Agent at its principal office in New York, New York, or at such other address as the Administrative Agent may designate in writing. All Revolving Loans shall be made by the Lenders prorata on the basis of each
Lender’s Commitment Percentage. 
 
No Lender
shall be responsible for the failure or delay by any other Lender in its obligation to make Loans hereunder; provided, however, that the failure of any Lender to fulfill its obligations hereunder shall not relieve any other Lender of
its obligations hereunder. Unless the Administrative Agent shall have been notified by any Lender prior to the date of any such Loan that such Lender does not intend to make available to the Administrative Agent its portion of the Loans to be made
on such date, the Administrative Agent may assume that such Lender has made such amount available to the Administrative Agent on the date of such Loans, and the Administrative Agent in reliance upon such assumption, may (in its sole discretion
without any obligation to do so) make available to the relevant Borrower a corresponding amount. If such corresponding amount is not in fact made available to the Administrative Agent, the 

 

17 

Administrative Agent shall be able to recover such corresponding amount from such Lender. If such Lender does not pay such corresponding
amount forthwith upon the Administrative Agent’s demand therefor, the Administrative Agent will promptly notify the relevant Borrower and such Borrower shall immediately pay such corresponding amount to the Administrative Agent. The
Administrative Agent shall also be entitled to recover from the Lender or such Borrower, as the case may be, interest on such corresponding amount in respect of each day from the date such corresponding amount was made available by the
Administrative Agent to such Borrower to the date such corresponding amount is recovered by the Administrative Agent at a per annum rate equal to (a) from such Borrower at the applicable rate for such Loan pursuant to the Notice of Borrowing and (b)
from a Lender at the Federal Funds Rate. 
 
2.4  Minimum Amounts of Revolving Loans. 
 
Each request for Revolving Loans shall be in the case of Eurodollar Revolving Loans, in an aggregate principal amount that is not less than the lesser of $10,000,000 or the remaining amount available to be borrowed and in
the case of Base Rate Loans, in an aggregate principal amount that is not less than the lesser of $5,000,000 or the remaining amount available to be borrowed. Any Revolving Loan requested shall be in an integral multiple of $1,000,000 unless the
request is for all of the remaining amount available to be borrowed. 
 
2.5  Reductions of Revolving Loan Commitment. 
 
Upon at least three Business Days’ notice, Dominion Resources, on its own behalf and/or acting on the request of any other Borrower, shall have the right to permanently terminate or reduce the
aggregate unused amount of the Revolving Loan Commitment available to it and/or such other Borrower at any time or from time to time; provided that (a) each partial reduction shall be in an aggregate amount at least equal to $10,000,000 and
in integral multiples of $1,000,000 above such amount and (b) no reduction shall be made which would reduce the Revolving Loan Commitment to an amount less than the sum of the then outstanding Revolving Loans plus the then outstanding Competitive
Bid Loans. Any reduction in (or termination of) the Revolving Loan Commitment shall be permanent and may not be reinstated. 
 
2.6  Notes. 
 
(a)    Revolving Loan Notes.    The Revolving Loans made by the Lenders to a Borrower shall
be evidenced, upon request by any Lender, by a promissory note of such Borrower payable to each Lender in substantially the form of Exhibit 2.6(a) hereto (the “Revolving Loan Notes”) and in a principal amount equal to the
amount of such Lender’s Commitment Percentage of the Revolving Loan Commitment as originally in effect. 
 
(b)    Competitive Bid Loan Notes.    The Competitive Bid Loans made by the Lenders to a
Borrower shall be evidenced, upon request by any Lender, by a promissory note of such Borrower payable to each Lender in substantially the form of Exhibit 2.6(b) hereto (the “Competitive Bid Loan Notes”) and in a principal
amount equal to the Revolving Loan Commitment as originally in effect. 
 
The date, amount, type, interest rate and duration of Interest Period (if applicable) of each Loan made by each Lender to each Borrower, and each payment made on account of the 

 

18 

principal thereof, shall be recorded by such Lender on its books; provided that the failure of such Lender to make any such
recordation or endorsement shall not affect the obligations of such Borrower to make a payment when due of any amount owing hereunder or under any Note in respect of the Loans to be evidenced by such Note, and each such recordation or endorsement
shall be conclusive and binding absent manifest error. 
 
SECTION 3.    PAYMENTS 
 
3.1  Interest. 
 
(a)    Interest Rate. 
 
(i)    All Base Rate Loans made to a Borrower shall accrue interest at the Adjusted Base Rate with respect to such Borrower. 
 
(ii)    All Eurodollar
Loans made to a Borrower shall accrue interest at the Adjusted Eurodollar Rate with respect to such Borrower applicable to such Eurodollar Loan. 
 
(iii)    All Competitive Bid Loans shall accrue interest at the applicable Competitive Bid Rate with
respect to each Competitive Bid Loan. 
 
(b)    Default Rate of Interest.    Upon the occurrence, and during the continuance, of an Event of Default with respect to any Borrower, the principal of and, to the extent permitted by
law, interest on the Loans outstanding to such Borrower, Reimbursement Obligations and any other amounts owing by such Borrower hereunder or under the other Credit Documents shall bear interest, payable on demand, at a per annum rate equal to 2%
plus the rate which would otherwise be applicable (or if no rate is applicable, then the rate for Loans outstanding to such Borrower that are Base Rate Loans plus 2% per annum). 
 
(c)    Interest Payments.    Interest on Loans shall be due
and payable in arrears on each Interest Payment Date. 
 
3.2    Prepayments. 
 
(a)    Voluntary Prepayments. Each Borrower shall have the right to prepay Loans made to it in whole or in part from time to time without premium or penalty; provided, however, that (i) Eurodollar Loans may
only be prepaid on three Business Days’ prior written notice to the Administrative Agent and any prepayment of Eurodollar Loans will be subject to Section 4.3 hereof and (ii) each such partial prepayment of Loans shall be in the minimum
principal amount of $10,000,000. Amounts prepaid hereunder shall be applied as such Borrower may elect; provided that if such Borrower fails to specify the application of a voluntary prepayment then such prepayment shall be applied in each case
first to Base Rate Loans of such Borrower and then to Eurodollar Revolving Loans of such Borrower in direct order of Interest Period maturities. 
 
(b)    Mandatory Prepayments.    If at any time the amount of Revolving Loans outstanding
plus the aggregate amount of Competitive Bid Loans outstanding plus the L/C 

 

19 

Obligations then outstanding exceeds the Revolving Loan Commitment, one or more of the Borrowers shall immediately make a principal payment
to the Administrative Agent in the manner and in an amount necessary to be in compliance with Section 2.1 hereof. Any payments made under this Section 3.2(b) shall be subject to Section 4.3 hereof and shall be applied first, to Base Rate
Loans of the relevant Borrower, second, to Eurodollar Revolving Loans of the relevant Borrower in direct order of Interest Period maturities, and third, to Competitive Bid Loans of the relevant Borrower pro rata among all
Lenders holding same; provided, that if the aggregate principal amount of Revolving Loans and Competitive Bid Loans then outstanding is less than the amount of such excess (because L/C Obligations constitute a portion thereof), the Borrowers
shall, to the extent of the balance of such excess, replace outstanding Letters of Credit and/or deposit an amount in cash in a cash collateral account established with the Administrative Agent for the benefit of the Lenders on terms and conditions
satisfactory to the Administrative Agent. 
 
3.3    Payment in Full at Maturity. 
 
On the Maturity Date, the entire outstanding principal balance of all Loans, together with accrued but unpaid interest and all other sums owing under this Credit Agreement, shall be due and payable in
full, unless accelerated sooner pursuant to Section 10 hereof. 
 
3.4  Fees. 
 
(a)    Facility Fees. 
 
(i)    In consideration of the Revolving Loan Commitment being made available by the Lenders hereunder, DRI agrees to pay to the Administrative Agent, for the pro rata
benefit of each Lender, a per annum fee equal to the Applicable Percentage for Facility Fees multiplied by the Revolving Loan Commitment (the “Facility Fees”). 
 
(ii)    The accrued Facility Fees shall be due and payable in arrears on
the first Business Day of each January, April, July and October (as well as on the Maturity Date and on any date that the Revolving Loan Commitment is reduced) for the immediately preceding fiscal quarter (or portion thereof), beginning with the
first of such dates to occur after the Closing Date. 
 
(b)    Utilization Fees. 
 
(i)    If on any day the sum of the aggregate outstanding principal amount of all Loans to the Borrowers plus the L/C Obligations then outstanding exceeds the
product of (A) one-third (1/3) times (B) the Revolving Loan Commitment, each Borrower shall pay to the Administrative Agent, for the pro rata benefit of each Lender, a per annum fee equal to the Applicable Percentage for
Utilization Fees multiplied by such Borrower’s outstanding Loans plus the L/C Obligations then outstanding (the “Utilization Fees”). 
 
(ii)    The accrued Utilization Fees shall be due and payable in arrears on the first Business Day of
each January, April, July and October (as well as on the Maturity Date and on any date that the Revolving Loan Commitment is reduced) for the 

 

20 

immediately preceding fiscal quarter (or portion thereof), beginning with the first of such dates to occur after the Closing Date.

 
(c)    Administrative Fees.    Dominion Resources agrees to pay to the Administrative Agent an annual fee as agreed to between the Borrowers and the Administrative Agent. 
 
3.5  Place and Manner of Payments.

 
All payments of principal, interest, fees,
expenses and other amounts to be made by each Borrower under this Credit Agreement shall be received not later than 2:00 p.m. on the date when due in U.S. dollars and in immediately available funds, without setoff, deduction, counterclaim or
withholding of any kind, by the Administrative Agent at its offices in New York, New York. Each Borrower shall, at the time it makes any payment under this Credit Agreement, specify to the Administrative Agent, the Loans, fees or other amounts
payable by such Borrower hereunder to which such payment is to be applied (and in the event that it fails to specify, or if such application would be inconsistent with the terms hereof, the Administrative Agent, shall distribute such payment to the
Lenders in such manner as it reasonably determines in its sole discretion). 
 
3.6  Pro Rata Treatment. 
 
Except to the extent otherwise provided herein, all Revolving Loans, each payment or prepayment of principal of any Revolving Loan, each payment of interest on the Revolving Loans, each payment of
Facility Fees, each payment of Utilization Fees, each reduction of the Revolving Loan Commitment, and each conversion or continuation of any Revolving Loans, shall be allocated pro rata among the Lenders in accordance with the
respective Commitment Percentages. 
 
3.7  Computations of Interest and Fees. 
 
(a)    Except for Base Rate Loans, on which interest shall be computed on the basis of a 365 or 366 day year as the case may be, all computations of interest and fees hereunder shall be made on the basis
of the actual number of days elapsed over a year of 360 days. 
 
(b)    It is the intent of the Lenders and each Borrower to conform to and contract in strict compliance with applicable usury law from time to time in effect. All agreements between the Lenders and the Borrowers
are hereby limited by the provisions of this paragraph which shall override and control all such agreements, whether now existing or hereafter arising and whether written or oral. In no way, nor in any event or contingency (including but not limited
to prepayment or acceleration of the maturity of any obligation), shall the interest taken, reserved, contracted for, charged, or received under this Credit Agreement, under the Notes or otherwise, exceed the maximum non-usurious amount permissible
under applicable law. If, from any possible construction of any of the Credit Documents or any other document, interest would otherwise be payable in excess of the maximum non-usurious amount, any such construction shall be subject to the provisions
of this paragraph and such documents shall be automatically reduced to the maximum non-usurious amount permitted under applicable law, without the necessity of execution of any amendment or new document. If any Lender shall 

 

21 

ever receive anything of value which is characterized as interest on the Loans under applicable law and which would, apart from this
provision, be in excess of the maximum lawful amount, an amount equal to the amount which would have been excessive interest shall, without penalty, be applied to the reduction of the principal amount owing on the Loans of the relevant Borrower and
not to the payment of interest, or refunded to the relevant Borrower or the other payor thereof if and to the extent such amount which would have been excessive exceeds such unpaid principal amount of the Loans of the relevant. The right to demand
payment of the Loans of any Borrower or any other indebtedness evidenced by any of the Credit Documents does not include the right to receive any interest which has not otherwise accrued on the date of such demand, and the Lenders do not intend to
charge or receive any unearned interest in the event of such demand. All interest paid or agreed to be paid to the Lenders with respect to the Loans shall, to the extent permitted by applicable law, be amortized, prorated, allocated, and spread
throughout the full stated term (including any renewal or extension) of the Loans so that the amount of interest on account of such indebtedness does not exceed the maximum non-usurious amount permitted by applicable law. 
 
3.8  Sharing of Payments. 
 
Each Lender agrees that, in the event that any Lender shall
obtain payment in respect of any Loan owing to such Lender under this Credit Agreement through the exercise of a right of set-off, banker’s lien, counterclaim or otherwise (including, but not limited to, pursuant to the Bankruptcy Code) in
excess of its pro rata share as provided for in this Credit Agreement, such Lender shall promptly purchase from the other Lenders a participation in such Loans, in such amounts and with such other adjustments from time to time, as
shall be equitable in order that all Lenders share such payment in accordance with their respective ratable shares as provided for in this Credit Agreement. Each Lender further agrees that if a payment to a Lender (which is obtained by such Lender
through the exercise of a right of set-off, banker’s lien, counterclaim or otherwise) shall be rescinded or must otherwise be restored, each Lender which shall have shared the benefit of such payment shall, by repurchase of a participation
theretofore sold, return its share of that benefit to each Lender whose payment shall have been rescinded or otherwise restored. Each Borrower agrees that any Lender so purchasing such a participation in Loans made to such Borrower may, to the
fullest extent permitted by law, exercise all rights of payment, including set-off, banker’s lien or counterclaim, with respect to such participation as fully as if such Lender were a holder of such Loan or other obligation in the amount of
such participation. Except as otherwise expressly provided in this Credit Agreement, if any Lender shall fail to remit to the Administrative Agent or any other Lender an amount payable by such Lender to the Administrative Agent or such other Lender
pursuant to this Credit Agreement on the date when such amount is due, such payments shall accrue interest thereon, for each day from the date such amount is due until the day such amount is paid to the Administrative Agent or such other Lender, at
a rate per annum equal to the Federal Funds Rate. 
 
3.9  Evidence of Debt. 
 
(a)    Each Lender shall maintain an account or accounts evidencing each Loan made by such Lender to a Borrower from time to time, including the amounts of principal and interest payable and paid to such Lender by
or for the amount of each Borrower from time to time under this Credit Agreement. Each Lender will make reasonable efforts to maintain the 

 

22 

accuracy of its account or accounts and to promptly update its account or accounts from time to time, as necessary. 
 
(b)    The Administrative Agent shall
maintain the Register for each Borrower pursuant to Section 12.3(c), and a subaccount for each Lender, in which Registers and subaccounts (taken together) shall be recorded (i) the amount, type and Interest Period of each such Loan hereunder, (ii)
the amount of any principal or interest due and payable or to become due and payable to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder from or for the account of the Borrowers and each
Lender’s share thereof. The Administrative Agent will make reasonable efforts to maintain the accuracy of the subaccounts referred to in the preceding sentence and to promptly update such subaccounts from time to time, as necessary.

 
(c)    The entries made in
the accounts, Registers and subaccounts maintained pursuant to subsection (b) of this Section 3.9 (and, if consistent with the entries of the Administrative Agent, subsection (a)) shall be prima facie evidence of the existence and amounts of the
obligations of each Borrower therein recorded; provided, however, that the failure of any Lender or the Administrative Agent to maintain any such account, such Registers or such subaccounts, as applicable, or any error therein, shall not in any
manner affect the obligation of any Borrower to repay the Loans made by such Lender to such Borrower in accordance with the terms hereof. 
 
SECTION 4.    ADDITIONAL PROVISIONS REGARDING LOANS 
 
4.1    Eurodollar Loan Provisions. 
 
(a)    Unavailability. In the
event that the Administrative Agent shall have determined in good faith (i) that U.S. dollar deposits in the principal amounts requested with respect to a Eurodollar Loan are not generally available in the London interbank Eurodollar market or (ii)
that reasonable means do not exist for ascertaining the Eurodollar Rate, the Administrative Agent shall, as soon as practicable thereafter, give notice of such determination to the Borrowers and the Lenders. In the event of any such determination
under clauses (i) or (ii) above, until the Administrative Agent shall have advised the Borrowers and the Lenders that the circumstances giving rise to such notice no longer exist, (A) any request by a Borrower for Eurodollar Loans shall be deemed to
be a request for Base Rate Loans (or Absolute Rate Competitive Bid Loans, as the case may be), and (B) any request by a Borrower for conversion into or continuation of Eurodollar Revolving Loans shall be deemed to be a request for conversion into or
continuation of Base Rate Loans. 
 
(b)    Change in Legality. 
 
(i)    Notwithstanding any other provision herein, if any change in any law or regulation or in the interpretation thereof by any Governmental Authority charged with the
administration or interpretation thereof shall make it unlawful for any Lender to make or maintain any Eurodollar Loan or to give effect to its obligations as contemplated hereby with respect to any Eurodollar Loan, then, by written notice to the
relevant Borrower and to the Administrative Agent, such Lender may: 
 

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(A)    declare that Eurodollar Loans, and conversions
to or continuations of Eurodollar Loans, will not thereafter be made by such Lender to such Borrower hereunder, whereupon any request by such Borrower for, or for conversion into or continuation of, Eurodollar Loans shall, as to such Lender only, be
deemed a request for, or for conversion into or continuation of, Base Rate Loans (or Absolute Rate Competitive Bid Loans, as the case may be), unless such declaration shall be subsequently withdrawn; and 
 
(B)    require that all
outstanding Eurodollar Loans made by it to such Borrower be converted to Base Rate Loans (or Absolute Rate Competitive Bid Loans, as the case may be) in which event all such Eurodollar Loans shall be automatically converted to Base Rate Loans (or
Absolute Rate Competitive Bid Loans, as the case may be). 
 
In the event any Lender shall exercise its rights under clause (A) or (B) above, all payments and prepayments of principal which would otherwise have been applied to repay the Eurodollar Loans that would have been made by such Lender
to such Borrower or the converted Eurodollar Loans of such Lender to such Borrower shall instead be applied to repay the Base Rate Loans (or Absolute Rate Competitive Bid Loans, as the case may be) made by such Lender to such Borrower in lieu of, or
resulting from the conversion of, such Eurodollar Loans. 
 
(c)    Increased Costs. If at any time a Lender shall incur increased costs or reductions in the amounts received or receivable hereunder with respect to the making, the commitment to make or the
maintaining of any Eurodollar Loan because of (i) any change since the date of this Credit Agreement in any applicable law, governmental rule, regulation, guideline or order (or in the interpretation or administration thereof and including the
introduction of any new law or governmental rule, regulation, guideline or such order) including, without limitation, the imposition, modification or deemed applicability of any reserves, deposits or similar requirements (such as, for example, but
not limited to, a change in official reserve requirements, but, in all events, excluding reserves required under Regulation D to the extent included in the computation of the Adjusted Eurodollar Rate) or (ii) other circumstances affecting the London
interbank Eurodollar market; then the relevant Borrower shall pay to such Lender promptly upon written demand therefor, such additional amounts (in the form of an increased rate of, or a different method of calculating, interest or otherwise as such
Lender may determine in its sole discretion) as may be required to compensate such Lender for such increased costs or reductions in amounts receivable hereunder. 
 
Each determination and calculation made by a Lender under this Section 4.1 shall, absent manifest error, be
binding and conclusive on the parties hereto. 
 
4.2  Capital Adequacy. 
 
If, after the date hereof, any Lender has determined that the adoption or effectiveness of any applicable law, rule or regulation regarding capital adequacy, or any change therein, or any change in the interpretation or
administration thereof by any Governmental Authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by such Lender (or its parent corporation) with any request or directive 
 

24 

regarding capital adequacy (whether or not having the force of law) of any such authority, central bank or comparable agency, has or would
have the effect of reducing the rate of return on such Lender’s (or parent corporation’s) capital or assets as a consequence of its commitments or obligations hereunder to any Borrower to a level below that which such Lender (or its parent
corporation) could have achieved but for such adoption, effectiveness, change or compliance (taking into consideration such Lender’s (or parent corporation’s) policies with respect to capital adequacy), then, upon notice from such Lender,
the relevant Borrower shall pay to such Lender such additional amount or amounts as will compensate such Lender (or its parent corporation) for such reduction. Each determination by any such Lender of amounts owing under this Section 4.2 shall,
absent manifest error, be conclusive and binding on the parties hereto. 
 
4.3  Compensation. 
 
Each Borrower shall compensate each Lender, upon its written request, for all reasonable losses, expenses and liabilities (including, without limitation, any loss, expense or liability incurred by reason of the liquidation or
reemployment of deposits or other funds required by the Lender to fund its Eurodollar Loans to such Borrower) which such Lender may sustain: 
 
(a)    if for any reason (other than a default by such Lender or the Administrative Agent) a borrowing of Eurodollar
Loans or Absolute Rate Competitive Bid Loans to such Borrower does not occur on a date specified therefor in a Notice of Borrowing or Competitive Bid Request to such Borrower, as the case may be; 
 
(b)    if any repayment, continuation or
conversion of any Eurodollar Loan or Absolute Rate Competitive Bid Loan by such Borrower occurs on a date which is not the last day of an Interest Period applicable thereto, including, without limitation, in connection with any demand, acceleration,
mandatory prepayment or otherwise (including any demand under this Section 4); or 
 
(c)    if such Borrower fails to repay its Eurodollar Loans or Absolute Rate Competitive Bid Loan when required by the terms of this Credit Agreement. 
 
Calculation of all amounts payable to a Lender under this
Section 4.3 shall be made as though the Lender has actually funded its relevant Eurodollar Loan through the purchase of a Eurodollar deposit bearing interest at the Eurodollar Rate in an amount equal to the amount of that Loan, having a maturity
comparable to the relevant Interest Period and through the transfer of such Eurodollar deposit from an offshore office of that Lender to a domestic office of that Lender in the United States of America; provided, however, that each
Lender may fund each of its Eurodollar Loans in any manner it sees fit and the foregoing assumption shall be utilized only for the calculation of amounts payable under this Section 4.3. 
 
4.4  Taxes. 
 
(a)    Tax Liabilities Imposed on a Lender.  Any and all payments by a
Borrower hereunder or under any of the Credit Documents shall be made, in accordance with the terms hereof and thereof, 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, 
 

25 

excluding taxes measured by net income and franchise taxes imposed on any Lender by the jurisdiction under the laws of which such Lender is
organized or transacting business or any political subdivision thereof (all such non-excluded taxes, being hereinafter referred to as “Taxes”). If such Borrower shall be required by law to deduct any Taxes from or in respect of any sum
payable hereunder to any Lender, (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 4.4) such Lender receives an
amount equal to the sum it would have received had no such deductions been made, (ii) such Borrower shall make such deductions, (iii) such Borrower shall pay the full amount deducted to the relevant Governmental Authority in accordance with
applicable law, and (iv) such Borrower shall deliver to such Lender evidence of such payment to the relevant Governmental Authority. 
 
(b)    Other Taxes.    In addition, each Borrower agrees to pay, upon notice from a Lender
and prior to the date when penalties attach thereto, all present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies of the United States or any state or political subdivision thereof or any
applicable foreign jurisdiction that arise from any payment made hereunder by such Borrower or from the execution, delivery or registration of, or otherwise from such Borrower’s participation with respect to, this Credit Agreement
(collectively, the “Other Taxes”). 
 
(c)    Refunds.  If a Lender or the Administrative Agent (as the case may be) shall become aware that it is entitled to claim a refund (or a refund in the form of a credit) (each, a
“Refund”) from a Governmental Authority (as a result of any error in the amount of Taxes or Other Taxes paid to such Governmental Authority or otherwise) of Taxes or Other Taxes which a Borrower has paid, or with respect to which a
Borrower has paid additional amounts, pursuant to this Section 4.4, it shall promptly notify such Borrower of the availability of such Refund and shall, within 30 days after receipt of written notice by such Borrower, make a claim to such
Governmental Authority for such Refund at such Borrower’s expense if, in the judgment of such Lender or the Administrative Agent (as the case may be), the making of such claim will not be otherwise disadvantageous to it; provided that nothing
in this subsection (c) shall be construed to require any Lender or the Administrative Agent to institute any administrative proceeding (other than the filing of a claim for any such Refund) or judicial proceeding to obtain such Refund. 
 
If a Lender or the Administrative Agent (as the case may be)
receives a Refund from a Governmental Authority (as a result of any error in the amount of Taxes or Other Taxes paid to such Governmental Authority or otherwise) of any Taxes or Other Taxes which have been paid by a Borrower, or with respect to
which a Borrower has paid additional amounts pursuant to this Section 4.4, it shall promptly pay to such Borrower the amount so received (but only to the extent of payments made, or additional amounts paid, by such Borrower under this Section 4.4
with respect to Taxes or Other Taxes giving rise to such Refund), net of all reasonable out-of-pocket expenses (including the net amount of taxes, if any, imposed on such Lender or the Administrative Agent with respect to such Refund) of such Lender
or Administrative Agent, and without interest (other than interest paid by the relevant Governmental Authority with respect to such Refund); provided, however, that such Borrower, upon the request of Lender or the Administrative Agent,
agrees to repay the amount paid over to such Borrower (plus penalties, interest or other charges) to such Lender or the Administrative Agent in the event such Lender or the Administrative Agent is required to repay such Refund to 

 

26 

such Governmental Authority. Nothing contained in this Section 4.4(c) shall require any Lender or the Administrative Agent to make available
any of its tax returns (or any other information that it deems to be confidential or proprietary). 
 
(d)    Foreign Lender.  Each Lender (which, for purposes of this Section 4.4, shall include any
Affiliate of a Lender that makes any Eurodollar Loan pursuant to the terms of this Credit Agreement) that is not a “United States person” (as such term is defined in Section 7701(a)(30) of the Code) shall submit to the Borrowers and the
Administrative Agent on or before the Closing Date (or, in the case of a Person that becomes a Lender after the Closing Date by assignment, promptly upon such assignment), two duly completed and signed copies of (A) either (1) Form 1001, or any
applicable successor form, of the United States Internal Revenue Service entitling such Lender to a complete exemption from withholding on all amounts to be received by such Lender pursuant to this Credit Agreement and/or the Notes or (2) Form 4224,
or any applicable successor form, of the United States Internal Revenue Service relating to all amounts to be received by such Lender pursuant to this Credit Agreement and/or the Notes and, if applicable, (B) an Internal Revenue Service Form W-8 or
W-9 entitling such Lender to receive a complete exemption from United States backup withholding tax. Each such Lender shall, from time to time after submitting either such form, submit to the Borrowers and the Administrative Agent such additional
duly completed and signed copies of such forms (or such successor forms or other documents as shall be adopted from time to time by the relevant United States taxing authorities) as may be (1) reasonably requested in writing by the Borrowers or the
Administrative Agent and (2) appropriate under then current United States laws or regulations. Upon the reasonable request of any Borrower or the Administrative Agent, each Lender that has not provided the forms or other documents, as provided
above, on the basis of being a United States person shall submit to the Borrowers and the Administrative Agent a certificate to the effect that it is such a “United States person.” 
 
4.5  Mitigation; Mandatory Assignment.

 
The Administrative Agent and each Lender shall
use reasonable efforts to avoid or mitigate any increased cost or suspension of the availability of an interest rate under Sections 4.1 through 4.4 above to the greatest extent practicable (including transferring the Loans to another lending office
or Affiliate of a Lender) unless, in the opinion of the Administrative Agent or such Lender, such efforts would be likely to have an adverse effect upon it. In the event a Lender makes a request to a Borrower for additional payments in accordance
with Section 4.1, 4.2 or 4.4, then, provided that no Default or Event of Default with respect to such Borrower has occurred and is continuing at such time, such Borrower may, at its own expense (such expense to include any transfer fee
payable to the Administrative Agent under Section 12.3(b) and any expense pursuant to Section 4 hereof) and in its sole discretion, require such Lender to transfer and assign in whole (but not in part), without recourse (in accordance with and
subject to the terms and conditions of Section 12.3(b)), all of its interests, rights and obligations under this Credit Agreement to an Eligible Assignee which shall assume such assigned obligations (which Eligible Assignee may be another Lender, if
a Lender accepts such assignment); provided that (a) such assignment shall not conflict with any law, rule or regulation or order of any court or other Governmental Authority and (b) the Borrowers or such Eligible Assignee shall have paid to
the assigning Lender in immediately available funds the principal of and interest accrued to the date of such payment on the portion of the Loans hereunder held by 

 

27 

such assigning Lender and all other amounts owed to such assigning Lender hereunder, including amounts owed pursuant to Sections 4.1 through
4.4 hereof. 
 
SECTION
5.    LETTERS OF CREDIT 
 
5.1  L/C Commitment. 
 
(a)    Subject to the terms and conditions hereof, the Issuing Lender, in reliance on the agreements of the other Lenders set forth in Section 5.4(a), agrees to issue letters of credit (“Letters of
Credit”) for the account of a Borrower on any Business Day from the Closing Date until the date that is ten Business Days prior to the Maturity Date in such form as may be approved from time to time by the Issuing Lender; provided
that the Issuing Lender shall have no obligation to issue any Letter of Credit if, after giving effect to such issuance, (i) the L/C Obligations would exceed the L/C Commitment or (ii) the aggregate amount of the Utilized Revolving Commitments would
be greater than the Revolving Loan Commitments. Each Letter of Credit shall (i) be denominated in Dollars, (ii) have a face amount of at least $1,000,000 (unless otherwise agreed by the Issuing Lender) and (iii) expire no later than the earlier of
(x) the first anniversary of its date of issuance and (y) the date that is five Business Days prior to the Maturity Date, provided that any Letter of Credit with a one-year term may provide for the renewal thereof for additional
one-year periods (which shall in no event extend beyond the date referred to in clause (y) above). 
 
(b)    The Issuing Lender shall not at any time be obligated to issue any Letter of Credit if such issuance would
conflict with, or cause the Issuing Lender or any L/C Participant to exceed any limits imposed by, any applicable requirement of law. 
 
5.2  Procedure for Issuance of Letter of Credit. 
 
A Borrower may from time to time request that the Issuing Lender issue a Letter of Credit by delivering to
the Issuing Lender at its address for notices specified herein an Application therefor, completed to the satisfaction of the Issuing Lender, and such other certificates, documents and other papers and information as the Issuing Lender may request.
Upon receipt of any Application, the Issuing Lender will process such Application and the certificates, documents and other papers and information delivered to it in connection therewith in accordance with its customary procedures and shall promptly
issue the Letter of Credit requested thereby (but in no event shall the Issuing Lender be required to issue any Letter of Credit earlier than three Business Days after its receipt of the Application therefor and all such other certificates,
documents and other papers and information relating thereto) by issuing the original of such Letter of Credit to the beneficiary thereof or as otherwise may be agreed to by the Issuing Lender and such Borrower. The Issuing Lender shall furnish a
copy of such Letter of Credit to such Borrower promptly following the issuance thereof. The Issuing Lender shall promptly furnish to the Administrative Agent, which shall in turn promptly furnish to the Lenders, notice of the issuance of each Letter
of Credit (including the amount thereof). 
 
5.3  Fees and Other Charges. 
. 
 

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(a)    The Borrowers will pay a fee on all outstanding Letters of
Credit at a per annum rate equal to the Applicable Percentage then in effect with respect to Eurodollar Loans, shared ratably among the Lenders and payable quarterly in arrears on each L/C Fee Payment Date after the issuance date. In addition, the
Borrowers shall pay to the Issuing Lender for its own account a fronting fee on the undrawn and unexpired amount of each Letter of Credit as specified in the fee letter by and between the Borrower and JPMCB and JPMorgan dated April 5, 2002.

 
(b)    In addition to the
foregoing fees, the Borrower shall pay or reimburse the Issuing Lender for such normal and customary costs and expenses as are incurred or charged by the Issuing Lender in issuing, negotiating, effecting payment under, amending or otherwise
administering any Letter of Credit. 
 
5.4  L/C Participations. 
 
(a)    The Issuing Lender irrevocably agrees to grant and hereby grants to each L/C Participant, and, to induce the Issuing Lender to issue Letters of Credit, each L/C Participant irrevocably agrees to accept and
purchase and hereby accepts and purchases from the Issuing Lender, on the terms and conditions set forth below, for such L/C Participant’s own account and risk an undivided interest equal to such L/C Participant’s Commitment Percentage in
the Issuing Lender’s obligations and rights under and in respect of each Letter of Credit and the amount of each draft paid by the Issuing Lender thereunder. Each L/C Participant unconditionally and irrevocably agrees with the Issuing Lender
that, if a draft is paid under any Letter of Credit for which the Issuing Lender is not reimbursed in full by the Borrower in accordance with the terms of this Agreement, such L/C Participant shall pay to the Issuing Lender upon demand at the
Issuing Lender’s address for notices specified herein an amount equal to such L/C Participant’s Commitment Percentage of the amount of such draft, or any part thereof, that is not so reimbursed. 
 
(b)    If any amount required to be paid
by any L/C Participant to the Issuing Lender pursuant to Section 5.4(a) in respect of any unreimbursed portion of any payment made by the Issuing Lender under any Letter of Credit is paid to the Issuing Lender within three Business Days after the
date such payment is due, such L/C Participant shall pay to the Issuing Lender on demand an amount equal to the product of (i) such amount, times (ii) the daily average Federal Funds Rate during the period from and including the date
such payment is required to the date on which such payment is immediately available to the Issuing Lender, times (iii) a fraction the numerator of which is the number of days that elapse during such period and the denominator of which is 360.
If any such amount required to be paid by any L/C Participant pursuant to Section 5.4(a) is not made available to the Issuing Lender by such L/C Participant within three Business Days after the date such payment is due, the Issuing Lender shall be
entitled to recover from such L/C Participant, on demand, such amount with interest thereon calculated from such due date at the Federal Funds Rate. A certificate of the Issuing Lender submitted to any L/C Participant with respect to any amounts
owing under this Section shall be conclusive in the absence of manifest error. 
 
(c)    Whenever, at any time after the Issuing Lender has made payment under any Letter of Credit and has received from any L/C Participant its pro rata share of such
payment 
 

29 

in accordance with Section 5.4(a), the Issuing Lender receives any payment related to such Letter of Credit (whether directly from the
Borrower or otherwise, including proceeds of collateral applied thereto by the Issuing Lender), or any payment of interest on account thereof, the Issuing Lender will distribute to such L/C Participant its pro rata share thereof;
provided, however, that in the event that any such payment received by the Issuing Lender shall be required to be returned by the Issuing Lender, such L/C Participant shall return to the Issuing Lender the portion thereof previously
distributed by the Issuing Lender to it. 
 
5.5  Reimbursement Obligation of the Borrower. 
 
The Borrower agrees to reimburse the Issuing Lender on the Business Day next succeeding the Business Day on which the Issuing Lender notifies the Borrower of the date and amount of a draft presented
under any Letter of Credit and paid by the Issuing Lender for the amount of (a) such draft so paid and (b) any taxes, fees, charges or other costs or expenses incurred by the Issuing Lender in connection with such payment. Each such payment shall be
made to the Issuing Lender at its address for notices referred to herein in Dollars and in immediately available funds. Interest shall be payable on any such amounts from the date on which the relevant draft is paid until payment in full at the rate
set forth in (i) until the Business Day next succeeding the date of the relevant notice, Section 3.1(a)(i) and (ii) thereafter, Section 3.1(b). 
 
5.6  Obligations Absolute. 
. 
 
The Borrower’s
obligations under this Section 5 shall be absolute and unconditional under any and all circumstances and irrespective of any setoff, counterclaim or defense to payment that the Borrower may have or have had against the Issuing Lender, any
beneficiary of a Letter of Credit or any other Person. The Borrower also agrees with the Issuing Lender that the Issuing Lender shall not be responsible for, and the Borrower’s Reimbursement Obligations under Section 5.5 shall not be affected
by, among other things, the validity or genuineness of documents or of any endorsements thereon, even though such documents shall in fact prove to be invalid, fraudulent or forged, or any dispute between or among the Borrower and any beneficiary of
any Letter of Credit or any other party to which such Letter of Credit may be transferred or any claims whatsoever of the Borrower against any beneficiary of such Letter of Credit or any such transferee. The Issuing Lender shall not be liable for
any error, omission, interruption or delay in transmission, dispatch or delivery of any message or advice, however transmitted, in connection with any Letter of Credit, except for errors or omissions found by a final and nonappealable decision of a
court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of the Issuing Lender. The Borrower agrees that any action taken or omitted by the Issuing Lender under or in connection with any Letter of Credit or
the related drafts or documents, if done in the absence of gross negligence or willful misconduct and in accordance with the standards of care specified in the Uniform Commercial Code of the State of New York, shall be binding on the Borrower and
shall not result in any liability of the Issuing Lender to the Borrower. 
 
5.7  Letter of Credit Payments. 
. 
 

30 

 
If any draft
shall be presented for payment under any Letter of Credit, the Issuing Lender shall promptly notify the Borrower of the date and amount thereof. The responsibility of the Issuing Lender to the Borrower in connection with any draft presented for
payment under any Letter of Credit shall, in addition to any payment obligation expressly provided for in such Letter of Credit, be limited to determining that the documents (including each draft) delivered under such Letter of Credit in connection
with such presentment are substantially in conformity with such Letter of Credit. 
 
5.8  Applications. 
 
To the extent that any provision of any Application related to any Letter of Credit is inconsistent with the provisions of this Section 5, the provisions of this Section 5 shall apply. 
 
SECTION 6.    CONDITIONS PRECEDENT

 
6.1  Closing Conditions.

 
The obligation of the Lenders to enter into the
Credit Documents is subject to satisfaction of the following conditions (in form and substance acceptable to the Lenders): 
 
(a)    Credit Documents.  Receipt by the Administrative Agent of duly executed copies of: (i) this
Credit Agreement and (ii) the other Credit Documents. 
 
(b)    Corporate Documents.  Receipt by the Administrative Agent of the following: 
 
(i)    Charter Documents.  Copies of the articles of incorporation or other charter
documents of each Borrower certified to be true and complete as of a recent date by the appropriate Governmental Authority of the state or other jurisdiction of its incorporation and certified by a secretary or assistant secretary of the relevant
Borrower to be true and correct as of the Closing Date. 
 
(ii)    Bylaws.  A copy of the bylaws of each Borrower certified by a secretary or assistant secretary of the relevant Borrower to be true and correct as of the Closing Date.

 
(iii)    Resolutions.  Copies of resolutions of the Board of Directors of each Borrower approving and adopting the Credit Documents, the transactions contemplated herein and therein and
authorizing execution and delivery thereof, certified by a secretary or assistant secretary of the relevant Borrower to be true and correct and in force and effect as of the Closing Date. 
 
(iv)    Good Standing.  Copies of (a) certificates of
good standing, existence or its equivalent with respect to each Borrower certified as of a recent date by the appropriate Governmental Authorities of its jurisdiction of incorporation and each other jurisdiction in which the failure to so qualify
and be in good standing would have a Material Adverse Effect on such Borrower and (b) to the extent available, a certificate indicating payment of all corporate franchise taxes certified as of a recent date by the 
 

31 

appropriate Governmental Authorities of each Borrower’s jurisdiction of incorporation and each other jurisdiction from which the failure
to pay such franchise taxes would have a Material Adverse Effect on such Borrower. 
 
(c)    Closing Certificate.  Receipt by the Administrative Agent of a certificate of each Borrower, dated the Closing Date, substantially in the form of Exhibit
6.1(c), executed by any Assistant Treasurer and the Secretary or any Assistant Secretary of such Borrower, and attaching the documents referred to in subsections 6.1(b). 
 
(d)    Outstanding Facility.  Each of (i) the Borrowers’ $1,750,000
364-Day Credit Agreement, dated as of May 31, 2001 and (ii) Dominion Resources, Inc. $300,000,000 Credit Agreement, dated as of April 3, 1996, shall have been terminated and all amounts owing thereunder shall have been paid in full. 
 
(e)    Fees.  The
Lenders, the Administrative Agent and the Lead Arranger shall have received all fees required to be paid, and all expenses for which invoices have been presented. 
 
(f)    Opinion of Counsel.  Receipt by the Administrative Agent of an
opinion, or opinions, satisfactory in form and content to the Administrative Agent and the Lenders, addressed to the Administrative Agent and each of the Lenders and dated as of the Closing Date, substantially in the form of Exhibit 6.1(f),
from McGuireWoods LLP, legal counsel to the Borrowers. 
 
(g)    Financial Statements.  Receipt and approval by the Administrative Agent and the Lenders of the audited financial statements of each Borrower and its Consolidated Subsidiaries dated as of
December 31, 2001 and the unaudited financial statements of each Borrower and its Consolidated Subsidiaries dated as of March 31, 2002. 
 
(h)    Consents.  Receipt by the Administrative Agent of a written representation from each Borrower
that (i) all governmental, shareholder and third party consents (including Securities and Exchange Commission clearance) and approvals necessary or, in the reasonable opinion of the Administrative Agent, advisable in connection with the transactions
contemplated hereby have been received and are in full force and effect and (ii) no condition or requirement of law exists which could reasonably be likely to restrain, prevent or impose any material adverse condition on the transactions
contemplated hereby, and receipt by the Administrative Agent of copies of any required orders of the Virginia State Corporation Commission or any other state utilities commission approving the relevant Borrower’s execution, delivery and
performance of this Credit Agreement and the borrowings hereunder. 
 
(i)    No Default; Representations and Warranties.  As of the Closing Date (i) there shall exist no Default or Event of Default by any Borrower and (ii) all representations and warranties
contained herein and in the other Credit Documents shall be true and correct in all material respects. 
 
(j)    Material Adverse Effect.  No event or condition shall have occurred since the dates of the
financial statements delivered pursuant to Section 6.1(g) above that has or would be likely to have a material adverse effect, after taking into account applicable insurance, if any, 
 

32 

on (a) the business, assets, liabilities (actual or contingent), operations or condition (financial or otherwise) of the Borrowers and their
respective Consolidated Subsidiaries taken as a whole, (b) the ability of the Borrowers to perform their respective obligations under this Credit Agreement or (c) the validity or enforceability of this Credit Agreement, any of the other Credit
Documents, or the rights and remedies of the Lenders hereunder or thereunder. 
 
(k)    Other.  Receipt by the Lenders of such other documents, instruments, agreements or information as reasonably requested by any Lender. 
 
The Administrative Agent shall provide written notice to the
Borrowers and the Lenders upon the occurrence of the Effective Date (as defined in Section 12.15). 
 
6.2  Conditions to Loans. 
 
In addition to the conditions precedent stated elsewhere herein, the Lenders shall not be obligated to make new Loans to any Borrower or
issue, renew or participate in any Letter of Credit unless: 
 
(a)    Request.  Such Borrower shall have timely delivered a duly executed and completed Notice of Borrowing, Competitive Bid Request or Application, as applicable, in conformance with all the
terms and conditions of this Credit Agreement. 
 
(b)    Representations and Warranties.  The representations and warranties made by such Borrower in or pursuant to the Credit Documents are true and correct in all material respects at and as if
made as of the date of the funding of the Loans or issuance of any Letter of Credit; provided, however, that the representation and warranty set forth in clause (ii) of the second paragraph of Section 7.6 hereof need not be true and correct
as a condition to any borrowing utilized by the relevant Borrower in connection with the repayment of its commercial paper program or programs. 
 
(c)    No Default.  On the date of the funding of the Loans or issuance of the Letter of Credit, no
Default or Event of Default with respect to such Borrower has occurred and is continuing or would be caused by making the Loans or issuance of a Letter of Credit. 
 
(d)    Availability.  Immediately after giving effect to the making of a
Loan (and the application of the proceeds thereof) or issuance of the Letter of Credit, the sum of Loans outstanding and the L/C Obligations shall not exceed the Revolving Loan Commitment. 
 
The delivery of each Notice of Borrowing and Application shall constitute a
representation and warranty by such Borrower of the correctness of the matters specified in subsections (b), (c), and (d) above. 
 
SECTION 7.    REPRESENTATIONS AND WARRANTIES 
 
Each Borrower, severally and not jointly, hereby represents and warrants to each Lender that: 
 
7.1  Organization and Good Standing.

 

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Such Borrower
and each Material Subsidiary of each Borrower (other than any Material Subsidiary that is not a corporation) (a) is a corporation duly incorporated, validly existing and in good standing under the laws of the jurisdiction of its incorporation, (b)
is duly qualified and in good standing as a foreign corporation authorized to do business in every jurisdiction where the failure to so qualify would have a Material Adverse Effect on such Borrower and (c) has the requisite corporate power and
authority to own its properties and to carry on its business as now conducted and as proposed to be conducted. Each Material Subsidiary of such Borrower that is not a corporation (a) is a legal entity duly organized, existing and in good standing
under the laws of its jurisdiction of organization, (b) is registered or qualified as an entity authorized to do business in every jurisdiction where the failure to be so registered or qualified would have a Material Adverse Effect on such Borrower
and (c) has the requisite power and authority to own its properties and to carry on its business as now conducted and as proposed to be conducted. 
 
7.2  Due Authorization. 
 
Such Borrower (a) has the requisite corporate power and authority to execute, deliver and perform this Credit Agreement and the other
Credit Documents and to incur the obligations herein and therein provided for and (b) is duly authorized to, and has been authorized by all necessary corporate action, to execute, deliver and perform this Credit Agreement and the other Credit
Documents. 
 
7.3  No Conflicts.

 
Neither the execution and delivery of the Credit
Documents nor the consummation of the transactions contemplated therein, nor performance of and compliance with the terms and provisions thereof by such Borrower will (a) violate or conflict with any provision of its articles of incorporation or
bylaws, (b) violate, contravene or materially conflict with any law (including without limitation, the Public Utility Holding Company Act of 1935, as amended (the “1935 Act”)), regulation (including without limitation, Regulation U
or Regulation X), order, writ, judgment, injunction, decree or permit applicable to it, (c) violate, contravene or materially conflict with contractual provisions of, or cause an event of default under, any indenture, loan agreement, mortgage, deed
of trust, contract or other agreement or instrument to which it is a party or by which it may be bound, the violation of which could have a Material Adverse Effect on such Borrower or (d) result in or require the creation of any Lien upon or with
respect to its properties. 
 
7.4  Consents. 
 
No consent, approval, authorization or order of, or filing, registration or qualification with, any court or Governmental Authority or third party is required to be obtained or made by such Borrower in connection with such
Borrower’s execution, delivery or performance of this Credit Agreement or any of the other Credit Documents that has not been obtained or made. 
 
7.5  Enforceable Obligations. 
 

34 

 
This Credit
Agreement and the other Credit Documents have been duly executed and delivered and constitute legal, valid and binding obligations of such Borrower enforceable against such Borrower in accordance with their respective terms, except as may be limited
by bankruptcy or insolvency laws or similar laws affecting creditors’ rights generally or by general equitable principles. 
 
7.6  Financial Condition. 
 
The financial statements provided to the Lenders pursuant to Section 6.1(g) and pursuant to Section 8.1(a) and (b) present fairly the
financial condition, results of operations and cash flows of such Borrower and its Consolidated Subsidiaries as of the date stated therein. 
 
In addition, (i) such financial statements were prepared in accordance with GAAP and, (ii) since the latest date of such financial
statements, there have occurred no changes or circumstances which have had or would be reasonably expected to have a Material Adverse Effect on such Borrower. 
 
7.7  No Default. 
 
Neither such Borrower nor any of its Material Subsidiaries is in default in any respect under any contract, lease, loan agreement,
indenture, mortgage, security agreement or other agreement or obligation to which it is a party or by which any of its properties is bound which default would have or would be reasonably expected to have a Material Adverse Effect on such Borrower.

 
7.8  Indebtedness.

 
As of the Closing Date, such Borrower has no
Indebtedness except as disclosed in the financial statements referenced in Section 6.1(g) and on Schedule 7.8. 
 
7.9  Litigation. 
 
Except as disclosed in such Borrower’s Annual Report on Form 10-K for the year ended December 31, 2001 and such Borrower’s
Quarterly Report on Form 10-Q for the quarter ended March 31, 2002, there are no actions, suits or legal, equitable, arbitration or administrative proceedings, pending or, to the knowledge of such Borrower, threatened against such Borrower or a
Material Subsidiary of such Borrower in which there is a reasonable possibility of an adverse decision which would have or would reasonably be expected to have a Material Adverse Effect on such Borrower. 
 
7.10  Taxes. 
 
Such Borrower and each Material Subsidiary of such Borrower
has filed, or caused to be filed, all material tax returns (federal, state, local and foreign) required to be filed by it and paid all amounts of taxes shown thereon to be due (including interest and penalties) and has paid all other taxes, fees,
assessments and other governmental charges (including mortgage recording taxes, documentary stamp taxes and intangibles taxes) owing by it, except for such taxes which are not yet delinquent or that are being contested in good faith and by proper

 

35 

proceedings, and against which adequate reserves are being maintained in accordance with GAAP. Such Borrower is not aware of any proposed tax
assessments against it or any of its Material Subsidiaries. 
 
7.11  Compliance with Law. 
 
Except as disclosed in such Borrower’s Annual Report on Form 10-K for the year ended December 31, 2001 and such Borrower’s Quarterly Report for the quarter ended March 31, 2002, such Borrower and each Material Subsidiary of
such Borrower is in compliance with all laws, rules, regulations, orders and decrees applicable to it, or to its properties, unless such failure to comply would not have a Material Adverse Effect on such Borrower. 
 
7.12  ERISA. 
. 
(a)    No Reportable Event has occurred and is continuing with respect to any Plan of such Borrower; (b) no Plan of such Borrower has an accumulated funding deficiency determined under Section 412 of the Code; (c)
no proceedings have been instituted, or, to the knowledge of such Borrower, planned to terminate any Plan of such Borrower; (d) neither such Borrower, nor any member of a Controlled Group including such Borrower, nor any duly-appointed administrator
of a Plan of such Borrower has instituted or intends to institute proceedings to withdraw from any Multiemployer Pension Plan (as defined in Section 3(37) of ERISA); and (e) each Plan of such Borrower has been maintained and funded in all material
respects in accordance with its terms and with the provisions of ERISA applicable thereto. 
 
7.13  Use of Proceeds. 
 
The proceeds of the Loans made to such Borrower and the issuance of the Letters of Credit hereunder will be used solely for the purposes specified in Section 8.9. 
 
7.14  Government Regulation. 
. 
(a)    None of the proceeds of the Loans made to such Borrower hereunder will be used for the purpose of purchasing or carrying any “margin stock” which violates Regulation U or Regulation X or for the
purpose of reducing or retiring in violation of Regulation U or Regulation X any Indebtedness which was originally incurred to purchase or carry “margin stock” or for any other purpose which might constitute this transaction a
“purpose credit” in violation of Regulation U or Regulation X. 
 
(b)    As of the Closing Date, Dominion Resources and CNG each is a registered “holding company” within the meaning of that term under the 1935 Act. The issuance by such Borrower of the Notes,
its incurrence of the Indebtedness contemplated by this Credit Agreement and the borrowing, repayment and reborrowing of Loans hereunder is permitted by the 1935 Act and requires no authorization or approval of any Governmental Authority other than
such authorizations and approvals as have already been obtained. 
 
(c)    Such Borrower is not an “investment company” registered or required to be registered under the Investment Company Act of 1940, as amended (the “Investment 

 

36 

Company Act”), and is not controlled by such a company, nor is otherwise subject to regulation under the Investment Company Act.

 
7.15  Solvency. 
 
Such Borrower is and, after the consummation of the
transactions contemplated by this Credit Agreement and the other Credit Documents, will be Solvent. 
 
SECTION 8.    AFFIRMATIVE COVENANTS 
 
Each Borrower, severally but not jointly, hereby covenants and agrees that so long as this Credit Agreement is in effect and until the
Loans made to it, together with interest, fees and other obligations hereunder, have been paid in full and the Commitments hereunder shall have terminated: 
 
8.1  Information Covenants. 
 
Such Borrower will furnish, or cause to be furnished, to the Administrative Agent and each Lender: 
 
(a)    Annual Financial
Statements.  As soon as available, and in any event within 120 days after the close of each fiscal year of such Borrower, a Form 10-K, as required to be filed with the Securities and Exchange Commission under the Securities Act of
1933, as amended, and the Exchange Act, which includes financial information required by such Form 10-K, such financial information to be in reasonable form and detail and audited by Deloitte & Touche or another independent certified public
accountants of recognized national standing reasonably acceptable to the Administrative Agent and whose opinion shall be to the effect that such financial statements have been prepared in accordance with GAAP (except for changes with which such
accountants concur) and shall not be limited as to the scope of the audit or qualified in any respect. 
 
(b)    Quarterly Financial Statements.  As soon as available, and in any event within 60 days after
the close of each of the first three fiscal quarters of such Borrower a Form 10-Q, as required to be filed with the Securities and Exchange Commission under the Securities Act of 1933, as amended, and the Exchange Act, which includes the financial
information required by such Form 10-Q, such financial information to be in reasonable form and detail and reasonably acceptable to the Administrative Agent, and accompanied by a certificate of the chief financial officer of such Borrower to the
effect that such quarterly financial statements fairly present in all material respects the financial condition of such Borrower and have been prepared in accordance with GAAP, subject to changes resulting from audit and normal year-end audit
adjustments. 
 
(c)    Officer’s Certificate.  At the time of delivery of the financial statements provided for in Sections 8.1(a) and 8.1(b) above, a certificate of the chief financial officer of such
Borrower, substantially in the form of Exhibit 8.1(c), (i) demonstrating compliance with the financial covenant contained in Section 8.11 by calculation thereof as of the end of each such fiscal period and (ii) stating that no Default or
Event of Default by such Borrower exists, or if 

 

37 

any such Default or Event of Default does exist, specifying the nature and extent thereof and what action such Borrower proposes to take with
respect thereto. 
 
(d)    Reports.  Promptly upon transmission or receipt thereof, copies of any filings and registrations with, and reports to or from, the Securities and Exchange Commission, or any successor
agency, and copies of all financial statements, proxy statements, notices and reports as Dominion Resources shall send to its shareholders. 
 
(e)    Notices.  Upon such Borrower obtaining knowledge thereof, such Borrower will give written
notice to the Administrative Agent immediately of (i) the occurrence of an event or condition consisting of a Default or Event of Default by such Borrower, specifying the nature and existence thereof and what action such Borrower proposes to take
with respect thereto, and (ii) the occurrence of any of the following: (A) the pendency or commencement of any litigation, arbitral or governmental proceeding against such Borrower or a Material Subsidiary of such Borrower which, if adversely
determined, is likely to have a Material Adverse Effect on such Borrower, (B) the institution of any proceedings against such Borrower or a Material Subsidiary of such Borrower with respect to, or the receipt of notice by such Person of potential
liability or responsibility for violation, or alleged violation of any federal, state or local law, rule or regulation, the violation of which would likely have a Material Adverse Effect on such Borrower or (C) any notice or determination concerning
the imposition of any withdrawal liability by a Multiemployer Plan against such Borrower or any of its ERISA Affiliates, the determination that a Multiemployer Plan is, or is expected to be, in reorganization within the meaning of Title IV of ERISA
or the termination of any Plan of such Borrower. 
 
(f)    Other Information.  With reasonable promptness upon any such request, such other information regarding the business, properties or financial condition of such Borrower as the Administrative
Agent or the Required Lenders may reasonably request. 
 
8.2  Preservation of Existence and Franchises. 
 
Such Borrower will do (and will cause each of its Material Subsidiaries to do) all things necessary to preserve and keep in full force and effect its existence, rights, franchises and authority;
provided that nothing in this Section 8.2 shall prevent any transaction otherwise permitted under Section 9.2 or Section 9.3 or any change in the form of organization (by merger or otherwise) of any Material Subsidiary of any Borrower so long as
such change shall not have an adverse effect on such Borrower’s ability to perform its obligations hereunder. 
 
8.3  Books and Records. 
 
Such Borrower will keep (and will cause each of its Material Subsidiaries to keep) complete and accurate books and records of its
transactions in accordance with good accounting practices on the basis of GAAP (including the establishment and maintenance of appropriate reserves). 
 
8.4  Compliance with Law. 
 
Such Borrower will comply (and will cause each of its Material Subsidiaries to comply) with all laws, rules, regulations and orders, and
all applicable restrictions imposed by all 

 

38 

Governmental Authorities, applicable to it and its property if noncompliance with any such law, rule, regulation, order or restriction would
be reasonably expected to have a Material Adverse Effect on such Borrower. 
 
8.5  Payment of Taxes. 
 
Such Borrower will pay and discharge all taxes, assessments and governmental charges or levies imposed upon it, or upon its income or profits, or upon any of its properties, before they shall become
delinquent; provided, however, that such Borrower shall not be required to pay any such tax, assessment, charge, levy, or claim which is being contested in good faith by appropriate proceedings and as to which adequate reserves
therefor have been established in accordance with GAAP. 
 
8.6  Insurance. 
 
Such Borrower will at all times maintain in full force and effect insurance (including worker’s compensation insurance, liability insurance, casualty insurance and business interruption insurance) in such amounts, covering such
risks and liabilities and with such deductibles or self-insurance retentions as are in accordance with normal industry practice. 
 
8.7  Performance of Obligations. 
 
Such Borrower will perform (and will cause each of its Material Subsidiaries to perform) in all material
respects all of its obligations under the terms of all material agreements, indentures, mortgages, security agreements or other debt instruments to which it is a party or by which it is bound. 
 
8.8  ERISA. 
 
Such Borrower and each of its ERISA Affiliates will (a) at all
times make prompt payment of all contributions (i) required under all employee pension benefit plans (as defined in Section 3(2) of ERISA) (“Pension Plans”) and (ii) required to meet the minimum funding standard set forth in ERISA
with respect to each of its Plans; (b) promptly upon request, furnish the Administrative Agent and the Lenders copies of each annual report/return (Form 5500 Series), as well as all schedules and attachments required to be filed with the Department
of Labor and/or the Internal Revenue Service pursuant to ERISA, and the regulations promulgated thereunder, in connection with each of its Pension Plans for each Plan Year (as defined in ERISA); (c) notify the Administrative Agent immediately of any
fact, including, but not limited to, any Reportable Event arising in connection with any of its Plans, which might constitute grounds for termination thereof by the PBGC or for the appointment by the appropriate United States District Court of a
trustee to administer such Plan, together with a statement, if requested by the Administrative Agent, as to the reason therefor and the action, if any, proposed to be taken in respect thereof; and (d) furnish to the Administrative Agent, upon its
request, such additional information concerning any of its Plans as may be reasonably requested. Such Borrower will not nor will it permit any of its ERISA Affiliates to (A) terminate a Plan if any such termination would have a Material Adverse
Effect on such Borrower or (B) cause or permit to exist any Reportable Event under ERISA or other event or condition which presents a material risk of 

 

39 

termination at the request of the PBGC if such termination would have a Material Adverse Effects. 
 
8.9  Use of Proceeds. 
 
The proceeds of the Loans made to each Borrower and the
Letters of Credit issued hereunder may be used solely (a) to provide credit support for such Borrower’s commercial paper, (b) for working capital of such Borrower and its Subsidiaries and (c) for other general corporate purposes. 
 
8.10  Audits/Inspections. 
 
Upon reasonable notice, during normal business hours and in
compliance with the reasonable security procedures of such Borrower, such Borrower will permit representatives appointed by the Administrative Agent or any Lender, including, without limitation, independent accountants, agents, attorneys, and
appraisers to visit and inspect such Borrower’s property, including its books and records, its accounts receivable and inventory, the Borrower’s facilities and its other business assets, and to make photocopies or photographs thereof and
to write down and record any information such representative obtains and shall permit any Lender or the Administrative Agent or its representatives to investigate and verify the accuracy of information provided to the Lenders and to discuss all such
matters with the officers, employees and representatives of such Borrower. 
 
8.11  Total Funded Debt to Capitalization. 
 
The ratio of (a) Total Funded Debt to (b) Capitalization for such Borrower shall at all times be less than or equal to .65 to 1.00, in the
case of Dominion Resources (on a consolidated basis), or .60 to 1.00, in the case of each of VaPower and CNG (each on a consolidated basis). 
 
SECTION 9.    NEGATIVE COVENANTS 
 
Each Borrower, severally but not jointly, hereby covenants and agrees that so long as this Credit Agreement
is in effect and until the Loans, together with interest, fees and other obligations hereunder, have been paid in full and the Commitments hereunder shall have terminated: 
 
9.1  Nature of Business. 
 
Such Borrower will not alter the character of its business from that conducted as of the Closing Date and
activities reasonably related thereto and similar and related businesses; provided, however, that VaPower may transfer assets related to its electric power generation and marketing and trading operations to one or more Wholly-Owned Subsidiaries of
DRI to the extent permitted under Section 9.3. 
 
9.2  Consolidation and Merger. 
 

40 

 
Such Borrower
will not enter into any transaction of merger or consolidation or liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution); provided that notwithstanding the foregoing provisions of this Section 9.2, the following
actions may be taken if, after giving effect thereto, no Default or Event of Default by such Borrower exists: 
 
(a)    a Subsidiary of such Borrower may be merged or consolidated with or into any Borrower; provided that a Borrower
shall be the continuing or surviving entity; 
 
(b)    such Borrower may merge or consolidate with any other Person if either (i) such Borrower shall be the continuing or surviving entity or (ii) such Borrower shall not be the continuing or surviving entity and
the entity so continuing or surviving (A) is an entity organized and duly existing under the law of any state of the United States and (B) executes and delivers to the Administrative Agent and the Lenders an instrument in form satisfactory to the
Required Lenders pursuant to which it expressly assumes the Loans of such Borrower and all of the other obligations of such Borrower under the Credit Documents and procures for the Administrative Agent and each Lender an opinion in form satisfactory
to the Required Lenders and from counsel satisfactory to the Required Lenders in respect of the due authorization, execution, delivery and enforceability of such instrument and covering such other matters as the Required Lenders may reasonably
request; and 
 
(c)    such
Borrower may be merged or consolidated with or into any other Borrower. 
 
9.3  Sale or Lease of Assets. 
 
Such Borrower will not convey, sell, lease, transfer or otherwise dispose of, in one transaction or a series of transactions, all or substantially all of its business or assets whether now owned or hereafter acquired, it
being understood and agreed that VaPower may transfer assets related to its electric power generation and marketing and trading operations to one or more Wholly-Owned Subsidiaries generally in accordance with a plan submitted to the Virginia State
Corporation Commission, provided that (i) each such Wholly-Owned Subsidiary remains at all times a Wholly Owned Subsidiary of Dominion Resources and (ii) the long-term, unsecured, senior, non-credit enhanced debt ratings of Dominion Resources
and VaPower will not be lowered to less than BBB by S&P or Baa2 by Moody’s in connection with or as a result of such transfer. 
 
9.4  Limitation on Liens. 
 
In the case of VaPower, VaPower shall not, nor shall it permit any of its Material Subsidiaries to, create, incur, assume or suffer to
exist any Lien upon any of its property, assets or revenues, whether now owned or hereafter acquired, except for (i) Liens permitted by the First Mortgage Bond Indenture and (ii) Liens created in the ordinary course of business. 
 
In the case of CNG, if CNG shall pledge, mortgage or
hypothecate, or permit any Lien upon, any property or assets at any time owned by CNG and by reason thereof CNG would under the Indenture be obligated to cause the Securities outstanding under the Indenture as from time to time in effect to be
secured by such pledge, mortgage, hypothecation or other Lien, CNG 

 

41 

shall concurrently make effective provision whereby the Loans outstanding hereunder will be equally and ratably secured with any and all
other indebtedness thereby secured. 
 
In the case
of Dominion Resources, if Dominion Resources shall pledge as security for any indebtedness or obligations, or permit any Lien as security for Indebtedness or obligations upon, any capital stock owned by it on the date hereof or thereafter acquired,
of any of its Material Subsidiaries, Dominion Resources will secure the outstanding Loans ratably with the indebtedness or obligations secured by such pledge, except for Liens incurred or otherwise arising in the ordinary course of business.

 
9.5  Fiscal Year. 
 
Such Borrower will not change its fiscal year without prior
notification to the Lenders. 
 
SECTION
10.    EVENTS OF DEFAULT 
 
10.1  Events of Default. 
 
An Event of Default with respect to a Borrower shall exist upon the occurrence and continuation of any of the following specified events with respect to such Borrower (each an “Event of Default”): 
 
(a)    Payment.  Such
Borrower shall: 
 
(i)    default in the payment when due of any principal of any of the Loans or Reimbursement Obligation; or 
 
(ii)    default, and such default shall continue for three or more days, in the payment when due of
any interest on the Loans, Reimbursement Obligations or of any fees or other amounts owing hereunder, under any of the other Credit Documents or in connection herewith. 
 
(b)    Representations.  Any representation, warranty or statement made
or deemed to be made by such Borrower herein, in any of the other Credit Documents, or in any statement or certificate delivered or required to be delivered pursuant hereto or thereto shall prove untrue in any material respect on the date as of
which it was deemed to have been made. 
 
(c)    Covenants.  Such Borrower shall: 
 
(i)    default in the due performance or observance of any term, covenant or agreement contained in
Sections 8.2, 8.9, 8.11 or 9.1 through 9.5, inclusive; or 
 
(ii)    default in the due performance or observance by it of any term, covenant or agreement contained in Section 8.1(a), (b), (c) or (e) and such default shall continue unremedied
for a period of five Business Days after the earlier of an officer of such Borrower becoming aware of such default or notice thereof given by the Administrative Agent; or 
 

42 

 
(iii)    default in the due performance or observance by it of any term, covenant or agreement (other than those referred to in subsections (a), (b), (c)(i), or (c)(ii) of this Section 10.1) contained in this
Credit Agreement or any other Credit Document and such default shall continue unremedied for a period of at least 30 days after the earlier of an officer of such Borrower becoming aware of such default or notice thereof given by the Administrative
Agent. 
 
(d)    Credit
Documents.  Any Credit Document shall fail to be in full force and effect with respect to such Borrower or to give the Administrative Agent and/or the Lenders the security interests, liens, rights, powers and privileges purported to be
created thereby and relating to such Borrower. 
 
(e)    Bankruptcy, etc.  The occurrence of any of the following with respect to such Borrower or a Material Subsidiary of such Borrower (i) a court or governmental agency having jurisdiction in
the premises shall enter a decree or order for relief in respect of such Borrower or a Material Subsidiary of such Borrower in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or
appoint a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of such Borrower or a Material Subsidiary of such Borrower or for any substantial part of its property or ordering the winding up or liquidation of its
affairs; or (ii) an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect is commenced against such Borrower or a Material Subsidiary of such Borrower and such petition remains unstayed and in
effect for a period of 60 consecutive days; or (iii) such Borrower or a Material Subsidiary of such Borrower shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or consent to
the entry of an order for relief in an involuntary case under any such law, or consent to the appointment or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of such Person or any
substantial part of its property or make any general assignment for the benefit of creditors; or (iv) such Borrower or a Material Subsidiary of such Borrower shall admit in writing its inability to pay its debts generally as they become due or any
action shall be taken by such Person in furtherance of any of the aforesaid purposes. 
 
(f)    Defaults under Other Agreements.  With respect to any Indebtedness (other than Indebtedness outstanding under this Credit Agreement) of such Borrower or a
Material Subsidiary of such Borrower in a principal amount in excess of $25,000,000, (i) such Borrower or a Material Subsidiary of such Borrower shall (A) default in any payment (beyond the applicable grace period with respect thereto, if any) with
respect to any such Indebtedness, or (B) default (after giving effect to any applicable grace period) in the observance or performance of any covenant or agreement relating to such Indebtedness or contained in any instrument or agreement evidencing,
securing or relating thereto, or any other event or condition shall occur or condition exist, the effect of which default or other event or condition is to cause, or permit, the holder or holders of such Indebtedness (or trustee or agent on behalf
of such holders) to cause any such Indebtedness to become due prior to its stated maturity; or (ii) any such Indebtedness shall be declared due and payable, or required to be prepaid other than by a regularly scheduled required prepayment, prior to
the stated maturity thereof; or (iii) any such Indebtedness matures and is not paid at maturity. 
 

43 

 
(g)    Judgments.  One or more judgments, orders, or decrees shall be entered against such Borrower or a Material Subsidiary of such Borrower involving a liability of $25,000,000 or more, in the
aggregate, (to the extent not paid or covered by insurance provided by a carrier who has acknowledged coverage) and such judgments, orders or decrees shall continue unsatisfied, undischarged and unstayed for a period ending on the first to occur of
(i) the last day on which such judgment, order or decree becomes final and unappealable and, where applicable, with the status of a judicial lien or (ii) 30 days. 
 
(h)    ERISA.  (i) Such Borrower, or a Material Subsidiary of such
Borrower or any member of the Controlled Group including such Borrower shall fail to pay when due an amount or amounts aggregating in excess of $20,000,000 which it shall have become liable to pay under Title IV of ERISA; or (ii) notice of intent to
terminate a Plan or Plans of such Borrower which in the aggregate have unfunded liabilities in excess of $20,000,000 (individually and collectively, a “Material Plan”) shall be filed under Title IV of ERISA by such Borrower or any member
of the Controlled Group including such Borrower, any plan administrator or any combination of the foregoing; or (iii) the PBGC shall institute proceedings under Title IV of ERISA to terminate, to impose liability (other than for premiums under
Section 4007 of ERISA) in respect of, or to cause a trustee to be appointed to administer any Material Plan of such Borrower; or (iv) a condition shall exist by reason of which the PBGC would be entitled to obtain a decree adjudicating that any
Material Plan of such Borrower must be terminated; or (v) there shall occur a complete or partial withdrawal from, or a default, within the meaning of Section 4219(c)(5) of ERISA, with respect to, one or more Multiemployer Plans which could cause
one or more members of the Controlled Group including such Borrower to incur a current payment obligation in excess of $20,000,000. 
 
(i)    Change of Control.  The occurrence of any Change of Control with respect to such Borrower.

 
10.2  Acceleration; Remedies.

 
Upon the occurrence of an Event of Default with
respect to any Borrower, and at any time thereafter unless and until such Event of Default has been waived by the Required Lenders or cured to the satisfaction of the Required Lenders, the Administrative Agent may with the consent of the Required
Lenders, and shall, upon the request and direction of the Required Lenders, by written notice to such Borrower take any of the following actions without prejudice to the rights of the Administrative Agent or any Lender to enforce its claims against
such Borrower, except as otherwise specifically provided for herein: 
 
(i)    Termination of Commitments.  Declare the Commitments with respect to such Borrower (and, if such Borrower is either VaPower or CNG, then also to Dominion
Resources) terminated whereupon the Commitments with respect to such Borrower (and, if such Borrower is either VaPower or CNG, then also to Dominion Resources) shall be immediately terminated. 
 
(ii)    Acceleration
of Loans.  Declare the unpaid principal of and any accrued interest in respect of all Loans made to such Borrower (and, if such Borrower is either VaPower or CNG, then also to Dominion Resources) and any and all other indebtedness

 

44 

or obligations of any and every kind (including all amounts of L/C Obligations, whether or not the beneficiaries of the then outstanding
Letters of Credit shall have presented the documents required thereunder) owing by such Borrower (and, if such Borrower is either VaPower or CNG, then also by Dominion Resources) to any of the Lenders or the Administrative Agent hereunder to be due
whereupon the same shall be immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by such Borrower (and, if such Borrower is either VaPower or CNG, then also by Dominion
Resources). 
 
(iii)    Enforcement of Rights.  Enforce any and all rights and interests created and existing under the Credit Documents, including, without limitation, all rights of set-off, as against such
Borrower. 
 
Notwithstanding the foregoing, if an Event of Default
specified in Section 10.1(e) shall occur, then the Commitments with respect to such Borrower (and, if such Borrower is either VaPower or CNG, then also to Dominion Resources) shall automatically terminate and all Loans made to such Borrower (and, if
such Borrower is either VaPower or CNG, then also to Dominion Resources), all accrued interest in respect thereof, all accrued and unpaid fees and other indebtedness or obligations (including all amounts of L/C Obligations, whether or not the
beneficiaries of the then outstanding Letters of Credit shall have presented the documents required thereunder) owing by such Borrower (and, if such Borrower is either VaPower or CNG, then also by Dominion Resources) to the Lenders and the
Administrative Agent hereunder shall immediately become due and payable without the giving of any notice or other action by the Administrative Agent or the Lenders. With respect to all Letters of Credit with respect to which presentment for honor
shall not have occurred at the time of an acceleration pursuant to this Section 10.2, the Borrower shall at such time deposit in a cash collateral account opened by the Administrative Agent an amount equal to the aggregate then undrawn and unexpired
amount of such Letters of Credit. Amounts held in such cash collateral account shall be applied by the Administrative Agent to the payment of drafts drawn under such Letters of Credit, and the unused portion thereof after all such Letters of Credit
shall have expired or been fully drawn upon, if any, shall be applied to repay other obligations of the Borrower hereunder and under the other Loan Documents. After all such Letters of Credit shall have expired or been fully drawn upon, all
Reimbursement Obligations shall have been satisfied and all other obligations of the Borrower hereunder and under the other Loan Documents shall have been paid in full, the balance, if any, in such cash collateral account shall be returned to the
Borrower (or such other Person as may be lawfully entitled thereto). 
 
10.3  Allocation of Payments After Event of Default. 
 
Notwithstanding any other provisions of this Credit Agreement, after the occurrence and during the continuance of an Event of Default with respect to any Borrower, all amounts collected or received by
the Administrative Agent or any Lender on account of amounts outstanding under any of the Credit Documents shall be paid over or delivered as follows: 
 
FIRST, to the payment of all reasonable out-of-pocket costs and expenses (including without limitation reasonable
attorneys’ fees) of the Administrative Agent or 

 

45 

any of the Lenders in connection with enforcing the rights of the Lenders under the Credit Documents against such Borrower and any protective
advances made by the Administrative Agent or any of the Lenders, pro rata as set forth below; 
 
SECOND, to payment of any fees owed to the Administrative Agent or any Lender by such Borrower, pro rata as
set forth below; 
 
THIRD, to the
payment of all accrued interest payable to the Lenders by such Borrower hereunder, pro rata as set forth below; 
 
FOURTH, to the payment of the outstanding principal amount of the Loans of such Borrower, pro rata as set
forth below; 
 
FIFTH, to all
other obligations which shall have become due and payable of such Borrower under the Credit Documents and not repaid pursuant to clauses “FIRST” through “FOURTH” above; and 
 
SIXTH, the payment of the surplus, if any, to
whoever may be lawfully entitled to receive such surplus. 
 
In carrying out the foregoing, (a) amounts received shall be applied in the numerical order provided until exhausted prior to application to the next succeeding category and (b) each of the Lenders shall receive an amount equal to
its pro rata share (based on each Lender’s Commitment Percentages) of amounts available to be applied. 
 
SECTION 11.    AGENCY PROVISIONS 
 
11.1  Appointment. 
 
Each Lender hereby designates and appoints JPMCB as administrative agent of such Lender to act as specified
herein and the other Credit Documents, and each such Lender hereby authorizes the Administrative Agent, as the agent for such Lender, to take such action on its behalf under the provisions of this Credit Agreement and the other Credit Documents and
to exercise such powers and perform such duties as are expressly delegated by the terms hereof and of the other Credit Documents, together with such other powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary
elsewhere herein and in the other Credit Documents, the Administrative Agent shall not have any duties or responsibilities, except those expressly set forth herein and therein, or any fiduciary relationship with any Lender, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read into this Credit Agreement or any of the other Credit Documents, or shall otherwise exist against the Administrative Agent. The provisions of this Section are solely for
the benefit of the Administrative Agent and the Lenders and no Borrower shall have any rights as a third party beneficiary of the provisions hereof. In performing its functions and duties under this Credit Agreement and the other Credit Documents,
the Administrative Agent shall act solely as agent of the Lenders and does not assume and shall not be deemed to have assumed any obligation or relationship of agency or trust with or for any Borrower. 
 
11.2  Delegation of Duties. 
 

46 

 
The
Administrative Agent may execute any of its duties hereunder or under the other Credit Documents by or through agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. The
Administrative Agent shall not be responsible for the negligence or misconduct of any agents or attorneys-in-fact selected by it with reasonable care. 
 
11.3  Exculpatory Provisions. 
 
Neither the Administrative Agent nor any of its officers, directors, employees, agents, attorneys-in-fact or Affiliates shall be liable
for any action lawfully taken or omitted to be taken by it or such Person under or in connection herewith or in connection with any of the other Credit Documents (except for its or such Person’s own gross negligence or willful misconduct), or
responsible in any manner to any of the Lenders for any recitals, statements, representations or warranties made by a Borrower contained herein or in any of the other Credit Documents or in any certificate, report, statement or other document
referred to or provided for in, or received by the Administrative Agent under or in connection herewith or in connection with the other Credit Documents, or enforceability or sufficiency therefor of any of the other Credit Documents, or for any
failure of the Borrowers to perform their respective obligations hereunder or thereunder. The Administrative Agent shall not be responsible to any Lender for the effectiveness, genuineness, validity, enforceability, collectibility or sufficiency of
this Credit Agreement, or any of the other Credit Documents or for any representations, warranties, recitals or statements made herein or therein or made by a Borrower in any written or oral statement or in any financial or other statements,
instruments, reports, certificates or any other documents in connection herewith or therewith furnished or made by the Administrative Agent to the Lenders or by or on behalf of a Borrower to the Administrative Agent or any Lender or be required to
ascertain or inquire as to the performance or observance of any of the terms, conditions, provisions, covenants or agreements contained herein or therein or as to the use of the proceeds of the Loans or of the existence or possible existence of any
Default or Event of Default or to inspect the properties, books or records of a Borrower. The Administrative Agent is not a trustee for the Lenders and owes no fiduciary duty to the Lenders. None of the Lenders identified on the facing page or
signature pages of this Agreement as “Co-Syndication Agents” or “Co-Documentation Agents” shall have any right, power, obligation, liability, responsibility or duty under this Agreement other than those applicable to all Lenders
as such, nor shall they have or be deemed to have any fiduciary relationship with any Lender. 
 
11.4  Reliance on Communications. 
 
The Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any note, writing, resolution, notice,
consent, certificate, affidavit, letter, cablegram, telegram, telecopy, telex or teletype message, statement, order or other document or conversation reasonably believed by it to be genuine and correct and to have been signed, sent or made by the
proper Person or Persons and upon advice and statements of legal counsel (including, without limitation, counsel to a Borrower, independent accountants and other experts selected by the Administrative Agent with reasonable care). The Administrative
Agent may deem and treat the Lenders as the owner of its interests hereunder for all purposes unless a written notice of assignment, negotiation or transfer thereof shall have been filed with the Administrative Agent in accordance with Section
12.3(b). The Administrative Agent shall be 

 

47 

fully justified in failing or refusing to take any action under this Credit Agreement or under any of the other Credit Documents unless it
shall first receive such advice or concurrence of the Required Lenders as it deems appropriate or it shall first be indemnified to its satisfaction by the Lenders against any and all liability and expense which may be incurred by it by reason of
taking or continuing to take any such action. The Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting, hereunder or under any of the other Credit Documents in accordance with a request of the Required
Lenders (or to the extent specifically provided in Section 12.6, all the Lenders) and such request and any action taken or failure to act pursuant thereto shall be binding upon all the Lenders (including their successors and assigns). 
 
11.5  Notice of Default. 
 
The Administrative Agent shall not be deemed to have knowledge
or notice of the occurrence of any Default or Event of Default hereunder unless the Administrative Agent has received notice from a Lender or the relevant Borrower referring to the Credit Document, describing such Default or Event of Default and
stating that such notice is a “notice of default.” In the event that the Administrative Agent receives such a notice, the Administrative Agent shall give prompt notice thereof to the Lenders. The Administrative Agent shall take such action
with respect to such Default or Event of Default as shall be directed by the Required Lenders (or, to the extent specifically provided in Section 12.6, all the Lenders). 
 
11.6  Non-Reliance on Administrative Agent and Other Lenders. 
 
Each Lender expressly acknowledges that neither the
Administrative Agent nor any of its officers, directors, employees, agents, attorneys-in-fact or affiliates has made any representations or warranties to it and that no act by the Administrative Agent or any affiliate thereof hereinafter taken,
including any review of the affairs of a Borrower, shall be deemed to constitute any representation or warranty by the Administrative Agent to any Lender. Each Lender represents to the Administrative Agent that it has, independently and without
reliance upon the Administrative Agent or any other Lender, and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, assets, operations, property, financial and other
conditions, prospects and creditworthiness of a Borrower and made its own decision to make its Loans hereunder and enter into this Credit Agreement. Each Lender also represents 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 analysis, appraisals and decisions in taking or not taking action under this Credit Agreement, and to
make such investigation as it deems necessary to inform itself as to the business, assets, operations, property, financial and other conditions, prospects and creditworthiness of a Borrower. Except for (i) delivery of the Credit Documents and (ii)
notices, reports and other documents expressly required to be furnished to the Lenders by the Administrative Agent hereunder, the Administrative Agent shall not have any duty or responsibility to provide any Lender with any credit or other
information concerning the business, operations, assets, property, financial or other conditions, prospects or creditworthiness of a Borrower which may come into the possession of the Administrative Agent or any of its officers, directors,
employees, agents, attorneys-in-fact or Affiliates. 
 

48 

 
11.7  Indemnification. 
 
Each Lender agrees to indemnify the Administrative Agent in its capacity as such (to the extent not reimbursed by a Borrower and without limiting the obligation of a Borrower to do so), ratably according to its Revolving Loan
Commitment, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever which may at any time (including without limitation at any time
following the payment of the Loans) be imposed on, incurred by or asserted against the Administrative Agent in its capacity as such in any way relating to or arising out of this Credit Agreement or the other Credit Documents or any documents
contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted by the Administrative Agent under or in connection with any of the foregoing; provided that no Lender shall be
liable for the payment of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from the gross negligence or willful misconduct of the Administrative Agent. If
any indemnity furnished to the Administrative Agent for any purpose shall, in the opinion of the Administrative Agent, be insufficient or become impaired, the Administrative Agent may call for additional indemnity and cease, or not commence, to do
the acts indemnified against until such additional indemnity is furnished. The agreements in this Section shall survive the payment of the Loans and all other amounts payable hereunder and under the other Credit Documents. 
 
11.8  Administrative Agent in Its Individual
Capacity. 
 
The Administrative Agent and its
Affiliates may make loans to, issue to or participate in Letters of Credit by, accept deposits from and generally engage in any kind of business with a Borrower as though the Administrative Agent were not Administrative Agent hereunder. With respect
to the Loans made by it, the Administrative Agent shall have the same rights and powers under this Credit Agreement as any Lender and may exercise the same as though they were not Administrative Agent, and the terms “Lender” and
“Lenders” shall include the Administrative Agent in its individual capacity. 
 
11.9  Successor Administrative Agent. 
 
The Administrative Agent may, at any time, resign upon 30 days written notice to the Lenders. Upon any such resignation, the Required
Lenders shall have the right to appoint a successor Administrative Agent. If no successor Administrative Agent shall have been so appointed by the Required Lenders and shall have accepted such appointment, within 30 days after the notice of
resignation, then the retiring Administrative Agent shall select a successor Administrative Agent provided such successor is an Eligible Assignee (or if no Eligible Assignee shall have been so appointed by the retiring Administrative Agent and shall
have accepted such appointment, then the Lenders shall perform all obligations of the retiring Administrative Agent until such time, if any, as a successor Administrative Agent shall have been so appointed and shall have accepted such appointment as
provided for above). Upon the acceptance of any appointment as Administrative Agent hereunder by a successor, such successor Administrative Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the
retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations as Administrative Agent, as appropriate, under this 

 

49 

Credit Agreement and the other Credit Documents and the provisions of this Section 11.9 shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was Administrative Agent under this Credit Agreement. 
 
SECTION 12.    MISCELLANEOUS 
 
12.1  Notices. 
 
Except as otherwise expressly provided herein, all notices and other communications shall have been duly given and shall be effective (a)
when delivered, (b) when transmitted via telecopy (or other facsimile device), (c) the Business Day following the day on which the same has been delivered prepaid (or pursuant to an invoice arrangement) to a reputable national overnight air courier
service, or (d) the third Business Day following the day on which the same is sent by certified or registered mail, postage prepaid, in each case to the respective parties at the address or telecopy numbers set forth on Schedule 12.1, or at
such other address as such party may specify by written notice to the other parties hereto. 
 
Notices and other communications to any Lender hereunder may be delivered or furnished by electronic communications pursuant to procedures approved by the Administrative Agent; provided that the
foregoing shall not apply to notices pursuant to Section 2 unless otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications. 
 
12.2  Right of Set-Off; Adjustments.

 
In addition to any rights now or hereafter
granted under applicable law or otherwise, and not by way of limitation of any such rights, upon the occurrence of an Event of Default by a Borrower and the commencement of remedies described in Section 10.2, each Lender is authorized at any time
and from time to time, without presentment, demand, protest or other notice of any kind (all of which rights being hereby expressly waived), to set-off and to appropriate and apply any and all deposits (general or special) and any other indebtedness
at any time held or owing by such Lender (including, without limitation branches, agencies or Affiliates of such Lender wherever located) to or for the credit or the account of such Borrower against obligations and liabilities of such Borrower to
the Lenders hereunder, under the Notes, the other Credit Documents or otherwise, irrespective of whether the Administrative Agent or the Lenders shall have made any demand hereunder and although such obligations, liabilities or claims, or any of
them, may be contingent or unmatured, and any such set-off shall be deemed to have been made immediately upon the occurrence of an Event of Default even though such charge is made or entered on the books of such Lender subsequent thereto. Each
Borrower hereby agrees that any Person purchasing a participation in the Loans and Commitments to it hereunder pursuant to Section 12.3(c) may exercise all rights of set-off with respect to its participation interest as fully as if such Person were
a Lender hereunder. 
 

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Except to the
extent that this Credit Agreement expressly provides for payments to be allocated to a particular Lender, if any Lender (a “Benefitted Lender”) shall receive any payment of all or part of the obligations owing to it by a Borrower
under this Credit Agreement, receive any collateral in respect thereof (whether voluntarily or involuntarily, by set-off, pursuant to events or proceedings of the nature referred to in Section 10.1(e), or otherwise), in a greater proportion than any
such payment to or collateral received by any other Lender, if any, in respect of the obligations owing to such other Lender by such Borrower under this Credit Agreement, such Benefitted Lender shall purchase for cash from the other Lenders a
participating interest in such portion of the obligations owing to each such other Lender, or shall provide such other Lenders with the benefits of any such collateral, as shall be necessary to cause such Benefitted Lender to share the excess
payment or benefits of such collateral ratably with each of the Lenders; provided, however, that if all or any portion of such excess payment or benefits is thereafter recovered from such Benefitted Lender, such purchase shall be
rescinded, and the purchase price and benefits returned, to the extent of such recovery, but without interest. 
 
12.3  Benefit of Agreement. 
 
(a)    Generally.  This Credit Agreement shall be binding upon and inure to the benefit of and be
enforceable by the respective successors and assigns of the parties hereto; provided that a Borrower may not assign and transfer any of its interests (except as permitted by Section 9.2) without prior written consent of the Lenders; and provided
further that the rights of each Lender to transfer, assign or grant participations in its rights and/or obligations hereunder shall be limited as set forth in this Section 12.3. 
 
(b)    Assignments.  Each Lender may assign all or a portion of its
rights and obligations under this Credit Agreement (including, without limitation, all or a portion of its Loans, its Notes, and its Commitment); provided, however, that: 
 
(i)    each such assignment shall be to an Eligible Assignee;

 
(ii)    except (A) in the case of an assignment to another Lender, (B) in the case of an assignment of all of a Lender’s rights and obligations under this Credit Agreement, or (C) with the consent of the
Administrative Agent and the Borrowers (such consent by the Borrowers (i) not to be unreasonably withheld and (ii) not being required during the existence of a Default or Event of Default), any such partial assignment shall be in an amount at least
equal to $10,000,000 (or, if less, the remaining amount of the Commitment being assigned by such Lender) or an integral multiple of $5,000,000 in excess thereof; 
 
(iii)    each such assignment by a Lender shall be of a constant, and not
varying, percentage of all of its rights and obligations under this Credit Agreement and the Notes; and 
 
(iv)    the parties to such assignment shall execute and deliver to the Administrative Agent for its
acceptance an Assignment Agreement in substantially the form of Exhibit 12.3, together with a processing fee from the assignor of $4,000. 
 

51 

 
Upon
execution, delivery, and acceptance of such Assignment Agreement, the assignee thereunder shall be a party hereto and, to the extent of such assignment, have the obligations, rights, and benefits of a Lender hereunder and the assigning Lender shall,
to the extent of such assignment, relinquish its rights and be released from its obligations under this Credit Agreement. Upon the consummation of any assignment pursuant to this Section 12.3(b), the assignor, the Administrative Agent and the
relevant Borrower shall make appropriate arrangements so that, if required, new Notes are issued to the assignee. If the assignee is not incorporated under the laws of the United States of America or a State thereof, it shall deliver to such
Borrower and the Administrative Agent certification as to exemption from deduction or withholding of taxes in accordance with Section 4.4. 
 
By executing and delivering an assignment agreement in accordance with this Section 12.3(b), the assigning Lender thereunder and the
assignee thereunder shall be deemed to confirm to and agree with each other and the other parties hereto as follows: (A) such assigning Lender warrants that it is the legal and beneficial owner of the interest being assigned thereby free and clear
of any adverse claim and the assignee warrants that it is an Eligible Assignee; (B) except as set forth in clause (A) above, such assigning Lender makes no representation or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with this Credit Agreement, any of the other Credit Documents or any other instrument or document furnished pursuant hereto or thereto, or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of this Credit Agreement, any of the other Credit Documents or any other instrument or document furnished pursuant hereto or thereto or the financial condition of a Borrower or the performance or observance by such
Borrower of any of its obligations under this Credit Agreement, any of the other Credit Documents or any other instrument or document furnished pursuant hereto or thereto; (C) such assignee represents and warrants that it is legally authorized to
enter into such assignment agreement; (D) such assignee confirms that it has received a copy of this Credit Agreement, the other Credit Documents and such other documents and information as it has deemed appropriate to make its own credit analysis
and decision to enter into such assignment agreement; (E) such assignee will independently and without reliance upon the Administrative Agent, such 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 this Credit Agreement and the other Credit Documents; (F) such assignee appoints and authorizes the Administrative Agent to take such action on
its behalf and to exercise such powers under this Credit Agreement or any other Credit Document as are delegated to the Administrative Agent by the terms hereof or thereof, together with such powers as are reasonably incidental thereto; and (G) such
assignee agrees that it will perform in accordance with their terms all the obligations which by the terms of this Credit Agreement and the other Credit Documents are required to be performed by it as a Lender. 
 
For avoidance of doubt, the parties to this Credit Agreement
acknowledge that the provisions of this Section 12.3 concerning assignments relate only to absolute assignments and that such provisions do not prohibit assignments creating security interests, including any pledge or assignment by a Lender to any
Federal Reserve Bank in accordance with applicable law. 
 
(c)    Register.  The Administrative Agent shall maintain a copy of each Assignment Agreement delivered to and accepted by it and a register for the recordation of the 

 

52 

names and addresses of the Lenders and the Commitment of, and principal amount of the Loans owing to, each Lender from time to time by each
Borrower (collectively, the “Registers”). The entries in the Registers shall be conclusive and binding for all purposes, absent manifest error, and the Borrowers, the Administrative Agent and the Lenders may treat each Person whose
name is recorded in the relevant Register as a Lender hereunder for all purposes of this Credit Agreement. The Registers shall be available for inspection by the Borrowers or any Lender at any reasonable time and from time to time upon reasonable
prior notice. 
 
(d)    Acceptance.  Upon its receipt of an assignment agreement executed by the parties thereto, together with any Note subject to such assignment and payment of the processing fee, the
Administrative Agent shall, if such Assignment Agreement has been completed and is in substantially the form of Exhibit 12.3, (i) accept such assignment agreement, (ii) record the information contained therein in the Register and (iii) give
prompt notice thereof to the parties thereto. 
 
(e)    Participations.  Each Lender may sell, transfer, grant or assign participations in all or any part of such Lender’s interests and obligations hereunder; provided that (i) such
selling Lender shall remain a “Lender” for all purposes under this Credit Agreement (such selling Lender’s obligations under the Credit Documents remaining unchanged) and the participant shall not constitute a Lender hereunder, (ii)
no such participant shall have, or be granted, rights to approve any amendment or waiver relating to this Credit Agreement or the other Credit Documents except to the extent any such amendment or waiver would (A) reduce the principal of or rate of
interest on or fees in respect of any Loans in which the participant is participating, or (B) postpone the date fixed for any payment of principal (including extension of the Maturity Date or the date of any mandatory prepayment), interest or fees
in respect of any Loans in which the participant is participating, (iii) sub-participations by the participant (except to an Affiliate, parent company or Affiliate of a parent company of the participant) shall be permitted with the consent of the
Borrowers (which, in each case, shall not be unreasonably withheld or delayed and shall not be required during the existence of a Default or Event of Default), and (iv) any such participations shall be in a minimum aggregate amount of $10,000,000 of
the Revolving Loan Commitment and in integral multiples of $5,000,000 in excess thereof. In the case of any such participation, the participant shall not have any rights under this Credit Agreement or the other Credit Documents (the
participant’s rights against the selling Lender in respect of such participation to be those set forth in the participation agreement with such Lender creating such participation) and all amounts payable by such Borrower hereunder shall be
determined as if such Lender had not sold such participation; provided, however, that such participant shall be entitled to receive additional amounts under Section 4 to the same extent that the Lender from which such participant acquired its
participation would be entitled to the benefit of such cost protection provisions. 
 
(f)    Payments.  No Eligible Assignee, participant or other transferee of any Lender’s rights shall be entitled to receive any greater payment under Section 4
than such Lender would have been entitled to receive with respect to the rights transferred, unless such transfer is made with the Borrower’s written consent. 
 
(g)    Nonrestricted Assignments.  Notwithstanding any other provision
set forth in this Credit Agreement, any Lender may at any time assign and pledge all or any portion of its 

 

53 

Loans and its Notes to any Federal Reserve Bank as collateral security pursuant to Regulation A and any operating circular issued by such
Federal Reserve Bank. No such assignment shall release the assigning Lender from its obligations hereunder. 
 
(h)    Information.  Any Lender may furnish any information concerning a Borrower or any of its
Subsidiaries in the possession of such Lender from time to time to assignees and participants (including prospective assignees and participants) who is notified of the confidential nature of the information and agrees to use its reasonable best
efforts to keep confidential all non-public information from time to time supplied to it. 
 
12.4  No Waiver; Remedies Cumulative. 
 
No failure or delay on the part of the Administrative Agent or any Lender in exercising any right, power or privilege hereunder or under
any other Credit Document and no course of dealing between a Borrower and the Administrative Agent or any Lender shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power or privilege hereunder or under any
other Credit Document preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder or thereunder. The rights and remedies provided herein are cumulative and not exclusive of any rights or remedies
which the Administrative Agent or any Lender would otherwise have. No notice to or demand on a Borrower in any case shall entitle such Borrower to any other or further notice or demand in similar or other circumstances or constitute a waiver of the
rights of the Administrative Agent or the Lenders to any other or further action in any circumstances without notice or demand. 
 
12.5  Payment of Expenses, etc. 
 
Each Borrower agrees to: (a) pay all reasonable out-of-pocket costs and expenses of (i) the Administrative Agent and the Lead Arranger in
connection with the negotiation, preparation, execution and delivery and administration of this Credit Agreement and the other Credit Documents and the documents and instruments referred to therein (including, without limitation, the reasonable fees
and expenses of legal counsel to the Administrative Agent) and any amendment, waiver or consent relating hereto and thereto including, but not limited to, any such amendments, waivers or consents resulting from or related to any work-out,
renegotiation or restructure relating to the performance by such Borrower under this Credit Agreement and (ii) of the Administrative Agent, the Lead Arranger and the Lenders in connection with enforcement of the Credit Documents and the documents
and instruments referred to therein (including, without limitation, in connection with any such enforcement, the reasonable fees and disbursements of counsel for the Administrative Agent and each of the Lenders) against such Borrower; and (b)
indemnify the Administrative Agent, the Lead Arranger and each Lender, their respective officers, directors, employees, representatives and agents from and hold each of them harmless against any and all losses, liabilities, claims, damages or
expenses incurred by any of them as a result of, or arising out of, or in any way related to, or by reason of, any investigation, litigation or other proceeding (whether or not the Administrative Agent, the Lead Arranger or any Lender is a party
thereto) related to the entering into and/or performance of any Credit Document or the use of proceeds of any Loans (including other extensions of credit) hereunder or the consummation of any other transactions contemplated in any Credit Document by
such Borrower, including, without limitation, the reasonable fees and disbursements of 

 

54 

counsel incurred in connection with any such investigation, litigation or other proceeding (but excluding any such losses, liabilities,
claims, damages or expenses to the extent incurred by reason of gross negligence or willful misconduct on the part of the Person to be indemnified). 
 
12.6  Amendments, Waivers and Consents. 
 
Neither this Credit Agreement nor any other Credit Document nor any of the terms hereof or thereof may be
amended, changed, waived, discharged or terminated unless such amendment, change, waiver, discharge or termination is in writing and signed by the Required Lenders and the Borrowers; provided that no such amendment, change, waiver, discharge
or termination shall without the consent of each Lender affected thereby: 
 
(a)    extend the Maturity Date; 
 
(b)    reduce the rate or extend the time of payment of interest (other than as a result of waiving the applicability of any post-default increase in interest rates) thereon or fees
hereunder; 
 
(c)    reduce or
forgive the principal amount of any Loan; 
 
(d)    increase or extend the Commitment of a Lender over the amount thereof in effect (it being understood and agreed that a waiver of any Default or Event of Default or a waiver of any mandatory reduction in the
Commitments shall not constitute a change in the terms of any Commitment of any Lender); 
 
(e)    release a Borrower from its obligations under the Credit Documents or consent to the transfer or assignment of such obligations; 
 
(f)    amend, modify or waive any
provision of this Section or Section 3.6, 3.8, 10.1(a), 11.7, 12.2, 12.3 or 12.5; or 
 
(g)    reduce any percentage specified in, or otherwise modify, the definition of Required Lenders. 
 
Notwithstanding the above, no provisions of (a) Section 11 may be amended or modified without the consent of
the Administrative Agent and (b) Section 5 may be amended or modified without the consent of the Issuing Lender. 
 
Notwithstanding the fact that the consent of all the Lenders is required in certain circumstances as set forth above, each Lender is entitled to vote as such Lender sees fit on any reorganization plan
that affects the Loans and each Lender acknowledges that the provisions of Section 1126(c) of the Bankruptcy Code supersede the unanimous consent provisions set forth herein. 
 
12.7  Counterparts; Telecopy. 
 
This Credit Agreement may be executed in any number of counterparts, each of which where so executed and
delivered shall be an original, but all of which shall constitute one 

 

55 

and the same instrument. It shall not be necessary in making proof of this Credit Agreement to produce or account for more than one such
counterpart. Delivery of executed counterparts by facsimile shall be effective as an original and shall constitute a representation that an original will be delivered. 
 
12.8  Headings. 
 
The headings of the sections and subsections hereof are provided for convenience only and shall not in any
way affect the meaning or construction of any provision of this Credit Agreement. 
 
12.9  Defaulting Lender. 
 
Each Lender understands and agrees that if such Lender is a Defaulting Lender then it shall not be entitled to vote on any matter requiring the consent of the Required Lenders or to object to any
matter requiring the consent of all the Lenders; provided, however, that all other benefits and obligations under the Credit Documents shall apply to such Defaulting Lender. 
 
12.10  Survival of Indemnification and Representations and Warranties. 
 
All indemnities set forth herein and all representations and
warranties made herein shall survive the execution and delivery of this Credit Agreement, the making of the Loans, and the repayment of the Loans and other obligations and the termination of the Commitments hereunder. 
 
12.11  GOVERNING LAW. 
 
THIS CREDIT AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND
THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. Each Borrower irrevocably consents to the service of process out of any
competent court in any action or proceeding brought in connection with this Credit Agreement by the mailing of copies thereof by registered or certified mail, postage prepaid, to it at its address for notices pursuant to Section 12.1, such service
to become effective 30 days after such mailing. Nothing herein shall affect the right of a Lender to serve process in any other manner permitted by law. 
 
12.12  WAIVER OF JURY TRIAL. 
 
EACH OF THE PARTIES TO THIS CREDIT AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS CREDIT AGREEMENT, ANY OF THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 
12.13  Severability. 
 

56 

 
If any
provision of any of the Credit Documents is determined to be illegal, invalid or unenforceable, such provision shall be fully severable and the remaining provisions shall remain in full force and effect and shall be construed without giving effect
to the illegal, invalid or unenforceable provisions. 
 
12.14  Entirety. 
 
This Credit Agreement together with the other Credit Documents represent the entire agreement of the parties hereto and thereto, and supersede all prior agreements and understandings, oral or written, if any, including any commitment
letters or correspondence relating to the Credit Documents or the transactions contemplated herein and therein. 
 
12.15  Binding Effect. 
 
This Credit Agreement shall become effective at such time (the “Effective Date”) when all of the conditions set forth in
Section 6.1 have been satisfied or waived by the Lenders and this Credit Agreement shall have been executed by each of the Borrowers and the Administrative Agent, and the Administrative Agent shall have received copies (telefaxed or otherwise)
which, when taken together, bear the signatures of each Lender, and thereafter this Credit Agreement shall be binding upon and inure to the benefit of each Borrower, the Administrative Agent and each Lender and their respective successors and
permitted assigns. 
 
12.16  Submission to Jurisdiction. 
 
Each Borrower hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States
District Court of the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Credit Agreement, 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 such New York State 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 Credit Agreement shall affect
any right that the Administrative Agent or any Lender may otherwise have to bring any action or proceeding relating to this Credit Agreement against any Borrower or its properties in the courts of any jurisdiction. Each Borrower hereby irrevocably
and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Credit Agreement in
any court referred to above. 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. Each of the Borrowers
also hereby irrevocably and unconditionally waives any right it may have to claim or recover in any legal action or proceeding referred to in this Section any special, exemplary, punitive or consequential damages. 
 

57 

 
12.17  Confidentiality.  Each of the Administrative Agent and each Lender agrees to keep confidential all non-public information provided to it by any Borrower pursuant to this Agreement that is designated
by such Borrower as confidential; provided that nothing herein shall prevent the Administrative Agent or any Lender from disclosing any such information (a) to the Administrative Agent, any other Lender or any of its Affiliates, (b) subject
to an agreement to comply with the provisions of this Section, to any actual or prospective Assignee or participant, (c) to its employees, directors, agents, attorneys and accountants or those of any of its affiliates, (d) upon the request or demand
of any Governmental Authority, (e) in response to any order of any court or other Governmental Authority or as may otherwise be required pursuant to any requirement of law, (f) if required to do so in connection with any litigation or similar
proceeding, (g) that has been publicly disclosed, (h) to the National Association of Insurance Commissioners or any similar organization or any nationally recognized rating agency that requires access to information about a Lender’s investment
portfolio in connection with ratings issued with respect to such Lender, or (i) in connection with the exercise of any remedy hereunder or under any other Credit Document. 
 
12.18  Designation of SPVs. 
 
Notwithstanding anything to the contrary contained herein, any Lender, (a “Granting Lender”)
may grant to a special purpose funding vehicle (an “SPV”), identified as such in writing from time to time by such Granting Lender to the Administrative Agent and the Borrowers, the option to fund all or any part of any Loan that
such Granting Lender would otherwise be obligated to fund pursuant to this Credit Agreement; provided that (i) nothing herein shall constitute a commitment by any SPV to fund any Loan, (ii) if an SPV elects not to exercise such option or
otherwise fails to fund all or any part of such Loan, the Granting Lender shall be obligated to fund such Loan pursuant to the terms hereof, (iii) no SPV shall have any voting rights pursuant to Section 12.6 and (iv) with respect to notices,
payments and other matters hereunder, the Borrowers, the Administrative Agent and the Lenders shall not be obligated to deal with an SPV, but may limit their communications and other dealings relevant to such SPV to the applicable Granting Lender.
The funding of a Loan by an SPV hereunder shall utilize the Revolving Loan Commitment of the Granting Lender to the same extent that, and as if, such Loan were funded by such Granting Lender. 
 
As to any Loans or portion thereof made by it, each SPV shall
have all the rights that its applicable Granting Lender making such Loans or portion thereof would have had under this Credit Agreement; provided, however, that each SPV shall have granted to its Granting Lender an irrevocable power of
attorney, to deliver and receive all communications and notices under this Agreement (and any related documents) and to exercise on such SPV’s behalf, all of such SPV’s voting rights under this Credit Agreement. No additional Note shall be
required to evidence the Loans or portion thereof made by an SPV; and the related Granting Lender shall be deemed to hold its Note as agent for such SPV to the extent of the Loans or portion thereof funded by such SPV. In addition, any payments for
the account of any SPV shall be paid to its Granting Lender as agent for such SPV. 
 
Each party hereto hereby agrees that no SPV shall be liable for any indemnity or payment under this Agreement for which a Lender would otherwise be liable for so long as, and to the extent, the
Granting Lender provides such indemnity or makes such payment. In 

 

58 

furtherance of the foregoing, each party hereto hereby agrees (which agreements shall survive the termination of this Credit 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 SPV, it will not institute against, or join any other person in instituting against, such SPV 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 Credit Agreement, any SPV may (i) at any time and without paying
any processing fee therefor, assign or participate all or a portion of its interest in any Loans to the Granting Lender or to any financial institutions providing liquidity and/or credit support to or for the account of such SPV 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 enhancements to such
SPV. This Section 12.17 may not be amended without the written consent of any Granting Lender affected thereby. 
 
[Remainder of Page Intentionally Blank] 
 

59 

 
Each of the
parties hereto has caused a counterpart of this Credit Agreement to be duly executed and delivered as of the date first above written. 
 

	 DOMINION RESOURCES, INC., as a Borrower

	
	 By:
	 	 /s/    G. SCOTT HETZER

	 	 	 Name:
 Title:

 

	 VIRGINIA ELECTRIC AND POWER COMPANY, as a Borrower

	
	 By:
	 	 /s/    G. SCOTT HETZER

	 	 	 Name:
 Title:

 

	 CONSOLIDATED NATURAL GAS COMPANY, as a Borrower

	
	 By:
	 	 /s/    G. SCOTT HETZER

	 	 	 Name:
 Title:

 

60 

 

	 JPMORGAN CHASE BANK, as Administrative Agent and as a Lender

	
	 By:
	 	 /s/    PETER M. LING

	 	 	 Name:    Peter M. Ling
 Title:    Vice President

 

61Amended and Restated Investment Agreement

  EXHIBIT 10.1(e)
 AMENDED AND RESTATED
INVESTMENT AGREEMENT
 This Amended and Restated Investment Agreement (this “Agreement”) is
entered into as of this 3rd day of January, 2002, by and between ADTRAN, INC. (the “Borrower”), a Delaware corporation, and FIRST UNION NATIONAL BANK (successor-in-interest to First
Union National Bank of Tennessee) (the “Bondholder”), a national banking association.
 W I T N E S S E
T H
 WHEREAS, the State Industrial Development Authority for the State of Alabama (the “Issuer”)
issued its Taxable Revenue Bond, Series 1995 (ADTRAN, Inc. Project) in the principal amount of Fifty Million and No/100 Dollars ($50,000,000.00) (the “Bond”) to the Bondholder pursuant to that
certain First Amended and Restated Financing Agreement (as amended from time to time, the “Financing Agreement”) dated as of April 25, 1997 among the Issuer, the Bondholder and the
Borrower; and
 WHEREAS, the Borrower and the Issuer entered into that certain First Amended and Restated Loan Agreement (as amended from time to time, the
“Loan Agreement”) dated as of April 25, 1997, and the Issuer assigned to the Bondholder all of the rights of the Issuer under the Loan Agreement with the intention that the Bondholder
enjoy all of the rights of the Issuer thereunder except to the extent of certain rights reserved with respect to certain rights to notice and “Additional Payments,” as defined in the Financing Agreement; and
 WHEREAS, as further evidence of its obligations to the Bondholder arising under the Loan Agreement, the Borrower executed that certain First Amended and Restated Note (as amended
from time to time, the “Note”) dated April 25, 1997 payable to the order of the Bondholder in the maximum principal amount of Fifty Million and No/100 Dollars ($50,000,000.00);
and
 WHEREAS, one condition to the Bondholder’s agreement to purchase the Bond was that the Bondholder shall have a first priority lien upon certain
deposit accounts maintained with the Bondholder to secure the Note and obligations under the Loan Agreement, with such deposits to be derived from sources other than the proceeds of the Bond; and
 WHEREAS, the Borrower, the Bondholder and AmSouth Bank of Alabama (“AmSouth”) entered into that certain Investment Agreement (the
“Original Investment Agreement”) dated as of April 25, 1997, pursuant to the terms and conditions of which the Borrower granted to Bondholder a lien and security interest upon certain
Deposit Accounts (as defined therein) established with Bondholder and AmSouth; and
 WHEREAS, concurrently with the execution hereof, the Bondholder and AmSouth
are entering into an Assignment and Assumption Agreement, pursuant to the terms and conditions of which AmSouth is irrevocably selling and assigning to the Bondholder, and the Bondholder is irrevocably purchasing and assuming, AmSouth’s
participation interest in the Bond, the Note, the Loan Agreement and the collateral security therefor; and
 
 

  WHEREAS, in connection with such sale and assignment from AmSouth to the Bondholder, the Borrower and Bondholder desire to amend and
restate the Original Investment Agreement in its entirety, pursuant to the terms and conditions hereinafter set forth.
 NOW, THEREFORE, as an inducement to
cause the Bondholder to purchase the Bond, and for other valuable consideration, the receipt and sufficiency of which are acknowledged, it is agreed as follows:
 1.      Establishment and Maintenance of Certificate of Deposit. Prior to the execution of this Agreement, the Borrower established a commercial
money market deposit account with the Bondholder bearing the account number 2000010106277 in the amount of Thirty Million and No/100 Dollars ($30,000,000.00) (the “Deposit Account”). Prior or
concurrently with the execution of this Agreement, Borrower shall apply the amounts on deposit in the Deposit Account, together with an additional Twenty Million and No/100 Dollars ($20,000,000.00) for a total of Fifty Million and No/100 Dollars
($50,000,000.00), toward the purchase of a 5-year certificate of deposit with the Bondholder (the “Certificate of Deposit”). The Certificate of Deposit shall be established in the name of the
Borrower and is and shall be subject to the restriction that the Borrower shall have no access to funds on deposit or applied thereto absent the consent of the Bondholder. The interest rate on the Certificate of Deposit shall be a fixed rate
throughout the term of the Certificate of Deposit, pursuant to the Loan Agreement.
 2.      Source of Deposited Funds. Funds applied by the Borrower toward the Certificate of Deposit shall not be funds that are proceeds of the Bond.
 3.      Definition of Secured Indebtedness. As used herein, “Secured Indebtedness” shall mean all present and
future debts and other obligations of the Borrower evidenced by the Bond, the Note and the Loan Agreement, as they may hereafter from time to time be amended, modified, extended, renewed or restated, and all obligations arising hereunder.

4.      Security Interest; Assignment. To secure the payment of the
Secured Indebtedness, the Borrower hereby assigns, pledges and grants a continuing security interest in and lien on the Certificate of Deposit to the Bondholder, together with all replacement certificates of deposit, however denominated, and all
proceeds thereof (collectively, the “Account”).
 5.      Representations and Warranties. The Borrower warrants and represents to the Bondholder the following:
 a.           Title. The Borrower is the sole legal and equitable owner of the
Account.
 b.          No Encumbrances. The
Account is not subject to any assignment, lien or other encumbrance other than rights in favor of the Bondholder pursuant to this Agreement.
 c.           Valid Lien. This Agreement provides the Bondholder with a valid first priority assignment of and lien interest in the Certificate
of Deposit.
 

2

  d.          Representations and Warranties
in the Financing Agreement and Loan Agreement. All of the representations and warranties set forth in Article 2 of the Financing Agreement and set forth in Section 2.2 of the Loan Agreement are true and correct as
of the date hereof.
 6.      Covenants. The Borrower covenants
with the Bondholder as follows:
 a.           No
Transfer. The Borrower shall not sell or assign the Account in whole or in part and will not grant or allow any other lien or encumbrance to attach thereto.
 b.          No Withdrawal. The Borrower shall not withdraw any funds from or otherwise applied to the
Account or convert the Account to any other savings instrument or account in whole or in part, without the prior specific written approval of the Bondholder; provided, however, (i) in the absence of an Event of Default hereunder the Borrower
shall be entitled to receive interest accrued on the Account as such interest would normally become payable under the terms and conditions of the respective account contracts, and (ii) the Borrower may at any time use funds from the Account to
prepay the Secured Indebtedness, in whole or in part.
 7.      Perfection. The Borrower acknowledges and agrees that the Certificate of Deposit is a bank deposit and that the Bondholder’s security interest therein is duly protected against lien creditors of the Borrower, bona
fide purchasers from the Borrower and the rights of the Borrower or a Trustee for Borrower under any filing under the Bankruptcy Code by the absolute control of the Bondholder as to the right of withdrawal from the Certificate of Deposit. Should the
Bondholder in the future determine that the filing of a financing statement or other action is necessary or desirable as further evidence of the perfection of the interest of the Bondholder in the Account, the Borrower shall bear all costs of the
preparation and filing of such financing statements or the taking of such other action, including the reasonable fees and expenses of the Bondholder’s attorneys.
 8.      The Bondholder’s Right of Set-off. As a further inducement to the Bondholder to purchase the Bond, the
Borrower hereby grants to the Bondholder (and acknowledges the existence of) the right of set-off against the Account and grants to the Bondholder (and acknowledges the existence of) a banker’s lien against the Account, both of which rights
serve as additional security for the Secured Obligations.
 9.      The Borrower’s
Right of Set-off Against the Bondholder. The Bondholder hereby grants to the Borrower and acknowledges the existence of the Borrower’s right to set-off the balance of the Account against and to the reduction of all or
part of the balance of the Secured Indebtedness in the event that the Bondholder should fail to pay to the Borrower the funds in the Account upon the tender of full payment of Secured Indebtedness or upon the tender of partial payment thereof, to
the extent such partial payment is then allocated to the Bondholder’s interest in the Bond.
 10.    Warranty of the Bondholder. The Bondholder represents and warrants that this Agreement constitutes a legal, valid and binding obligation of the Bondholder and is
enforceable against the Bondholder in accordance with its terms, except as enforcement hereof
 

3

  may be limited by (i) bankruptcy, insolvency, or other similar laws affecting the enforcement of creditors’ rights and (ii) general principles
of equity, including the exercise of judicial discretion in appropriate cases.
 11.    Event of
Default Defined. The occurrence of any one or more of the following events shall constitute an Event of Default under this Agreement.
 a.           Financing Agreements. The occurrence of an Event of Default under the Financing Agreement, the Loan
Agreement or the Note.
 b.          Monetary
Default. The Borrower’s failure to pay any amount due to the Bondholder under this Agreement within five (5) days of demand.
 c.           Breach of Covenant. The Borrower’s failure to perform or observe any obligation or covenant made
herein with respect to the Secured Indebtedness.
 d.          Breach of Representation or Warranty. The Borrower’s making of any representation or warranty in connection with this Agreement or the Secured Indebtedness that is materially false.
 12.    Remedies Upon Event of Default. Upon the occurrence of an Event of Default hereunder,
the Bondholder may pursue any or all of the following remedies without any notice to the Borrower except as required below:
 a.           Withdrawal from Account. The Bondholder may withdraw some or all of the funds in the Account and apply the proceeds thereof to
the Secured Indebtedness. The Borrower hereby appoints the Bondholder as the Borrower’s attorney-in-fact for the purpose of withdrawing funds from the Account in such event.
 b.          Exercise of Set-off. The Bondholder may exercise its right to set-off and lien against the
Account.
 c.           Other Remedies. The Bondholder may pursue any other remedy that may be available to it under any other document pertaining to the Secured Indebtedness or that may otherwise be available to the Bondholder at law or equity.
 d.          Application of Proceeds. All amounts received by
the Bondholder for the Borrower’s account by exercise of its remedies hereunder shall be applied as follows: First, to the payment of all expenses incurred by the Bondholder in exercising its rights hereunder, including attorney’s fees,
and any other expenses due the Bondholder from the Borrower; Second, to the payment of all interest included in the Secured Indebtedness, in such order as the Bondholder may elect; Third, to the payment of all principal included in the Secured
Indebtedness, in such order as the Bondholder may elect; and Fourth, surplus to the Borrower or other party entitled thereto.
 13.    Expenses. Upon demand, the Borrower will advance to the Bondholder or, at the Bondholder’s option, reimburse the Bondholder for, the following expenses:

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  a.           Taxes. All taxes that the Bondholder may be required to pay because of the Secured Indebtedness (excluding taxes based upon the net income of the Bondholder) or because of the Bondholder’s interest in any property securing the payment of the
Secured Indebtedness;
 b.          Administration. All expenses that the Bondholder may incur in connection with the preparation, execution, administration or enforcement of this Agreement or of any other document pertaining to the Secured Indebtedness;
 c.           Protection of Collateral. All costs of
preserving or disposing of any collateral securing the Secured Indebtedness.
 d.          Costs of Collection. All court costs and other costs of collecting any debt, overdraft or other obligation included in the Secured
Indebtedness, including compensation for time spent by employees of the Bondholder;
 e.           Litigation. All costs arising from any litigation, investigation, or administrative proceeding (whether or not the Bondholder is
a party thereto) that the Bondholder may incur as a result of the Secured Indebtedness or as a result of the Bondholder’s association with the Borrower, including, but not limited to, expenses incurred by the Bondholder in connection with a
cause or proceeding involving the Borrower under any chapter of the Bankruptcy Code or any successor statute thereto;
 f.           Attorneys’ Fees. Reasonable attorneys’ fees and costs incurred in connection with any of the foregoing.
 If the Bondholder pays any of the foregoing expenses, they shall become a part of the Secured Indebtedness and shall bear interest at the highest rate applicable to the Secured Indebtedness
from time to time. This paragraph shall remain in full effect regardless of the full payment of the Secured Indebtedness, the purported termination of this Agreement, the delivery of the executed original of this Agreement to the Borrower, or the
content or accuracy of any representation made by the Borrower to the Bondholder; provided, however, the Bondholder may terminate this paragraph by executing and delivering to the Borrower a written instrument of termination specifically referring
to this paragraph.
 14.    Consent to Jurisdiction and Service of Process. The Borrower hereby irrevocably consents to the jurisdiction of the federal and state courts of the State of New Jersey, for the purpose of any litigation to which the Bondholder may be a party and which concerns this Agreement or the
Secured Indebtedness. It is further agreed that venue for any such action shall lie exclusively with courts sitting in the State of New Jersey, unless the Bondholder agrees to the contrary in writing. The Borrower hereby further irrevocably consents
to service of process being served in any suit, action or proceeding concerning this Agreement or the Secured Indebtedness by mailing a copy thereof by registered mail or certified mail, postage prepaid, return receipt requested, or by overnight
courier service, to it at its address set forth herein or in the Loan Agreement.
 15.    Not
Partners; No Third Party Beneficiaries. Nothing contained herein or in any related document shall be deemed to render the Bondholder a partner of the Borrower for
 

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  any purpose. This Agreement has been executed for the sole benefit of the Bondholder and no third party is authorized to rely upon the Bondholder’s
rights hereunder or to rely upon an assumption that the Bondholder has or will exercise its rights under this Agreement or under any document referred to herein.
 16.    No Marshaling of Assets. The Bondholder may proceed against collateral securing the Secured Indebtedness and against parties liable therefor in such
order as it may elect, and neither the Borrower nor any creditor of the Borrower shall be entitled to require the Bondholder to marshal assets. The benefit of any rule of law or equity to the contrary is hereby expressly waived.
 17.    Notices. Any communications concerning this Agreement or the credit described
herein shall be addressed as provided in the Financing Agreement.
 18.    No Reliance on the
Bondholder’s Analysis. The Borrower acknowledges and represents that, in connection with the Secured Indebtedness, the Borrower has not relied upon any financial projection, budget, assessment or other analysis by the
Bondholder or upon any representation by the Bondholder as to the risks, benefits or prospects of the Borrower’s business activities or present or future capital needs incidental thereto, all such considerations having been examined fully and
independently by the Borrower.
 19.    Legal and Binding Agreement. The
Borrower warrants that the execution and performance of this Agreement will not violate any judicial or administrative order or governmental law or regulation, and that this Agreement is valid, binding and enforceable in every respect according to
its terms, subject to principles of equity and laws applicable to the rights of creditors generally, including bankruptcy laws.
 20.    No Consent Required. The Borrower warrants that the Borrower’s execution, delivery and performance of this Agreement do not require the consent of or the giving of
notice to any third party including, but not limited to, any other lender, governmental body or regulatory authority, except for the Issuer, to who such notice has been given.
 21.    Indulgence Not Waiver. The Bondholder’s indulgence in the existence of an Event of Default hereunder or any other
departure from the terms of this Agreement shall not prejudice the Bondholder’s rights to declare an Event of Default or otherwise demand strict compliance with this Agreement.
 22.    Cumulative Remedies. The remedies provided the Bondholder in this Agreement are not exclusive of any other remedies that may
be available to the Bondholder under any other document or at law or equity.
 23.    Amendment
and Waiver in Writing. No provision of this Agreement can be amended or waived, except by a statement in writing signed by the party against which enforcement of the amendment or waiver is sought.
 24.    Assignment. This Agreement shall be binding upon and inure to the benefit of the
respective heirs, successors and assigns of the parties except that the Borrower shall not assign any rights or delegate any obligations arising hereunder without the prior written
 

6

  consent of the Bondholder. Any attempted assignment or delegation by the Borrower without such required prior consent shall be void.
 25.    Entire Agreement; Termination of Existing Investment Agreement. This Agreement and the
other written agreements among the parties represent the entire agreement among the parties concerning the subject matter hereof, and all oral discussions and prior agreements are merged herein. This Agreement is intended to replace and supercede
that certain Investment Agreement dated as of April 25, 1997 among Borrower, Bondholder (successor-in-interest to First Union National Bank of Tennessee) and AmSouth Bank of Alabama.
 26.    Severability. Should any provision of this Agreement be invalid or unenforceable for any reason, the remaining provisions
hereof shall remain in full effect.
 27.    Time of Essence. Time is of
the essence of this Agreement, and all dates and time periods specified herein shall be strictly observed, except that the Bondholder may permit specific deviations therefrom by its written consent.
 28.    Applicable Law. The validity, construction and enforcement of this Agreement shall be determined
according to the laws of the State of New Jersey applicable to contracts executed and performed entirely within the state. In this regard, it is acknowledged that the Note, Loan Agreement and Financing Agreement are governed by the substantive laws
of the State of Alabama, and the parties wish for New Jersey law to apply hereto because the Bondholder has its places of business and all payments on the Secured Indebtedness are due in the State of New Jersey.
 29.    Gender and Number. Words used herein indicating gender or number shall be read as
context may apply.
 30.    Captions Not Controlling. Captions and
headings have been included in this Agreement for the convenience of the parties, and shall not be construed as affecting the content of the respective paragraphs.
 31.    Waivers Regarding Damages and Trial by Jury. The Borrower agrees with the Bondholder, and the Bondholder agrees with the Borrower, that they shall
not have a remedy of punitive or exemplary damages against the other in any dispute arising out of this Agreement, and hereby waive any right or claim to punitive or exemplary damages as they have not or which may arise in the future in connection
with any dispute arising out of this Agreement. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ITS RIGHTS TO A TRIAL BY JURY IN ANY ACTION ARISING HEREUNDER.
 32.    Other Concurrent Deliveries to Bondholder. Concurrently with the execution hereof, the Borrower shall have delivered to the Bondholder a good
standing certificate issued by the Borrower’s state of incorporation within the last thirty (30) days and such Uniform Commercial Code lien, tax lien, judgment and pending litigation search results (which results shall be in form and substance
satisfactory to the Bondholder) as may be requested by the Bondholder.
 

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  33.    Counterparts. This Agreement may be
executed in any number of counterparts, all of which taken together shall constitute one and the same document.
 Duly executed and delivered as of the date
first written above.
   

	 ATTEST:
 	  
 	 ADTRAN, INC.
 
	 
 /s/ PAT GILL
 	  
 	 By: 
 	 
 /s/ JAMES E. MATTHEWS
 
	 
 	  
 	  
 	 
 
	 Pat Gill
 Executive Assistant
 	  
 	  
 	   James E. Matthews
   Senior Vice President/CFO
 

  

	  
 	  
 	 FIRST UNION NATIONAL BANK
 
	  
 	  
 	 By: 
 	 
 /s/ ROBYN G. BEH
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	   Name:  Robyn G. Beh
   Title:  Vice President
 

 
 8

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