Document:

This instrument was prepared by

                                             Ira G. Megdal, Esquire

                                    MORTGAGE

                            SOUTH JERSEY GAS COMPANY

                                       TO

                              THE BANK OF NEW YORK,
                                           Trustee

                ------------------------------------------------

                      TWENTY-FOURTH SUPPLEMENTAL INDENTURE

                            Dated as of July 1, 2005

                ------------------------------------------------

               Providing for the Issuance of First Mortgage Bonds,
                         10% Medium Term Notes Series C

                                       and

                 Further Supplementing the Indenture of Mortgage
                              Dated October 1, 1947

                ------------------------------------------------

          (This Instrument Contains After-Acquired Property Provisions)

         THIS TWENTY-FOURTH SUPPLEMENTAL INDENTURE dated as of July 1, 2005
between SOUTH JERSEY GAS COMPANY, a New Jersey corporation with principal
offices at One South Jersey Plaza, Route 54, Folsom, New Jersey 08037, party of
the first part, hereinafter called the "Company," and The Bank of New York
(successor trustee to Guarantee Bank), a New York banking corporation with a
corporate trust office at 101 Barclay Street, Floor 21 West, New York, New York
10286, party of the second part, hereinafter called "Trustee," as Trustee under
the Indenture of Mortgage hereinafter mentioned, Witnesseth that:

         Whereas, the Company has heretofore duly executed, acknowledged and
delivered to Guarantee Bank and Trust Company (name later changed to Guarantee
Bank), as Trustee, a certain Indenture of Mortgage dated October 1, 1947
(hereinafter called the "Original Indenture") to provide for the issuance of,
and to secure, its First Mortgage Bonds (the "Bonds"), issuable in series and
without limit as to aggregate principal amount (except as provided under Article
III of the Original Indenture), and by the Original Indenture granted and
conveyed unto the Trustee, upon the trusts and for the uses and purposes therein
specifically set forth, certain real estate, franchises and other property
therein described or which might be thereafter acquired by it, to secure the
payment of the principal of and interest on the Bonds from time to time issued
thereunder, and pursuant to which the Company provided for the creation of an
initial series of First Mortgage Bonds designated as "South Jersey Gas Company
First Mortgage Bonds, 4 1/8% Series due 1977" (herein and in the Original
Indenture sometimes called the "Bonds of the Initial Series"); and

         Whereas, the Original Indenture provides that Bonds may be issued
thereunder from time to time and in one or more series, upon conditions therein
fully provided, the Bonds of each series to be substantially in the forms
therein recited for the Bonds of the Initial Series but with such omissions,
variations and insertions as are authorized or permitted by the Original
Indenture and determined and specified by the Board of Directors of the Company;
and

         Whereas, the Company has heretofore duly executed, acknowledged and
delivered to the Trustee a First Supplemental Indenture dated as of October 1,
1952, a Second Supplemental Indenture dated as of February 1, 1961, a Third
Supplemental Indenture dated as of July 1, 1963, a Fourth Supplemental Indenture
dated as of August 1, 1966, a Fifth Supplemental Indenture dated as of September
1, 1968, a Sixth Supplemental Indenture dated as of July 1, 1969, a Seventh
Supplemental Indenture dated as of July 1, 1971, an Eighth Supplemental
Indenture dated as of June 1, 1973, a Ninth Supplemental Indenture dated as of
July 1, 1974, a Tenth Supplemental Indenture dated as of November 10, 1976, an
Eleventh Supplemental Indenture dated as of December 1, 1979, a Twelfth
Supplemental Indenture dated as of June 1, 1980, a Thirteenth Supplemental
Indenture dated as of August 1, 1981, a Fourteenth Supplemental Indenture dated
as of August 1, 1984, a Fifteenth Supplemental Indenture dated as of July 1,
1986, a Sixteenth Supplemental Indenture dated as of April 1, 1988, a
Seventeenth Supplemental Indenture dated of as May 1, 1989, an Eighteenth
Supplemental Indenture dated as of March 1, 1990, a Nineteenth Supplemental
Indenture dated as of April 1, 1992, a Twentieth Supplemental Indenture dated as
of June 1, 1993, a Twenty-First Supplemental Indenture dated as of March 1,
1997, a Twenty-Second Supplemental Indenture dated as of October 1, 1998, and a
Twenty-Third Supplemental Indenture dated as of July 1, 2003 (hereinafter
called, respectively, the "First Supplement," the "Second Supplement," the
"Third Supplement," the "Fourth Supplement," the "Fifth Supplement," the "Sixth

                                      -2-

Supplement," the "Seventh Supplement," the "Eighth Supplement," the "Ninth
Supplement," the "Tenth Supplement," the "Eleventh Supplement," the "Twelfth
Supplement," the "Thirteenth Supplement," the "Fourteenth Supplement," the
"Fifteenth Supplement," the "Sixteenth Supplement," the "Seventeenth
Supplement," the "Eighteenth Supplement," the Nineteenth Supplement," the
"Twentieth Supplement," the "Twenty-First Supplement", the "Twenty-Second
Supplement" and the "Twenty-Third Supplement") (the Original Indenture, all such
supplemental indentures and this Twenty-Fourth Supplemental Indenture
hereinafter collectively referred to as the "Indenture"), pursuant to which the
Company provided for the creation of a second series of Bonds designated as
"South Jersey Gas Company First Mortgage Bonds, 3 7/8% Series due 1977" (herein
and in the First Supplement sometimes called the "Bonds of the Second Series"),
a third series of Bonds designated as "South Jersey Gas Company First Mortgage
Bonds, 5% Series due 1986" (herein and in the Second Supplement sometimes called
the "Bonds of the Third Series"), a fourth series of Bonds designated as "South
Jersey Gas Company First Mortgage Bonds, 4 1/2% Series due 1988" (herein and in
the Third Supplement sometimes called the "Bonds of the Fourth Series"), a fifth
series of Bonds designated as "South Jersey Gas Company First Mortgage Bonds,
5.70% Series due 1991" (herein and in the Fourth Supplement sometimes called the
"Bonds of the Fifth Series"), a sixth series of Bonds designated as "South
Jersey Gas Company First Mortgage Bonds, 7% Series due 1993" (herein and in the
Fifth Supplement sometimes called the "Bonds of the Sixth Series"), a seventh
series of Bonds designated as "South Jersey Gas Company First Mortgage Bonds, 7
7/8% Series due 1994" (herein and in the Sixth Supplement sometimes called the
"Bonds of the Seventh Series"), an eighth series of Bonds designated as "South
Jersey Gas Company First Mortgage Bonds, 8 1/4% Series due 1996" (herein and in
the Seventh Supplement sometimes called the "Bonds of the Eighth Series"), a
ninth series of Bonds designated as "South Jersey Gas Company First Mortgage
Bonds, 8 1/4% Series due 1998" (herein and in the Eighth Supplement sometimes
called the "Bonds of the Ninth Series"), a tenth series of Bonds designated as
"South Jersey Gas Company First Mortgage Bonds, 9 1/2% Series due 1989" (herein
and in the Ninth Supplement sometimes called the "Bonds of the Tenth Series"),
an eleventh series of Bonds designated as "South Jersey Gas Company First
Mortgage Bonds, 8% Series due 1995" (herein and in the Twelfth Supplement
sometimes called the "Bonds of the Eleventh Series"), a twelfth series of Bonds
designated as "South Jersey Gas Company First Mortgage Bonds, 15 3/4% Series due
1996" (herein and in the Thirteenth Supplement sometimes called the "Bonds of
the Twelfth Series"), a thirteenth series of Bonds designated as "South Jersey
Gas Company First Mortgage Bonds, 14 3/8% Series due 1996" (herein and in the
Fourteenth Supplement sometimes called the "Bonds of the Thirteenth Series"), a
fourteenth series of Bonds designated as "South Jersey Gas Company First
Mortgage Bonds, 9.20% Series due 1998" (herein and in the Fifteenth Supplement
sometimes called the "Bonds of the Fourteenth Series"), a fifteenth series of
Bonds designated as "South Jersey Gas Company First Mortgage Bonds, 10 1/4%
Series due 2008" (herein and in the Sixteenth Supplement sometimes called the
"Bonds of the Fifteenth Series"), a sixteenth series of Bonds designated as
"South Jersey Gas Company First Mortgage Bonds, 9% Series due 2010" (herein and
in the Eighteenth Supplement sometimes called the "Bonds of the Sixteenth
Series"), a seventeenth series of Bonds designated as "South Jersey Gas Company
First Mortgage Bonds, 8.19% Series due 2007" (herein and in the Nineteenth
Supplement sometimes called the "Bonds of the Seventeenth Series"), an
eighteenth series of Bonds designated "South Jersey Gas Company First Mortgage
Bonds, 6.95% Series due 2013" (herein and in the Twentieth Supplement sometimes

                                      -3-

called the "Bonds of the Eighteenth Series"), a nineteenth series of Bonds
designated as "South Jersey Gas Company First Mortgage Bonds, 7.70% Series due
2027" (herein and in the Twenty-First Supplement sometimes called the "Bonds of
the Nineteenth Series"), a twentieth series of Bonds designated as "South Jersey
Gas Company First Mortgage Bonds, 10% Series A due October 1, 2043" (herein and
in the Twenty-Second Supplement sometimes called the "Bonds of the Twentieth
Series" and a twenty-first series of Bonds designated as "South Jersey Gas
Company First Mortgage Bonds, 10% Series B due July 16, 2043 and August 1, 2034"
herein and in the Twenty-Third Supplement sometimes called the "Bonds of the
Twenty-First Series"); and

         Whereas, pursuant to the Indenture there have been executed,
authenticated and issued, and there are outstanding as of the date of execution
hereof by the Company, First Mortgage Bonds of series and in principal amounts
as follows:

                Series                  Issued                 Now Outstanding

   Bonds of the Initial Series        $  4,000,000                   -0-
   Bonds of the Second Series         $  4,500,000                   -0-
   Bonds of the Third Series          $  4,500,000                   -0-
   Bonds of the Fourth Series         $  5,000,000                   -0-
   Bonds of the Fifth Series          $  5,000,000                   -0-
   Bonds of the Sixth Series          $  6,000,000                   -0-
   Bonds of the Seventh Series        $  6,000,000                   -0-
   Bonds of the Eighth Series         $  4,000,000                   -0-
   Bonds of the Ninth Series          $  6,000,000                   -0-
   Bonds of the Tenth Series          $  6,000,000                   -0-
   Bonds of the Eleventh Series       $  1,000,000                   -0-
   Bonds of the Twelfth Series        $ 20,000,000                   -0-
   Bonds of the Thirteenth Series     $ 10,000,000                   -0-
   Bonds of the Fourteenth Series     $ 20,000,000                   -0-
   Bonds of the Fifteenth Series      $ 25,000,000                   -0-
   Bonds of the Sixteenth Series      $ 35,000,000                   -0-
   Bonds of the Seventeenth Series    $ 25,000,000             $  4,543,000
   Bonds of the Eighteenth Series     $ 35,000,000                   -0-
   Bonds of the Nineteenth Series     $ 35,000,000             $ 35,000,000
   Bonds of the Twentieth Series      $100,000,000             $ 84,965,000
   Bonds of the Twenty-First Series   $150,000,000             $150,000,000

             ; and

         Whereas, said Bonds of the Seventeenth Series, Bonds of the Nineteenth
Series, Bonds of the Twentieth Series and Bonds of the Twenty-First Series
constitute the only Bonds outstanding under the Indenture; and

         Whereas, the Company is making provisions for the issuance and sale of
its Medium Term Notes, Series C (the "Notes"), to be issued under an Indenture

                                      -4-

of Trust (as amended, the "Note Indenture") between the Company and The Bank of
New York, as trustee (the "Note Trustee") and to be secured by Bonds of the
Twenty-Second Series (as defined below); and

         Whereas, in order to secure the Company's obligations to pay principal,
premium, if any, and interest on the Notes prior to the Substitution Date, the
Company desires to provide for the issuance under the Mortgage to the Note
Trustee of a new series of Bonds; and

         Whereas, the Company, by appropriate resolutions adopted by its Board
of Directors pursuant to the terms of the Original Indenture, has duly
determined to create a new series of Bonds to be issued under the Indenture,
including this Twenty-Fourth Supplemental Indenture dated as of July 1, 2005
(hereinafter called the "Twenty-Fourth Supplement"), to be designated as "South
Jersey Gas Company First Mortgage Bonds, 10% Medium Term Notes Series C
(hereinafter sometimes called the "Bonds of the Twenty-Second Series"), and has
duly determined that the terms and form of the Bonds of the Twenty-Second
Series, which will be fully registered bonds, and the form of the Trustee's
Certificate of Authentication to be set forth on the Bonds of the Twenty-Second
Series, shall be substantially as follows respectively:

                                      -5-

                                 [FORM OF BOND]

This Bond is not transferable except as provided in the Indenture (as
hereinafter defined) and in the Indenture of Trust dated as of October 1, 1998,
as supplemented on June 29, 2000, July 5, 2000 and July 9, 2001 ("Note
Indenture") between the Company and The Bank of New York, as Trustee (the "Note
Trustee").

REGISTERED                                                   REGISTERED
NUMBER                                                           AMOUNT
R                                                            $

                            SOUTH JERSEY GAS COMPANY

               FIRST MORTGAGE BOND, 10% MEDIUM TERM NOTES SERIES C

         South Jersey Gas Company, a New Jersey corporation (hereinafter called
the "Company"), for value received, promises to pay on ________, 20__ to the
Note Trustee or registered assigns, on the surrender hereof, the principal sum
of __________________________ Dollars, and to pay interest thereon from the date
hereof, at the rate of 10% per annum (computed on the basis of a 360 day year of
twelve 30 day months), such interest to be payable February 1 and August 1 in
each year until the obligation of the Company with respect to the payment
thereof shall be discharged; provided, however, that the Company shall receive
certain credits against such obligations as set forth in the Twenty-Fourth
Supplemental Indenture dated as of July 1, 2005 referred to below.

         All payments of principal hereof and interest hereon shall be paid at
the corporate trust office of The Bank of New York (the "Trustee"), or its
successor as trustee under the Indenture, or at such other places as the Company
may agree, in such coin or currency of the United States of America as at the
time of payment shall constitute legal tender for the payment of public and
private debts; provided, however, that any such payments of principal and
interest shall be subject to receipt of certain credits against such payment
obligations as set forth in the Twenty-Fourth Supplemental Indenture dated as of
July 1, 2005 referred to below.

         This Bond is one of an authorized issue of Bonds of the Company,
designated as its First Mortgage Bonds, without specified limit as to aggregate
authorized principal amount and issuable in one or more series (each of which is
hereinafter referred to as a "Series"), all issued or to be issued under and
(except in respect of any sinking, replacement, purchase, or other analogous
fund provided in said indenture or in any supplement thereto for any one or more
particular Series of Bonds) equally and ratably secured by an indenture dated
October 1, 1947 (hereinafter called the "Original Indenture") between the
Company and Guarantee Bank and Trust Company, as predecessor trustee, as
supplemented by indentures supplemental thereto, including a Twenty-Fourth
Supplemental Indenture dated as of July 1, 2005 (hereinafter called the
"Twenty-Fourth Supplement"), duly executed by the Company to the Trustee, to
which Original Indenture and all indentures supplemental thereto (herein
sometimes collectively called the "Indenture") reference is hereby made for a
description of the property mortgaged and pledged and the respective rights of

                                      -6-

the Company, the Trustee and the Bondholders in respect thereof, and for a
specification of the principal amount of said Bonds from time to time issuable
thereunder and the conditions upon which said Bonds may be issued and shall be
secured.

         The Bonds of the 10% Medium Term Notes Series C, of which this Bond is
one, are of similar tenor hereto, and are limited to the aggregate authorized
principal amount of $150,000,000, except as provided in Section 2.11 of the
Original Indenture (relating to replacement of mutilated, lost, destroyed or
stolen Bonds).

         On certain defaults by the Company, as provided in the Indenture, the
principal of said Bonds may become payable in advance of the expressed maturity
thereof.

         As more fully provided in the Indenture, the Bonds of this Series are
subject to redemption, either as a whole or in part from time to time, on not
more than 60 nor less than 30 days' written notice in advance of the date fixed
for redemption through the application of proceeds from the condemnation of
property subject to the lien of the Indenture, or proceeds of the sale of such
property to a governmental body or agency having the power of eminent domain
made as the result of the threat (evidenced in writing by such body or agency)
of condemnation of such property, but not through the application of funds from
any other source, upon payment of the principal amount thereof together with
accrued interest to the date fixed for redemption. Except as set forth in this
paragraph, the Bonds of this Series are not subject to redemption.

         This Bond is transferable, but only as provided in the Indenture and
the Note Indenture, upon surrender hereof, by the registered owner in person or
by attorney duly authorized in writing, at either of said offices where the
principal hereof and interest hereon are payable. Upon any such transfer, a new
fully registered Bond similar hereto will be issued to the transferee. This Bond
may in like manner be exchanged for one or more new fully registered Bonds of
the same Series of other authorized denominations but of the same aggregate
principal amount. No service charge shall be made for any such transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge that may be imposed in relation thereto. The
Company and the Trustee hereunder and any paying agent may deem and treat the
person in whose name this Bond is registered as the absolute owner hereof for
the purpose of receiving payment of or on account of the principal hereof and
the interest hereon and for all other purposes; and neither the Company nor the
Trustee hereunder nor any paying agent shall be affected by any notice to the
contrary.

         The Bonds of this Series are issuable only in fully registered form, in
any denomination authorized by the Company.

         As more fully provided in the Indenture, any of the provisions of the
Indenture or any Bonds issued pursuant thereto may be altered, amended or
eliminated, or additional provisions added, with the consent of the holders or
registered owners (evidenced as provided in the Indenture) of at least 66 2/3%
in principal amount of the Bonds issued thereunder and then outstanding, or, if
such change pertains only to the Bonds of one or more Series but less than all
Series of Bonds outstanding, the holders or registered owners of at least 66
2/3% in principal amount of the then outstanding Bonds of each Series to which
such change pertains; provided, however, that none of the provisions of any Bond

                                      -7-

with respect to the time, terms, manner, or amount of any payment of the
principal thereof or interest thereon shall be changed without the consent of
the holder or registered owner of such Bond nor shall there be reduced the
percentage of Bonds the holders of which are required to consent to the
execution of any supplemental indenture.

         No recourse under or upon any obligation, covenant or agreement
contained in the Indenture or in any indenture supplemental thereto, or in any
Bond issued under the Indenture or coupon thereby secured or because of any
indebtedness thereby secured, shall be had against any incorporator, or against
any past, present or future stockholder, officer or director, as such, of the
Company or of any successor corporation, either directly or through the Company
or any successor corporation, under any rule or law, statue or constitutional
provision or by the enforcement of any assessment or by any legal or equitable
proceeding or otherwise, it being expressly agreed and understood that the
Indenture and any indenture supplemental thereto, and the obligations thereby
secured, are solely corporate obligations, and that no personal liability
whatever shall attach to, or be incurred by, such incorporators, stockholders,
officers or directors, as such, of the Company, or of any successor corporation,
or any of them, because of the incurring of the indebtedness thereby authorized,
or under or by reason of any of the obligations, covenants or agreements
contained in the Indenture or in any indenture supplemental thereto, or in any
of the Bonds or coupons thereby secured, or implied therefrom.

         The execution by the Trustee, or by its successor in trust under the
Indenture, of the Trustee's certificate of authentication set forth hereon is
essential to the validity of this Bond.

         IN WITNESS WHEREOF, SOUTH JERSEY GAS COMPANY has caused this Bond to be
duly executed by the manual or facsimile signatures of its proper officers under
its corporate seal or a facsimile thereof

Date:
     --------------------
                                 SOUTH JERSEY GAS COMPANY

                                 By:
                                    ------------------------------------
[CORPORATE SEAL]                                             , President

Attest:
       ------------------------------
                            Secretary

                                      -8-

                [FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION]

         The within Bond is one of the Bonds of the Series designated therein,
which are described or provided for in the within-mentioned Indenture.

                                  The Bank of New York, Trustee

                                  By
                                    ------------------------------------------
                                                         Authorized Signatory

                                  Dated:

                                                                       ; and

         WHEREAS, the Company deems it advisable and has determined pursuant to
the provisions of the Original Indenture, to convey, transfer and assign to the
Trustee and to subject to the lien of the Indenture with the same effect as
though included in the granting clauses of the Original Indenture certain
additional property now owned by the Company; and

         WHEREAS, the execution and delivery of the Twenty-Fourth Supplement
have been duly authorized by the Board of Directors of the Company at a meeting
duly called and held according to the law; and

         WHEREAS, all acts and things prescribed by law, by the charter and
bylaws of the Company and by the Indenture necessary to make the Bonds of the
Twenty-Second Series, when executed by the Company and authenticated by the
Trustee as in the Indenture provided, valid, binding and legal obligations of
the Company, and to make the Twenty-Fourth Supplement a valid, binding and legal
instrument in accordance with its terms, have been done, performed and
fulfilled, and the execution and delivery hereof have been in all respects duly
authorized.

         NOW, THEREFORE, THIS TWENTY-FOURTH SUPPLEMENT WITNESSETH, that by way
of further assurance and in consideration of the premises and of the acceptance
by the Trustee of the trusts hereby created, and in order to secure further
payment of the principal of, the premium, if any, and the interest on all Bonds
at any time issued and outstanding under the Indenture, according to their tenor
and effect, and the performance and observance by the Company of the covenants
and conditions contained in the Indenture and in said Bonds, the Company has
executed and delivered the Twenty-Fourth Supplement, and has granted, bargained,
sold, conveyed, aliened, enfeoffed, mortgaged, pledged, released, confirmed,
assigned, transferred and set over, and by these presents does grant, bargain,
sell, convey, alien, enfeoff, mortgage, pledge, release, confirm, assign,
transfer and set over unto the Trustee, its successors in the trust and its and
their assigns, the following described property:

         1. All and singular its lands, real estate and any and every interest
in lands or real estate wheresoever situate.

                                      -9-

         2. All buildings, structures, machinery, apparatus and equipment
situate upon the premises referred to above or appurtenant thereto or used in
connection therewith, and all property of the Company used or useful in and
about the business of manufacturing, transmitting and disposing of gas for
light, heat, power or other purposes and consisting of, inter alia, gas works
and plants, engines, furnaces, boilers generators, machinery, shafting, belting,
retorts, tanks, condensers, pumps, steam holders, gas holders, purifiers,
scrubbers, tar extractors, separators, dehydrators, pressure regulators,
blowers, compressors, motors, exhausters, tracks and sidings, oil-gas
generators, expansions tanks, gas mains, pipes, gas transmissions systems, gas
distribution systems, tunnels, service pipes, pipe line fittings, gates, valves,
connections, implements, gas meters, lamps and all other appliances,
instruments, equipment, stores, repair parts and the like, now owned by the
Company, and all other property for similar uses hereafter in any way acquired
by the Company or to which it may hereafter be entitled, it being hereby
expressly agreed that any and all personal property covered by the foregoing
description, whether or not located in or upon the real property of the Company,
shall be considered as fixtures and appurtenances constituting part of the real
property of the Company.

         3. All easements, rights of way, rights, franchises, contracts,
permits, leases, licenses, privileges and appurtenances belonging or in any way
appertaining to the premises and property hereinbefore referred to, or to any
other property now owned by the Company or hereafter acquired by it, and every
part thereof, or derived or acquired by the Company in any manner whatsoever;
and all the reversions, remainders, revenues, rents, issues, and profits of all
property at any time subject hereto and all the estate, right, title, interest,
property, possession, claim, and demand whatsoever, as well at law as in equity,
of the Company, of, in, and to the same and every part thereof.

         4. All other property of whatever kind and description, whether real or
personal, now owned or which may at any time hereafter be acquired by the
Company, and whether or not specifically described or referred to herein,
excepting, however, all materials and supplies consumable in the operation of
the properties of the Company, all merchandise and products acquired,
manufactured, produced, or held for sale in the usual course of business, all
automobiles and motor vehicles, and all cash, accounts receivable, stocks,
bonds, notes, and other securities which are neither specifically pledged with
the Trustee nor required by any provision of the Indenture to be pledged with
the Trustee.

         5. All money, securities, or property of any kind which may at any time
be paid, conveyed, assigned, transferred or delivered to the Trustee by the
Company or any other person, to be held hereunder as additional security for all
the Bonds, which money, securities, or property the Trustee is hereby authorized
to receive and accept.

         UNDER AND SUBJECT to any excepted encumbrances of the character defined
in Subdivision A of Section 3.04 of the Original Indenture.

         TO HAVE AND TO HOLD the same unto the Trustee, its successors and
assigns, forever.

         IN TRUST, NEVERTHELESS, upon the terms, conditions and trusts set forth
in the Indenture as heretofore and hereby amended and supplemented, to the end

                                      -10-

that the said property shall be subject to the lien of the Indenture as
heretofore and hereby amended and supplemented, with the same force and effect
as though said property had been included in the Granting Clauses of the
Indenture at the time of the execution and delivery thereof;

         PROVIDED, HOWEVER, and these presents are upon the condition that if
the Company, its successors or assigns shall pay or cause to be paid the
principal of and interest on all said Bonds, or shall provide, as permitted by
the Indenture, for the payment thereof by depositing with the Trustee the entire
amount due or to become due thereon for principal, interest and premium, if any,
and if the Company shall also pay or cause to be paid all other sums payable
under the Indenture by it, then the Indenture, including this Twenty-Fourth
Supplement, and the estate and rights thereby granted shall cease, determine and
be void, otherwise to be and remain in full force and effect.

         IT IS HEREBY FURTHER COVENANTED, DECLARED AND AGREED by and between the
Company and the Trustee for the benefit of those who shall hold Bonds of the
Twenty-Second Series, or any of them, as follows:

                                    ARTICLE I

                DESCRIPTION OF BONDS OF THE TWENTY-SECOND SERIES

         SECTION 1.1 The Bonds of the Twenty-Second Series shall be designated
as "South Jersey Gas Company First Mortgage Bonds, 10% Medium Term Notes Series
C," and shall be issuable as fully registered Bonds, substantially in the form
hereinbefore recited, but they may bear and contain such legends and
modifications as may be required by law or as may be necessary to comply with
requirements of any stock exchange or of any regulatory board, body or official
and shall be issued initially to the Note Trustee. Except as provided in Section
2.11 of the Original Indenture, the aggregate principal amount of Bonds
authorized by the Twenty-Fourth Supplement is limited to $150,000,000, and
except as aforesaid, and except for exchanges and transfers, the Company shall
not execute and the Trustee shall not authenticate or deliver Bonds of the
Twenty-Second Series in excess of such aggregate principal amount.

         SECTION 1.2 Except as otherwise provided in Section 2.11 of the
Original Indenture, Bonds of the Twenty-Second Series shall be dated and shall
bear interest from the February 1 or August 1 next preceding the date of
authentication thereof by the Trustee, except that if the authentication date is
an interest payment date, such Bonds shall be dated, and shall bear interest
from, the authentication date; provided, however, that if upon authentication of
any Bonds of the Twenty-Second Series upon transfer or in exchange for other
such Bonds, interest on the Bonds of the Twenty-Second Series shall be in
default, the date from which such Bond shall bear interest shall be the date to
which interest shall have been paid upon the Bonds transferred or surrendered in
exchange for the Bond so authenticated; and provided further, however, that in
the case of the authentication of Bonds of the Twenty-Second Series upon an
original issue hereunder, such Bonds may be dated the date of authentication
thereof and in such case shall bear interest from such date of authentication.

         SECTION 1.3 Each bond of the Twenty-Second Series shall mature forty
years from the date of its original issuance, and shall bear interest on the
unpaid principal amount thereof at the rate of 10% per annum (computed on the

                                      -11-

basis of a 360-day year of twelve 30-day months), payable on February 1 and
August 1 in each year, until the obligation of the Company with respect to the
payment thereof shall be discharged; provided, however, that the Company shall
receive certain credits against principal and interest as set forth in Section
2.1 hereof. Subject to the provisions of Section 2.1 below, all payments of
principal and interest shall be made at the corporate trust office of the
Trustee, or at such other places as the Company may agree, in such coin or
currency of the United States of America as at the time of payment shall
constitute legal tender for the payment of public and private debts.

         SECTION 1.4 Bonds of the Twenty-Second Series shall be issuable only in
the form of fully registered Bonds in any denomination authorized by the
Company.

         SECTION 1.5 Bonds of the Twenty-Second Series shall be transferable and
exchangeable, but only as provided in the Indenture and the Note Indenture, upon
surrender thereof for cancellation by the registered owner in person or by
attorney duly authorized in writing at either of said offices. The Company
hereby waives any right to make a charge for any transfer or exchange of Bonds
of the Twenty-Second Series, but the Company may require payment of a sum
sufficient to cover any tax or any other governmental charge that may be imposed
in relation thereto.

         SECTION 1.6 On the Substitution Date (as defined below), the Trustee
will deliver to the Company for cancellation all Bonds of the Twenty-Second
Series. The Company will cause the Trustee to provide notice to all holders of
Bonds of the Twenty-Second Series prior to the occurrence of the Substitution
Date. "Substitution Date" shall mean the date that all Bonds issued and
outstanding under the Indenture, other than any Bonds pledged and delivered by
the Company to the Note Trustee under the Note Indenture, have been retired
through payment, redemption or otherwise (including those Bonds deemed to be
paid within the meaning of the Indenture) at, before or after the maturity
thereof.

         SECTION 1.7 Bonds of the Twenty-Second Series shall be subject to
redemption, either as a whole or in part from time to time, upon payment of the
principal amount thereof through the application pursuant to Subdivision C of
Section 6.07 of the Original Indenture of proceeds from the condemnation of
property subject to the lien of the Indenture, or proceeds of sale of such
property to a governmental body or agency having the power of eminent domain
made as a result of the threat (evidenced in writing by such body or agency) or
condemnation of such property, but not through the application of money from any
other source, together with accrued interest to the date fixed for redemption.
Except as set forth in this Section 1.7, the Bonds of the Twenty-Second Series
are not subject to redemption.

         The election of the Company to redeem any of the Bonds of the
Twenty-Second Series shall be evidenced by a resolution of its Board of
Directors calling all or a stated principal amount thereof for redemption on a
stated date. At least 40 days prior to such redemption date (or at such later
time as shall be satisfactory to the Trustee), the Company shall file with the
Trustee a certified copy of such resolution. The Company shall on or before such
redemption date deposit with the Trustee the total redemption price of all Bonds
so called, with accrued interest thereon to the redemption date.

                                      -12-

         If the Company elects to redeem less than all of the Bonds of the
Twenty-Second Series, the particular Bonds to be redeemed shall be selected by
the Trustee in the manner set forth in this Section 1.7 of the Twenty-Fourth
Supplement from the Bonds of the Twenty-Second Series then outstanding. The
Trustee shall certify to the Company the numbers of the Bonds selected and the
portion of the principal amount of each Bond that is to be redeemed.

         The Trustee shall, not more than 60 nor less than 30 days in advance of
such redemption date, give, in the name of the Company, written notice that
Bonds of the Twenty-Second Series bearing the serial numbers specified have been
called for redemption, that they will be due and payable on such redemption date
at the corporate trust office of the Trustee at a stated amount (which shall be
the applicable redemption price), and that all interest thereon will cease to
accrue after said date (unless the Company shall default in payment of the
amount necessary to effect such redemption). If all the Bonds of the
Twenty-Second Series are called, the notice shall so state and may omit the
numbers thereof. The notice shall state that the Bonds will be payable at the
stated redemption price, plus accrued interest to the redemption date. If the
redemption date is an interest payment date, the notice may state that the
interest payment due on such date will be paid in the usual manner. Such notice
of redemption shall be given to the registered owners of Bonds which, or
portions of which, are to be redeemed by mailing the same to such registered
owners, at their respective addresses as the same appear on the aforementioned
registry books.

         Before any money shall be applied by the Trustee to the redemption of
Bonds under this Section, the Company shall deliver to the Trustee a certificate
of the President or a Vice President of the Company stating that all conditions
precedent provided for herein (including compliance with all applicable
covenants) relating to such redemption have been complied with.

         Each Bond so called for redemption shall be due and payable at the
places and price and on the date specified in such notice. Subject to any
agreement as described below, beginning on the date when each Bond shall be due
and payable as aforesaid, the holder thereof may present the same for
redemption, in negotiable form, and the Trustee shall, out of the money
deposited with it under the provisions of this Section, cause the same to be
paid and redeemed; after said date (unless upon such presentation on or after
the due date the Trustee shall have refused or failed to make such payment), all
further interest shall cease to accrue thereon. In any case where the redemption
date is an interest payment date, the interest payment due on such date on Bonds
called for redemption may be paid in the usual manner.

         Whenever less than all of the outstanding Bonds of the Twenty-Second
Series are to be redeemed, the principal amount of Bonds of the Twenty-Second
Series to be redeemed shall be prorated among the holders of the Bonds of the
Twenty-Second Series in the proportion, as nearly as practicable, that their
respective holdings bear to the aggregate principal amount of Bonds of the
Twenty-Second Series outstanding on the date of selection. In making any
proration pursuant to this provision, the Trustee may make such adjustment as it
may determine, with the approval of the Company, to the end that the principal
amount prorated to each holder of Bonds shall be in each instance $1,000 or an
integral multiple thereof.

         If only a part of any fully registered Bond shall be selected by the
Trustee in the manner set forth above, the notice of redemption hereinbefore
provided for shall specify the distinctive number of such Bond and the portion
of the principal amount thereof to be redeemed. Upon surrender of such Bond for

                                      -13-

partial redemption and upon payment of the portion so called for redemption, a
new Bond or Bonds of the Twenty-Second Series, in aggregate principal amount
equal to the unredeemed portion of such surrendered Bond, shall be executed by
the Company, authenticated by the Trustee, and delivered to the registered owner
thereof, without expense to such holder.

         The Company may enter into an agreement with the registered owners of
any Bond of the Twenty-Second Series (or prospective registered owner of any
such Bond) providing for the payment without the surrender of such Bond to such
registered owner (or to such prospective registered owner, upon becoming a
registered owner of any such Bond) of the principal of and the premium, if any,
and interest on such Bond or any part thereof at a place other than the offices
or agencies therein specified, and for the making of notation as to principal
payments, if any, on such Bond by such registered owner or by any agent of the
Company or of the Trustee. A copy of any such agreement shall be filed with the
Trustee. The Trustee is authorized to approve any such agreement, and shall
thereafter make all payments on such Bond as provided in such agreement. The
Trustee shall not be liable for any act or omission to act on the part of the
Company, any such registered owner or any agent of the Company in connection
with any such agreement.

         So long as any of the Bonds of the Twenty-Second Series shall remain
outstanding, upon any application by the Trustee of funds from sources described
in this Section 1.7 of this Twenty-Fourth Supplement to the redemption of Bonds
pursuant to Subdivision C of Section 6.07 of the Original Indenture, if less
than all Bonds of all Series then outstanding are to be redeemed, a principal
amount of Bonds of the Twenty-Second Series shall be redeemed by the application
of a portion of such funds, such portion to be determined by multiplying the
total amount of such funds so to be applied by a fraction the numerator of which
shall be the aggregate amount required for the redemption, pursuant to
Subdivision C of Section 6.07 (exclusive of accrued interest, if any), of all of
the Bonds of the Twenty-Second Series outstanding on the date of the selection
for such redemption and the denominator of which shall be the aggregate amount
required for the redemption, pursuant to such Subdivision C of Section 6.07
(exclusive of accrued interest, if any), of all of the Bonds of all Series
outstanding on such date; provided, however, that nothing in this Section 1.7
shall restrict the manner (pro rata, by lot or otherwise) by which the remaining
balance of such funds shall be applied to the redemption of Bonds of any Series
other than the Twenty-Second Series.

                                   ARTICLE II

            CREDITS WITH RESPECT TO BONDS OF THE TWENTY-SECOND SERIES

         SECTION 2.1 In addition to any other credit, payment or satisfaction to
which the Company is entitled with respect to the Bonds of the Twenty-Second
Series, the Company shall be entitled to credits against amounts otherwise
payable in respect of the Bonds of the Twenty-Second Series in an amount
corresponding to (a) the principal amount of any of the Notes surrendered to the
Note Trustee by the Company, or purchased by the Note Trustee, for cancellation,
(b) the amount of money held by the Note Trustee and available and designated
for the payment of principal of, and/or interest on, the Notes, regardless of

                                      -14-

the source of payment to the Note Trustee of such moneys and (c) the amount by
which principal of and interest due on the Bonds of the Twenty-Second Series
exceeds principal of and interest due on the Notes.

         SECTION 2.2 A certificate of the Company signed by the President or any
Vice President, and attested to by the Secretary or any Assistant Secretary, and
consented to by the Note Trustee, stating that the Company is entitled to a
credit under Section 2.1 hereof or that Bonds of the Twenty-Second Series have
been canceled, and setting forth the basis therefor in reasonable detail, shall
be conclusive evidence of such entitlement, and the Trustee shall accept such
certificate as such evidence without further investigation or verification of
the matters stated therein.

         SECTION 2.3 Notwithstanding anything in this Twenty-Fourth Supplemental
Indenture to the contrary, the obligation of the Company to make payment with
respect to the principal of and premium, if any, and interest on the Bonds of
the Twenty-Second Series shall be deemed satisfied and discharged (a) on the
Substitution Date or (b) if at any time: (i) the Company shall have paid or
caused to be paid the principal of and premium, if any, and interest on all the
outstanding Notes, as and when the same shall have become due and payable (ii)
the Company shall have delivered to the Note Trustee for cancellation all
outstanding Notes; or (iii) the Company shall have irrevocably deposited or
caused to be irrevocably deposited with the Note Trustee as trust funds the
entire amount in (A) cash, (B) U.S. Government obligations maturing as to
principal and interest in such amounts and at such times as will insure the
availability of cash, or (C) a combination of cash and U.S. Government
obligations, in any case sufficient, without reinvestment, as certified by an
independent public accounting firm of national reputation in a written
certification delivered to the Trustee, to pay at maturity or the applicable
redemption date (provided that notice of redemption shall have been duly given
or irrevocable provision satisfactory to the Note Trustee shall have been duly
made for the giving of any notice of redemption) all outstanding Notes,
including principal and any premium and interest due or to become due to such
date of maturity, as the case may be.

         When the obligation of the Company to make payment with respect to the
principal of and premium, if any, and interest on the Bonds of the Twenty-Second
Series shall be satisfied or deemed satisfied pursuant to this Section 2.3
hereof, the holders of Bonds of the Twenty-Second Series shall, upon written
request of the Company, deliver without cost to the Company all of the Bonds of
the Twenty-Second Series, together with such appropriate instruments of transfer
or release as may be reasonably requested by the Company. All Bonds of the
Twenty-Second Series delivered to the Company in accordance with this Section
2.3 shall be delivered by the Company to the Trustee for cancellation.

                                   ARTICLE III

                       ADDITIONAL COVENANTS OF THE COMPANY

         SECTION 3.1 So long as any Bonds of the Twenty-Second Series shall
remain outstanding, the Company will not declare or pay any dividend on any
shares of its Common Stock (other than dividends payable in shares of its Common
Stock) or make any distribution on such shares, or purchase or otherwise acquire
any such shares (except shares acquired without cost to the Company), or advance
any amount to or invest any amount in the property, securities or indebtedness

                                      -15-

of, or guarantee any indebtedness of, any subsidiary if, after giving effect to
such action, the sum of the aggregate amounts so declared, paid, distributed,
purchased, acquired, advanced, invested or guaranteed after December 31, 2004
would exceed the aggregate net income of the Company available for dividends on
its Common Stock earned after such date plus the sum of $130,000,000. For the
purposes of this Section 3.1, "subsidiary" shall mean any corporation directly
or indirectly controlled by or under common control with the Company.

         For the purpose of calculating the requirements of this Section 3.1,
the net income of the Company available for dividends on its Common Stock shall
be determined in accordance with such system of accounts as may be prescribed by
any governmental authority having jurisdiction in the premises or in the absence
thereof in accordance with generally accepted accounting principles as in effect
at such time; provided, however, that (a) the deductions for depreciation or
renewal or replacement reserves in respect of each year shall be the amount
taken therefor on the accounts of the Company or the amount required to be
stated in item (1) of the Replacement Fund Certificate to be filed under Section
5.19 of the Original Indenture with respect to the period ending at the close of
such year, whichever be greater, and (b) no deduction or adjustment shall be
made from gross income for or in respect of (i) expenses in connection with the
redemption or retirement of any securities issued by the Company, including any
amount paid in excess of the principal or par or stated value of securities
redeemed or retired, and, if such redemption or retirement is effected with the
proceeds of sale of other securities of the Company, interest on the securities
redeemed or retired from the date on which the funds required for such
redemption or retirement shall be deposited in trust for such purpose to the
date of such -redemption or retirement, (ii) profits or losses from sales of
capital assets or taxes in respect of such profits, (iii) any adjustments to
retained earnings (including tax adjustments) applicable to any period prior to
January 1, 2005, (iv) charges for the write-off of unamortized debt discount and
expense carried on the books of the Company at December 31, 2004, or (v) charges
for the write-off or write-down of the amount at which any property of the
Company was carried on its books at December 31, 2004, to the extent that the
same shall be approved by, or be made pursuant to any rule, regulation, or order
of, any governmental authority having jurisdiction in the premises and shall not
be required by such authority to be charged against earnings accumulated after
December 31, 2004.

         SECTION 3.2 So long as any Bonds of the Twenty-Second Series shall
remain outstanding, the Company will satisfy its obligations under the
Replacement Fund provided for in Section 5.19 of the Original Indenture first
through the use of all available property additions and retired Bonds of any
Series and then, if and only to the extent that said property additions and
retired Bonds are not sufficient to satisfy such obligations, through the use of
cash.

         SECTION 3.3 So long as any Bonds of the Twenty-Second Series remain
outstanding, in the event that the Company shall consolidate or merge with or
into any corporation or corporations, or the Company shall transfer all of its
property and franchises to any other corporation, the corporation formed by any
such consolidation, or into which the Company shall be so merged, or which shall
acquire such property of the Company, shall be a corporation incorporated under
the laws of the United States, any State or the District of Columbia.

                                      -16-

         SECTION 3.4 So long as any Bonds of the Twenty-Second Series shall
remain outstanding, no owner of any portion of the mortgaged property will be
entitled to any credit against interest payable on any Bonds by reason of the
payment of any tax on such property.

                                   ARTICLE IV

          ISSUE AND AUTHENTICATION OF BONDS OF THE TWENTY-SECOND SERIES

         Upon compliance by the Company with the requirements of the Indenture,
including this Twenty-Fourth Supplement, for the issuance of additional Bonds,
Bonds of the Twenty-Second Series up to an aggregate principal amount of
$150,000,000 may forthwith, or, at the election of the Company, in stages from
time to time, be executed by the Company and delivered to the Trustee, and the
Trustee shall thereupon authenticate and make available for delivery said Bonds
in accordance with the provisions of Article III of the Original Indenture. The
signature of the officers of the Company on Bonds of the Twenty-Second Series
may be by facsimile if so authorized by the Company's Board of Directors.

                                    ARTICLE V

                       AMENDMENT TO THE ORIGINAL INDENTURE

         SECTION 5.1 Section 3.06 of the Original Indenture shall be amended and
restated in its entirety so that such Section shall thereafter read in full as
follows:

                           "SECTION 3.06. ADDITIONAL BONDS - CONDITIONS FOR
                  AUTHENTICATION - ACQUISITION OR REFUNDING OF BONDS ISSUED
                  HEREUNDER. Whenever any Bonds shall have been acquired, paid,
                  or retired by the Company, or whenever the Company shall have
                  made provision for the payment of any Bonds (as such provision
                  for payment is defined in Article I), or shall surrender any
                  Bonds to the Trustee, thereupon or at any time thereafter
                  additional Bonds shall be authenticated and delivered by the
                  Trustee in a principal amount not exceeding the principal
                  amount of the Bonds so acquired, paid, retired, surrendered,
                  or for the payment of which such provision shall have been
                  made, upon application by the Company and upon compliance with
                  the following conditions, in addition to those specified in
                  Section 3.03:

                           A. Any Bonds so acquired, paid, retired or
                  surrendered, or for which payment shall have been so provided,
                  may, when deposited with the Trustee as below provided in
                  Subdivision B, be uncancelled; provided, however, that in
                  respect of any Bond which shall have been cancelled prior to
                  or concurrently with the application for such authentication
                  (and, for the purposes of this Subdivision A, in case payment
                  shall have been so provided for such Bonds, the same shall be
                  deemed to have been cancelled upon the date of such provision
                  for payment), no Bond shall have been authenticated in lieu
                  thereof or in exchange therefor or by virtue of the
                  acquisition, payment, retirement, cancellation, or such
                  provision for payment thereof; nor shall any money have been
                  withdrawn hereunder by virtue of such acquisition, payment,
                  retirement, cancellation, or provision.

                                      -17-

                           B. There shall be delivered to the Trustee the
                  following documents:

                                    (1) The Bonds so acquired, paid, retired, or
                           surrendered. Any of such Bonds which shall be
                           uncancelled shall be in negotiable form or
                           accompanied by proper instruments of assignment and
                           transfer, and shall be accompanied by all unmatured
                           coupons, if any, appertaining thereto. In the case of
                           any Bonds for which payment shall have been so
                           provided, such Bonds shall not then be required to be
                           deposited, but in lieu thereof the Company shall
                           deliver to the Trustee a statement describing the
                           same; thereafter, upon payment of such Bonds, the
                           same shall forthwith be delivered to the Trustee for
                           cancellation. In the case of any Bonds which shall
                           have been paid or retired or surrendered and which
                           shall have theretofore been cancelled and cremated by
                           the Trustee, such Bonds shall not be required to be
                           deposited, but in lieu thereof the Company shall
                           deliver to the Trustee a statement describing the
                           same and specifying the date upon which the same were
                           paid or retired or surrendered and were cancelled and
                           cremated.

                                    (2) If the Bonds so deposited shall be
                           cancelled Bonds, or if in lieu of such deposit of
                           Bonds a statement by the Company shall be delivered
                           as provided in subparagraph (1) of this Subdivision
                           B, a certificate by the President or a Vice-President
                           of the Company, stating such facts in connection
                           therewith as may reasonably be required to show
                           compliance with the conditions specified in
                           Subdivision A.

                           C. If the Bonds so acquired, paid, retired,
                  surrendered, or the payment of which has been so provided for,
                  shall not at any time theretofore have been bona fide issued
                  by the Company, and if they shall bear interest at a lower
                  rate per annum than the new Bonds the authentication of which
                  is then applied for, the net earnings condition specified in
                  Subdivision C of Section 3.04 shall be complied with, and the
                  Company shall deliver to the Trustee (i) a net earnings
                  certificate, conforming to the provision of Subdivision E(3)
                  of Section 3.04, showing the fixed charges and net earnings of
                  the Company in such reasonable detail as may be required to
                  show compliance with said condition, (ii) an opinion of
                  counsel conforming to the provisions of Subdivision E(4)(b) of
                  Section 3.04, and (iii) a certificate by the trustee or
                  mortgagee of each prior lien conforming to the provisions of
                  Subdivision E(5) of Section 3.04."

         SECTION 5.2 The foregoing amendment to Section 3.06 of the Original
Indenture shall become effective upon the earlier to occur of the following:

                  (a) the date as of which no Bonds remain outstanding that were
part of a series of Bonds initially issued prior to the issuance of Bonds of the
Eighteenth Series;

                  (b) the date as of which a supplemental indenture to the
Indenture is executed by the Company and the Trustee setting forth the foregoing
amendment to Section 3.06 of the Original Indenture, after the holders of at
least 66 2/3% of the Bonds then outstanding have consented to and approved the

                                      -18-

execution of such supplemental indenture, all in accordance with Article X and
the other relevant provisions of the Original Indenture.

         SECTION 5.3 Each holder of any Bonds of the Twenty-Second Series, by
the acceptance by such holder of such Bonds, (a) consents to and approves the
foregoing amendment to Section 3.06 of the Original Indenture, and consents to
and approves the execution by the Company and the Trustee of a supplemental
indenture to the Indenture setting forth such amendment, and (b) agrees to
execute such instrument or instruments as may be requested by the Company or the
Trustee to evidence such consent and approval in accordance with Section 10.02
of the Original Indenture.

                                   ARTICLE VI

                             CONCERNING THE TRUSTEE

         SECTION 6.1 The Trustee, for itself and its successors in said trusts,
hereby accepts the trust hereby provided and agrees to perform the same upon the
terms and conditions contained in the Indenture, including this Twenty-Fourth
Supplement. The Trustee shall not be responsible in any manner whatsoever for
the recitals in this Twenty-Fourth Supplement.

         SECTION 6.2 So long as any Bonds of the Twenty-Second Series shall
remain outstanding, any successor trustee to the Trustee shall at all times be a
corporation which shall have at all times a combined capital and surplus of not
less than $100,000,000. If any such successor trustee publishes reports of
condition annually, pursuant to law or to the requirements of a supervising or
examining authority, the combined capital and surplus of such successor trustee
at any time for the purposes of this Section shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published.

                                   ARTICLE VII

                          CONCERNING EVENTS OF DEFAULT

         SECTION 7.1 So long as any Bonds of the Twenty-Second Series shall
remain outstanding, the following shall constitute events of default within the
meaning of Section 9.02 of the Original Indenture (in addition to the events of
default set forth in Section 9.02 of the Original Indenture):

                  (a) If the Company shall default in the payment of any portion
of the principal of any Bond of the Twenty-Second Series, as and when the same
shall have become due, whether at the stated maturity thereof or upon
proceedings for redemption (pursuant to the provisions of any sinking,
replacement, purchase or other analogous fund established in the Original
Indenture or pursuant to any optional or other redemption) or otherwise;
provided, however, that in the event the Company and the Trustee shall have
taken all action required to be taken so that each such payment of principal by
means of wire transfer could reasonably be expected to be effective on the due
date thereof, but nevertheless, any such transfer shall not have been credited
to the account of a registered owner of Bonds of the Twenty-Second Series to

                                      -19-

whom such payment is required to be made effective as of the due date, the
Company shall not be deemed to have defaulted upon the obligation to make such
payment until the expiration of five days following said due date;

                  (b) if the Company shall default in the payment of any
installment of interest due on any Bond of the Twenty-Second Series and such
default shall continue for a period of 10 days; or

                  (c) if the Company shall default in the performance of or
compliance with any other covenant, condition or term contained in the
Indenture, including this Twenty-Fourth Supplement, and such default shall
continue for 30 days after the Company shall have knowledge thereof.

         SECTION 7.2 So long as any Bonds of the Twenty-Second Series shall
remain outstanding, the Company covenants that if at any time or times or from
time to time an event of default referred to in Section 7.1 of this
Twenty-Fourth Supplement shall occur, the Company will, on demand of the
Trustee, forthwith pay to the Trustee, for the benefit of all holders of Bonds
then outstanding under the Indenture, a sum equal to the total amount then due
for principal and interest on all Bonds then outstanding under the Indenture,
with interest thereon (to the extent that payment of such interest is
enforceable under applicable law) in accordance with the terms of the respective
Bonds.

         Should said sum not be so paid to the Trustee, it shall be entitled, at
any time or times and from time to time, in its own name and as Trustee of an
express trust and without the possession or production of any Bonds of any
Series or coupons, to recover judgment for the same against the Company or any
other obligor upon such Bonds.

                                  ARTICLE VIII

                                  MISCELLANEOUS

         SECTION 8.1 As supplemented by this Twenty-Fourth Supplement, the
Indenture is in all respects ratified and confirmed, and the Indenture,
including the Twenty-Fourth Supplement, shall be read as one instrument. All
terms used in the Twenty-Fourth Supplement shall have the same meaning as used
elsewhere in the Indenture except where the context clearly indicates otherwise.

         SECTION 8.2 This Twenty-Fourth Supplement has been dated as of July 1,
2005 for convenience. The date of actual execution hereof by each of the parties
is the date shown by the acknowledgment of execution hereof by its officers.

         SECTION 8.3 This Twenty-Fourth Supplement may be executed in several
counterparts, each of which shall be considered an original and all collectively
as but one instrument.

         SECTION 8.4 The approval of the New Jersey BPU of the execution and
delivery of these presents, and of the issue of any Bonds of the Twenty-Second
Series, shall not be construed as approval of said New Jersey BPU of any other
act, matter or thing which requires approval of said New Jersey BPU under the

                                      -20-

laws of the States of New Jersey; nor shall the approval of said New Jersey BPU
of the issue of any such Bonds bind said New Jersey BPU or any other public body
or authority of the State of New Jersey having jurisdiction in the premises in
any future application for the issuance of Bonds under the Indenture.

         IN WITNESS WHEREOF, the Company and the Trustee have caused these
presents to be duly executed under the respective corporate seals by their
respective proper officers, all duly authorized thereunto, and have caused these
presents to be dated as of the day and year first above written.

                                SOUTH JERSEY GAS COMPANY

                                By:
                                   ------------------------------------------
                                    Edward J. Graham
                                    President

ATTEST:                             [SEAL]

Richard H. Walker
Secretary

                                   THE BANK OF NEW YORK

                                    By:
                                       --------------------------------------

ATTEST:                             [SEAL]

                                      -21-

STATE OF NEW JERSEY                 :
                                            :        ss:
COUNTY OF ATLANTIC                  :

         Be it remembered, that on July __, 2005, before me, a Notary Public of
New Jersey, personally appeared Edward J. Graham, who, I am satisfied, is
President of South Jersey Gas Company, one of the corporations named in the
foregoing deed or instrument, and I having first made known to him the contents
thereof, he acknowledged that he had signed the same as such officer for and on
behalf of such corporation, that the same was made by such corporation as its
voluntary act and deed, and sealed with its corporate seal, by virtue of
authority of its board of directors, and that he has received, without charge, a
true copy of said foregoing deed or instrument. All of which is hereby
certified.

                                                     Notary Public of New Jersey

                                                     My Commission Expires:

STATE OF NEW YORK          :
                                            :        ss:
COUNTY OF NEW YORK                  :

         Be it remembered, that July ___, 2005 , before me, a Notary Public of
New York, personally appeared _______________________, who, I am satisfied, is
__________________ of The Bank of New York, one of the corporations named in the
foregoing deed or instrument, and I having first made known to him the contents
thereof, he acknowledged that he had signed the same as such officer for and on
behalf of such corporation, that the same was made by such corporation as its
voluntary act and deed, and sealed with its corporate seal, by virtue of
authority of its board of directors. All of which is hereby certified.

                                                     Notary Public of New York

                                                     My Commission Expires:

                                      -22-

         The within Twenty-Fourth Supplemental Indenture has been recorded and
filed as follows:

         County             Date of Recordation          Book          Page

New Jersey:

    Atlantic

    Burlington

    Camden

    Cape May

    Cumberland

    Gloucester

    Salem

                                      -23-exv10w1

 

EXHIBIT 10.1

July 14, 2005

Mr. Vinod Gupta

IUSA Acquisition Corporation

Omaha, Nebraska

Confidentiality Agreement

Dear Mr. Gupta:

     In connection with your consideration of a possible transaction (“Transaction”) with infoUSA,
Inc. (together with its subsidiaries, the “Company”), you have requested the right to use, or to
furnish to third parties, certain non-public information regarding the Company or the Transaction.
All of this information (whether written or oral) furnished (whether before or after this date) by
you (or by the Company at your direction) to third parties including your affiliates, directors,
officers, employees, advisors, agents, “controlling persons” (within the meaning of the Securities
Exchange Act of 1934, as amended (the “1934 Act”)), financial advisors, and potential debt or
equity financing sources (such affiliates and other persons being referred to collectively as
“Representatives”) in connection with your consideration of a Transaction, and any notes, analyses,
compilations, forecasts, studies or other documents prepared by you or any of your Representatives
which contain or reflect any such information, is referred to as “Evaluation Material.” The term
“Evaluation Material” does not, however, include any information which at the time of disclosure or
thereafter is generally known by the public (other than as a result of its disclosure by you or
your Representatives).

     In consideration of your being permitted to use and to furnish the Evaluation Material to your
Representatives as provided herein, you hereby agree as follows:

	 	1.	 	The Evaluation Material will be used solely for the purpose of evaluating a
Transaction with the Company involving you or your affiliates and will not be used in
any other manner, and unless and until you have completed a Transaction pursuant to a
definitive written agreement between you or any affiliate and the Company, the
Evaluation Material will be kept strictly confidential by you and your Representatives
and not disclosed in any manner, except that the Evaluation Material or portions may be
disclosed to those of your Representatives who need to know this information for the
purpose of evaluating a Transaction with the Company (it being understood that prior to
this disclosure your Representatives shall be informed of the confidential nature of
the Evaluation Material and shall agree to be bound by this agreement (the
“Agreement”)). In any event, you agree to be responsible for any breach of this
Agreement by your Representatives and you agree, at your expense, to take all
reasonable measures to restrain your Representatives from prohibited or unauthorized
disclosure or use of the Evaluation Material.

	 	2.	 	Except as required by law or the rules or regulations of any applicable
securities exchange, neither you nor your Representatives will, without the prior
written consent of the Special Committee of independent directors of the Company (the
“Special Committee”), disclose to any person any of the terms, conditions or other
facts with respect to any possible Transaction, including its status and the fact that

 

 

	 	 	 	the Evaluation Material has been made available to you or your Representatives (all of
the foregoing being deemed to constitute Evaluation Material). As used in this
Agreement, the term “person” shall be broadly interpreted to include the media and any
corporation, company, joint venture, partnership, trust, individual or other legal
entity, including any governmental authority.

	 	3.	 	In the event that you or any of your Representatives are requested or required
by interrogatories, requests for information or documents, subpoena, civil
investigative demand or similar legal process to disclose any of the Evaluation
Material, it is agreed that you or that Representative, as the case may be, will
provide the Company and the Special Committee with prompt written notice of each
request so that the Company may seek an appropriate protective order or other
appropriate remedy and/or waive your or the Representative’s compliance with the
provisions of the Agreement, and you will cooperate with the Company to obtain a
protective order or other remedy. In the event that a protective order or other remedy
is not obtained or that the Company grants a waiver hereunder, you or the
Representative may furnish only that portion of the Evaluation Material which, in the
opinion of your counsel, you or the Representative are legally compelled to disclose
and will exercise your and, if applicable, the Representative’s reasonable efforts to
obtain reliable assurance that confidential treatment will be accorded any Evaluation
Material so furnished.

	 	4.	 	You understand and acknowledge that neither the Company nor any of its
Representatives is making any representation or warranty, express or implied, as to the
accuracy or completeness of the Evaluation Material. Neither the Company nor any of
its Representatives shall have any liability to you or any other person (including any
of your Representatives) resulting from your use of the Evaluation Material.

	 	5.	 	You agree that no contract or agreement providing for a Transaction will be
deemed to exist between the Company and you unless and until a definitive written
agreement has been executed and delivered by the Company and you. You agree that,
unless and until a definitive written agreement between the Company and you with
respect to the Transaction has been executed and delivered, neither the Company nor any
of its Representatives will have any legal obligation or liability of any kind with
respect to the Transaction by virtue of this Agreement, any other written or oral
expression with respect to the Transaction by the Company or any of its
Representatives, or otherwise. For the purposes of this paragraph, a “definitive
written agreement” does not include an executed letter of intent or any other
preliminary written agreement, nor does it include any written or oral acceptance of
any offer or bid.

	 	6.	 	Title to the Evaluation Material shall remain in the Company, and no license,
intellectual property right or other right in or to any of the Evaluation Material is
granted or implied by this Agreement. If you determine that you do not wish to proceed
with the Transaction, or the Transaction is not consummated by you, you will promptly
notify the Company of this determination and, in that event, or at any

 

 

	 	 	 	other time at the request of the Company, you will promptly deliver to the Company, at
your expense, or destroy all of the Evaluation Material, including all copies,
reproductions, summaries, analyses or extracts thereof or based thereon in the
possession of any of your Representatives, and confirm to the Company in writing that
this delivery or destruction has taken place. Notwithstanding any such destruction or
return, all Evaluation Material, including oral Evaluation Material, will continue to
be subject to the terms of this Agreement.

	 	7.	 	Until the earliest of (i) the execution by you of a definitive agreement
providing for a Transaction or (ii) one year from the date of this Agreement, you agree
not to initiate or maintain contact (except for those contacts made in the ordinary
course of business) in connection with any possible Transaction with any officer,
director or employee or agent of the Company or its subsidiaries regarding its
business, operations, prospects or finances, except with the express written permission
of the Special Committee; provided, however, that Raj Das, Fred Vakili, Ray Butkus,
D.J. Thayer and Monica Messer (the “Management Employees”) shall be permitted to
participate in presentations to and discussions with your actual or potential financing
sources and in discussions with you and your advisors regarding the terms of such
actual or potential financing, so long as all information, whether oral, written,
electronic or in other form, furnished to any such financing sources has previously
been delivered in written or electronic form to the Special Committee; and provided,
further that such participation shall be permitted only if each of the Management
Employees shall execute, within five days from the date of execution of this Agreement,
a confidentiality/standstill agreement in all material respects in the form of this
Agreement. In addition, notwithstanding the preceding sentence, you shall be permitted
to provide occasional, brief updates concerning the potential Transaction to
individuals who may be equity participants in a potential Transaction with you or any
of your affiliates. You represent that, as of the date of this Agreement, neither you
nor any of your affiliates or associates (other than the Company) has any binding
agreement with any director, officer or employee of the Company relating to a
Transaction or otherwise relating to any securities of the Company. You further agree
that for a period of one year from the date hereof you will not hire or solicit for
hire any of the employees of the Company or its subsidiaries unless such employee is
terminated by the Company for any reason other than for cause.

	 	8.	 	You hereby acknowledge that you are aware (and that your Representatives who
are apprised of this matter have been or will be advised) that United States securities
laws restrict persons with material non-public information about a company obtained
directly or indirectly from that company from purchasing or selling securities of that
company, or from communicating that information to any other person under circumstances
in which it is reasonably foreseeable that such person is likely to purchase or sell
such securities.

	 	9.	 	You agree that, for a period of ninety (90) days from the date of this
Agreement, unless you are specifically invited by the Special Committee, in writing, to
do so, neither you nor any of your affiliates or controlling persons will in any
manner,

 

 

	 	 	 	directly or indirectly: (a) effect or seek, offer or propose (whether publicly or
otherwise) to effect, or cause or participate in or in any way assist any other person
to effect or seek, offer or propose (whether publicly or otherwise) to effect or
participate in, (i) any acquisition of any securities (or beneficial ownership
thereof) or assets of the Company; (ii) any tender or exchange offer, merger or other
business combination involving the Company; (iii) any transaction involving the assets
of the Company, including any disposition of, or joint venture, management or other
operating agreement or financing arrangement (other than financing arrangements with
institutions whose primary business is to engage in such financing arrangements in the
ordinary course of their business) relating to, the assets of the Company, (iv) any
recapitalization, restructuring, liquidation, dissolution or other extraordinary
transaction with respect to the Company; or (v) any “solicitation” of “proxies” (as
such terms are used in the proxy rules of the Securities and Exchange Commission) or
consents to vote any voting securities of the Company; (b) form, join or in any way
participate in a “group” (as defined under the 1934 Act) with respect to activities
involving the Company; or (c) enter into any discussions or arrangements with any
third party with respect to any of the foregoing. You also agree that during such
period you and your Representatives will not request the Company (or any of its
directors, officers, employees or agents), directly or indirectly, to amend or waive
any provision of this paragraph (including this sentence). The foregoing provisions of
this paragraph 9 shall not apply if the Company announces that it has entered into an
agreement with a third party that contemplates a merger, consolidation, sale of
substantially all of the assets or business combination involving the Company, or a
change of control of the Company by tender offer, exchange offer or otherwise.

	 	10.	 	You acknowledge that money damages would be both incalculable and an
insufficient remedy for any breach of this Agreement by you or your Representatives and
that any breach would cause the Company irreparable harm. Accordingly, you agree that,
in the event of any breach or threatened breach of this Agreement, the Company, in
addition to any other remedies at law or in equity it may have, shall be entitled,
without the requirement of posting a bond or other security, to equitable relief,
including injunctive relief and specific performance. In the event of litigation
relating to this Agreement, whether at law or in equity, if a court of competent
jurisdiction determines by final nonappealable judgment or order that you or any of
your Representatives have breached this Agreement, then you shall be liable and pay to
the Company the costs and expenses (including the legal fees and expenses) incurred by
it in connection with the litigation, including any appeal.

	 	11.	 	The validity and interpretation of this Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of Delaware applicable
to agreements made and to be fully performed therein (excluding the conflicts of laws
rules). Both parties irrevocably and unconditionally submit to the jurisdiction of any
court of the State of Delaware and of any court of the United States of America located
in the State of Delaware, for the purpose of any action, suit or other proceeding
arising out of this Agreement or any of the transactions contemplated hereby, and agree
not to commence any action, suit or proceeding relating thereto

 

 

	 	 	 	except in those courts), and further agree that service of process, summons, notice or
document by U.S. registered mail to its address set forth in this Agreement will be
effective service of process for any action, suit or proceeding arising out of this
Agreement or the transactions contemplated hereby. Both parties hereby also
irrevocably and unconditionally waive any objection to the laying of venue of any
action, suit or proceeding arising out of this Agreement or the transactions
contemplated hereby in the courts of the State of Delaware or the courts of the United
States of America located in the State of Delaware, and both parties hereby
irrevocably and unconditionally waive and agree not to plead or claim in any such
court that any action, suit or proceeding has been brought in an inconvenient forum.

	 	12.	 	The benefits of this Agreement shall inure to the respective successors and
assigns of the parties hereto, and the obligations and liabilities assumed in this
Agreement by the parties hereto shall be binding upon their respective successors and
assigns.

	 	13.	 	If it is found in a final judgment by a court of competent jurisdiction (not
subject to further appeal) that any term or provision of this Agreement is invalid or
unenforceable, (i) the remaining terms and provisions shall be unimpaired and shall
remain in full force and effect and (ii) the invalid or unenforceable provision or term
shall be replaced by a term or provision that is valid and enforceable and that comes
closest to expressing the intention of the invalid or unenforceable term or provision.

	 	14.	 	This Agreement embodies the entire agreement and understanding of the parties
and supersedes any and all prior agreements, arrangements and understandings relating
to the matters provided for in the Agreement. No amendment or supplement or
modification or waiver of any provision shall be binding or effective unless the same
is set forth in writing signed by a duly authorized officer of the Company and you
expressly so amending, supplementing, modifying or waiving this Agreement or any
provision.

	 	15.	 	For the convenience of the parties, any number of counterparts of this
Agreement may be executed by the parties. Each such counterpart shall be, and shall be
deemed to be, an original instrument, but all such counterparts taken together shall
constitute one and the same Agreement.

	 	16.	 	As used in this Agreement, the terms “affiliate” and “associate” have the
meanings ascribed to such terms under rule 405 of the Rules and Regulations under the
Securities Act of 1933, as amended.

[Remainder of this page left intentionally blank]

 

 

	 	17.	 	Both parties agree that no failure or delay by any party in exercising any
right, power or privilege will operate as a waiver, nor will any single or partial
exercise preclude any other or further exercise thereof or the exercise of any other
right, power or privilege under this Agreement.

     This Agreement is being delivered to you in duplicate. Kindly execute and return one copy of
this Agreement which will constitute our agreement with respect to the subject matter hereof.

	 	 	 	 	 
	 	Very truly yours,

infoUSA, INC.

 	 
	 	By:  	/s/ Martin Kahn
 	 
	 	 	Name:  	Martin Kahn 	 
	 	 	Title:  	Chairman of the Special Committee 	 
	 

	 	 	 	 	 
	Confirmed and Agreed to

    this 18th day of July, 2005

 	 	 
	/s/ Vinod Gupta
 	 	 
	Vinod Gupta 	 	 
	 	 	 
	 

IUSA Acquisition Corporation

	 	 	 	 	 
	 	 	 
	By:  	/s/ Vinod Gupta
 	 	 
	 	Name:  	Vinod Gupta 	 	 
	 	Title:  	Manager

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]