Document:

Exhibit
10.1

 

EXECUTION
COPY

 

 

$250,000,000

 

 

364-DAY
CREDIT AGREEMENT

 

 

Dated as of November 1, 2002

 

among

 

EQUITABLE RESOURCES, INC.,

as the Borrower,

 

 

BANK OF
AMERICA, N.A.,

as Administrative Agent,

 

 

JPMORGAN CHASE BANK,

and

BANK ONE, NA,

as Co-Syndication Agents,

 

 

PNC BANK, NATIONAL ASSOCIATION,

and

CITIBANK, N.A.,

as Co-Documentation Agents

 

 

and

 

The Other Lenders Party Hereto

 

 

BANC OF AMERICA SECURITIES LLC,

and

JPMORGAN SECURITIES INC.,

as

Joint
Lead Arrangers and Co-Book Managers

 

 

 

TABLE
OF CONTENTS

 

	
  ARTICLE I. 
  DEFINITIONS AND ACCOUNTING TERMS

  
	
  1.01

  	
   

  	
  Defined Terms

  
	
  1.02

  	
   

  	
  Other Interpretive
  Provisions

  
	
  1.03

  	
   

  	
  Accounting Terms

  
	
  1.04

  	
   

  	
  Rounding

  
	
  1.05

  	
   

  	
  References to
  Agreements and Laws

  
	
  1.06

  	
   

  	
  Times
  of Day

  
	
   

  	
   

  	
   

  
	
  ARTICLE II.  THE COMMITMENTS AND BORROWINGS

  
	
  2.01

  	
   

  	
  Loans

  
	
  2.02

  	
   

  	
  Borrowings,
  Conversions and Continuations of Loans

  
	
  2.03

  	
   

  	
  Prepayments

  
	
  2.04

  	
   

  	
  Termination or
  Reduction of Commitments

  
	
  2.05

  	
   

  	
  Repayment of Loans

  
	
  2.06

  	
   

  	
  Interest

  
	
  2.07

  	
   

  	
  Fees

  
	
  2.08

  	
   

  	
  Computation of
  Interest and Fees

  
	
  2.09

  	
   

  	
  Evidence of Debt

  
	
  2.10

  	
   

  	
  Payments Generally19

  
	
  2.11

  	
   

  	
  Sharing of Payments

  
	
  2.12

  	
   

  	
  Extension of Stated
  Maturity Date

  
	
  2.13

  	
   

  	
  Term-Out Option

  
	
  2.14

  	
   

  	
  Increase in Commitments

  
	
   

  	
   

  	
   

  
	
  ARTICLE III.  TAXES, YIELD PROTECTION AND ILLEGALITY

  
	
  3.01

  	
   

  	
  Taxes

  
	
  3.02

  	
   

  	
  Illegality

  
	
  3.03

  	
   

  	
  Inability to Determine
  Rates

  
	
  3.04

  	
   

  	
  Increased
  Cost and Reduced Return; Capital Adequacy

  
	
  3.05

  	
   

  	
  Funding Losses

  
	
  3.06

  	
   

  	
  Matters
  Applicable to all Requests for Compensation

  
	
  3.07

  	
   

  	
  Survival

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV.  CONDITIONS PRECEDENT TO CLOSING DATE AND TO BORROWINGS

  
	
  4.01

  	
   

  	
  Conditions
  of Closing Date and Initial Borrowing

  
	
  4.02

  	
   

  	
  Conditions to all
  Borrowings

  
	
   

  	
   

  	
   

  
	
  ARTICLE V. 
  REPRESENTATIONS AND WARRANTIES

  
	
  5.01

  	
   

  	
  Corporate Existence and
  Power

  
	
  5.02

  	
   

  	
  Corporate
  and Governmental Authorization; No Contravention

  
	
  5.03

  	
   

  	
  Binding Effect

  
	
  5.04

  	
   

  	
  Financial Information

  
	
  5.05

  	
   

  	
  Litigation

  
	
  5.06

  	
   

  	
  No
  Default

  
	
  5.07

  	
   

  	
  Compliance with ERISA

  
	
  5.08

  	
   

  	
  Environmental Matters

  
	
  5.09

  	
   

  	
  Taxes

  
	
  5.10

  	
   

  	
  Subsidiaries

  
	
  5.11

  	
   

  	
  Regulatory
  Restrictions on Borrowing; Margin Regulations

  
	
  5.12

  	
   

  	
  Full Disclosure

  

 

i

 

	
  ARTICLE VI.  AFFIRMATIVE COVENANTS

  
	
  6.01

  	
   

  	
  Information

  
	
  6.02

  	
   

  	
  Payment of Obligations

  
	
  6.03

  	
   

  	
  Maintenance of
  Property; Insurance

  
	
  6.04

  	
   

  	
  Conduct
  of Business and Maintenance of Existence

  
	
  6.05

  	
   

  	
  Compliance with Laws

  
	
  6.06

  	
   

  	
  Inspection of
  Property, Books and Records

  
	
  6.07

  	
   

  	
  Use of Proceeds

  
	
  6.08

  	
   

  	
  Governmental
  Approvals and Filings

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII.  NEGATIVE COVENANTS

  
	
  7.01

  	
   

  	
  Liens

  
	
  7.02

  	
   

  	
  Debt to Total Capital

  
	
  7.03

  	
   

  	
  Transactions with
  Affiliates

  
	
  7.04

  	
   

  	
  Limitation
  of Other Restrictions on Dividends by Subsidiaries, etc

  
	
  7.05

  	
   

  	
  Mergers and Sales of Assets

  
	
  7.06

  	
   

  	
  Change in Nature of
  Business

  
	
  7.07

  	
   

  	
  Use of Proceeds

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII.  EVENTS OF DEFAULT AND REMEDIES

  
	
  8.01

  	
   

  	
  Events of Default

  
	
  8.02

  	
   

  	
  Remedies Upon Event of
  Default

  
	
  8.03

  	
   

  	
  Application of Funds

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX.  ADMINISTRATIVE AGENT

  
	
  9.01

  	
   

  	
  Appointment
  and Authorization of Administrative Agent

  
	
  9.02

  	
   

  	
  Delegation of Duties

  
	
  9.03

  	
   

  	
  Liability of
  Administrative Agent

  
	
  9.04

  	
   

  	
  Reliance by
  Administrative Agent

  
	
  9.05

  	
   

  	
  Notice of Default

  
	
  9.06

  	
   

  	
  Credit
  Decision; Disclosure of Information by Administrative Agent

  
	
  9.07

  	
   

  	
  Indemnification
  of Administrative Agent

  
	
  9.08

  	
   

  	
  Administrative
  Agent in its Individual Capacity

  
	
  9.09

  	
   

  	
  Successor Administrative
  Agent

  
	
  9.10

  	
   

  	
  Administrative
  Agent May File Proofs of Claim

  
	
  9.11

  	
   

  	
  Other Agents;
  Arrangers and Managers

  
	
   

  	
   

  	
   

  
	
  ARTICLE X. 
  MISCELLANEOUS

  
	
  10.01

  	
   

  	
  Amendments, Etc.

  
	
  10.02

  	
   

  	
  Notices
  and Other Communications; Facsimile Copies

  
	
  10.03

  	
   

  	
  No Waiver; Cumulative
  Remedies

  
	
  10.04

  	
   

  	
  Attorney Costs,
  Expenses and Taxes

  
	
  10.05

  	
   

  	
  Indemnification by the
  Borrower

  
	
  10.06

  	
   

  	
  Payments Set Aside

  
	
  10.07

  	
   

  	
  Successors and Assigns

  
	
  10.08

  	
   

  	
  Confidentiality

  
	
  10.09

  	
   

  	
  Set-off

  
	
  10.10

  	
   

  	
  Interest Rate Limitation

  
	
  10.11

  	
   

  	
  Counterparts

  
	
  10.12

  	
   

  	
  Integration

  
	
  10.13

  	
   

  	
  Survival of
  Representations and Warranties

  
	
  10.14

  	
   

  	
  Severability

  

 

ii

 

	
  10.15

  	
   

  	
  Tax
  Forms

  
	
  10.16

  	
   

  	
  Replacement of Lenders

  
	
  10.17

  	
   

  	
  Governing Law

  
	
  10.18

  	
   

  	
  Waiver of Right to
  Trial by Jury

  
	
  10.19

  	
   

  	
  Termination
  of Commitments Under Existing Credit Agreement

  
	
  10.20

  	
   

  	
  ENTIRE AGREEMENT

  
	
   

  
	
   

  
	
  SIGNATURES

  

 

iii

 

SCHEDULES

 

	
  2.01

  	
   

  	
  Commitments and Pro Rata Shares

  
	
  5.05

  	
   

  	
  Certain Litigation

  
	
  10.02

  	
   

  	
  Administrative Agent’s Office, Certain
  Addresses for Notices

  

 

EXHIBITS

 

	
   

  	
   

  	
  Form of

  
	
   

  	
   

  	
   

  
	
  A

  	
   

  	
  Loan Notice

  
	
  B

  	
   

  	
  Note

  
	
  C

  	
   

  	
  Compliance Certificate

  
	
  D

  	
   

  	
  Assignment and Assumption

  
	
  E-1

  	
   

  	
  Opinion of Reed Smith LLP

  
	
  E-2

  	
   

  	
  Opinion of In-House Counsel for the
  Borrower

  

 

iv

 

CREDIT
AGREEMENT

 

This 364-DAY CREDIT
AGREEMENT (“Agreement”) is entered into as of November 1, 2002, among
EQUITABLE RESOURCES, INC., a Pennsylvania corporation (the “Borrower”), each lender from time to time
party hereto (collectively, the “Lenders” and individually, a “Lender”),
BANK OF AMERICA, N.A., as Administrative Agent, and JPMORGAN CHASE BANK and
BANK ONE, NA, as Co-Syndication Agents.

 

The Borrower has
requested that the Lenders provide a revolving credit facility with a term-out
option, and the Lenders are willing to do so on the terms and conditions set
forth herein.

 

In consideration of the
mutual covenants and agreements herein contained, the parties hereto covenant
and agree as follows:

 

ARTICLE
I.

DEFINITIONS
AND ACCOUNTING TERMS

 

1.01                        Defined Terms. 
As used in this Agreement, the following terms shall have the meanings
set forth below:

 

“Administrative Agent”
means Bank of America in its capacity as administrative agent under any of the
Loan Documents, or any successor administrative agent.

 

“Administrative
Agent’s Office” means the Administrative Agent’s address and, as
appropriate, account as set forth on Schedule 10.02, or such other
address or account as the Administrative Agent may from time to time notify the
Borrower and the Lenders.

 

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

 

“Affiliate” means,
with respect to any Person, another Person that directly, or indirectly through
one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.  “Control”
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a Person, whether through the
ability to exercise voting power, by contract or otherwise.  “Controlling” and “Controlled”
have meanings correlative thereto.

 

“Agent-Related Persons”  means the Administrative Agent,
together with its Affiliates (including, in the case of Bank of America in its
capacity as the Administrative Agent, Bank of America Securities LLC), and the
officers, directors, employees, agents and attorneys-in-fact of such Persons
and Affiliates.

 

“Aggregate Commitments”
means the Commitments of all the Lenders.

 

“Agreement” means
this Credit Agreement.

 

“ANPI” means
Appalachian NPI, LLC a Delaware limited liability company.

 

“ANPI Obligations”
means obligations with respect to the 7.76% Senior Secured Bonds due February
28, 2016 of ANPI, with respect to the related swap transaction between ANPI and
Credit Suisse First Boston International and with respect to the ownership
interests in Appalachian Natural Gas Trust, in each case under documentation in
place as of the date of this Agreement, with such changes in such

 

 

documentation as, in the reasonable opinion of the
Administrative Agent, do not adversely affect the interest of the Lenders.

 

“ANPI Transaction”
means the transaction pursuant to which the ANPI Obligations were incurred.

 

“Applicable Rate”
means, from time to time, the following percentages per annum (set forth in
basis points), based upon the Debt Rating as set forth below:

 

Applicable
Rate

 

	
  Pricing

  Level

  	
   

  	
  Debt Ratings

  S&P/Moody’s

  	
   

  	
  Facility

  Fee

  	
   

  	
  Utilization

  Fee

  	
   

  	
  Eurodollar

  Rate *

  	
   

  	
  Base

  Rate

  	
   

  
	
  1

  	
   

  	
  A+/A1 or better

  	
   

  	
  6.0

  	
   

  	
  7.5

  	
   

  	
  24.0

  	
   

  	
  0.0

  	
   

  
	
  2

  	
   

  	
  A/A2

  	
   

  	
  7.0

  	
   

  	
  10.0

  	
   

  	
  33.0

  	
   

  	
  0.0

  	
   

  
	
  3

  	
   

  	
  A-/A3

  	
   

  	
  8.0

  	
   

  	
  10.0

  	
   

  	
  44.5

  	
   

  	
  0.0

  	
   

  
	
  4

  	
   

  	
  BBB+/Baa1

  	
   

  	
  10.0

  	
   

  	
  10.0

  	
   

  	
  55.0

  	
   

  	
  0.0

  	
   

  
	
  5

  	
   

  	
  BBB/Baa2

  	
   

  	
  12.5

  	
   

  	
  12.5

  	
   

  	
  75.0

  	
   

  	
  0.0

  	
   

  
	
  6

  	
   

  	
  BBB-/Baa3 or
  worse

  	
   

  	
  20.0

  	
   

  	
  12.5

  	
   

  	
  105.0

  	
   

  	
  0.0

  	
   

  

 

* Term Out:  In the event the Borrower elects its Term-Out option pursuant to Section
2.13(a), the Applicable Rate for Eurodollar Rate Loans shall be increased
by 25 basis points.

 

“Debt Rating”
means, as of any date of determination, the rating as  determined by either S&P
or Moody’s (collectively, the “Debt Ratings”) of the Borrower’s non-credit-enhanced,
senior unsecured long-term debt; provided that if a Debt Rating is
issued by each of the foregoing rating agencies, then the higher of such Debt
Ratings shall apply (with the Debt Rating for Pricing Level 1 being the highest
and the Debt Rating for Pricing Level 6 being the lowest), unless there is a
split in Debt Ratings of more than one level, in which case the Pricing Level
that is one level higher than the Pricing Level of the lower Debt Rating shall
apply; and provided  further that if no Debt Rating is issued by
either S&P or Moody’s, then such rating agency shall be deemed to have
established a rating of Pricing Level 6.

 

Initially, the Applicable
Rate shall be determined based upon the Debt Rating specified in the
certificate delivered pursuant to Section 4.01(a)(vii).  Thereafter, each change in the Applicable
Rate resulting from a publicly announced change in the Debt Rating shall be
effective during the period commencing on the date of the public announcement
thereof and ending on the date immediately preceding the effective date of the
next such change.

 

“Arranger” means
each of Banc of America Securities LLC and JPMorgan Securities, Inc., in their
capacity as co-lead arrangers and co-book managers.

 

“Assignment and
Assumption” means an Assignment and Assumption substantially in the form of
Exhibit D.

 

“Attorney Costs”
means and includes all fees, expenses and disbursements of any law firm or
other external counsel and, without duplication, the allocated cost of internal
legal services and all expenses and disbursements of internal counsel.

 

2

 

“Audited Financial
Statements” means the audited consolidated balance sheet of the Borrower
and its Subsidiaries for the fiscal year ended December 31, 2001 and the
related consolidated statements of income or operations, shareholders’ equity
and cash flows for such fiscal year of the Borrower and its Subsidiaries,
including the notes thereto.

 

“Authorizations”
means all filings, recordings, and registrations with, and all validations or
exemptions, approvals, orders, authorizations, consents, franchises, licenses,
certificates, and permits from, any Governmental Authority.

 

“Availability Period”
means the period from and including the Closing Date to the Maturity Date.

 

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

 

“Base Rate”  means for any day a fluctuating
rate per annum equal to the higher of (a) the Federal Funds Rate plus 1/2 of 1%
and (b) the rate of interest in effect for such day as publicly announced from
time to time by Bank of America as its “prime rate.”  The “prime rate” is a rate set by Bank of America based upon
various factors including Bank of America’s costs and desired return, general
economic conditions and other factors, and is used as a reference point for
pricing some loans, which may be priced at, above, or below such announced
rate.  Any change in such rate announced
by Bank of America shall take effect at the opening of business on the day
specified in the public announcement of such change.

 

“Base Rate Loan”
means a Loan that bears interest based on
the Base Rate.

 

“Benefit Arrangement”
means, at any time, an employee benefit plan within the meaning of Section 3(3)
of ERISA which is not a Plan or a Multiemployer Plan and which is maintained or
otherwise contributed to by any member of the ERISA Group.

 

“Borrower” has the
meaning specified in the introductory paragraph hereto.

 

“Borrowing” means
a borrowing consisting of simultaneous Loans of the same Type and, in the case
of Eurodollar Rate Loans, having the same Interest Period made by each of the
Lenders pursuant to Section 2.01.

 

“Business Day”
means any day other than a Saturday, Sunday or other day on which commercial
banks are authorized to close under the Laws of, or are in fact closed in, the
state where the Administrative Agent’s Office is located and, if such day
relates to any Eurodollar Rate Loan, means any such day on which dealings in
Dollar deposits are conducted by and between banks in the London interbank
eurodollar market.

 

“Capital Trust I”
means Equitable Resources Capital Trust I, a Subsidiary of Borrower.

 

“Capital Trust I
Indenture” means that certain Junior Subordinated Indenture dated April 23,
1998 between the Borrower and Bankers Trust Company, as Trustee.

 

“Change of Control”
means, with respect to any Person, an event or series of events by which:

 

(a)                                  any
“person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, but excluding any employee benefit plan of
such person or its subsidiaries, and any person or entity acting in its
capacity as trustee, agent or other fiduciary or administrator of any such
plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under
the Securities Exchange Act of 1934, except that a person or group shall be
deemed

 

3

 

to have
“beneficial ownership” of all securities that such person or group has the
right to acquire (such right, an “option right”), whether such right is
exercisable immediately or only after the passage of time), directly or
indirectly, of 33 1/3 % or more of the equity securities of such Person
entitled to vote for members of the board of directors or equivalent governing
body of such Person on a fully-diluted basis (and taking into account all such
securities that such person or group has the right to acquire pursuant to any
option right); or

 

(b)                                 during
any period of 12 consecutive months, a majority of the members of the board of
directors or other equivalent governing body of such Person cease to be
composed of individuals (i) who were members of that board or equivalent
governing body on the first day of such period, (ii) whose election or
nomination to that board or equivalent governing body was approved by
individuals referred to in clause (i) above constituting at the time of such
election or nomination at least a majority of that board or equivalent
governing body or (iii) whose election or nomination to that board or other
equivalent governing body was approved by individuals referred to in clauses
(i) and (ii) above constituting at the time of such election or nomination at
least a majority of that board or equivalent governing body (excluding, in the
case of both clause (ii) and clause (iii), any individual whose initial
nomination for, or assumption of office as, a member of that board or
equivalent governing body occurs as a result of an actual or threatened
solicitation of proxies or consents for the election or removal of one or more
directors by any person or group other than a solicitation for the election of
one or more directors by or on behalf of the board of directors).

 

“Closing Date”
means the first date all the conditions precedent in Section 4.01 are
satisfied or waived in accordance with Section 4.01 (or, in the case of Section
4.01(b), waived by the Person entitled to receive the applicable payment).

 

“Code” means the
Internal Revenue Code of 1986.

 

“Commitment”
means, as to each Lender, its obligation to make Loans to the Borrower pursuant
to Section 2.01 (including any Loans converted into a Term Loan pursuant
to Section 2.13), in an aggregate principal amount at any one time
outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule
2.01 or in the Assignment and Assumption pursuant to which such Lender
becomes a party hereto, as applicable, as such amount may be adjusted from time
to time in accordance with this Agreement.

 

“Compliance
Certificate” means a certificate substantially in the form of Exhibit C.

 

“Consolidated
Debt” means, as of any date of determination, the Debt of the Borrower and
its Subsidiaries on a consolidated basis other than Non-Recourse Debt.

 

“Consolidated
Subsidiaries” means, at any date, any Subsidiary or other entity, the
accounts of which would be consolidated with those of the Borrower in its
consolidated financial statements if such statements were prepared as of such
date.

 

“Contractual
Obligation” means, as to any Person, any provision of any security issued
by such Person or of any agreement, instrument or other undertaking to which
such Person is a party or by which it or any of its property is bound.

 

“Control” has the
meaning specified in the definition of “Affiliate.”

 

4

 

“Debt” means, as
to any Person at a particular time, without duplication, all of the following,
whether or not included as Debt or liabilities in accordance with GAAP:

 

(a)                                  all
obligations of such Person for borrowed money and all obligations of such
Person evidenced by bonds, debentures, notes, loan agreements or other similar
instruments;

 

(b)                                 all
non-contingent obligations (and, for purposes of Section 8.01(e) and the
definitions of Material Debt and Material Financial Obligations, all contingent
obligations) of such Person arising under letters of credit (including standby
and commercial), bankers’ acceptances, bank guaranties, surety bonds and
similar instruments;

 

(c)                                  all
obligations of such Person to pay the deferred purchase price of property or
services (other than trade accounts payable in the ordinary course of
business);

 

(d)                                 debt
(excluding prepaid interest thereon) secured by a Lien on property owned or
being purchased by such Person (including debt arising under conditional sales
or other title retention agreements), whether or not such debt shall have been
assumed by such Person or is limited in recourse;

 

(e)                                  capital
leases;

 

(f)                                    to
the extent required to be included on the Borrower’s consolidated balance sheet
as debt or liabilities in accordance with GAAP, Synthetic Lease Obligations;

 

(g)                                 all
obligations of such Person for the payment of money under Production Payments;
and

 

(h)                                 all
Guarantees of such Person in respect of any of the foregoing.

 

For the avoidance of
doubt, the parties hereto agree that the obligations of the Borrower and its
Subsidiaries with respect to the Existing Trust Preferred Capital Securities,
the Existing Subordinated Debentures, and the Existing Capital Trust Guaranty,
and obligations of the Borrower and its Subsidiaries with respect to
substantially identical transactions, shall be deemed to constitute Debt.

 

For all purposes hereof,
the Debt of the Borrower shall include the Debt of any partnership or joint
venture (other than a joint venture that is itself a corporation or limited
liability company) in which the Borrower or any Subsidiary of the Borrower is a
general partner or a joint venturer, unless such Debt is expressly made
non-recourse to the Borrower or Subsidiary, as applicable.

 

“Debt Rating” has
the meaning set forth in the definition of “Applicable Rate.”

 

“Debtor Relief Laws”
means the Bankruptcy Code of the United States, and all other liquidation,
conservatorship, bankruptcy, assignment for the benefit of creditors,
moratorium, rearrangement, receivership, insolvency, reorganization, or similar
debtor relief Laws of the United States or other applicable jurisdictions from
time to time in effect and affecting the rights of creditors generally.

 

“Default” means
any event or condition that constitutes an Event of Default or that, with the
giving of any notice, the passage of time, or both, would be an Event of
Default.

 

“Default Rate”
means an interest rate equal to (a) the Base Rate plus (b) the
Applicable Rate, if any, applicable to Base Rate Loans plus (c) 2% per
annum; provided, however, that with respect to a

 

5

 

Eurodollar Rate Loan, the Default Rate shall be an
interest rate equal to the interest rate (including any Applicable Rate)
otherwise applicable to such Loan plus 2% per annum, in each case to the
fullest extent permitted by applicable Laws.

 

“Disposition” or “Dispose”
means the sale, transfer, license, lease or other disposition (including any
sale and leaseback transaction) of any property by any Person, including any
sale, assignment, transfer or other disposal, with or without recourse, of any
notes or accounts receivable or any rights and claims associated therewith.

 

“Dollar” and “$”
mean lawful money of the United States.

 

“Domestic” means
organized under the laws of any state of the United States.

 

“Eligible Assignee”
has the meaning specified in Section 10.07(g).

 

“Environmental Laws”
means any and all Federal, state, local, and foreign statutes, laws,
regulations, ordinances, rules, judgments, orders, decrees, permits,
concessions, grants, franchises, licenses, agreements or governmental
restrictions relating to pollution and the protection of the environment or the
release of any materials into the environment, including those related to
hazardous substances or wastes, air emissions and discharges to waste or public
systems.

 

“Environmental
Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or
indemnities), of the Borrower or any of its Subsidiaries directly or indirectly
resulting from or based upon (a) violation of any Environmental Law, (b) the
generation, use, handling, transportation, storage, treatment or disposal of
any Hazardous Substances, (c) exposure to any Hazardous Substances, (d) the
release or threatened release of any Hazardous Substances into the environment
or (e) any contract, agreement or other consensual arrangement pursuant to
which liability is assumed or imposed with respect to any of the foregoing.

 

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

 

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

 

“Eurodollar Rate”
means for any Interest Period with respect to any Eurodollar Rate Loan:

 

(a)                                  the
rate per annum equal to the rate determined by the Administrative Agent to be
the offered rate that appears on the page of the Telerate screen (or any
successor thereto) that displays an average British Bankers Association
Interest Settlement Rate for deposits in Dollars (for delivery on the first day
of such Interest Period) with a term equivalent to such Interest Period,
determined as of approximately 11:00 a.m. (London time) two Business Days prior
to the first day of such Interest Period, or

 

(b)                                 if
the rate referenced in the preceding clause (a) does not appear on such page or
service or such page or service shall not be available, the rate per annum
equal to the rate determined by the Administrative Agent to be the offered rate
on such other page or other service that displays an average British Bankers
Association Interest Settlement Rate for deposits in Dollars (for delivery on
the first day of such Interest Period) with a term equivalent to such

 

6

 

Interest Period,
determined as of approximately 11:00 a.m. (London time) two Business Days prior
to the first day of such Interest Period, or

 

(c)                                  if
the rates referenced in the preceding clauses (a) and (b) are not available,
the rate per annum determined by the Administrative Agent as the rate of
interest at which deposits in Dollars for delivery on the first day of such
Interest Period in same day funds in the approximate amount of the Eurodollar
Rate Loan being made, continued or converted by Bank of America and with a term
equivalent to such Interest Period would be offered by Bank of America’s London
Branch to major banks in the London interbank eurodollar market at their request
at approximately 4:00 p.m. (London time) two Business Days prior to the first
day of such Interest Period.

 

“Eurodollar Rate Loan”
means a Loan that bears interest at a rate based on the Eurodollar Rate.

 

“Event of Default”
has the meaning specified in Section 8.01.

 

“Excluded Subsidiary”
means at any time a Subsidiary which is not a Material Subsidiary, and is
organized solely for the purpose of holding, directly or indirectly, an
ownership interest in one entity or property (or related entities or properties),
does not engage in any business unrelated to such entity(ies) or property(ies)
or the financing thereof and does not have any assets or indebtedness other
than those related to its interest in such entity(ies) or property(ies) or the
financing thereof and which shall have been identified as an Excluded
Subsidiary at or prior to such time by notice from the Borrower to the Lenders.

 

“Existing Borrower
Indenture” means the Junior Subordinated Indenture, dated as of April 23,
1998, between the Borrower and Bankers Trust Company, as Trustee.

 

“Existing Capital
Trust Guaranty” means that certain Capital Securities Guarantee Agreement
dated April 23, 1998 between the Borrower and Bankers Trust Company, as
Guarantee Trustee.

 

“Existing Credit
Agreement” means that certain Credit Agreement dated as of November 8, 2001
among the Borrower, Bank of America, N.A., as administrative agent, Bank One,
NA, as syndication agent, PNC Bank National Association, as documentation
agent, and a syndicate of lenders.

 

“Existing Lenders”
means lenders party to the Existing Credit Agreement.

 

“Existing Subordinated
Debentures” means the 7.35% Junior Subordinated Debentures issued by the
Borrower pursuant to the Existing Borrower Indenture in the aggregate principal
amount of $125,000,000.

 

“Existing Trust
Preferred Capital Securities” means those certain Trust Preferred Capital
Securities issued by Capital Trust I pursuant to the Capital Trust I Indenture
in the principal amount of $125,000,000, the proceeds of which were used by
Capital Trust I to purchase the Existing Subordinated Debentures.

 

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

 

7

 

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

 

“Fee Letters”
means the letter agreement, dated October 29, 2002 among the Borrower, the
Administrative Agent and Bank of America Securities LLC and the letter
agreement, dated October 29, 2002 among the Borrower and JPMorgan Securities,
Inc.

 

“Foreign Lender”
has the meaning specified in Section 10.15(a)(i).

 

“Forward
Sale” means an obligation to deliver oil, gas or other minerals to be
acquired or produced in the future in consideration of advance payment
therefor.

 

“FRB” means the
Board of Governors of the Federal Reserve System of the United States.

 

“GAAP” means
generally accepted accounting principles in the United States set forth in the
opinions and pronouncements of the Accounting Principles Board and the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or such other principles as may be
approved by a significant segment of the accounting profession in the United
States, that are applicable to the circumstances as of the date of
determination, consistently applied.

 

“Governmental
Authority” means any nation or government, any state or other political
subdivision thereof, any agency, authority, instrumentality, regulatory body,
court, administrative tribunal, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers
or functions of or pertaining to government.

 

“Granting Lender”
has the meaning specified in Section 10.07(h).

 

“Guarantee” means,
as to any Person, any (a) any obligation, contingent or otherwise, of such
Person guaranteeing or having the economic effect of guaranteeing any Debt or
other obligation payable or performable by another Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any
obligation of such Person, direct or indirect, (i) to purchase or pay (or
advance or supply funds for the purchase or payment of) such Debt or other
obligation, (ii) to purchase or lease property, securities or services for the
purpose of assuring the obligee in respect of such Debt or other obligation of
the payment or performance of such Debt or other obligation, (iii) to maintain
working capital, equity capital or any other financial statement condition or
liquidity or level of income or cash flow of the primary obligor so as to enable
the primary obligor to pay such Debt or other obligation, or (iv) entered into
for the purpose of assuring in any other manner the obligee in respect of such
Debt or other obligation of the payment or performance thereof or to protect
such obligee against loss in respect thereof (in whole or in part), or (b) any
Lien on any assets of such Person securing any Debt or other obligation of any
other Person, whether or not such Debt or other obligation is assumed by such
Person.  The amount of any Guarantee shall
be deemed to be an amount equal to the stated or determinable amount of the
related primary obligation, or portion thereof, in respect of which such
Guarantee is made or, if not stated or determinable, the maximum reasonably
anticipated liability in respect thereof as determined by the guaranteeing
Person in good faith.  The term
“Guarantee” as a verb has a corresponding meaning.

 

“Hazardous Substances”
means all explosive or radioactive substances or wastes and all hazardous or
toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos-containing materials, polychlorinated
biphenyls, radon gas, infectious or medical wastes and all other substances or
wastes of any nature regulated pursuant to any Environmental Law.

 

8

 

“Indemnified
Liabilities” has the meaning set forth in Section 10.05.

 

“Indemnitees” has
the meaning set forth in Section 10.05.

 

“Intangible Assets”
means assets that are considered to be intangible assets under GAAP, including
customer lists, goodwill, computer software, copyrights, trade names,
trademarks, patents, franchises, licenses, unamortized deferred charges,
unamortized debt discount and capitalized research and development costs.

 

“Interest Payment Date”
means, (a) as to any Loan other than a Base Rate Loan, the last day of each
Interest Period applicable to such Loan and the Maturity Date; provided,
however, that if any Interest Period for a Eurodollar Rate Loan exceeds
three months, the respective dates that fall every three months after the
beginning of such Interest Period shall also be Interest Payment Dates; and (b)
as to any Base Rate Loan , the last Business Day of each March, June, September
and December and the Maturity Date.

 

“Interest Period”
means, as to each Eurodollar Rate Loan, the period commencing on the date such
Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar
Rate Loan and ending on the date one, two, three or six months thereafter, as
selected by the Borrower in its Loan Notice; provided that:

 

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

 

(ii)                                  any
Interest Period that begins on the last Business Day of a calendar month (or on
a day for which there is no numerically corresponding day in the calendar month
at the end of such Interest Period) shall end on the last Business Day of the
calendar month at the end of such Interest Period; and

 

(iii)                               no
Interest Period shall extend beyond the Maturity Date.

 

“IRS” means the
United States Internal Revenue Service.

 

“Laws” means,
collectively, all international, foreign, Federal, state and local statutes,
treaties, rules, guidelines, regulations, ordinances, codes and administrative
or judicial precedents or authorities, including the interpretation or
administration thereof by any Governmental Authority charged with the
enforcement, interpretation or administration thereof, and all applicable
administrative orders, directed duties, requests, licenses, authorizations and
permits of, and agreements with, any Governmental Authority, in each case
whether or not having the force of law.

 

“Lender” has the
meaning specified in the introductory paragraph hereto.

 

“Lending Office”
means, as to any Lender, the office or offices of such Lender described as such
in such Lender’s Administrative Questionnaire, or such other office or offices
as a Lender may from time to time notify the Borrower and the Administrative
Agent.

 

“Lien” means any
mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance,
lien (statutory or other), charge, or preference, priority or other security
interest or preferential arrangement of any kind or nature whatsoever
(including any conditional sale or other title

 

9

 

retention agreement, and any financing lease having
substantially the same economic effect as any of the foregoing).

 

“Loan” means an
extension of credit by a Lender to the Borrower under Article II.

 

“Loan Documents”
means this Agreement, each Note, and the Fee Letters.

 

“Loan Notice”
means a notice of (a) a Borrowing, (b) a conversion of Loans from one Type to
the other, or (c) a continuation of Eurodollar Rate Loans, pursuant to Section
2.02(a), which, if in writing, shall be substantially in the form of Exhibit
A.

 

“Material Debt”
means Debt (other than (i) Non-Recourse Debt and (ii) the Loans) of the
Borrower and one or more Subsidiaries, arising in one or more related or
unrelated transactions, in an aggregate principal or face amount exceeding
$50,000,000.

 

“Material Financial
Obligations” means (i) a principal or face amount of Debt, (ii) payment or
collateralization obligations in respect of Swap Contracts, or (iii) payment
obligations in respect of Forward Sales, in each case of the Borrower or more
of its Subsidiaries, arising in one or more related or unrelated transactions,
exceeding in the aggregate $50,000,000.

 

“Material Plan”
means, at any time, a Plan or Plans having aggregate Unfunded Liabilities in
excess of $50,000,000.

 

“Material Subsidiary”
means any Subsidiary of Borrower for which (i) its assets and the assets of its
consolidated Subsidiaries comprise more than 5% of the assets of the Borrower
and its consolidated Subsidiaries, or (ii) its revenue and the revenue of its
consolidated Subsidiaries comprise more than 5% of the revenue of the Borrower
and its consolidated Subsidiaries, in each case determined on a consolidated
basis in accordance with GAAP as of the end of the most recent fiscal year.

 

“Maturity Date”
means the (a) later of (i) the Stated Maturity Date, and (ii) if the Borrower
exercises the Term-Out option pursuant to Section 2.13, the Term Loan
Maturity Date; or, (b) if earlier, the effective date of any other termination,
cancellation, or acceleration of all Commitments under this Agreement.

 

“Moody’s” means
Moody’s Investors Service, Inc. and any successor thereto.

 

“Multiemployer
Plan” means, at any time, an employee pension benefit plan within the
meaning of Section 4001(a)(3) of
ERISA to which any member of the ERISA Group is then making or accruing an
obligation to make contributions, or has within the preceding five plan years
made contributions, including for these purposes any Person which ceased to be
a member of the ERISA Group during such five year period.

 

“Non-Recourse Debt”
of any Person means Debt secured by a Lien on one or more assets of such
Person, where the rights and remedies of the holder of such Debt in respect of
such Debt do not extend to any other assets of such Person and, if such Person
is organized under the laws of or doing business in the United States or any
political subdivision thereof or therein, as to which such holder has
effectively waived (or subordinated in favor of the Lenders) such holder’s
right to make the election provided under 11 U.S.C. § 1111(b)(1)(A) (a “Recourse
Waiver”); provided however, that no Recourse Waiver shall be required with
respect to Production Payments, and no Recourse Waiver shall be required with
respect to the ANPI Obligations.  Debt
of an Excluded Subsidiary which is without recourse to the Borrower or any
other Subsidiary shall be deemed Non-Recourse Debt of such Excluded Subsidiary
secured by all assets

 

10

 

of such Excluded Subsidiary (whether or not such Debt
is in fact so secured) and no Recourse Waiver shall be required in respect
thereof.  For purposes of this
definition, the holders of ANPI Obligations which are Debt of a Person shall be
deemed to have a Lien (to the extent permitted by Section 7.01(j) hereof) on
assets of such Person securing such ANPI Obligations.

 

“NORESCO” shall
mean NORESCO LLC, a Delaware limited liability company and a wholly-owned
subsidiary of the Borrower.

 

“NORESCO Project”
shall mean any project of NORESCO or of a Subsidiary of NORESCO related to the
development, design, construction and operation of energy plant facilities.

 

“Note” means a
promissory note made by the Borrower in favor of a Lender evidencing Loans made
by such Lender, substantially in the form of Exhibit B.

 

“Obligations”
means all advances to, and debts, liabilities, obligations, covenants and
duties of, any the Borrower arising under any Loan Document or otherwise with
respect to any Loan, whether direct or indirect (including those acquired by
assumption), absolute or contingent, due or to become due, now existing or
hereafter arising and including interest and fees that accrue after the
commencement by or against any the Borrower or any Affiliate of the Borrower of
any proceeding under any Debtor Relief Laws naming such Person as the debtor in
such proceeding, regardless of whether such interest and fees are allowed
claims in such proceeding.

 

“Organization
Documents” means, (a) with respect to any corporation, the certificate or
articles of incorporation and the bylaws (or equivalent or comparable
constitutive documents with respect to any non-U.S. jurisdiction); (b) with
respect to any limited liability company, the certificate or articles of
formation or organization and operating agreement; and (c) with respect to any
partnership, joint venture, trust or other form of business entity, the
partnership, joint venture or other applicable agreement of formation or
organization and any agreement, instrument, filing or notice with respect
thereto filed in connection with its formation or organization with the
applicable Governmental Authority in the jurisdiction of its formation or
organization and, if applicable, any certificate or articles of formation or
organization of such entity.

 

“Outstanding Amount”
means with respect to Loans on any date, the aggregate outstanding principal
amount thereof after giving effect to any borrowings and prepayments or
repayments of Loans occurring on such date.

 

“Participant” has
the meaning specified in Section 10.07(d).

 

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

 

“Person” means any
natural person, corporation, limited liability company, trust, joint venture,
association, company, partnership, Governmental Authority or other entity.

 

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

 

11

 

“Production Payment”
means an assignment of an interest in a fixed quantity (measured by proceeds or
by volume) of oil and gas or other hydrocarbons when produced from a specified
oil and gas property or properties, in consideration for a payment in advance
of production.

 

“Pro Rata Share”
means, with respect to each Lender at any time, a fraction (expressed as a
percentage, carried out to the ninth decimal place), the numerator of which is
the amount of the Commitment of such Lender at such time and the denominator of
which is the amount of the Aggregate Commitments at such time; provided
that if the commitment of each Lender to make Loans have been terminated
pursuant to Section 8.02, then the Pro Rata Share of each Lender shall
be determined based on the Pro Rata Share of such Lender immediately prior to
such termination and after giving effect to any subsequent assignments made
pursuant to the terms hereof.  The
initial Pro Rata Share of each Lender is set forth opposite the name of such
Lender on Schedule 2.01 or in the Assignment and Assumption pursuant to
which such Lender becomes a party hereto, as applicable.

 

“PUC” means any
state or local regulatory agency or governmental authority that exercises
jurisdiction over the rates, services, ownership, capital structure, authority
to borrow, operation or production of electricity, oil, gas or hydrocarbons, or
over Persons who own, construct, or operate facilities or systems that produce,
transport, process, or market electricity, oil, gas, or hydrocarbons.

 

“Register” has the
meaning set forth in Section 10.07(c).

 

“Request for Extension
of Stated Maturity Date” has the meaning set forth in Section 2.12(a).

 

“Required Lenders”
means, as of any date of determination, Lenders having at least 51% of the
Aggregate Commitments or, if the commitment of each Lender to make Loans have
been terminated pursuant to Section 8.02, Lenders holding in the
aggregate at least 51% of the Total Outstandings.

 

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

 

“Restricted Payment”
means any dividend or other distribution (whether in cash, securities or other
property) with respect to any capital stock or other equity interest of the
Borrower or any Subsidiary, or any payment (whether in cash, securities or
other property), including any sinking fund or similar deposit, on account of
the purchase, redemption, retirement, acquisition, cancellation or termination
of any such capital stock or other equity interest or of any option, warrant or
other right to acquire any such capital stock or other equity interest.

 

“Revolving
Availability Period” means the period from and including the Closing Date
to the earliest of (a) the Stated Maturity Date, (b) the date of termination of
the Aggregate Commitments pursuant to Section 2.04, and (c) the date of
termination of the commitment of each Lender to make Loans pursuant to Section
8.02.

 

“Revolving Credit
Agreement” means the Credit Agreement dated as of even date herewith by and
among the Borrower, Bank of America, N.A., as Administrative Agent, and the
other agents and lenders therein named.

 

12

 

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

 

“SEC” means the
Securities and Exchange Commission, or any Governmental Authority succeeding to
any of its principal functions.

 

“Shareholders’ Equity”
means, as of any date of determination, consolidated shareholders’ equity of
the Borrower and its Subsidiaries as of that date determined in accordance with
GAAP.

 

“SPC” has the
meaning specified in Section 10.07(h).

 

“Stated Maturity Date”
means the later of (a) October 31, 2003, and (b) if the maturity is extended
pursuant to Section 2.12, such extended maturity date as determined
pursuant to such Section.

 

“Subsidiary” of a
Person means a corporation, partnership, joint venture, limited liability
company or other business entity of which a majority of the shares of
securities or other interests having ordinary voting power for the election of
directors or other governing body (other than securities or interests having
such power only by reason of the happening of a contingency) are at the time beneficially
owned, or the management of which is otherwise controlled, directly, or
indirectly through one or more intermediaries, or both, by such Person.  Unless otherwise specified, all references
herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or
Subsidiaries of the Borrower.

 

“Swap Contract”
means (a) any and all rate swap transactions, basis swaps, credit derivative
transactions, forward rate transactions, commodity swaps, commodity options,
forward commodity contracts, equity or equity index swaps or options, bond or
bond price or bond index swaps or options or forward bond or forward bond price
or forward bond index transactions, interest rate options, forward foreign
exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap
transactions, currency options, spot contracts, or any other similar
transactions or any combination of any of the foregoing (including any options
to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all
transactions of any kind, and the related confirmations, which are subject to
the terms and conditions of, or governed by, any form of master agreement
published by the International Swaps and Derivatives Association, Inc., any
International Foreign Exchange Master Agreement, or any other master agreement
(any such master agreement, together with any related schedules, a “Master
Agreement”), including any such obligations or liabilities under any Master
Agreement.

 

“Synthetic Lease
Obligation” means the monetary obligation of a Person under (a) a so-called
synthetic, off-balance sheet or tax retention lease, or (b) an agreement for
the use or possession of property creating obligations that do not appear on
the balance sheet of such Person but which, upon the insolvency or bankruptcy
of such Person, would be characterized as the indebtedness of such Person
(without regard to accounting treatment).

 

“Term Loan” shall
mean the term loan made pursuant to Section 2.13.

 

“Term Loan Maturity
Date” shall mean the date one year after the Stated Maturity Date.

 

“Term-Out” has the
meaning specified in Section 2.13(a).

 

“Total Capital”
means, at any date, the sum of (i) Consolidated Debt plus (ii)
Shareholders’ Equity (including for this purpose any amount attributable to
stock which is required to be redeemed or is redeemable at the option of the
holder, if certain events or conditions occur or exist or otherwise), in each

 

13

 

case determined at such date less (iv) to the
extent reflected in Shareholders’ Equity, any excess of the net book value of
assets subject to Liens securing Non-Recourse Debt (including the total assets
of Excluded Subsidiaries) over the amount of the related Non-Recourse Debt.

 

“Total Outstandings”
means the aggregate Outstanding Amount of all Loans.

 

“Type” means, with
respect to a Loan, its character as a Base Rate Loan or a Eurodollar Rate Loan.

 

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

 

“Uninsured Liabilities”
shall mean any losses, damages, costs, expenses and/or, liabilities (including
any losses, damages, costs, expenses or liabilities resulting from property
damage or casualty, general liability, workers’ compensation claims and
business interruption) incurred by the Borrower or any Subsidiary which are not
covered by insurance, but with respect to which insurance coverage is available
to Persons engaged in the same or similar business as the Borrower and its
Subsidiaries.

 

“United States”
and “U.S.” mean the United States of America.

 

1.02                        Other Interpretive Provisions.  With reference to this Agreement and each
other Loan Document, unless otherwise specified herein or in such other Loan
Document:

 

(a)                                  The
meanings of defined terms are equally applicable to the singular and plural
forms of the defined terms.

 

(b)                                 (i)                                     The
words “herein,” “hereto,” “hereof” and “hereunder”
and words of similar import when used in any Loan Document shall refer to such
Loan Document as a whole and not to any particular provision thereof.

 

(ii)                                  Article,
Section, Exhibit and Schedule references are to the Loan Document in which such
reference appears.

 

(iii)                               The
term “including” is by way of example and not limitation.

 

(iv)                              The
term “documents” includes any and all instruments, documents,
agreements, certificates, notices, reports, financial statements and other
writings, however evidenced, whether in physical or electronic form.

 

(c)                                  In
the computation of periods of time from a specified date to a later specified
date, the word “from” means “from and including”; the words “to”
and “until” each mean “to but excluding”; and the word “through”
means “to and including.”

 

(d)                                 Section
headings herein and in the other Loan Documents are included for convenience of
reference only and shall not affect the interpretation of this Agreement or any
other Loan Document.

 

14

 

1.03                        Accounting Terms. 
(a)  All accounting terms not
specifically or completely defined herein shall be construed in conformity
with, and all financial data (including financial ratios and other financial
calculations) required to be submitted pursuant to this Agreement shall be
prepared in conformity with, GAAP applied on a consistent basis, as in effect
from time to time, applied in a manner consistent with that used in preparing
the Audited Financial Statements, except as otherwise specifically
prescribed herein.

 

(b)                                 If
at any time any change in GAAP would affect the computation of any financial
ratio or requirement set forth in any Loan Document, and either the Borrower or
the Required Lenders shall so request, the Administrative Agent, the Lenders
and the Borrower shall negotiate in good faith to amend such ratio or
requirement to preserve the original intent thereof in light of such change in
GAAP (subject to the approval of the Required Lenders); provided  that,
until so amended, (i) such ratio or requirement shall continue to be computed
in accordance with GAAP prior to such change therein and (ii) the Borrower
shall provide to the Administrative Agent and the Lenders financial statements
and other documents required under this Agreement or as reasonably requested
hereunder setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in GAAP.

 

1.04                        Rounding.  Any financial
ratios required to be maintained by the Borrower pursuant to this Agreement
shall be calculated by dividing the appropriate component by the other
component, carrying the result to one place more than the number of places by
which such ratio is expressed herein and rounding the result up or down to the
nearest number (with a rounding-up if there is no nearest number).

 

1.05                        References to Agreements and Laws.  Unless otherwise expressly provided herein,
(a) references to Organization Documents, agreements (including the Loan
Documents) and other contractual instruments shall be deemed to include all
subsequent amendments, restatements, extensions, supplements and other
modifications thereto, but only to the extent that such amendments,
restatements, extensions, supplements and other modifications are not
prohibited by any Loan Document; and (b) references to any Law shall include
all statutory and regulatory provisions consolidating, amending, replacing,
supplementing or interpreting such Law.

 

1.06                        Times of Day. 
Unless otherwise specified, all references herein to times of day shall
be references to Eastern time (daylight or standard, as applicable).

 

ARTICLE
II.

THE COMMITMENTS AND BORROWINGS

 

2.01                        Loans.  Subject to
the terms and conditions set forth herein, each Lender severally agrees to make
loans (each such loan, a “Loan”) to the Borrower from time to time, on
any Business Day during the Revolving Availability Period, in an aggregate
amount not to exceed at any time outstanding the amount of such Lender’s
Commitment; provided, however, that after giving effect to any
Borrowing, (i) the Total Outstandings shall not exceed the Aggregate
Commitments, and (ii) the aggregate Outstanding Amount of the Loans of any
Lender, shall not exceed such Lender’s Commitment.  Within the limits of each Lender’s Commitment, and subject to the
other terms and conditions hereof, the Borrower may borrow under this Section
2.01, prepay under Section 2.03, and reborrow under this Section
2.01.  Loans may be Base Rate Loans
or Eurodollar Rate Loans, as further provided herein.

 

15

 

2.02                        Borrowings, Conversions and
Continuations of Loans.

 

(a)                                  Each
Borrowing, each conversion of Loans from one Type to the other, and each continuation
of Eurodollar Rate Loans shall be made upon the Borrower’s delivery to the
Administrative Agent of an irrevocable written Loan Notice, appropriately
completed and signed by a Responsible Officer of the Borrower which may be
delivered via facsimile.  Each such
notice must be received by the Administrative Agent not later than 11:00 a.m.
(i) three Business Days prior to the requested date of any Borrowing of,
conversion to or continuation of Eurodollar Rate Loans or of any conversion of
Eurodollar Rate Loans to Base Rate Loans, and (ii) on the requested date of any
Borrowing of Base Rate Loans.  Each
Borrowing of, conversion or continuation of Loans shall be in a principal
amount of $5,000,000 or a whole multiple of $1,000,000 in excess thereof.  Each Loan Notice shall specify (i) whether
the Borrower is requesting a Borrowing, a conversion of Loans from one Type to
the other, or a continuation of Eurodollar Rate Loans, (ii) the requested date
of the Borrowing, conversion or continuation, as the case may be (which shall
be a Business Day), (iii) the principal amount of Loans to be borrowed,
converted or continued, (iv) the Type of Loans to be borrowed or to which
existing Loans are to be converted, and (v) if applicable, the duration of the
Interest Period with respect thereto. 
If the Borrower fails to specify a Type of Loan in a Loan Notice or if
the Borrower fails to give a timely notice requesting a conversion or
continuation, then the applicable Loans shall be made as, or converted to, Base
Rate Loans.  Any such automatic
conversion to Base Rate Loans shall be effective as of the last day of the
Interest Period then in effect with respect to the applicable Eurodollar Rate
Loans.  If the Borrower requests a
Borrowing of, conversion to, or continuation of Eurodollar Rate Loans in any
such Loan Notice, but fails to specify an Interest Period, it will be deemed to
have specified an Interest Period of one month.

 

(b)                                 Following
receipt of a Loan Notice, the Administrative Agent shall promptly notify each
Lender of the amount of its Pro Rata Share of the applicable Loans, and if no
timely notice of a conversion or continuation is provided by the Borrower, the
Administrative Agent shall notify each Lender of the details of any automatic
conversion to Base Rate Loans described in the preceding subsection.  In the case of a Borrowing during the
Revolving Availability Period, each Lender shall make the amount of its Loan
available to the Administrative Agent in immediately available funds at the
Administrative Agent’s Office not later than 1:00 p.m. on the Business Day
specified in the applicable Loan Notice. 
Upon satisfaction of the applicable conditions set forth in Section
4.02 (and, if such Borrowing is the initial Borrowing, Section 4.01),
the Administrative Agent shall make all funds so received available to the
Borrower in like funds as received by the Administrative Agent either by (i)
crediting the account of the Borrower on the books of Bank of America with the
amount of such funds or (ii) wire transfer of such funds, in each case in
accordance with instructions provided to (and reasonably acceptable to) the
Administrative Agent by the Borrower.

 

(c)                                  Except
as otherwise provided herein, a Eurodollar Rate Loan may be continued or
converted only on the last day of an Interest Period for such Eurodollar Rate
Loan.  During the existence of a
Default, no Loans may be requested as, converted to or continued as Eurodollar
Rate Loans without the consent of the Required Lenders.

 

(d)                                 The
Administrative Agent shall promptly notify the Borrower and the Lenders of the
interest rate applicable to any Interest Period for Eurodollar Rate Loans upon
determination of such interest rate. 
The determination of the Eurodollar Rate by the Administrative Agent
shall be conclusive in the absence of manifest error.  At any time that Base Rate Loans are outstanding, the
Administrative Agent shall notify the Borrower and the Lenders of any change in
Bank of America’s prime rate used in determining the Base Rate promptly
following the public announcement of such change.

 

16

 

(e)                                  After
giving effect to all Borrowings, all conversions of Loans from one Type to the
other, and all continuations of Loans as the same Type, there shall not be more
than five Interest Periods in effect with respect to Loans.

 

2.03                        Prepayments.

 

(a)                                  The
Borrower may, upon notice to the Administrative Agent, at any time or from time
to time voluntarily prepay Loans in whole or in part without premium or
penalty; provided that (i) such notice must be received by the
Administrative Agent not later than 11:00 a.m. (A) three Business Days prior to
any date of prepayment of Eurodollar Rate Loans and (B) on the date of
prepayment of Base Rate Loans; (ii) any prepayment of Eurodollar Loans shall be
in a principal amount of $5,000,000 or a whole multiple of $1,000,000 in excess
thereof, and (iii) any prepayment of Base Rate Loans shall be in a principal
amount of $500,000 or a whole multiple of $100,000 in excess thereof or, in each
case, if less, the entire principal amount thereof then outstanding.  Each such notice shall specify the date and
amount of such prepayment and the Type(s) of Loans to be prepaid.  The Administrative Agent will promptly
notify each Lender of its receipt of each such notice, and of the amount of
such Lender’s Pro Rata Share of such prepayment.  If such notice is given by the Borrower, the Borrower shall make
such prepayment and the payment amount specified in such notice shall be due
and payable on the date specified therein. 
Any prepayment of a Eurodollar Rate Loan shall be accompanied by all
accrued interest thereon, together with any additional amounts required
pursuant to Section 3.05.  Each
such prepayment shall be applied to the Loans of the Lenders in accordance with
their respective Pro Rata Shares.

 

(b)                                 If
for any reason the Total Outstandings at any time exceed the Aggregate
Commitments then in effect, the Borrower shall immediately prepay Loans.

 

2.04                        Termination or Reduction of
Commitments.  The Borrower may,
upon notice to the Administrative Agent, terminate the Aggregate Commitments,
or from time to time permanently reduce the Aggregate Commitments; provided
that (i) any such notice shall be received by the Administrative Agent not
later than 11:00 a.m. three Business Days prior to the date of termination or
reduction, (ii) any such partial reduction shall be in an aggregate amount of
$10,000,000 or any whole multiple of $1,000,000 in excess thereof, and (iii)
the Borrower shall not terminate or reduce the Aggregate Commitments if, after
giving effect thereto and to any concurrent prepayments hereunder, the Total
Outstandings would exceed the Aggregate Commitments.  The Administrative Agent will promptly notify the Lenders of any
such notice of termination or reduction of the Aggregate Commitments.  Any reduction of the Aggregate Commitments
shall be applied to the Commitment of each Lender according to its Pro Rata
Share.  All facility and utilization
fees accrued until the effective date of any termination of the Aggregate
Commitments shall be paid on the effective date of such termination.

 

2.05                        Repayment of Loans.

 

The Borrower shall repay
to the Lenders on the Maturity Date the aggregate principal amount of Loans
outstanding on such date.

 

2.06                        Interest.

 

(a)                                  Subject
to the provisions of subsection (b) below, (i) each Eurodollar Rate Loan shall
bear interest on the outstanding principal amount thereof for each Interest
Period at a rate per annum equal to the Eurodollar Rate for such Interest
Period plus the Applicable Rate; and (ii) each Base Rate Loan shall bear
interest on the outstanding principal amount thereof from the applicable
borrowing date at a rate per annum equal to the Base Rate plus the
Applicable Rate.

 

17

 

(b)                                 If
any amount payable by the Borrower under any Loan Document is not paid when due
(without regard to any applicable grace periods), whether at stated maturity,
by acceleration or otherwise, such amount shall thereafter bear interest at a
fluctuating interest rate per annum at all times equal to the Default Rate to
the fullest extent permitted by applicable Laws.  Furthermore, while any Event of Default exists, the Borrower
shall pay interest on the principal amount of all outstanding Obligations
hereunder at a fluctuating interest rate per annum at all times equal to the
Default Rate to the fullest extent permitted by applicable Laws.  Accrued and unpaid interest on past due
amounts (including interest on past due interest) shall be due and payable upon
demand.

 

(c)                                  Interest
on each Loan shall be due and payable in arrears on each Interest Payment Date
applicable thereto and at such other times as may be specified herein.  Interest hereunder shall be due and payable
in accordance with the terms hereof before and after judgment, and before and
after the commencement of any proceeding under any Debtor Relief Law.

 

2.07                        Fees.

 

(a)                                  Facility
Fee.  The Borrower shall pay to the
Administrative Agent for the account of each Lender in accordance with its Pro
Rata Share, a facility fee equal to the Applicable Rate times the actual
daily amount of the Aggregate Commitments (or, if the Aggregate Commitments
have terminated, on the Outstanding Amount of all Loans), regardless of
usage.  The facility fee shall accrue at
all times during the Availability Period (and thereafter so long as any Loans
remain outstanding), including at any time during which one or more of the
conditions in Article IV is not met, and shall be due and payable
quarterly in arrears on the last Business Day of each March, June, September
and December, commencing with the first such date to occur after the Closing
Date, and on the Maturity Date (and, if applicable, thereafter on demand).  The facility fee shall be calculated
quarterly in arrears, and if there is any change in the Applicable Rate during
any quarter, the actual daily amount shall be computed and multiplied by the
Applicable Rate separately for each period during such quarter that such
Applicable Rate was in effect.

 

(b)                                 Utilization
Fee.  The Borrower shall pay to the
Administrative Agent for the account of each Lender in accordance with its Pro
Rata Share, (i) at all times, unless the Term-Out Option has been exercised
pursuant to Section 2.13, a utilization fee equal to the Applicable Rate
times the Total Outstandings on each day that the Total Outstandings
exceed 33% of the actual daily amount of the Aggregate Commitments, and (ii)
from and after the effective date of the exercise of the Term-Out Option, a utilization
fee equal to the Applicable Rate times the Total Outstandings.  The utilization fee shall be due and payable
quarterly in arrears on the last Business Day of each March, June, September
and December, commencing with the first such date to occur after the Closing
Date, and on the Maturity Date.  The
utilization fee shall be calculated quarterly in arrears and if there is any
change in the Applicable Rate during any quarter, the daily amount shall be
computed and multiplied by the Applicable Rate for each period during which
such Applicable Rate was in effect The utilization fee shall accrue at all
times, including at any time during which one or more of the conditions in Article
IV is not met.

 

(c)                                  Other
Fees.

 

(i)                                     The
Borrower shall pay to each Arranger and the Administrative Agent for their own
respective accounts fees in the amounts and at the times specified in the Fee
Letters.  Such fees shall be fully
earned when paid and shall not be refundable for any reason whatsoever.

 

(ii)                                  The
Borrower shall pay to the Lenders such fees as shall have been separately
agreed upon in writing in the amounts and at the times so specified.  Such fees shall be fully earned when paid
and shall not be refundable for any reason whatsoever.

 

18

 

2.08                        Computation of Interest and Fees.  All computations of interest for Base Rate
Loans when the Base Rate is determined by Bank of America’s “prime rate” shall
be made on the basis of a year of 365 or 366 days, as the case may be, and
actual days elapsed.  All other
computations of fees and interest shall be made on the basis of a 360-day year
and actual days elapsed (which results in more fees or interest, as applicable,
being paid than if computed on the basis of a 365-day year).  Interest shall accrue on each Loan for the
day on which the Loan is made, and shall not accrue on a Loan, or any portion
thereof, for the day on which the Loan or such portion is paid, provided
that any Loan that is repaid on the same day on which it is made shall, subject
to Section 2.10(a), bear interest for one day.

 

2.09                        Evidence of Debt. 
The Loans made by each Lender shall be evidenced by one or more
accounts or records maintained by such Lender and by the Administrative Agent
in the ordinary course of business.  The
accounts or records maintained by the Administrative Agent and each Lender
shall be prima  facie evidence of the amount of the Loans made by
the Lenders to the Borrower and the interest and payments thereon.  Any failure to so record or any error in
doing so shall not, however, limit or otherwise affect the obligation of the
Borrower hereunder to pay any amount owing with respect to the
Obligations.  In the event of any
conflict between the accounts and records maintained by any Lender and the
accounts and records of the Administrative Agent in respect of such matters,
the accounts and records of the Administrative Agent shall control in the
absence of manifest error.  Upon the
request of any Lender made through the Administrative Agent, the Borrower shall
execute and deliver to such Lender (through the Administrative Agent) a Note,
which shall evidence such Lender’s Loans in addition to such accounts or
records.  Each Lender may attach
schedules to its Note and endorse thereon the date, Type (if applicable),
amount and maturity of its Loans and payments with respect thereto.

 

2.10                        Payments Generally.

 

(a)                                  All
payments to be made by the Borrower shall be made without condition or
deduction for any counterclaim, defense, recoupment or setoff.  Except as otherwise expressly provided
herein, all payments by the Borrower hereunder shall be made to the
Administrative Agent, for the account of the respective Lenders to which such
payment is owed, at the Administrative Agent’s Office in Dollars and in
immediately available funds not later than 2:00 p.m. on the date specified
herein.  The Administrative Agent will
promptly distribute to each Lender its Pro Rata Share (or other applicable
share as provided herein) of such payment in like funds as received by wire
transfer to such Lender’s Lending Office. 
All payments received by the Administrative Agent after 2:00 p.m. shall
be deemed received on the next succeeding Business Day and any applicable
interest or fee shall continue to accrue.

 

(b)                                 If
any payment to be made by the Borrower shall come due on a day other than a
Business Day, payment shall be made on the next following Business Day, and
such extension of time shall be reflected in computing interest or fees, as the
case may be.

 

(c)                                  Unless
the Borrower or any Lender has notified the Administrative Agent, prior to the
date any payment is required to be made by it to the Administrative Agent
hereunder, that the Borrower or such Lender, as the case may be, will not make
such payment, the Administrative Agent may assume that the Borrower or such
Lender, as the case may be, has timely made such payment and may (but shall not
be so required to), in reliance thereon, make available a corresponding amount
to the Person entitled thereto.  If and
to the extent that such payment was not in fact made to the Administrative
Agent in immediately available funds, then:

 

(i)                                     if
the Borrower failed to make such payment, each Lender shall forthwith on demand
repay to the Administrative Agent the portion of such assumed payment that was
made available to such Lender in immediately available funds, together with
interest thereon in respect

 

19

 

of each day from
and including the date such amount was made available by the Administrative
Agent to such Lender to the date such amount is repaid to the Administrative
Agent in immediately available funds at the Federal Funds Rate from time to
time in effect; and

 

(ii)                                  if
any Lender failed to make such payment, such Lender shall forthwith on demand
pay to the Administrative Agent the amount thereof in immediately available
funds, together with interest thereon for the period from the date such amount
was made available by the Administrative Agent to the Borrower to the date such
amount is recovered by the Administrative Agent (the “Compensation Period”)
at a rate per annum equal to the Federal Funds Rate from time to time in
effect. If such Lender pays such amount to the Administrative Agent, then such
amount shall constitute such Lender’s Loan included in the applicable
Borrowing.  If such Lender does not pay
such amount forthwith upon the Administrative Agent’s demand therefor, the
Administrative Agent may make a demand therefor upon the Borrower, and the
Borrower shall pay such amount to the Administrative Agent, together with
interest thereon for the Compensation Period at a rate per annum equal to the
rate of interest applicable to the applicable Borrowing.  Nothing herein shall be deemed to relieve
any Lender from its obligation to fulfill its Commitment or to prejudice any
rights which the Administrative Agent or the Borrower may have against any
Lender as a result of any default by such Lender hereunder.

 

A notice of the
Administrative Agent to any Lender or the Borrower with respect to any amount
owing under this subsection (c) shall be conclusive, absent manifest error.

 

(d)                                 If
any Lender makes available to the Administrative Agent funds for any Loan to be
made by such Lender as provided in the foregoing provisions of this Article
II, and such funds are not made available to the Borrower by the
Administrative Agent because the conditions to the applicable Borrowing set
forth in Article IV are not satisfied or waived in accordance with the
terms hereof, the Administrative Agent shall return such funds (in like funds
as received from such Lender) to such Lender, without interest.

 

(e)                                  The
obligations of the Lenders hereunder to make Loans are several and not
joint.  The failure of any Lender to
make any Loan or to fund any such participation on any date required hereunder
shall not relieve any other Lender of its corresponding obligation to do so on
such date, and no Lender shall be responsible for the failure of any other
Lender to so make its Loan or purchase its participation.

 

(f)                                    Nothing
herein shall be deemed to obligate any Lender to obtain the funds for any Loan
in any particular place or manner or to constitute a representation by any
Lender that it has obtained or will obtain the funds for any Loan in any
particular place or manner.

 

2.11                        Sharing of Payments.  If, other than as expressly provided elsewhere herein, any
Lender shall obtain on account of the Loans made by it, any payment (whether
voluntary, involuntary, through the exercise of any right of set-off, or otherwise)
in excess of its ratable share (or other share contemplated hereunder) thereof,
such Lender shall immediately (a) notify the Administrative Agent of such fact,
and (b) purchase from the other Lenders such participations in the Loans made
by them, as shall be necessary to cause such purchasing Lender to share the
excess payment in respect of such Loans or such participations, as the case may
be, pro rata with each of them; provided, however, that if all or
any portion of such excess payment is thereafter recovered from the purchasing
Lender under any of the circumstances described in Section 10.06
(including pursuant to any settlement entered into by the purchasing Lender in
its discretion), such purchase shall to that extent be rescinded and each other
Lender shall repay to the purchasing Lender the purchase price paid therefor,
together with an amount equal to such paying Lender’s ratable share (according
to the proportion of (i) the amount of such paying Lender’s required repayment
to (ii) the total amount so recovered from the purchasing Lender) of any
interest or

 

20

 

other amount paid or payable by the purchasing Lender
in respect of the total amount so recovered, without further interest
thereon.  The Borrower agrees that any
Lender so purchasing a participation from another Lender may, to the fullest
extent permitted by law, exercise all its rights of payment (including the
right of set-off, but subject to Section 10.09) with respect to such
participation as fully as if such Lender were the direct creditor of the
Borrower in the amount of such participation. 
The Administrative Agent will keep records (which shall be conclusive
and binding in the absence of manifest error) of participations purchased under
this Section and will in each case notify the Lenders following any such
purchases or repayments.  Each Lender
that purchases a participation pursuant to this Section shall from and after
such purchase have the right to give all notices, requests, demands, directions
and other communications under this Agreement with respect to the portion of
the Obligations purchased to the same extent as though the purchasing Lender
were the original owner of the Obligations purchased.

 

2.12                        Extension of Stated Maturity Date.

 

(a)                                  Not
earlier than 60 days prior to, nor later than 45 days prior to, the first and
second anniversary of the Closing Date, the Borrower may, upon notice to the
Administrative Agent (which shall promptly notify the Lenders), request a
364-day extension of the Stated Maturity Date then in effect (the “Request
for Extension of Stated Maturity Date”). 
Within 30 days of delivery of such notice, each Lender shall notify the
Administrative Agent whether or not it consents to such extension (which consent
may be given or withheld in such Lender’s sole and absolute discretion).  Any Lender not responding within the above
time period shall be deemed not to have consented to such extension (the “Declining
Lenders”).  The Administrative Agent
shall promptly notify the Borrower and the Lenders of the Lenders’
responses.  If any Lender declines, or
is deemed to have declined, to consent to such extension, the Borrower may
cause any such Lender to be replaced as a Lender pursuant to Section 10.16.

 

(b)                                 The
Stated Maturity Date shall be extended, subject to Section 2.12(c)
hereof, only if Lenders holding at least 51% of the Aggregate Commitments
(calculated prior to giving effect to any replacements of Lenders permitted
herein) (the “Consenting Lenders”) have consented thereto.  If so extended, the Maturity Date, as to the
Consenting Lenders, shall be extended to a date 364 days from the Stated
Maturity Date then in effect, effective as of the Stated Maturity Date then in
effect (such existing Stated Maturity Date being the “Extension Effective
Date”).  The Administrative Agent
and the Borrower shall promptly confirm to the Lenders such extension and the
Extension Effective Date.  As a
condition precedent to such extension, the Borrower shall deliver to the Administrative
Agent a certificate of the Borrower dated as of the Extension Effective Date
(in sufficient copies for each Lender) signed by a Responsible Officer of the
Borrower (i) certifying and attaching the resolutions adopted by the Borrower
approving or consenting to such extension, and (ii) certifying that, before and
after giving effect to such extension, (A) the representations and warranties
contained in Article V and the other Loan Documents are true and correct
on and as of the Extension Effective Date, except to the extent that such
representations and warranties specifically refer to an earlier date, in which
case they are true and correct as of such earlier date, and except that for
purposes of this Section 2.12, the representations and warranties
contained in subsections (a) and (b) of Section 5.04 shall be deemed to
refer to the most recent statements furnished pursuant to subsections (a) and
(b), respectively, of Section 6.01, and (B) no Default exists.  The Commitments of the Declining Lenders
shall terminate on the Extension Effective Date, and on such date the Borrower
shall pay to the Declining Lenders all Obligations owed to them.  The Borrower shall prepay all other Loans
outstanding on the Extension Effective Date (and pay any additional amounts
required pursuant to Section 3.05) to the extent necessary to keep
outstanding Loans ratable with any revised and new Pro Rata Shares of all the
Lenders effective as of the Extension Effective Date.  Prior to the Extension Effective Date, the Borrower may withdraw
its election pursuant to this Section 2.12, and if the Borrower makes
such withdrawal, the Extension Effective Date will not occur.

 

21

 

(c)                                  Prior
to the effectiveness of the extension of the Stated Maturity Date, the Borrower
shall have received all Authorizations necessary in connection with such
extension of the Stated Maturity Date, including, if required by (or, in the
opinion of the Administrative Agent or its counsel, advisable under) applicable
Pennsylvania law or regulations, an order of the Pennsylvania Public Utility
Commission approving the Borrower’s incurrence of Obligations with respect to
Loans hereunder with a maturity date which is the extended Stated Maturity
Date.  Together with such Request for
Extension of Stated Maturity Date the Borrower shall furnish to the
Administrative Agent copies of the Authorizations referenced in this Section
2.12(c), and an opinion of counsel to the Borrower (which may be internal
counsel), in form and substance satisfactory to the Administrative Agent,
stating that in connection with such proposed extension of the Stated Maturity
Date, no Authorizations are required by the PUC in those states which are
identified by the Borrower as being the states in which the Borrower is subject
to regulation by a PUC, other than Authorizations that have been obtained and
copies of which have been delivered to the Administrative Agent.

 

(d)                                 This
Section shall supersede any provisions in Section 2.11 or 10.01 to
the contrary.

 

2.13                        Term-Out Option.

 

(a)                                  Provided
no Default has occurred and is continuing, and subject to the requirements of Section
2.13(b), the Borrower may, upon prior written notice to the Administrative
Agent, sent not earlier than 60 days prior to, nor later than 10 days prior to
the Stated Maturity Date, elect to have the principal balance of the Loans
outstanding on the Stated Maturity Date continued to the Term Loan Maturity
Date as non-revolving Term Loans (the “Term-Out”).  As a condition precedent to the Term-Out,
the Borrower shall deliver to the Administrative Agent a certificate of the
Borrower dated the effective date of the Term-Out signed by a Responsible
Officer of the Borrower (i) certifying and attaching the resolutions adopted by
the Borrower approving or consenting to such Term-Out, and (ii) certifying
that, before and after giving effect to such extension, (A) the representations
and warranties contained in Article V and the other Loan Documents are
true and correct on and as of the Extension Effective Date, except to the
extent that such representations and warranties specifically refer to an
earlier date, in which case they are true and correct as of such earlier date,
and except that for purposes of this Section 2.13, the representations
and warranties contained in subsections (a) and (b) of Section 5.04
shall be deemed to refer to the most recent statements furnished pursuant to
subsections (a) and (b), respectively, of Section 6.01, and (B) no
Default exists.

 

(b)                                 Prior
to the effectiveness of the Term-Out, Borrower shall receive all Authorizations
necessary in connection with such extension of the Maturity Date to the Term
Loan Maturity Date, including, if required by (or, in the opinion of the
Administrative Agent or its counsel, advisable under) applicable Pennsylvania
law or regulations, an order of the Pennsylvania Public Utility Commission
approving the Borrower’s incurrence of Obligations with respect to Loans
hereunder with a maturity date which is the Term Loan Maturity Date.  Together with its request for the election
of the Term-Out the Borrower shall furnish to the Administrative Agent copies
of the Authorizations referenced in this Section 2.13(b), and an opinion
of counsel to the Borrower (which may be internal counsel), in form and
substance satisfactory to the Administrative Agent, stating that in connection
with such proposed extension of the Maturity Date, no Authorizations are
required by the PUC in those states which are identified by the Borrower as
being the states in which the Borrower is subject to regulation by a PUC, other
than Authorizations that have been obtained and copies of which have been
delivered to the Administrative Agent.

 

(c)                                  During
the period of such Term Loans, the Borrower may repay but not reborrow the
outstanding Term Loans as provided in Section 2.03 hereof, except as may
be required from time to time to continue the outstanding principal balance of
maturing Loans pursuant to Section 2.02.

 

22

 

2.14                        Increase in Commitments.

 

(a)                                  Provided there exists no Default, upon notice
to the Administrative Agent (which shall promptly notify the Lenders), the
Borrower may on a one-time basis, request an increase in the Aggregate
Commitments by an amount not exceeding $75,000,000.  At the time of sending such notice, the Borrower (in consultation
with the Administrative Agent) shall specify the time period within which each
Lender is requested to respond (which shall in no event be less than ten
Business Days from the date of delivery of such notice to the Lenders).  Each Lender shall notify the Administrative
Agent within such time period whether or not it agrees to increase its
Commitment and, if so, whether by an amount equal to, greater than, or less than
its Pro Rata Share of such requested increase. 
Any Lender not responding within such time period shall be deemed to
have declined to increase its Commitment. 
The Administrative Agent shall notify the Borrower and each Lender of
the Lenders’ responses to each request made hereunder.  To achieve the full amount of a requested
increase, the Borrower may also invite additional Eligible Assignees to become
Lenders pursuant to a joinder agreement in form and substance satisfactory to
the Administrative Agent and its counsel.

 

(b)                                 If the Aggregate Commitments are increased in
accordance with this Section, the Administrative Agent and the Borrower shall
determine the effective date (the “Increase Effective Date”) and the
final allocation of such increase.  The
Administrative Agent shall promptly notify the Borrower and the Lenders of the
final allocation of such increase and the Increase Effective Date.  As a condition precedent to such increase,
the Borrower shall deliver to the Administrative Agent a certificate of each
Loan Party dated as of the Increase Effective Date (in sufficient copies for
each Lender) signed by a Responsible Officer of such Loan Party (i) certifying
and attaching the resolutions adopted by such Loan Party approving or
consenting to such increase, and (ii) in the case of the Borrower, certifying
that, before and after giving effect to such increase, (A) the representations
and warranties contained in Article V and the other Loan Documents are
true and correct on and as of the Extension Effective Date, except to the
extent that such representations and warranties specifically refer to an
earlier date, in which case they are true and correct as of such earlier date,
and except that for purposes of this Section 2.14, the representations
and warranties contained in subsections (a) and (b) of Section 5.04
shall be deemed to refer to the most recent statements furnished pursuant to
subsections (a) and (b), respectively, of Section 6.01, and (B) no
Default exists.  The Borrower shall
prepay any Loans outstanding on the Increase Effective Date (and pay any
additional amounts required pursuant to Section 3.05) to the extent
necessary to keep the outstanding Loans ratable with any revised Pro Rata
Shares arising from any nonratable increase in the Commitments under this
Section.

 

(c)                                  This Section shall supersede any provisions
in Sections 2.11 or 10.01 to the contrary.

 

ARTICLE
III.

TAXES, YIELD PROTECTION AND
ILLEGALITY

 

3.01                        Taxes.

 

(a)                                  Any
and all payments by the Borrower to or for the account of the Administrative
Agent or any Lender under any Loan Document shall be made free and clear of and
without deduction for any and all present or future taxes, duties, levies,
imposts, deductions, assessments, fees, withholdings or similar charges, and
all liabilities with respect thereto, excluding, in the case of the
Administrative Agent and each Lender, taxes imposed on or measured by its
overall net income, and franchise taxes imposed on it (in lieu of net income
taxes), by the jurisdiction (or any political subdivision thereof) under the
Laws of which the Administrative Agent or such Lender, as the case may be, is
organized or maintains a lending office (all such non-excluded taxes, duties,
levies, imposts, deductions, assessments, fees, withholdings or

 

23

 

similar charges, and liabilities being hereinafter
referred to as “Taxes”).  If the
Borrower shall be required by any Laws to deduct any Taxes from or in respect
of any sum payable under any Loan Document to the Administrative Agent or any
Lender, (i) the sum payable shall be increased as necessary so that after
making all required deductions (including deductions applicable to additional
sums payable under this Section), each of the Administrative Agent and such
Lender receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrower shall make such deductions, (iii) the
Borrower shall pay the full amount deducted to the relevant taxation authority
or other authority in accordance with applicable Laws, and (iv) within 30 days
after the date of such payment, the Borrower shall furnish to the
Administrative Agent (which shall forward the same to such Lender) the original
or a certified copy of a receipt evidencing payment thereof.

 

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

 

(c)                                  If
the Borrower shall be required to deduct or pay any Taxes or Other Taxes from
or in respect of any sum payable under any Loan Document to the Administrative
Agent or any Lender, the Borrower shall also pay to the Administrative Agent or
to such Lender, as the case may be, at the time interest is paid, such
additional amount that the Administrative Agent or such Lender specifies is
necessary to preserve the after-tax yield (after factoring in all taxes,
including taxes imposed on or measured by net income) that the Administrative
Agent or such Lender would have received if such Taxes or Other Taxes had not
been imposed.

 

(d)                                 The
Borrower agrees to indemnify the Administrative Agent and each Lender for (i)
the full amount of Taxes and Other Taxes (including any Taxes or Other Taxes
imposed or asserted by any jurisdiction on amounts payable under this Section)
paid by the Administrative Agent and such Lender, (ii) amounts payable under Section
3.01(c) and (iii) any liability (including additions to tax, penalties,
interest and expenses) arising therefrom or with respect thereto, in each case
whether or not such Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority.  Payment under this subsection (d) shall be made within 30 days
after the date the Lender or the Administrative Agent makes a demand therefor.

 

3.02                        Illegality.  If
any Lender determines that any Law has made it unlawful, or that any
Governmental Authority has asserted that it is unlawful, for any Lender or its
applicable Lending Office to make, maintain or fund Eurodollar Rate Loans, or
to determine or charge interest rates based upon the Eurodollar Rate, then, on
notice thereof by such Lender to the Borrower through the Administrative Agent,
any obligation of such Lender to make or continue Eurodollar Rate Loans or to
convert Base Rate Loans to Eurodollar Rate Loans shall be suspended until such
Lender notifies the Administrative Agent and the Borrower that the
circumstances giving rise to such determination no longer exist.  Upon receipt of such notice, the Borrower
shall, upon demand from such Lender (with a copy to the Administrative Agent),
prepay or, if applicable, convert all Eurodollar Rate Loans of such Lender to
Base Rate Loans, either on the last day of the Interest Period therefor, if
such Lender may lawfully continue to maintain such Eurodollar Rate Loans to
such day, or immediately, if such Lender may not lawfully continue to maintain
such Eurodollar Rate Loans.  Upon any
such prepayment or conversion, the Borrower shall also pay accrued interest on
the amount so prepaid or converted. 
Each Lender agrees to designate a different Lending Office if such
designation will avoid the need for such notice and will not, in the good faith
judgment of such Lender, otherwise be materially disadvantageous to such
Lender.

 

24

 

3.03                        Inability to Determine Rates.  If the Required Lenders determine that
for any reason adequate and reasonable means do not exist for determining the
Eurodollar Rate for any requested Interest Period with respect to a proposed
Eurodollar Rate Loan, or that the Eurodollar Rate for any requested Interest
Period with respect to a proposed Eurodollar Rate Loan does not adequately and
fairly reflect the cost to such Lenders of funding such Loan, the
Administrative Agent will promptly so notify the Borrower and each Lender.  Thereafter, the obligation of the Lenders to
make or maintain Eurodollar Rate Loans shall be suspended until the
Administrative Agent (upon the instruction of the Required Lenders) revokes
such notice.  Upon receipt of such
notice, the Borrower may revoke any pending request for a Borrowing of,
conversion to or continuation of Eurodollar Rate Loans or, failing that, will
be deemed to have converted such request into a request for a Borrowing of Base
Rate Loans in the amount specified therein.

 

3.04                        Increased Cost and Reduced Return;
Capital Adequacy.

 

(a)                                  If
any Lender determines that as a result of the introduction of or any change in
or in the interpretation of any Law, or such Lender’s compliance therewith,
there shall be any increase in the cost to such Lender of agreeing to make or
making, funding or maintaining Eurodollar Rate Loans, or a reduction in the
amount received or receivable by such Lender in connection with any of the
foregoing (excluding for purposes of this subsection (a) any such increased
costs or reduction in amount resulting from (i) Taxes or Other Taxes (as to
which Section 3.01 shall govern), (ii) changes in the basis of taxation
of overall net income or overall gross income by the United States or any
foreign jurisdiction or any political subdivision of either thereof under the
Laws of which such Lender is organized or has its Lending Office, and (iii)
reserve requirements contemplated by Section 3.04(c)), then from time to
time upon demand of such Lender (with a copy of such demand to the
Administrative Agent), the Borrower shall pay to such Lender such additional
amounts as will compensate such Lender for such increased cost or reduction.

 

(b)                                 If
any Lender determines that the introduction of any Law regarding capital
adequacy or any change therein or in the interpretation thereof, or compliance
by such Lender (or its Lending Office) therewith, has the effect of reducing
the rate of return on the capital of such Lender or any corporation controlling
such Lender as a consequence of such Lender’s obligations hereunder (taking
into consideration its policies with respect to capital adequacy and such
Lender’s desired return on capital), then from time to time upon demand of such
Lender (with a copy of such demand to the Administrative Agent), the Borrower
shall pay to such Lender such additional amounts as will compensate such Lender
for such reduction.

 

(c)                                  The
Borrower shall pay to each Lender, as long as such Lender shall be required to
maintain reserves with respect to liabilities or assets consisting of or
including Eurocurrency funds or deposits (currently known as “Eurocurrency
liabilities”), additional interest on the unpaid principal amount of each
Eurodollar Rate Loan equal to the actual costs of such reserves allocated to
such Loan by such Lender (as determined by such Lender in good faith, which
determination shall be conclusive), which shall be due and payable on each date
on which interest is payable on such Loan, provided the Borrower shall
have received at least 15 days’ prior notice (with a copy to the Administrative
Agent) of such additional interest from such Lender.  If a Lender fails to give notice 15 days prior to the relevant Interest
Payment Date, such additional interest shall be due and payable 15 days from
receipt of such notice.  Each Lender
will promptly notify the Borrower and the Administrative Agent of any event of
which it has knowledge, occurring after the date hereof, which will entitle
such Lender to compensation pursuant to this Section and will designate a
different Lending Office if such designation will avoid the need for, or reduce
the amount of, such compensation and will not, in the judgment of such Lender,
be otherwise disadvantageous to such Lender.

 

25

 

3.05                        Funding Losses.  Upon
demand of any Lender (with a copy to the Administrative Agent) from time to
time, the Borrower shall promptly compensate such Lender for and hold such
Lender harmless from any loss, cost or expense incurred by it as a result of:

 

(a)                                  any
continuation, conversion, payment or prepayment of any Loan other than a Base
Rate Loan on a day other than the last day of the Interest Period for such Loan
(whether voluntary, mandatory, automatic, by reason of acceleration, or
otherwise);

 

(b)                                 any
failure by the Borrower (for a reason other than the failure of such Lender to
make a Loan) to prepay, borrow, continue or convert any Loan other than a Base
Rate Loan on the date or in the amount notified by the Borrower; or

 

(c)                                  any
assignment of a Eurodollar Rate Loan on a day other than the last day of the
Interest Period therefor as a result of a request by the Borrower pursuant to Section
10.16;

 

including any loss or
expense arising from the liquidation or reemployment of funds obtained by it to
maintain such Loan (excluding loss of anticipated profits) or from fees payable
to terminate the deposits from which such funds were obtained.  The Borrower shall also pay any customary
administrative fees charged by such Lender in connection with the foregoing.

 

For purposes of
calculating amounts payable by the Borrower to the Lenders under this Section
3.05, each Lender shall be deemed to have funded each Eurodollar Rate Loan
made by it at the Eurodollar Rate for such Loan by a matching deposit or other
borrowing in the London interbank eurodollar market for a comparable amount and
for a comparable period, whether or not such Eurodollar Rate Loan was in fact
so funded.

 

3.06                        Matters Applicable to all Requests for
Compensation.  A certificate of
the Administrative Agent or any Lender claiming compensation under this Article
III and setting forth the additional amount or amounts to be paid to it
hereunder shall be conclusive in the absence of manifest error.  In determining such amount, the
Administrative Agent or such Lender may use any reasonable averaging and
attribution methods.

 

3.07                        Survival.  All of
the Borrower’s obligations under this Article III shall survive
termination of the Aggregate Commitments and repayment of all other Obligations
hereunder.

 

ARTICLE
IV.

CONDITIONS PRECEDENT TO CLOSING DATE
AND TO BORROWINGS

 

4.01                        Conditions of Closing Date and Initial
Borrowing.  The obligation of
each Lender to make its initial Loan hereunder is subject to satisfaction of
the following conditions precedent:

 

(a)                                  The
Administrative Agent’s receipt of the following, each of which shall be
originals or facsimiles (followed promptly by originals) unless otherwise
specified, each properly executed by a Responsible Officer of the Borrower,
each dated the Closing Date (or, in the case of certificates of governmental
officials, a recent date before the Closing Date) and each in form and
substance satisfactory to the Administrative Agent and its legal counsel:

 

(i)                                     executed
counterparts of this Agreement, sufficient in number for distribution to the
Administrative Agent, each Lender and the Borrower;

 

(ii)                                  a
Note executed by the Borrower in favor of each Lender requesting a Note;

 

26

 

(iii)                               such
certificates of resolutions or other action, incumbency certificates and/or
other certificates of a Responsible Officer of the Borrower as the
Administrative Agent may require evidencing the identity, authority and
capacity of each Responsible Officer thereof authorized to act as a Responsible
Officer in connection with this Agreement and the other Loan Documents to which
the Borrower is a party;

 

(iv)                              a
certificate of the Pennsylvania Secretary of State evidencing that the Borrower
is duly organized or formed, and is validly existing, in good standing under
the laws of the State of Pennsylvania;

 

(v)                                 a
favorable opinion of Reed Smith LLP, counsel to the Borrower, addressed to the
Administrative Agent and each Lender, as to the matters set forth in Exhibit
E-1 and a favorable opinion of the deputy general counsel of the Borrower,
addressed to the Administrative Agent and each Lender, as to the matters set
forth in Exhibit E-2;

 

(vi)                              a
certificate signed by a Responsible Officer of the Borrower certifying (A) that
the conditions specified in Sections 4.02(a) and (b) have been
satisfied, (B) that there has been no material adverse change since December
31, 2001 in the business, assets, liabilities (actual or contingent),
operations, or condition (financial or otherwise) of the Borrower and its
subsidiaries taken as a whole; and (C) the current Debt Ratings;

 

(vii)                           evidence
that the Commitments under (i) the Existing Credit Agreement and (ii) the
Credit Agreement dated as of November 13, 2000 among the Borrower, Bank of
America, N.A., as administrative agent, Bank One, NA, as syndication agent, PNC
Bank National Association, as documentation agent, and a syndicate of lenders
have been or concurrently with the Closing Date are being terminated, and that
the Borrower has repaid all amounts owed thereunder upon such termination;

 

(viii)                        evidence
that the Borrower is entering into the Revolving Credit Agreement to be
effective as of the Closing Date; and

 

(ix)                                such
other assurances, certificates, documents, consents or opinions as the
Administrative Agent or the Required Lenders reasonably may require.

 

(b)                                 Any
fees required to be paid on or before the Closing Date shall have been paid.

 

(c)                                  Unless
waived by the Administrative Agent, the Borrower shall have paid all Attorney
Costs of the Administrative Agent to the extent invoiced prior to or on the
Closing Date.

 

4.02                        Conditions to all Borrowings.  The obligation of each Lender to honor
any Loan Notice (other than a Loan Notice requesting only a conversion of Loans
to the other Type, or a continuation of Eurodollar Rate Loans) is subject to
the following conditions precedent:

 

(a)                                  The
representations and warranties of the Borrower contained in Article V
(except the representations and warranties in Sections 5.04(c), 5.05
and 5.06, as to any matter which has theretofore been disclosed in
writing by the Borrower to the Lenders by written notice given to the
Administrative Agent) or in any other Loan Document, or which are contained in
any document furnished at any time under or in connection herewith or
therewith, shall be true and correct on and as of the date of such Borrowing.

 

27

 

(b)                                 No
Default shall exist, or would result from such proposed Borrowing.

 

(c)                                  The
Administrative Agent shall have received a Loan Notice in accordance with the
requirements hereof.

 

Each Loan Notice (other
than a Loan Notice requesting only a conversion of Loans to the other Type or a
continuation of Eurodollar Rate Loans) submitted by the Borrower shall be
deemed to be a representation and warranty that the conditions specified in Sections
4.02(a) and (b) have been satisfied on and as of the date of the
applicable Borrowing.

 

ARTICLE
V.

REPRESENTATIONS AND WARRANTIES

 

The Borrower represents
and warrants that:

 

5.01                        Corporate Existence and Power.  The Borrower is a corporation duly
incorporated, validly existing and in good standing under the laws of the
jurisdiction of its incorporation, and has all corporate powers and all
material Authorizations required to carry on its business as now conducted.

 

5.02                        Corporate and Governmental
Authorization; No Contravention.  The Borrower’s incurrence of Debt hereunder,
and the execution, delivery and performance by the Borrower of this Agreement
and the Notes, are within the corporate powers of the Borrower, have been duly
authorized by all necessary corporate action, require no action by or in
respect of, or filing with, any Governmental Authority (except such actions or
filings as have been taken or made), and do not contravene, or constitute a
default under, any provision of applicable law or regulation or of the
certificate of incorporation or by-laws of the Borrower or of any agreement,
judgment, injunction, order, decree or other instrument binding upon the
Borrower or any of its Subsidiaries, or result in the creation or imposition of
any Lien on any asset of the Borrower or any of its Subsidiaries.

 

5.03                        Binding Effect.  This Agreement constitutes a valid and
binding agreement of the Borrower, and each Note, when executed and delivered
in accordance with this Agreement, will constitute a valid and binding
obligation of the Borrower, in each case enforceable in accordance with its
terms, except as such enforcement may be limited by bankruptcy, insolvency or
similar laws of general application relating to the enforcement of creditors’
rights.

 

5.04                        Financial Information.

 

(a)                                  The
consolidated balance sheet of the Borrower and its Consolidated Subsidiaries as
of December 31, 2001, and the related consolidated statements of income, cash
flows and changes in stockholders’ equity for the fiscal year then ended,
reported on by Ernst & Young LLP, independent certified public accountants
for the Borrower, and set forth in the Borrower’s 2001 Form 10-K, a copy of
which has been delivered to each of the Lenders, (i) fairly present, in
conformity with GAAP, the consolidated financial position of the Borrower and
its Consolidated Subsidiaries as of such date and their consolidated results of
operations and cash flows for such fiscal year, and (ii) show, to the extent
required by GAAP, all material indebtedness and other liabilities, direct or
contingent, of the Borrower and its Subsidiaries as of the date thereof,
including liabilities for taxes, material commitments and Debt.

 

(b)                                 The
unaudited consolidated balance sheet of the Borrower and its Consolidated
Subsidiaries as of June 30, 2002, and the related unaudited consolidated
statements of income and cash flows for the three months then ended, set forth
in the Borrower’s Latest Form 10-Q, a copy of which has been delivered to each
of the Lenders, fairly present, in conformity with GAAP applied on a basis

 

28

 

consistent with the financial statements referred to
in subsection (a)
of this Section, the consolidated financial position of the Borrower and its
Consolidated Subsidiaries as of such date and their consolidated results of
operations and cash flows for such three month period (subject to normal
year-end adjustments).

 

(c)                                  Since
December 31, 2001 there has been no material adverse change in the business,
financial position or results of operations of the Borrower and its
Consolidated Subsidiaries, considered as a whole.

 

5.05                        Litigation.
 Except for the litigation described on Schedule
5.05 (the “Scheduled Litigation”) there is no action, suit, proceeding or
investigation pending against, or, to the knowledge of the Borrower, threatened
against or affecting, the Borrower or any of its Subsidiaries before any
Governmental Authority in which there is a reasonable possibility of an adverse
decision which could materially adversely affect the business, consolidated
financial position or consolidated results of operations of the Borrower and its
Consolidated Subsidiaries, considered as a whole, or which in any manner draws
into question the validity or enforceability of this Agreement or the
Notes.  The Scheduled Litigation is not
reasonably expected by the Borrower to have a material adverse effect on the
business, financial condition, results of operations or prospects of the
Borrower and its Consolidated Subsidiaries, considered as a whole.

 

5.06                        No Default.  Neither the Borrower nor any of its
Subsidiaries is in default under or with respect to any contractual obligation
which could be reasonably expected to have a material adverse effect on the
business, financial condition, results of operations or prospects of the
Borrower and its Consolidated Subsidiaries, considered as a whole.

 

5.07                        Compliance with ERISA.  Each
member of the ERISA Group has fulfilled its obligations under the minimum
funding standards of ERISA and the Internal Revenue Code with respect to each
Plan and is in compliance in all material respects with the presently
applicable provisions of ERISA and the Internal Revenue Code with respect to
each Plan.  No member of the ERISA Group
has (i) sought a waiver of the minimum funding standard under Section 412 of the Internal Revenue Code
in respect of any Plan, (ii) failed to make any contribution or payment to any
Plan or Multiemployer Plan or in respect of any Benefit Arrangement, or made
any amendment to any Plan or Benefit Arrangement, which has resulted or could
result in the imposition of a Lien or the posting of a bond or other security
under ERISA or the Internal Revenue Code, or (iii) incurred any liability under
Title IV of ERISA other than a liability to the PBGC for premiums under Section 4007 of ERISA.

 

5.08                        Environmental Matters.  In the
ordinary course of its business, the Borrower conducts an ongoing review of the
effect of Environmental Laws on the business, operations and properties of the
Borrower and its Subsidiaries, in the course of which it identifies and
evaluates associated liabilities and costs (including, without limitation, any
capital or operating expenditures required for clean-up or closure of
properties presently or previously owned, any capital or operating expenditures
required to achieve or maintain compliance with environmental protection
standards imposed by law or as a condition of any license, permit or contract,
any related constraints on operating activities, including any periodic or
permanent shutdown of any facility or reduction in the level of or change in
the nature of operations conducted thereat, any costs or liabilities in
connection with off-site disposal of wastes or Hazardous Substances, and any
actual or potential liabilities to third parties, including employees, and any
related costs and expenses).  On the
basis of this review, the Borrower has concluded that such associated
liabilities and costs, including the costs of compliance with Environmental
Laws, are unlikely to have a material adverse effect on the business, financial
condition, results of operations or prospects of the Borrower and its
Consolidated Subsidiaries, considered as a whole.

 

29

 

5.09                        Taxes.  The Borrower and its Subsidiaries have filed
all United States Federal income tax returns and all other material tax returns
which are required to be filed by them, and have paid all taxes due pursuant to
such returns or pursuant to any assessment received by the Borrower or any
Subsidiary (other than those not yet delinquent and payable without premium or
penalty, and except for those being diligently contested in good faith by
appropriate proceedings, and in each case, for which adequate reserves and
provisions for taxes have been made on the books of the Borrower and each
Subsidiary).  The charges, accruals and
reserves on the books of the Borrower and its Subsidiaries in respect of taxes
or other governmental charges are, in the opinion of the Borrower, adequate.

 

5.10                        Subsidiaries.  Each of the Borrower’s corporate
Subsidiaries is a corporation duly incorporated, validly existing and in good
standing under the laws of its jurisdiction of incorporation, and has all
corporate powers and all material governmental authorizations required to carry
on its business as now conducted, except where the absence of any of the
foregoing could not reasonably be expected to have a material adverse effect on
the business, financial condition, results of operations or prospects of the
Borrower and its Consolidated Subsidiaries, considered as a whole.

 

5.11                        Regulatory Restrictions on Borrowing;
Margin Regulations.

 

(a)                                  None
of the Borrower, any Person Controlling the Borrower, or any Subsidiary is an “investment company” within the meaning of
the Investment Company Act of 1940, as amended, or a “holding company,” or a “subsidiary company” of a “holding company,” or an “affiliate” of a “holding company” or of a “subsidiary company” of a “holding company,” within the meaning of
the Public Utility Holding Company Act of 1935, as amended.

 

(b)                                 Margin
stock does not constitute more than 25% of the assets of the Borrower and its
Subsidiaries.

 

5.12                        Full Disclosure.  No statement, information, report,
representation, or warranty made by the Borrower in any Loan Document or
furnished to the Administrative Agent or any Lender by or on behalf of the
Borrower in connection with any Loan Document contains any untrue statement of
a material fact or omits any material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading.

 

ARTICLE
VI.

AFFIRMATIVE COVENANTS

 

The Borrower agrees that,
so long as any Lender has any Commitment hereunder or any amount payable
hereunder remains unpaid:

 

6.01                        Information.  The Borrower will deliver to each of the
Lenders:

 

(a)                                  as
soon as available, and in any event within 90 days (and 75 days after the end
of the fiscal year ending December 31, 2003, if applicable and 60 days after
the end of the fiscal year ending December 31, 2004, if applicable) after the
end of each fiscal year of the Borrower, a consolidated balance sheet of the
Borrower and its Consolidated Subsidiaries as of the end of such fiscal year
and the related consolidated statements of income, cash flows and changes in
stockholders’ equity for such fiscal year, setting forth in each case in
comparative form the figures for the previous fiscal year, all in reasonable
detail and prepared in accordance with GAAP, audited and accompanied by a
report and opinion of an independent certified public accountant of nationally
recognized standing selected by the Borrower, which report and opinion shall be
prepared in accordance with generally accepted auditing

 

30

 

standards and shall not be subject to any “going
concern” or like qualification or exception or any qualification or exception
as to the scope of such audit;

 

(b)                                 as
soon as available, and in any event within 45 days (and 40 days after the end
of each fiscal quarter beginning March 31, 2003, if applicable) after the end
of each of the first three quarters of each fiscal year of the Borrower, a
consolidated balance sheet of the Borrower and its Consolidated Subsidiaries as
of the end of such quarter and the related consolidated statements of income
and cash flows for such quarter and for the portion of the Borrower’s fiscal
year ended at the end of such quarter, setting forth in the case of such
statements of income and cash flows, in comparative form the figures for the
corresponding quarter and the corresponding portion of the Borrower’s previous
fiscal year, all certified (subject to normal year-end adjustments) as to
fairness of presentation, conformity to GAAP and consistency by the chief
financial officer or the chief accounting officer of the Borrower;

 

(c)                                  simultaneously
with the delivery of each set of financial statements referred to in clauses (a) and (b) above, a
certificate of a Responsible Officer of the Borrower substantially in the form
of the Compliance Certificate attached hereto;

 

(d)                                 within
five days after any officer of the Borrower obtains actual knowledge of any
Default, if such Default is then continuing, a certificate of a Responsible
Officer of the Borrower setting forth the details thereof and the action which
the Borrower is taking or proposes to take with respect thereto;

 

(e)                                  promptly
upon the mailing thereof to the shareholders of the Borrower generally, copies
of all financial statements, reports and proxy statements so mailed;

 

(f)                                    promptly
upon the filing thereof, copies of all registration statements (other than the
exhibits thereto and any registration statements on Form S-8 or its equivalent)
and reports on Forms 10-K, 10-Q and 8-K (or their equivalents) which the
Borrower shall have filed with the Securities and Exchange Commission;

 

(g)                                 if
and when any member of the ERISA Group (i) gives or is required to give notice
to the PBGC of any “reportable event”
(as defined in Section 4043 of
ERISA) with respect to any Plan which might constitute grounds for a
termination of such Plan under Title IV of ERISA, or knows that the plan
administrator of any Plan has given or is required to give notice of any such
reportable event, a copy of the notice of such reportable event given or
required to be given to the PBGC; (ii) receives notice of complete or partial
withdrawal liability under Title IV of ERISA or notice that any Multiemployer
Plan is in reorganization, is insolvent or has been terminated, a copy of such
notice; (iii) receives notice from the PBGC under Title IV of ERISA of an
intent to terminate, impose liability (other than for premiums under Section 4007 of ERISA) in respect of, or
appoint a trustee to administer any Plan, a copy of such notice; (iv) applies
for a waiver of the minimum funding standard under Section 412 of the Internal Revenue Code, a copy of such
application; (v) gives notice of intent to terminate any Plan under Section 4041(c) of ERISA, a copy of such
notice and other information filed with the PBGC; (vi) gives notice of
withdrawal from any Plan pursuant to Section
4063 of ERISA, a copy of such notice; or (vii) fails to make any
payment or contribution to any Plan or Multiemployer Plan or in respect of any
Benefit Arrangement or makes any amendment to any Plan or Benefit Arrangement
which has resulted or could result in the imposition of a Lien or the posting
of a bond or other security, a certificate of the chief financial officer or
the chief accounting officer of the Borrower setting forth details as to such
occurrence and action, if any, which the Borrower or applicable member of the ERISA
Group is required or proposes to take; and

 

31

 

(h)                                 from
time to time, such additional information regarding the financial position or
business of the Borrower and its Subsidiaries as the Administrative Agent, at
the request of any Lender, may reasonably request.

 

Documents required to be
delivered pursuant to Section 6.01(a),  (b) or (f) (to the
extent any such documents are included in materials otherwise filed with the
SEC) may be delivered electronically and if so delivered, shall be deemed to
have been delivered on the date (i) (A) on which the Borrower posts such
documents, or provides a link thereto on the Borrower’s website on the Internet
at the website address listed on Schedule 10.02; or (B) on which
such documents are posted on the Borrower’s behalf on IntraLinks/IntraAgency or
another relevant website, if any, to which each Lender and the Administrative
Agent have access (whether a commercial, third-party website or whether
sponsored by the Administrative Agent), and (ii) on which the Borrower notifies
(which may be by facsimile or electronic mail) the Administrative Agent and
each Lender of the posting of any such documents; provided that the
Borrower shall deliver paper copies or soft copies (by electronic mail) of such
documents to the Administrative Agent or any Lender that requests the Borrower
to deliver such paper copies or soft copies until a written request to cease
delivering paper copies or soft copies is given by the Administrative Agent or
such Lender.  Notwithstanding anything
contained herein, in every instance the Borrower shall be required to provide
paper copies of the Compliance Certificates required by Section 6.01(c)
to the Administrative Agent and each of the Lenders.  Except for such Compliance Certificates, the Administrative Agent
shall have no obligation to request the delivery or to maintain copies of the
documents referred to above, and in any event shall have no responsibility to
monitor compliance by the Borrower with any such request for delivery, and each
Lender shall be solely responsible for requesting delivery to it or maintaining
its copies of such documents.

 

6.02                        Payment of Obligations.  The
Borrower will pay and discharge, and will cause each Subsidiary to pay and
discharge, at or before maturity, all their respective material obligations and
liabilities (including, without limitation, tax liabilities and claims of
materialmen, warehousemen and the like, which if unpaid might by law give rise
to a Lien), except where the same may be contested in good faith by appropriate
proceedings, and will maintain, and will cause each Subsidiary to maintain, in
accordance with generally accepted accounting principles, appropriate reserves
for the accrual of any of the same.

 

6.03                        Maintenance of Property; Insurance.

 

(a)                                  The
Borrower will keep, and will cause each Subsidiary to keep, all material
property useful and necessary in its business in good working order and
condition, ordinary wear and tear excepted.

 

(b)                                 The
Borrower will, and will cause each of its Subsidiaries to, maintain (either in
the name of the Borrower or in such Subsidiary’s own name) with financially
sound and responsible insurance companies, insurance on all their respective
properties in at least such amounts, against at least such risks and with such
risk retention as are usually maintained, insured against or retained, as the
case may be, in the same general area by companies of established repute
engaged in the same or a similar business; and will furnish to the Lenders,
upon request from the Administrative Agent, information presented in reasonable
detail as to the insurance so carried.

 

6.04                        Conduct of Business and Maintenance of
Existence.  The Borrower will preserve, renew and keep
in full force and effect, and will cause each Subsidiary to preserve, renew and
keep in full force and effect their respective legal existence and good
standing under the Laws of the jurisdiction of its organization and their
respective rights, privileges and franchises necessary or desirable in the
normal conduct of business; provided that nothing in this Section 6.04 shall
prohibit (i) the merger of a

 

32

 

Subsidiary into the Borrower or the merger or
consolidation of a Subsidiary with or into another Person if the corporation
surviving such consolidation or merger is a domestic Subsidiary and if, in each
case, after giving effect thereto, no Default shall have occurred and be
continuing, or (ii) the termination of the corporate existence of any
Subsidiary if the Borrower in good faith determines that such termination is in
the best interest of the Borrower and is not materially disadvantageous to the
Lenders.

 

6.05                        Compliance with Laws.  The Borrower will comply, and cause each
Subsidiary to comply, in all material respects with all applicable laws,
ordinances, rules, regulations, and requirements of governmental authorities
(including, without limitation, Environmental Laws and ERISA and the rules and
regulations thereunder) except where the necessity of compliance therewith is
contested in good faith by appropriate proceedings.

 

6.06                        Inspection
of Property, Books and Records. 
The Borrower will keep, and will cause each Subsidiary to keep, proper
books of record and account in which full, true and correct entries shall be
made of all dealings and transactions in relation to its business and
activities; and will permit, and will cause each Subsidiary to permit,
representatives of any Lender at such Lender’s expense to visit and inspect any
of their respective properties, to examine and make abstracts from any of their
respective books and records, and to discuss their respective affairs, finances
and accounts with their respective officers, employees and independent public
accountants, all at such reasonable times and as often as may reasonably be
desired.

 

6.07                        Use of Proceeds.  The proceeds of the Loans made under this
Agreement will be used by the Borrower (i) for working capital, capital
expenditures and other lawful corporate purposes, and (ii) as support for the
Borrower’s commercial paper program.

 

6.08                        Governmental
Approvals and Filings. 
The Borrower will, and will cause each Subsidiary to, keep and maintain
in full force and effect all action by or in respect of, or filing with, any
Governmental Authority necessary in connection with (a) the execution and
delivery of this Agreement, or any Note issued hereunder by the Borrower, (b)
the consummation by the Borrower of the transactions herein or therein
contemplated, (c) the performance of or compliance with the terms and
conditions hereof or thereof by the Borrower, or (d) any other actions required
to ensure the legality, validity, binding effect, enforceability or
admissibility in evidence hereof or thereof.

 

ARTICLE
VII.

NEGATIVE COVENANTS

 

So long as any Lender
shall have any Commitment hereunder, any Loan or other Obligation hereunder
shall remain unpaid or unsatisfied:

 

7.01                        Liens.  Neither the
Borrower nor any Subsidiary shall, directly or indirectly, create, incur, assume
or suffer to exist any Lien on any asset now owned or hereafter acquired by it,
except:

 

(a)                                  Liens
existing on the date of this Agreement securing Debt outstanding on the date of
this Agreement in an aggregate principal or face amount not exceeding $10,000,000;

 

(b)                                 any
Lien existing on any asset of any person at the time such person becomes a
Subsidiary, and not created in contemplation of such event;

 

(c)                                  any
Lien on any asset securing Debt incurred or assumed for the purpose of
financing all or any part of the cost of acquiring such asset, provided that
such Lien attaches to such asset concurrently with or within 90 days after
completion of the acquisition thereof;

 

33

 

(d)                                 Liens
on the assets of NORESCO or on the assets of a Subsidiary of NORESCO
attributable to a NORESCO Project securing obligations of NORESCO or such
Subsidiary with respect to surety bonds and similar instruments obtained by
NORESCO or such Subsidiary with respect to such NORESCO Project;

 

(e)                                  any
Lien on any asset of any person existing at the time such person is merged or
consolidated with or into the Borrower or a Subsidiary and not created in
contemplation of such event;

 

(f)                                    any
Lien existing on any asset prior to the acquisition thereof by the Borrower or
a Subsidiary, and not created in contemplation of such acquisition;

 

(g)                                 any
Lien arising out of the refinancing, extension, renewal or refunding of any
Debt secured by any Lien permitted by any of the foregoing clauses of this Section;
provided that such Debt is not increased and is not secured by any additional
assets;

 

(h)                                 Liens
arising in the ordinary course of its business which (i) do not secure Debt or
obligations in respect of Swap Contracts, (ii) do not secure any obligation in
an amount exceeding $20,000,000 and (iii) do not in the aggregate materially
detract from the value of its assets or materially impair the use thereof in
the operation of its business;

 

(i)                                     Liens
on cash and cash equivalents securing obligations in respect of Swap Contracts,
provided that the aggregate amount of cash and cash equivalents subject to such
Liens may at no time exceed $25,000,000;

 

(j)                                     Liens
on the oil and gas properties, revenue therefrom, and other assets related to
the ANPI Transaction securing ANPI Obligations, as such Liens are described in
documentation in place as of the date of this Agreement, with such changes in
such documentation as, in the reasonable opinion of the Administrative Agent,
do not adversely affect the interest of the Lenders;

 

(k)                                  Production
Payments and Liens on the properties covered thereby to secure performance
obligations in connection therewith, provided that the aggregate principal
amount of balance sheet obligations in respect of Production Payments may at no
time exceed $500,000,000; and

 

(l)                                     Liens
not otherwise permitted by the foregoing clauses of this Section securing Debt
in an aggregate principal or face amount at any date not to exceed
$100,000,000.

 

7.02                        Debt to Total Capital.                              Consolidated Debt will at no time exceed 65%
of Total Capital.

 

7.03                        Transactions with Affiliates.                                     The Borrower will not, and will not permit
any Subsidiary to, directly or indirectly, pay any funds to or for the account
of, make any investment (whether by acquisition of stock or indebtedness, by
loan, advance, transfer of property, guarantee or other agreement to pay,
purchase or service, directly or indirectly, any Debt, or otherwise) in, lease,
sell, transfer or otherwise dispose of any assets, tangible or intangible, to,
or participate in, or effect, any transaction with, any Affiliate, except on an
arms-length basis on terms at least as favorable to the Borrower or such
Subsidiary than could have been obtained from a third party who was not an
Affiliate; provided that the foregoing
provisions of this Section shall not prohibit any such Person from declaring or
paying any lawful dividend or other payment ratably in respect of all of its
capital stock of the relevant class so long as, after giving effect thereto, no
Default shall have occurred and be continuing.

 

34

 

7.04                        Limitation of Other Restrictions on Dividends by
Subsidiaries, etc.                       The Borrower will not permit any Subsidiary
to be or become subject to any restriction of any nature (whether arising by
operation of law, by agreement, by its articles of incorporation, by-laws or
other constituent documents of such Subsidiary, or otherwise) on the right of
such Subsidiary from time to time to (w) declare and pay dividends or distributions
with respect to capital stock owned by the Borrower or any Subsidiary,
(x) pay any indebtedness, obligations or liabilities from time to time
owed to the Borrower or any Subsidiary, (y) make loans or advances to the
Borrower or any Subsidiary, or (z) transfer any of its properties or
assets to the Borrower or any Subsidiary, except:

 

(a)                                  legal restrictions of general applicability
under the corporation law under which such Subsidiary is incorporated, and
fraudulent conveyance or similar laws of general applicability for the benefit
of creditors of such Subsidiary generally;

 

(b)                                 with respect to clause (z) above:  (i) non-assignment provisions of any
executory contract or of any lease by the Borrower or such Subsidiary as
lessee, and (ii) restrictions on transfer of property subject to a Lien
permitted by Section
7.01 for the benefit of the holder of such Lien;

 

(c)                                  restrictions applicable solely to an Excluded
Subsidiary.

 

7.05                        Mergers and Sales of Assets.  The Borrower will not (i) consolidate or merge with or into any
other Person or (ii) sell, lease or otherwise transfer, directly or indirectly,
all or substantially all of the assets of the Borrower and its Subsidiaries,
taken as a whole, to any other Person; provided
that the Borrower may merge with another Person if (x) the Borrower
is the corporation surviving such merger and (y) after giving effect to such
merger, no Default shall have occurred and be continuing.

 

7.06                        Change in Nature of Business.  The Borrower shall not, nor shall it
permit any Subsidiary to, directly or indirectly, engage in any material line
of business substantially different from those lines of business conducted by
the Borrower and its Subsidiaries on the date hereof or any business
substantially related or incidental thereto.

 

7.07                        Use of Proceeds.  The
Borrower shall not use the proceeds of any Borrowing, whether directly or
indirectly, for a purpose that entails a violation of Regulation U of the FRB.

 

ARTICLE
VIII.

EVENTS
OF DEFAULT AND REMEDIES

 

8.01                        Events of Default. 
Any of the following shall constitute an Event of Default:

 

(a)                                  Non-Payment.  The Borrower fails to pay (i) when and as
required to be paid herein, any amount of principal of any Loan, or (ii) within
five days after the same becomes due, any interest on any Loan, or any
facility, utilization or other fee due hereunder, or any other amount payable
hereunder or under any other Loan Document; or

 

(b)                                 Specific
Covenants.  The Borrower fails to
perform or observe any term, covenant or agreement contained in Article VI
(other than those contained in Sections 6.01 (other than 6.01(d))
through 6.06), or Article VII; or

 

(c)                                  Other
Defaults.  The Borrower fails to
perform or observe any other covenant or agreement (not specified in subsection
(a) or (b) above) contained in any Loan Document on its part to be performed or
observed and such failure continues for 30 days; or

 

35

 

(d)                                 Representations
and Warranties.  Any representation,
warranty, certification or statement of fact made or deemed made by or on
behalf of the Borrower, in any other Loan Document, or in any document
delivered in connection herewith or therewith shall be incorrect or misleading
when made or deemed made; provided
that (except in the case of
any representation, warranty or certification made with respect to any
financial statement of the Borrower) if such lack of correctness is capable of
being remedied or cured within a 30-day period, Borrower shall have a period of
30 days after written notice thereof has been given to Borrower by
Administrative Agent (acting on the request of one or more Lenders) within
which to remedy or cure such lack of correctness; or

 

(e)                                  Cross-Payment
Default; Cross-Acceleration.  The
Borrower or any Subsidiary (A) fails to make any payment when due (whether by
scheduled maturity, required prepayment, acceleration, demand, or otherwise) in
respect of any Material Financial Obligations, or (B) fails to observe or
perform any other agreement or condition relating to any Material Debt or
contained in any instrument or agreement evidencing, securing or relating
thereto, or any other event occurs, the effect of which default or other event
is to cause the maturity of such Material Debt to be accelerated or to cause
such Material Debt to be repurchased, prepaid, defeased or redeemed
(automatically or otherwise), or an offer to repurchase, prepay, defease or
redeem such Debt to be made, prior to its stated maturity; or

 

(f)                                    Insolvency
Proceedings, Etc.  The Borrower or
any Material Subsidiary institutes or consents to the institution of any
proceeding under any Debtor Relief Law, or makes an assignment for the benefit
of creditors; or applies for or consents to the appointment of any receiver,
trustee, custodian, conservator, liquidator, rehabilitator or similar officer
for it or for all or any material part of its property; or any receiver,
trustee, custodian, conservator, liquidator, rehabilitator or similar officer
is appointed without the application or consent of such Person and the
appointment continues undischarged or unstayed for 60 calendar days; or any
proceeding under any Debtor Relief Law relating to any such Person or to all or
any material part of its property is instituted without the consent of such
Person and continues undismissed or unstayed for 60 calendar days, or an order
for relief is entered in any such proceeding; or

 

(g)                                 Inability
to Pay Debts; Attachment.  (i) The
Borrower or any Material Subsidiary admits in writing its inability or fails
generally to pay its debts as they become due, or (ii) any writ or warrant of
attachment or execution or similar process is issued or levied against all or
any material part of the property of any such Person and is not released,
vacated or fully bonded within 30 days after its issue or levy; or

 

(h)                                 Judgments.  There is entered against the Borrower or any
Subsidiary final judgments or orders for the payment of money in an aggregate
amount exceeding $50,000,000 (to the extent not covered by independent
third-party insurance as to which the insurer does not dispute coverage), and
(A) enforcement proceedings are commenced by any creditor upon such judgment or
order, or (B) there is a period of 30 consecutive days during which a stay of
enforcement of such judgment, by reason of a pending appeal or otherwise, is
not in effect; or

 

(i)                                     ERISA.  Any
member of the ERISA Group shall fail to pay when due an amount or amounts
aggregating in excess of $5,000,000 which it shall have become liable to pay
under Title IV of ERISA; or notice of intent to terminate a Material Plan shall
be filed under Title IV of ERISA by any member of the ERISA Group, any plan
administrator or any combination of the foregoing; or the PBGC shall institute
proceedings under Title IV of ERISA to terminate, to impose liability (other
than for premiums under Section 4007
of ERISA) in respect of, or to cause a trustee to be appointed to administer,
any Material Plan; or a condition shall exist by reason of which the PBGC would
be entitled to obtain a decree adjudicating that any Material Plan must be
terminated; or there shall occur a complete or partial

 

36

 

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 ERISA Group to incur a
current payment obligation in excess of $25,000,000 in the aggregate; or

 

(j)                                     Invalidity
of Loan Documents.  Any Loan
Document (other than the Fee Letters), at any time after its execution and
delivery and for any reason other than as expressly permitted hereunder or
satisfaction in full of all the Obligations, ceases to be in full force and
effect; or the Borrower or any other Person contests in any manner the validity
or enforceability of any Loan Document; or the Borrower denies that it has any
or further liability or obligation under any Loan Document, or purports to
revoke, terminate or rescind any Loan Document; or

 

(k)                                  Change
of Control.  There occurs any Change
of Control with respect to the Borrower.

 

8.02                        Remedies Upon Event of Default.  If any Event of Default occurs and is
continuing, the Administrative Agent shall, at the request of, or may, with the
consent of, the Required Lenders, take any or all of the following actions:

 

(a)                                  declare
the commitment of each Lender to make Loans to be terminated, whereupon such
commitments and obligation shall be terminated;

 

(b)                                 declare
the unpaid principal amount of all outstanding Loans, all interest accrued and
unpaid thereon, and all other amounts owing or payable hereunder or under any
other Loan Document to be immediately due and payable, without presentment,
demand, protest or other notice of any kind, all of which are hereby expressly
waived by the Borrower; and

 

(c)                                  exercise
on behalf of itself and the Lenders all rights and remedies available to it and
the Lenders under the Loan Documents or applicable law;

 

provided,
however, that upon the occurrence of an actual or deemed entry of an
order for relief with respect to the Borrower under the Bankruptcy Code of the
United States, the obligation of each Lender to make Loans shall automatically
terminate, the unpaid principal amount of all outstanding Loans and all
interest and other amounts as aforesaid shall automatically become due and
payable, in each case without further act of the Administrative Agent or any
Lender.

 

8.03                        Application of Funds.  After the exercise of remedies provided for in Section
8.02 (or after the Loans have automatically become immediately due and payable
as set forth in the proviso to Section 8.02), any amounts received on
account of the Obligations shall be applied by the Administrative Agent in the
following order:

 

First,
to payment of that portion of the Obligations constituting fees, indemnities,
expenses and other amounts (including Attorney Costs and amounts payable under Article
III) payable to the Administrative Agent in its capacity as such;

 

Second,
to payment of that portion of the Obligations constituting fees, indemnities
and other amounts (other than principal and interest) payable to the Lenders
(including Attorney Costs and amounts payable under Article III),
ratably among them in proportion to the amounts described in this clause Second
payable to them;

 

Third,
to payment of that portion of the Obligations constituting accrued and unpaid
interest on the Loans, ratably among the Lenders in proportion to the
respective amounts described in this clause Third payable to them;

 

37

 

Fourth,
to payment of that portion of the Obligations constituting unpaid principal of
the Loans, ratably among the Lenders in proportion to the respective amounts
described in this clause Fourth held by them; and

 

Last,
the balance, if any, after all of the Obligations have been indefeasibly paid
in full, to the Borrower or as otherwise required by Law.

 

ARTICLE
IX.

ADMINISTRATIVE AGENT

 

9.01                        Appointment and Authorization of
Administrative Agent.

 

Each Lender hereby
irrevocably appoints, designates and authorizes the Administrative Agent to
take such action on its behalf under the provisions of this Agreement and each
other Loan Document and to exercise such powers and perform such duties as are
expressly delegated to it by the terms of this Agreement or any other Loan
Document, together with such powers as are reasonably incidental thereto.  Notwithstanding any provision to the
contrary contained elsewhere herein or in any other Loan Document, the
Administrative Agent shall not have any duties or responsibilities, except
those expressly set forth herein, nor shall the Administrative Agent have or be
deemed to have any fiduciary relationship with any Lender or participant, and
no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or any other Loan Document or
otherwise exist against the Administrative Agent.  Without limiting the generality of the foregoing sentence, the
use of the term “agent” herein and in the other Loan Documents with reference
to the Administrative Agent is not intended to connote any fiduciary or other
implied (or express) obligations arising under agency doctrine of any
applicable Law.  Instead, such term is
used merely as a matter of market custom, and is intended to create or reflect
only an administrative relationship between independent contracting parties.

 

9.02                        Delegation of Duties.  The Administrative Agent may execute any of its duties under
this Agreement or any other Loan Document by or through agents, employees or
attorneys-in-fact and shall be entitled to advice of counsel and other
consultants or experts concerning all matters pertaining to such duties.  The Administrative Agent shall not be
responsible for the negligence or misconduct of any agent or attorney-in-fact
that it selects in the absence of gross negligence or willful misconduct.

 

9.03                        Liability of Administrative Agent.  No Agent-Related Person shall (a) be
liable for any action taken or omitted to be taken by any of them under or in
connection with this Agreement or any other Loan Document or the transactions
contemplated hereby (except for its own gross negligence or willful misconduct
in connection with its duties expressly set forth herein), or (b) be
responsible in any manner to any Lender or participant for any recital,
statement, representation or warranty made by the Borrower or any officer
thereof, contained herein or in any other Loan Document, or in any certificate,
report, statement or other document referred to or provided for in, or received
by the Administrative Agent under or in connection with, this Agreement or any
other Loan Document, or the validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement or any other Loan Document, or
for any failure of the Borrower or any other party to any Loan Document to
perform its obligations hereunder or thereunder.  No Agent-Related Person shall be under any obligation to any
Lender or participant to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, this
Agreement or any other Loan Document, or to inspect the properties, books or
records of the Borrower or any Affiliate thereof.

 

38

 

9.04                        Reliance by Administrative Agent.

 

(a)                                  The
Administrative Agent shall be entitled to rely, and shall be fully protected in
relying, upon any writing, communication, signature, resolution,
representation, notice, consent, certificate, affidavit, letter, telegram,
facsimile, telex or telephone message, electronic mail message, statement or
other document or conversation believed by it to be genuine and correct and to
have been signed, sent or made by the proper Person or Persons, and upon advice
and statements of legal counsel (including counsel to the Borrower),
independent accountants and other experts selected by the Administrative
Agent.  The Administrative Agent shall
be fully justified in failing or refusing to take any action under any Loan Document
unless it shall first receive such advice or concurrence of the Required
Lenders as it deems appropriate and, if it so requests, it shall first be
indemnified to its satisfaction by the Lenders against any and all liability
and expense which may be incurred by it by reason of taking or continuing to
take any such action.  The
Administrative Agent shall in all cases be fully protected in acting, or in
refraining from acting, under this Agreement or any other Loan Document in
accordance with a request or consent of the Required Lenders (or such greater
number of Lenders as may be expressly required hereby in any instance) and such
request and any action taken or failure to act pursuant thereto shall be
binding upon all the Lenders.

 

(b)                                 For
purposes of determining compliance with the conditions specified in Section
4.01, each Lender that has signed this Agreement shall be deemed to have
consented to, approved or accepted or to be satisfied with, each document or
other matter required thereunder to be consented to or approved by or
acceptable or satisfactory to a Lender unless the Administrative Agent shall
have received notice from such Lender prior to the proposed Closing Date
specifying its objection thereto.

 

9.05                        Notice of Default. 
The Administrative Agent shall not be deemed to have knowledge or
notice of the occurrence of any Default, except with respect to defaults in the
payment of principal, interest and fees required to be paid to the
Administrative Agent for the account of the Lenders, unless the Administrative
Agent shall have received written notice from a Lender or the Borrower
referring to this Agreement, describing such Default and stating that such
notice is a “notice of default.”  The
Administrative Agent will notify the Lenders of its receipt of any such
notice.  The Administrative Agent shall
take such action with respect to such Default as may be directed by the
Required Lenders in accordance with Article VIII; provided, however,
that unless and until the Administrative Agent has received any such direction,
the Administrative Agent may (but shall not be obligated to) take such action,
or refrain from taking such action, with respect to such Default as it shall
deem advisable or in the best interest of the Lenders.

 

9.06                        Credit Decision; Disclosure of
Information by Administrative Agent. 
Each Lender acknowledges that no Agent-Related Person has made any
representation or warranty to it, and that no act by the Administrative Agent
hereafter taken, including any consent to and acceptance of any assignment or
review of the affairs of the Borrower or any Affiliate thereof, shall be deemed
to constitute any representation or warranty by any Agent-Related Person to any
Lender as to any matter, including whether Agent-Related Persons have disclosed
material information in their possession. 
Each Lender represents to the Administrative Agent that it has,
independently and without reliance upon any Agent-Related Person and based on
such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, prospects, operations,
property, financial and other condition and creditworthiness of the Borrower
and their respective Subsidiaries, and all applicable bank or other regulatory
Laws relating to the transactions contemplated hereby, and made its own
decision to enter into this Agreement and to extend credit to the Borrower
hereunder.  Each Lender also represents
that it will, independently and without reliance upon any Agent-Related Person
and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under this Agreement and the other Loan

 

39

 

Documents, and to make such investigations as it deems
necessary to inform itself as to the business, prospects, operations, property,
financial and other condition and creditworthiness of the Borrower.  Except for notices, reports and other documents
expressly required to be furnished to the Lenders by the Administrative Agent
herein, the Administrative Agent shall not have any duty or responsibility to
provide any Lender with any credit or other information concerning the
business, prospects, operations, property, financial and other condition or
creditworthiness of the Borrower or any of its Affiliates which may come into
the possession of any Agent-Related Person.

 

9.07                        Indemnification of Administrative
Agent.  Whether or not the
transactions contemplated hereby are consummated, the Lenders shall indemnify
upon demand each Agent-Related Person (to the extent not reimbursed by or on
behalf of the Borrower and without limiting the obligation of the Borrower to
do so), pro rata, and hold harmless each Agent-Related Person from and against
any and all Indemnified Liabilities incurred by it; provided, however,
that no Lender shall be liable for the payment to any Agent-Related Person of
any portion of such Indemnified Liabilities to the extent determined in a
final, nonappealable judgment by a court of competent jurisdiction to have
resulted from such Agent-Related Person’s own gross negligence or willful
misconduct; provided, however, that no action taken in accordance
with the directions of the Required Lenders shall be deemed to constitute gross
negligence or willful misconduct for purposes of this Section.  Without limitation of the foregoing, each
Lender shall reimburse the Administrative Agent upon demand for its ratable
share of any costs or out-of-pocket expenses (including Attorney Costs)
incurred by the Administrative Agent in connection with the preparation,
execution, delivery, administration, modification, amendment or enforcement
(whether through negotiations, legal proceedings or otherwise) of, or legal
advice in respect of rights or responsibilities under, this Agreement, any
other Loan Document, or any document contemplated by or referred to herein, to
the extent that the Administrative Agent is not reimbursed for such expenses by
or on behalf of the Borrower.  The
undertaking in this Section shall survive termination of the Aggregate
Commitments, the payment of all other Obligations and the resignation of the
Administrative Agent.

 

9.08                        Administrative Agent in its Individual
Capacity.  Bank of America and
its Affiliates may make loans to, issue letters of credit for the account of,
accept deposits from, acquire equity interests in and generally engage in any
kind of banking, trust, financial advisory, underwriting or other business with
the Borrower and its Affiliates as though Bank of America were not the
Administrative Agent hereunder and without notice to or consent of the
Lenders.  The Lenders acknowledge that,
pursuant to such activities, Bank of America or its Affiliates may receive information
regarding the Borrower or its Affiliates (including information that may be
subject to confidentiality obligations in favor of the Borrower or such
Affiliate) and acknowledge that the Administrative Agent shall be under no
obligation to provide such information to them.  With respect to its Loans, Bank of America shall have the same
rights and powers under this Agreement as any other Lender and may exercise
such rights and powers as though it were not the Administrative Agent, and the
terms “Lender” and “Lenders” include Bank of America in its individual
capacity.

 

9.09                        Successor Administrative Agent.  The Administrative Agent may resign as
Administrative Agent upon 30 days’ notice to the Lenders.  If the Administrative Agent resigns under
this Agreement, the Required Lenders shall appoint from among the Lenders a
successor administrative agent for the Lenders, which successor administrative
agent shall be consented to by the Borrower at all times other than during the
existence of an Event of Default (which consent of the Borrower shall not be
unreasonably withheld or delayed).  If
no successor administrative agent is appointed prior to the effective date of
the resignation of the Administrative Agent, the Administrative Agent may
appoint, after consulting with the Lenders and the Borrower, a successor
administrative agent from among the Lenders. 
Upon the acceptance of its appointment as successor administrative agent
hereunder, the Person acting as such successor administrative agent shall
succeed to all the rights, powers and duties of the retiring Administrative
Agent, and the term “Administrative Agent” shall mean such successor
administrative

 

40

 

agent and the retiring Administrative Agent’s
appointment, powers and duties as Administrative Agent shall be
terminated.  After any retiring
Administrative Agent’s resignation hereunder as Administrative Agent, the
provisions of this Article IX and Sections 10.04 and 10.05
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Administrative Agent under this Agreement.  If no successor administrative agent has
accepted appointment as Administrative Agent by the date which is 30 days
following a retiring Administrative Agent’s notice of resignation, the retiring
Administrative Agent’s resignation shall nevertheless thereupon become
effective and the Lenders shall perform all of the duties of the Administrative
Agent hereunder until such time, if any, as the Required Lenders appoint a
successor agent as provided for above.

 

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

 

(a)                                  to
file and prove a claim for the whole amount of the principal and interest owing
and unpaid in respect of the Loans, and all other Obligations that are owing
and unpaid and to file such other documents as may be necessary or advisable in
order to have the claims of the Lenders and the Administrative Agent (including
any claim for the reasonable compensation, expenses, disbursements and advances
of the Lenders and the Administrative Agent and their respective agents and
counsel and all other amounts due the Lenders and the Administrative Agent
under Sections 2.07 and 10.04) allowed in such judicial
proceeding; and

 

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

 

and any custodian,
receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender to make
such payments to the Administrative Agent and, in the event that the
Administrative Agent shall consent to the making of such payments directly to
the Lenders, to pay to the Administrative Agent any amount due for the
reasonable compensation, expenses, disbursements and advances of the
Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 2.07 and 10.04.

 

Nothing contained herein
shall be deemed to authorize the Administrative Agent to authorize or consent to
or accept or adopt on behalf of any Lender any plan of reorganization,
arrangement, adjustment or composition affecting the Obligations or the rights
of any Lender or to authorize the Administrative Agent to vote in respect of
the claim of any Lender in any such proceeding.

 

9.11                        Other Agents; Arrangers and Managers.  None
of the Lenders or other Persons identified on the facing page or signature
pages of this Agreement as a “syndication agent,” “documentation agent,”
“co-agent,” “co-book manager,” “lead manager,” “arranger” or “co-lead arranger”
or shall have any right, power, obligation, liability, responsibility or duty
under this Agreement other than, in the case of such Lenders, those applicable
to all Lenders as such.  Without
limiting the foregoing, none of the Lenders or other Persons so identified
shall have or be deemed to have any fiduciary relationship with any
Lender.  Each Lender acknowledges that
it has not relied, and will not rely, on any of the Lenders or other Persons so
identified in deciding to enter into this Agreement or in taking or not taking
action hereunder.

 

41

 

ARTICLE
X.

MISCELLANEOUS

 

10.01                 Amendments, Etc. 
No amendment or waiver of any provision of this Agreement or any
other Loan Document, and no consent to any departure by the Borrower therefrom,
shall be effective unless in writing signed by the Required Lenders and the
Borrower, and acknowledged by the Administrative Agent, and each such waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given; provided, however, that no such
amendment, waiver or consent shall:

 

(a)                                  extend
or increase the Commitment of any Lender (or reinstate any Commitment
terminated pursuant to Section 8.02) without the written consent of such
Lender;

 

(b)                                 postpone
any date fixed by this Agreement or any other Loan Document for any payment of
principal, interest, fees or other amounts due to the Lenders (or any of them)
hereunder or under any other Loan Document without the written consent of each
Lender directly affected thereby;

 

(c)                                  reduce
the principal of, or the rate of interest specified herein on, any Loan, or
(subject to clause (iii) of the second proviso to this Section 10.01)
any fees or other amounts payable hereunder or under any other Loan Document
without the written consent of each Lender directly affected thereby; provided,
however, that only the consent of the Required Lenders shall be
necessary to amend the definition of “Default Rate” or to waive any obligation
of the Borrower to pay interest at the Default Rate;

 

(d)                                 change
Section 2.11 or Section 8.03 in a manner that would alter the pro
rata sharing of payments required thereby without the written consent of each
Lender; or

 

(e)                                  change
any provision of this Section or the definition of “Required Lenders” or any
other provision hereof specifying the number or percentage of Lenders required
to amend, waive or otherwise modify any rights hereunder or make any
determination or grant any consent hereunder, without the written consent of
each Lender;

 

and, provided  further,
that (i) no amendment, waiver or consent shall, unless in writing and signed by
the Administrative Agent in addition to the Lenders required above, affect the
rights or duties of the Administrative Agent under this Agreement or any other
Loan Document; (ii) Section 10.07(h) may not be amended, waived or
otherwise modified without the consent of each Granting Lender all or any part
of whose Loans are being funded by an SPC at the time of such amendment, waiver
or other modification; and (iii) the Fee Letters may be amended, or rights or
privileges thereunder waived, in a writing executed only by the parties
thereto.

 

10.02                 Notices and Other Communications;
Facsimile Copies.

 

(a)                                  General.  Unless otherwise expressly provided herein,
all notices and other communications provided for hereunder shall be in writing
(including by facsimile transmission). 
All such written notices shall be mailed, faxed or delivered to the
applicable address, facsimile number or (subject to subsection (c) below)
electronic mail address, and all notices and other communications expressly
permitted hereunder to be given by telephone shall be made to the applicable
telephone number, as follows:

 

(i)                                     if
to the Borrower or the Administrative Agent, to the address, facsimile number,
electronic mail address or telephone number specified for such Person on Schedule
10.02 or to

 

42

 

such other
address, facsimile number, electronic mail address or telephone number as shall
be designated by such party in a notice to the other parties; and

 

(ii)                                  if
to any other Lender, to the address, facsimile number, electronic mail address
or telephone number specified in its Administrative Questionnaire or to such
other address, facsimile number, electronic mail address or telephone number as
shall be designated by such party in a notice to the Borrower and the
Administrative Agent.

 

All such notices and
other communications shall be deemed to be given or made upon the earlier to
occur of (i) actual receipt by the relevant party hereto and (ii) (A) if
delivered by hand or by courier, when signed for by or on behalf of the
relevant party hereto; (B) if delivered by mail, four Business Days after
deposit in the mails, postage prepaid; (C) if delivered by facsimile, when sent
and receipt has been confirmed by telephone; and (D) if delivered by electronic
mail (which form of delivery is subject to the provisions of subsection (c)
below), when delivered.  In no event
shall a voicemail message be effective as a notice, communication or
confirmation hereunder.

 

(b)                                 Effectiveness
of Facsimile Documents and Signatures. 
Loan Documents may be transmitted and/or signed by facsimile.  The effectiveness of any such documents and
signatures shall, subject to applicable Law, have the same force and effect as
manually-signed originals and shall be binding on the Borrower, the
Administrative Agent and the Lenders. 
The Administrative Agent may also require that any such documents and
signatures be confirmed by a manually-signed original thereof; provided,
however, that the failure to request or deliver the same shall not limit
the effectiveness of any facsimile document or signature.

 

(c)                                  Limited
Use of Electronic Mail.  Electronic
mail and Internet and intranet websites may be used only to distribute routine
communications, such as financial statements and other information as provided
in Section 6.01, and to distribute Loan Documents for execution by the
parties thereto, and may not be used for any other purpose.

 

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

 

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

 

10.04                 Attorney Costs, Expenses and Taxes.  The Borrower agrees (a) to pay or reimburse
the Administrative Agent for all costs and expenses incurred in connection with
the development, preparation, negotiation and execution of this Agreement and
the other Loan Documents and any

 

43

 

amendment, waiver, consent or other modification of
the provisions hereof and thereof (whether or not the transactions contemplated
hereby or thereby are consummated), and the consummation and administration of
the transactions contemplated hereby and thereby, including all Attorney Costs,
and (b) to pay or reimburse the Administrative Agent and each Lender for all
costs and expenses incurred in connection with the enforcement, attempted
enforcement, or preservation of any rights or remedies under this Agreement or
the other Loan Documents (including all such costs and expenses incurred during
any “workout” or restructuring in respect of the Obligations and during any
legal proceeding, including any proceeding under any Debtor Relief Law),
including all Attorney Costs.  The
foregoing costs and expenses shall include all search, filing, recording, title
insurance and appraisal charges and fees and taxes related thereto, and other
out-of-pocket expenses incurred by the Administrative Agent and the cost of
independent public accountants and other outside experts retained by the
Administrative Agent or any Lender.  All
amounts due under this Section 10.04 shall be payable within ten
Business Days after demand therefore. 
The agreements in this Section shall survive the termination of the
Aggregate Commitments and repayment of all other Obligations.

 

10.05                 Indemnification by the Borrower.  Whether or not the transactions contemplated
hereby are consummated, the Borrower shall indemnify and hold harmless each
Agent-Related Person, each Lender and their respective Affiliates, directors,
officers, employees, counsel, agents and attorneys-in-fact (collectively the “Indemnitees”)
from and against any and all liabilities, obligations, losses, damages,
penalties, claims, demands, actions, judgments, suits, costs, expenses and
disbursements (including Attorney Costs) of any kind or nature whatsoever which
may at any time be imposed on, incurred by or asserted against any such
Indemnitee in any way relating to or arising out of or in connection with (a)
the execution, delivery, enforcement, performance or administration of any Loan
Document or any other agreement, letter or instrument delivered in connection
with the transactions contemplated thereby or the consummation of the
transactions contemplated thereby, (b) any Commitment or Loan or the use or
proposed use of the proceeds therefrom, (c) any actual or alleged presence or
release of Hazardous Substances on or from any property currently or formerly
owned or operated by the Borrower or any Subsidiary of the Borrower, or any
Environmental Liability related in any way to the Borrower or any Subsidiary of
the Borrower, or (d) any actual or prospective claim, litigation, investigation
or proceeding relating to any of the foregoing, whether based on contract, tort
or any other theory (including any investigation of, preparation for, or
defense of any pending or threatened claim, investigation, litigation or
proceeding) and regardless of whether any Indemnitee is a party thereto (all
the foregoing, collectively, the “Indemnified Liabilities”), in all cases, whether or not caused by or arising, in
whole or in part, out of the negligence of the Indemnitee; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent
that such liabilities, obligations, losses, damages, penalties, claims,
demands, actions, judgments, suits, costs, expenses or disbursements are
determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of
such Indemnitee.  No Indemnitee shall be
liable for any damages arising from the use by others of any information or
other materials obtained through IntraLinks or other similar information
transmission systems in connection with this Agreement.  All amounts due under this Section 10.05
shall be payable within ten Business Days after demand therefore.  The agreements in this Section shall survive
the resignation of the Administrative Agent, the replacement of any Lender, the
termination of the Aggregate Commitments and the repayment, satisfaction or
discharge of all the other Obligations.

 

10.06                 Payments Set Aside. 
To the extent that any payment by or on behalf of the Borrower is
made to the Administrative Agent or any Lender, or the Administrative Agent or
any Lender exercises its right of set-off, and such payment or the proceeds of
such set-off or any part thereof is subsequently invalidated, declared to be
fraudulent or preferential, set aside or required (including pursuant to any
settlement entered into by the Administrative Agent or such Lender in its
discretion) to be repaid to a trustee, receiver or any other party, in
connection with any proceeding under any Debtor Relief Law or

 

44

 

otherwise, then (a) to the extent of such recovery,
the obligation or part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment had not been
made or such set-off had not occurred, and (b) each Lender severally agrees to
pay to the Administrative Agent upon demand its applicable share of any amount
so recovered from or repaid by the Administrative Agent, plus interest thereon
from the date of such demand to the date such payment is made at a rate per
annum equal to the Federal Funds Rate from time to time in effect.

 

10.07                 Successors and Assigns.

 

(a)                                  The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns permitted
hereby, except that the Borrower may not assign or otherwise transfer any of
its rights or obligations hereunder without the prior written consent of each
Lender and no Lender may assign or otherwise transfer any of its rights or
obligations hereunder except (i) to an Eligible Assignee in accordance with the
provisions of subsection (b) of this Section, (ii) by way of participation in
accordance with the provisions of subsection (d) of this Section, (iii) by way
of pledge or assignment of a security interest subject to the restrictions of
subsection (f) or (i) of this Section, or (iv) to an SPC in accordance with the
provisions of subsection (h) of this Section (and any other attempted
assignment or transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby, Participants
to the extent provided in subsection (d) of this Section and, to the extent
expressly contemplated hereby, the Indemnitees) any legal or equitable right,
remedy or claim under or by reason of this Agreement.

 

(b)                                 Any
Lender may at any time assign to one or more Eligible Assignees all or a
portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment and the Loans at the time owing to it); provided
that (i) except in the case of an assignment of the entire remaining amount of
the assigning Lender’s Commitment and the Loans at the time owing to it or in
the case of an assignment to a Lender or an Affiliate of a Lender or an
Approved Fund (as defined in subsection (g) of this Section) with respect to a
Lender, the aggregate amount of the Commitment (which for this purpose includes
Loans outstanding thereunder) subject to each such assignment, determined as of
the date the Assignment and Assumption with respect to such assignment is
delivered to the Administrative Agent or, if “Trade Date” is specified in the
Assignment and Assumption, as of the Trade Date, shall not be less than
$5,000,000unless each of the Administrative Agent and, so long as no Event of
Default has occurred and is continuing, the Borrower otherwise consents (each
such consent not to be unreasonably withheld or delayed); (ii) each partial
assignment shall be made as an assignment of a proportionate part of all the
assigning Lender’s rights and obligations under this Agreement with respect to
the Loans or the Commitment assigned; (iii) any assignment of a Commitment must
be approved by the Administrative Agent unless the Person that is the proposed
assignee is itself a Lender (whether or not the proposed assignee would
otherwise qualify as an Eligible Assignee), such approval not to be
unreasonably withheld or delayed; and (iv) the parties to each assignment shall
execute and deliver to the Administrative Agent an Assignment and Assumption,
together with a processing and recordation fee of $3,500.  Subject to acceptance and recording thereof
by the Administrative Agent pursuant to subsection (c) of this Section, from
and after the effective date specified in each Assignment and Assumption, the
Eligible Assignee thereunder shall be a party to this Agreement and, to the
extent of the interest assigned by such Assignment and Assumption, have the
rights and obligations of a Lender under this Agreement, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Assumption, be released from its obligations under this Agreement
(and, in the case of an Assignment and Assumption covering all of the assigning
Lender’s rights and obligations under this Agreement, such Lender shall cease
to be a party hereto but shall continue to be entitled to the benefits of Sections
3.01, 3.04, 3.05, 10.04 and 10.05 with respect
to facts and circumstances occurring prior to the effective date of such
assignment).  Upon request, the Borrower
(at its expense) shall execute and deliver a Note to the

 

45

 

assignee Lender. 
Any assignment or transfer by a Lender of rights or obligations under
this Agreement that does not comply with this subsection shall be treated for
purposes of this Agreement as a sale by such Lender of a participation in such
rights and obligations in accordance with subsection (d) of this Section.

 

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

 

(d)                                 Any
Lender may at any time, without the consent of, or notice to, the Borrower or
the Administrative Agent, sell participations to any Person (other than a
natural person or the Borrower or any of the Borrower’s Affiliates or
Subsidiaries) (each, a “Participant”) in all or a portion of such
Lender’s rights and/or obligations under this Agreement (including all or a
portion of its Commitment and/or the Loans owing to it); provided that
(i) such Lender’s obligations under this Agreement shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations and (iii) the Borrower, the
Administrative Agent and the other Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement.  Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any provision
of this Agreement; provided that such agreement or instrument may
provide that such Lender will not, without the consent of the Participant,
agree to any amendment, waiver or other modification described in the first
proviso to Section 10.01 that directly affects such Participant.  Subject to subsection (e) of this Section,
the Borrower agrees that each Participant shall be entitled to the benefits of Sections
3.01, 3.04 and 3.05  to the same extent as if it were a Lender
and had acquired its interest by assignment pursuant to subsection (b) of this
Section.  To the extent permitted by
law, each Participant also shall be entitled to the benefits of Section 10.09  as
though it were a Lender, provided such Participant agrees to be subject
to Section 2.11 as though it were a Lender.

 

(e)                                  A
Participant shall not be entitled to receive any greater payment under Section
3.01 or 3.04  than the applicable Lender would have
been entitled to receive with respect to the participation sold to such
Participant, unless the sale of the participation to such Participant is made
with the Borrower’s prior written consent. 
A Participant that would be a Foreign Lender if it were a Lender shall
not be entitled to the benefits of Section 3.01 unless the Borrower
is notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Borrower, to comply with Section 10.15 as
though it were a Lender.

 

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

 

(g)                                 As
used herein, the following terms have the following meanings:

 

“Eligible Assignee”
means (a) a Lender; (b) an Affiliate of a Lender; (c) an Approved Fund; and (d)
any other Person (other than a natural person) approved by (i) the
Administrative

 

46

 

Agent, and (ii)
unless an Event of Default has occurred and is continuing, the Borrower (each
such approval not to be unreasonably withheld or delayed); provided that
notwithstanding the foregoing, “Eligible Assignee” shall not include the
Borrower or any of the Borrower’s Affiliates or Subsidiaries.

 

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

 

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

 

(h)                                 Notwithstanding
anything to the contrary contained herein, any Lender (a “Granting Lender”)
may grant to a special purpose funding vehicle identified as such in writing
from time to time by the Granting Lender to the Administrative Agent and the
Borrower (an “SPC”) the option to provide all or any part of any Loan
that such Granting Lender would otherwise be obligated to make pursuant to this
Agreement; provided that (i) nothing herein shall constitute a
commitment by any SPC to fund any Loan, and (ii) if an SPC elects not to
exercise such option or otherwise fails to make all or any part of such Loan,
the Granting Lender shall be obligated to make such Loan pursuant to the terms
hereof.  Each party hereto hereby agrees
that (i) neither the grant to any SPC nor the exercise by any SPC of such
option shall increase the costs or expenses or otherwise increase or change the
obligations of the Borrower under this Agreement (including its obligations
under Section 3.04), (ii) no SPC shall be liable for any indemnity or
similar payment obligation under this Agreement for which a Lender would be
liable, and (iii) the Granting Lender shall for all purposes, including the
approval of any amendment, waiver or other modification of any provision of any
Loan Document, remain the lender of record hereunder.  The making of a Loan by an SPC hereunder shall utilize the
Commitment of the Granting Lender to the same extent, and as if, such Loan were
made by such Granting Lender.  In
furtherance of the foregoing, each party hereto hereby agrees (which agreement
shall survive the termination of this Agreement) that, prior to the date that
is one year and one day after the payment in full of all outstanding commercial
paper or other senior debt of any SPC, it will not institute against, or join
any other Person in instituting against, such SPC any bankruptcy,
reorganization, arrangement, insolvency, or liquidation proceeding under the
laws of the United States or any State thereof.  Notwithstanding anything to the contrary contained herein, any
SPC may (i) with notice to, but without prior consent of the Borrower and the
Administrative Agent and with payment of a processing fee of $3,500, assign all
or any portion of its right to receive payment with respect to any Loan to the
Granting Lender and (ii) disclose on a confidential basis any non-public
information relating to its funding of Loans to any rating agency, commercial paper
dealer or provider of any surety or Guarantee or credit or liquidity
enhancement to such SPC.

 

(i)                                     Notwithstanding anything to the contrary
contained herein, any Lender that is a Fund may create a security interest in
all or any portion of the Loans owing to it and the Note, if any, held by it to
the trustee for holders of obligations owed, or securities issued, by such Fund
as security for such obligations or securities, provided that unless and
until such trustee actually becomes a Lender in compliance with the other
provisions of this Section 10.07, (i) no such pledge shall release the
pledging Lender from any of its obligations under the Loan Documents and (ii)
such trustee shall not be entitled to exercise any of the rights of a Lender
under the Loan Documents even though such trustee may have acquired ownership
rights with respect to the pledged interest through foreclosure or otherwise.

 

10.08                 Confidentiality. 
Each of the Administrative Agent and the Lenders agrees to maintain
the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its and its Affiliates’ directors,
officers, employees and agents, including accountants, legal counsel and

 

47

 

other advisors (it being understood that the Persons
to whom such disclosure is made will be informed of the confidential nature of
such Information and instructed to keep such Information confidential);
(b) to the extent requested by any regulatory authority; (c) to the
extent required by applicable laws or regulations or by any subpoena or similar
legal process; (d) to any other party to this Agreement; (e) in connection with
the exercise of any remedies hereunder or any suit, action or proceeding
relating to this Agreement or the enforcement of rights hereunder; (f) subject
to an agreement containing provisions substantially the same as those of this
Section, to (i) any Eligible Assignee of or Participant in, or any prospective
Eligible Assignee of or Participant in, any of its rights or obligations under
this Agreement or (ii) any direct or indirect contractual counterparty or
prospective counterparty (or such contractual counterparty’s or prospective
counterparty’s professional advisor) to any credit derivative transaction
relating to obligations of the Borrower; (g) with the consent of the Borrower;
(h) to the extent such Information (i) becomes publicly available
other than as a result of a breach of this Section or (ii) becomes
available to the Administrative Agent or any Lender on a nonconfidential basis
from a source other than the Borrower; or (i) to the National Association of
Insurance Commissioners or any other similar organization.  In addition, the Administrative Agent and
the Lenders may disclose the existence of this Agreement and information about
this Agreement to market data collectors, similar service providers to the
lending industry, and service providers to the Administrative Agent and the
Lenders in connection with the administration and management of this Agreement,
the other Loan Documents, the Commitments, and the Borrowings.  For the purposes of this Section, “Information”
means all information received from the Borrower relating to its business,
other than any such information that is available to the Administrative Agent
or any Lender on a nonconfidential basis prior to disclosure by the
Borrower.  Any Person required to
maintain the confidentiality of Information as provided in this Section shall be
considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.

 

10.09                 Set-off.  In addition to any rights and remedies
of the Lenders provided by law, upon the occurrence and during the continuance
of any Event of Default, each Lender is authorized at any time and from time to
time, without prior notice to the Borrower, any such notice being waived by the
Borrower to the fullest extent permitted by law, to set off and apply any and
all deposits (general or special, time or demand, provisional or final) at any
time held by, and other indebtedness at any time owing by, such Lender to or
for the credit or the account of the Borrower against any and all Obligations
owing to such Lender hereunder or under any other Loan Document, now or
hereafter existing, irrespective of whether or not the Administrative Agent or
such Lender shall have made demand under this Agreement or any other Loan Document
and although such Obligations may be contingent or unmatured or denominated in
a currency different from that of the applicable deposit or indebtedness.  Each Lender agrees promptly to notify the
Borrower and the Administrative Agent after any such set-off and application
made by such Lender; provided, however, that the failure to give
such notice shall not affect the validity of such set-off and application.

 

10.10                 Interest Rate Limitation.  Notwithstanding anything to the contrary
contained in any Loan Document, the interest paid or agreed to be paid under
the Loan Documents shall not exceed the maximum rate of non-usurious interest
permitted by applicable Law (the “Maximum Rate”).  If the Administrative Agent or any Lender
shall receive interest in an amount that exceeds the Maximum Rate, the excess
interest shall be applied to the principal of the Loans or, if it exceeds such
unpaid principal, refunded to the Borrower. 
In determining whether the interest contracted for, charged, or received
by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person
may, to the extent permitted by applicable Law, (a) characterize any payment
that is not principal as an expense, fee, or premium rather than interest, (b)
exclude voluntary prepayments and the effects thereof, and (c) amortize,
prorate, allocate, and spread in equal or unequal parts the total amount of
interest throughout the contemplated term of the Obligations hereunder.

 

48

 

To the extent that the
interest rate laws of the State of Texas are applicable to the Loans for
purposes of determining the “maximum rate” or the “maximum amount,” then those
terms mean the “weekly ceiling” from time to time in effect under Texas Finance
Code § 303.001, as limited by Texas Finance Code § 303.009, and, to the extent
that this Agreement is deemed an open end account as such term is defined in
Texas Finance Code Section 301.002(a)(14), the Lenders retain the right to
modify the interest rate in accordance with applicable law.

 

The parties agree that
Texas Finance Code, Chapter 346, which regulates certain revolving loan
accounts and revolving triparty accounts, shall not apply to any revolving loan
accounts created under this Agreement or the Notes or maintained in connection
therewith.

 

10.11                 Counterparts.  This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.

 

10.12                 Integration.  This
Agreement, together with the other Loan Documents, comprises the complete and
integrated agreement of the parties on the subject matter hereof and thereof
and supersedes all prior agreements, written or oral, on such subject matter.  In the event of any conflict between the
provisions of this Agreement and those of any other Loan Document, the
provisions of this Agreement shall control; provided that the inclusion
of supplemental rights or remedies in favor of the Administrative Agent or the
Lenders in any other Loan Document shall not be deemed a conflict with this
Agreement.  Each Loan Document was
drafted with the joint participation of the respective parties thereto and
shall be construed neither against nor in favor of any party, but rather in
accordance with the fair meaning thereof.

 

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

 

10.14                 Severability.  If
any provision of this Agreement or the other Loan Documents is held to be
illegal, invalid or unenforceable, (a) the legality, validity and
enforceability of the remaining provisions of this Agreement and the other Loan
Documents shall not be affected or impaired thereby and (b) the parties shall
endeavor in good faith negotiations to replace the illegal, invalid or
unenforceable provisions with valid provisions the economic effect of which comes
as close as possible to that of the illegal, invalid or unenforceable
provisions.  The invalidity of a
provision in a particular jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

10.15                 Tax
Forms.  (a)  (i) 
Each Lender that is not a “United States person” within the meaning of
Section 7701(a)(30) of the Code (a “Foreign Lender”) shall deliver to
the Administrative Agent, prior to receipt of any payment subject to
withholding under the Code (or upon accepting an assignment of an interest
herein), two duly signed completed copies of either IRS Form W-8BEN or any
successor thereto (relating to such Foreign Lender and entitling it to an
exemption from, or reduction of, withholding tax on all payments to be made to
such Foreign Lender by the Borrower pursuant to this Agreement) or IRS Form
W-8ECI or any successor thereto (relating to all payments to be made to such
Foreign Lender by the Borrower pursuant to this Agreement) or such other
evidence satisfactory to the Borrower and the Administrative Agent that such
Foreign Lender is entitled to an exemption from, or reduction of, U.S.
withholding tax, including any exemption pursuant to Section 881(c) of the
Code.  Thereafter and from

 

49

 

time to time, each such Foreign Lender shall (A)
promptly submit to the Administrative Agent such additional duly completed and
signed copies of one of such forms (or such successor forms as shall be adopted
from time to time by the relevant United States taxing authorities) as may then
be available under then current United States laws and regulations to avoid, or
such evidence as is satisfactory to the Borrower and the Administrative Agent
of any available exemption from or reduction of, United States withholding
taxes in respect of all payments to be made to such Foreign Lender by the
Borrower pursuant to this Agreement, (B) promptly notify the Administrative
Agent of any change in circumstances which would modify or render invalid any
claimed exemption or reduction, and (C) take such steps as shall not be
materially disadvantageous to it, in the reasonable judgment of such Lender,
and as may be reasonably necessary (including the re-designation of its Lending
Office) to avoid any requirement of applicable Laws that the Borrower make any
deduction or withholding for taxes from amounts payable to such Foreign Lender.

 

(ii)                                  Each
Foreign Lender, to the extent it does not act or ceases to act for its own
account with respect to any portion of any sums paid or payable to such Lender
under any of the Loan Documents (for example, in the case of a typical
participation by such Lender), shall deliver to the Administrative Agent on the
date when such Foreign Lender ceases to act for its own account with respect to
any portion of any such sums paid or payable, and at such other times as may be
necessary in the determination of the Administrative Agent (in the reasonable
exercise of its discretion), (A) two duly signed completed copies of the forms
or statements required to be provided by such Lender as set forth above, to
establish the portion of any such sums paid or payable with respect to which
such Lender acts for its own account that is not subject to U.S. withholding
tax, and (B) two duly signed completed copies of IRS Form W-8IMY (or any
successor thereto), together with any information such Lender chooses to
transmit with such form, and any other certificate or statement of exemption
required under the Code, to establish that such Lender is not acting for its
own account with respect to a portion of any such sums payable to such Lender.

 

(iii)                               The
Borrower shall not be required to pay any additional amount to any Foreign
Lender under Section 3.01 (A) with respect to any Taxes required to be
deducted or withheld on the basis of the information, certificates or
statements of exemption such Lender transmits with an IRS Form W-8IMY pursuant
to this Section 10.15(a) or (B) if such Lender shall have failed to
satisfy the foregoing provisions of this Section 10.15(a); provided
that if such Lender shall have satisfied the requirement of this Section
10.15(a) on the date such Lender became a Lender or ceased to act for its
own account with respect to any payment under any of the Loan Documents, nothing
in this Section 10.15(a) shall relieve the Borrower of its obligation to
pay any amounts pursuant to Section 3.01 in the event that, as a result
of any change in any applicable law, treaty or governmental rule, regulation or
order, or any change in the interpretation, administration or application
thereof, such Lender is no longer properly entitled to deliver forms,
certificates or other evidence at a subsequent date establishing the fact that
such Lender or other Person for the account of which such Lender receives any
sums payable under any of the Loan Documents is not subject to withholding or
is subject to withholding at a reduced rate.

 

(iv)                              The
Administrative Agent may, without reduction, withhold any Taxes required to be
deducted and withheld from any payment under any of the Loan Documents with
respect to which the Borrower is not required to pay additional amounts under
this Section 10.15(a).

 

(b)                                 Upon
the request of the Administrative Agent, each Lender that is a “United States
person” within the meaning of Section 7701(a)(30) of the Code shall deliver to
the Administrative Agent two duly signed completed copies of IRS Form W-9.  If such Lender fails to deliver such forms,
then the Administrative Agent may withhold from any interest payment to such
Lender an amount equivalent to the applicable back-up withholding tax imposed
by the Code, without reduction.

 

50

 

(c)                                  If
any Governmental Authority asserts that the Administrative Agent did not
properly withhold or backup withhold, as the case may be, any tax or other
amount from payments made to or for the account of any Lender, such Lender
shall indemnify the Administrative Agent therefore, including all penalties and
interest, any taxes imposed by any jurisdiction on the amounts payable to the
Administrative Agent under this Section, and costs and expenses (including
Attorney Costs) of the Administrative Agent. 
The obligation of the Lenders under this Section shall survive the
termination of the Aggregate Commitments, repayment of all other Obligations
hereunder and the resignation of the Administrative Agent.

 

10.16                 Replacement of Lenders.  Pursuant to the provisions of Section
2.12(a) providing that the Borrower shall have the right to replace a Lender
as a party to this Agreement, the Borrower may, upon notice to such Lender and
the Administrative Agent, replace such Lender by causing such Lender to assign
its Commitment (with the assignment fee to be paid by the Borrower in such
instance) pursuant to Section 10.07(b) to one or more other Lenders
or Eligible Assignees procured by the Borrower.  The Borrower shall (x) pay in full all principal, interest, fees
and other amounts owing to such Lender through the date of replacement (including
any amounts payable pursuant to Section 3.05), and (y) release such
Lender from its obligations under the Loan Documents.  Any Lender being replaced shall execute and deliver an Assignment
and Assumption with respect to such Lender’s Commitment and outstanding Loans.

 

10.17                 Governing Law.

 

(a)                                  THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF
THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
ENTIRELY WITHIN SUCH STATE;  PROVIDED THAT THE ADMINISTRATIVE
AGENT AND EACH LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

 

(b)                                 ANY
LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN THE
BOROUGH OF MANHATTAN OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW
YORK, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE BORROWER, THE
ADMINISTRATIVE AGENT AND EACH LENDER CONSENTS, FOR ITSELF AND IN RESPECT OF ITS
PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS.  THE BORROWER, THE ADMINISTRATIVE AGENT AND
EACH LENDER IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE
LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION
IN RESPECT OF ANY LOAN DOCUMENT OR OTHER DOCUMENT RELATED THERETO.  THE BORROWER, THE ADMINISTRATIVE AGENT AND
EACH LENDER WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS,
WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF SUCH STATE.

 

10.18                 Waiver of Right to Trial by Jury.  EACH PARTY TO THIS AGREEMENT HEREBY
EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR
RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH
RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE
WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT
OR OTHERWISE;

 

51

 

AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY
SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL
WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL
COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE
CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY
JURY.

 

10.19                 Termination of Commitments Under
Existing Credit Agreement.  The
commitments of the Existing Lenders under the Existing Credit Agreement shall
terminate on the Closing Date. 
Execution of this Agreement by Lenders who are Existing Lenders shall
constitute a waiver of the notice provisions in Sections 2.09 and 9.01
of the Existing Credit Agreement.

 

10.20                 ENTIRE AGREEMENT. 
THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

 

52

 

IN WITNESS WHEREOF, the parties hereto
have caused this Agreement to be duly executed as of the date first above
written.

 

	
   

  	
  EQUITABLE RESOURCES,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Philip P. Conti

  
	
   

  	
  Name:

  	
  Philip P. Conti

  
	
   

  	
  Title:

  	
  Vice President –
  Finance and Treasurer

  

 

[Signature Page to Equitable Resources, Inc. 364-Day
Credit Agreement]

 

 

	
   

  	
  BANK OF AMERICA, N.A.,
  as

  
	
   

  	
  Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Ronald E. McKaig

  
	
   

  	
  Name:

  	
  Ronald E. McKaig

  
	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.,
  as

  
	
   

  	
  a Lender and L/C Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Ronald E. McKaig

  
	
   

  	
  Name:

  	
  Ronald E. McKaig

  
	
   

  	
  Title:

  	
  Managing Director

  

 

[Signature Page to Equitable Resources, Inc. 364-Day
Credit Agreement]

 

 

	
   

  	
  JPMORGAN CHASE BANK,

  
	
   

  	
  as a Lender and
  Co-Syndication Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Robert C.
  Mertensotto

  
	
   

  	
  Name:

  	
  Robert C. Mertensotto

  
	
   

  	
  Title:

  	
  Managing Director

  
				

 

[Signature Page to Equitable Resources, Inc. 364-Day
Credit Agreement]

 

 

	
   

  	
  BANK ONE, NA,

  
	
   

  	
  as a Lender and
  Co-Syndication Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Mary Lu D. Cramer

  
	
   

  	
  Name:

  	
  Mary Lu D. Cramer

  
	
   

  	
  Title:

  	
  Director

  
				

 

[Signature Page to Equitable Resources, Inc. 364-Day
Credit Agreement]

 

 

	
   

  	
  PNC BANK, NATIONAL
  ASSOCIATION,

  
	
   

  	
  as a Lender and
  Co-Documentation Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Thomas A. Majeski

  
	
   

  	
  Name:

  	
  Thomas A. Majeski

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

[Signature Page to Equitable Resources, Inc. 364-Day
Credit Agreement]

 

 

	
   

  	
  CITIBANK, N.A.,

  
	
   

  	
  as a Lender and Co-Documentation
  Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Costas Rigas

  
	
   

  	
  Name:

  	
  Costas Rigas

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

[Signature Page to Equitable Resources, Inc. 364-Day
Credit Agreement]

 

 

	
   

  	
  BMO NESBITT BURNS
  FINANCING, INC.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Thomas H. Peer

  
	
   

  	
  Name:

  	
  Thomas H. Peer

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

[Signature Page to Equitable Resources, Inc. 364-Day
Credit Agreement]

 

 

	
   

  	
  MELLON BANK, N.A.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Mark W. Rogers

  
	
   

  	
  Name:

  	
  Mark W. Rogers

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

[Signature Page to Equitable Resources, Inc. 364-Day
Credit Agreement]

 

 

	
   

  	
  SUNTRUST BANK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/
  Linda Lee Stanley

  
	
   

  	
  Name:

  	
  Linda L. Stanley

  
	
   

  	
  Title:

  	
  Director

  
				

 

[Signature Page to Equitable Resources, Inc. 364-Day
Credit Agreement]

 

 

	
   

  	
  BARCLAYS BANK PLC,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Douglas Bernegger

  
	
   

  	
  Name:

  	
  Douglas Bernegger

  
	
   

  	
  Title:

  	
  Director

  
				

 

[Signature Page to Equitable Resources, Inc. 364-Day
Credit Agreement]

 

 

	
   

  	
  THE BANK OF
  TOKYO-MITSUBISHI, LTD.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ John W. McGhee

  
	
   

  	
  Name:

  	
  John McGhee

  
	
   

  	
  Title:

  	
  Vice President and
  Manager

  
				

 

[Signature Page to Equitable Resources, Inc. 364-Day
Credit Agreement]

 

 

	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ John N. Watt

  
	
   

  	
  Name:

  	
  John N. Watt

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

[Signature Page to Equitable Resources, Inc. 364-Day
Credit Agreement]

 

 

	
   

  	
  FIFTH THIRD BANK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Christopher S.
  Helmeci

  
	
   

  	
  Name:

  	
  Christopher S. Helmeci

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

[Signature Page to Equitable Resources, Inc. 364-Day
Credit Agreement]

 

53

 

SCHEDULE 2.01

 

COMMITMENTS

AND PRO RATA SHARES

 

	
  Institution

  	
   

  	
  Title

  	
   

  	
  Allocation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank of America, N.A.

  	
   

  	
  Administrative Agent

  	
   

  	
  $

  	
  28,000,000.00

  
	
  JPMorgan Chase Bank

  	
   

  	
  Co-Syndication Agent

  	
   

  	
  $

  	
  28,000,000.00

  
	
  Bank One, NA

  	
   

  	
  Co-Syndication Agent

  	
   

  	
  $

  	
  28,000,000.00

  
	
  PNC Bank, National
  Association

  	
   

  	
  Co-Documentation Agent

  	
   

  	
  $

  	
  28,000,000.00

  
	
  Citibank, N.A.

  	
   

  	
  Co-Documentation Agent

  	
   

  	
  $

  	
  28,000,000.00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Barclays Bank PLC

  	
   

  	
   

  	
   

  	
  $

  	
  17,500,000.00

  
	
  BMO Nesbitt Burns
  Financing, Inc.

  	
   

  	
   

  	
   

  	
  $

  	
  17,500,000.00

  
	
  Mellon Bank, N.A.

  	
   

  	
   

  	
   

  	
  $

  	
  17,500,000.00

  
	
  SunTrust Bank

  	
   

  	
   

  	
   

  	
  $

  	
  17,500,000.00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Bank of
  Tokyo-Mitsubishi, Ltd.

  	
   

  	
   

  	
   

  	
  $

  	
  15,000,000.00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Bank of New York

  	
   

  	
   

  	
   

  	
  $

  	
  12,500,000.00

  
	
  Fifth Third Bank

  	
   

  	
   

  	
   

  	
  $

  	
  12,500,000.00

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Commitments

  	
   

  	
   

  	
   

  	
  $

  	
  250,000,000.00

  

 

 

SCHEDULE 5.05

 

CERTAIN LITIGATION

 

A jury verdict and a
judgment were rendered against the Borrower and a subsidiary on October 17,
2002 in a civil lawsuit in Knott County Circuit Court, Kentucky.  Plaintiff claimed that the well pump house
accident that injured him was caused by the company’s natural gas well adjacent
to his property.  The jury entered a
verdict for $50,000 for medical expenses and lost wages and $270 million for
pain and suffering and punitive damages, and an appealable judgment has been
entered against the Borrower and a subsidiary in such amount. While the
Borrower believes the damages are insured, it considers the claim to be
meritless and intends to vigorously pursue all post-verdict motions and
appellate remedies.

 

 

SCHEDULE 10.02

 

ADMINISTRATIVE AGENT’S OFFICE,

CERTAIN ADDRESSES FOR NOTICES

 

BORROWER:

 

Equitable Resources, Inc.

One Oxford Centre

301 Grant Street, Suite
3300

Pittsburgh, PA 15219

Attention: Assistant
Treasurer

Telephone: (412) 553-5769

Facsimile: (412) 553-7781

Electronic Mail:
mgegick@eqt.com

Website Address:  www.eqt.com

 

ADMINISTRATIVE AGENT:

 

Administrative Agent’s Office

(for payments and Loan Notices):

Bank of America, N.A.

901 Main Street, 14th
Floor

Dallas, TX  75202-3714

Attention:  Mr. Ben Cosgrove

Telephone:  (214) 209-9254

Facsimile:   (214) 290-9439

Electronic Mail:  ben.cosgrove@bankofamerica.com

 

Account No.:  1292000883

Ref:  Equitable Resources, Inc.

ABA# 111000012

 

Other Notices as Administrative Agent:

 

Bank of America, N.A.

Agency Management
Services

901 Main Street, 14th
Floor

Dallas, TX  75202-3714

Attention:  Mr. Ben Cosgrove

Telephone:  (214) 209-9254

Facsimile:   (214) 290-9439

Electronic Mail:
ben.cosgrove@bankofamerica.com

 

1

 

with a copy to:

 

Bank of America, N.A.

333 Clay Street, Suite
4550

Houston, TX  77002

Attention:  Mr. Ronald E. McKaig

Managing Director

Telephone:  (713) 651-4881

Facsimile:   (713) 651-4808

Electronic Mail:
ronald.e.mckaig@bankofamerica.com

 

2

 

EXHIBIT  A

 

FORM
OF LOAN NOTICE

Date: 
                  ,
         

 

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

 

Ladies
and Gentlemen:

 

Reference is made to that
certain 364-Day Credit Agreement, dated as of November 1, 2002 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to
time, the “Agreement;” the terms defined therein being used herein as
therein defined), among Equitable Resources, Inc., a Pennsylvania corporation
(the “Borrower”), the Lenders from time to time party thereto, Bank of
America, N.A., as Administrative Agent, and JPMorgan Chase Bank and Bank One,
NA, as Co-Syndication Agents.

 

The undersigned hereby
requests (select one):

 

o  A Borrowing of Loans                                                                                                                                                       o  A conversion or continuation of Loans

 

1.                                       On
                                                                                           
(a Business Day).

 

2.                                       In
the amount of
$                                                              .

 

3.                                       Comprised
of
                                                                    .

[Type of Loan requested]

 

4.                                       For
Eurodollar Rate Loans:  with an Interest
Period of         months.

 

The undersigned hereby
certifies that the following statements will be true on the date of the
proposed before and after giving effect thereto and to the application of the
proceeds therefrom:

 

(a)                                  the
representations and warranties of the Borrower contained in Article V of the
Agreement are true and correct as of the date hereof (except such
representations and warranties which expressly refer to an earlier date, which
are true and correct as of such earlier date, and except for the following:  [described any exceptions to the
representations and warranties in Section 5.04(c), 5.05 and 5.06
that have been disclosed to the Administrative Agent, and identify when such
disclosure was made and in what document]); and

 

(b)                                 no
Default has occurred and is continuing, or would result from the proposed
Borrowing.

 

[The Borrowing requested
herein complies with the proviso to the first sentence of Section 2.01
of the Agreement.]

 

	
   

  	
  EQUITABLE
  RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

A-1

 

EXHIBIT B

 

FORM
OF NOTE

 

                                            

 

FOR VALUE RECEIVED, the
undersigned (the “Borrower”), hereby promises to pay to
                                           
or registered assigns (the “Lender”), in accordance with the provisions
of the Agreement (as hereinafter defined), the principal amount of each Loan
from time to time made by the Lender to the Borrower under that certain 364-Day
Credit Agreement, dated as of November 1, 2002 (as amended, restated, extended,
supplemented or otherwise modified in writing from time to time, the “Agreement;”
the terms defined therein being used herein as therein defined), among the
Borrower, the Lenders from time to time party thereto, Bank of America, N.A.,
as Administrative Agent, and JPMorgan Chase Bank and Bank One, NA, as
Co-Syndication Agents.

 

The Borrower promises to
pay interest on the unpaid principal amount of each Loan from the date of such
Loan until such principal amount is paid in full, at such interest rates and at
such times as provided in the Agreement. 
All payments of principal and interest shall be made to the
Administrative Agent for the account of the Lender in Dollars in immediately
available funds at the Administrative Agent’s Office.  If any amount is not paid in full when due hereunder, such unpaid
amount shall bear interest, to be paid upon demand, from the due date thereof
until the date of actual payment (and before as well as after judgment)
computed at the per annum rate set forth in the Agreement.

 

This Note is one of the
Notes referred to in the Agreement, is entitled to the benefits thereof and may
be prepaid in whole or in part subject to the terms and conditions provided
therein.  Upon the occurrence and continuation
of one or more of the Events of Default specified in the Agreement, all amounts
then remaining unpaid on this Note shall become, or may be declared to be,
immediately due and payable all as provided in the Agreement.  Loans made by the Lender shall be evidenced
by one or more loan accounts or records maintained by the Lender in the
ordinary course of business. The Lender may also attach schedules to this Note
and endorse thereon the date, amount and maturity of its Loans and payments
with respect thereto.

 

This Note is a Loan
Document and is subject to Section 10.10 of the Agreement, which is
incorporated herein by reference the same as if set forth herein verbatim.

 

The Borrower, for itself,
its successors and assigns, hereby waives diligence, presentment, protest and
demand and notice of protest, demand, dishonor and non-payment of this Note.

 

B-1

 

THIS NOTE SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE;
PROVIDED THAT THE ADMINISTRATIVE AGENT AND EACH LENDER SHALL RETAIN ALL RIGHTS
ARISING UNDER FEDERAL LAW.

 

 

	
   

  	
  EQUITABLE
  RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

B-2

 

LOANS AND
PAYMENTS WITH RESPECT THERETO

 

	
  Date

  	
   

  	
  Type of
  Loan

  Made

  	
   

  	
  Amount of

  Loan Made

  	
   

  	
  End of

  Interest

  Period

  	
   

  	
  Amount of

  Principal or

  Interest Paid

  This Date

  	
   

  	
  Outstanding

  Principal

  Balance This

  Date

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

B-3

 

EXHIBIT C

 

FORM
OF COMPLIANCE CERTIFICATE

 

Financial
Statement Date:
                                   ,
               

 

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

 

Ladies
and Gentlemen:

 

Reference is made to that
certain 364-Day Credit Agreement, dated as of November 1, 2002 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to
time, the “Agreement;” the terms defined therein being used herein as
therein defined), among Equitable Resources, Inc., a Pennsylvania corporation
(the “Borrower”), the Lenders from time to time party thereto, Bank of
America, N.A., as Administrative Agent, and JPMorgan Chase Bank and Bank One,
NA, as Co-Syndication Agents.

 

The undersigned
Responsible Officer hereby certifies as of the date hereof that he/she is the
                                                             
of the Borrower, and that, as such, he/she is authorized to execute and deliver
this Certificate to the Administrative Agent on the behalf of the Borrower, and
that:

 

[Use following paragraph 1 for
fiscal year-end
financial statements]

 

1.                                       Attached
hereto as Schedule 1 are the year-end audited financial statements
required by Section 6.01(a) of the Agreement for the fiscal year of the
Borrower ended as of the above date, together with the report and opinion of an
independent certified public accountant required by such section.  Such financial statements fairly present the
financial condition, results of operations and cash flows of the Borrower and
its Subsidiaries in accordance with GAAP as at such date and for such period.

 

[select one]

[are attached hereto as
Schedule 1]

—or—

[are available in
electronic format and have been delivered pursuant to Section 6.01 of
the Agreement].

 

[Use following paragraph 1 for
fiscal quarter-end
financial statements]

 

1.                                       Attached
hereto as Schedule 1 are the unaudited financial statements required by Section
6.01(b) of the Agreement for the fiscal quarter of the Borrower ended as of
the above date.  Such financial
statements fairly present the financial condition, results of operations and
cash flows of the Borrower and its Subsidiaries in accordance with GAAP as at
such date and for such period, subject only to normal year-end audit adjustments
and the absence of footnotes.

 

[select one]

[are attached hereto as
Schedule 1]

—or—

[are available in
electronic format and have been delivered pursuant to Section 6.01 of
the Agreement].

 

C-1

 

2.                                       The
undersigned has reviewed and is familiar with the terms of the Agreement and
has made, or has caused to be made under his/her supervision, a detailed review
of the transactions and condition (financial or otherwise) of the Borrower
during the accounting period covered by the attached financial statements.

 

3.                                       A
review of the activities of the Borrower during such fiscal period has been
made under the supervision of the undersigned with a view to determining
whether during such fiscal period the Borrower performed and observed all its
Obligations under the Loan Documents, and

 

[select
one:]

 

[to the best knowledge of
the undersigned during such fiscal period, (a) the Borrower performed and
observed each covenant and condition of the Loan Documents applicable to it,
and (b) no Default exists.]

 

—or—

[the following covenants or conditions have not been performed or
observed [or: the following Default exists] and the following is a list of each
such Default and its nature and status:]

 

4.                                       The
representations and warranties of the Borrower contained in Article V of
the Agreement (except with respect to the representations and warranties in Sections
5.04(c), 5.05 and 5.06, to the extent disclosed herein), or
which are contained in any document furnished at any time under or in
connection with the Loan Documents, are true and correct on and as of the date
hereof, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they are true and correct
as of such earlier date, and except that for purposes of this Compliance
Certificate, the representations and warranties contained in subsections (a)
and (b) of Section 5.04 of the Agreement shall be deemed to refer to the
most recent statements furnished pursuant to clauses (a) and (b), respectively,
of Section 6.01 of the Agreement, including the statements in connection
with which this Compliance Certificate is delivered.

 

[the following is a
description of the nature and status of each event or circumstance which causes
the representations and warranties in Section[s] [5.04(c)], [5.05]
and [5.06], to be untrue on the date hereof:]

 

5.                                       The
financial covenant analyses and information set forth on Schedule 2
attached hereto are true and accurate on and as of the date of this
Certificate.

 

IN WITNESS WHEREOF, the undersigned has
executed this Certificate as of
                                        ,
                       .

 

	
   

  	
  EQUITABLE
  RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

C-2

 

SCHEDULE
1

 

Financial
Statements

 

C-3

 

For the
Quarter/Year ended

 

                      (“Statement
Date”)

 

SCHEDULE 2

to the Compliance Certificate

($ in 000’s)

 

Section 7.07 – Debt to Capital.

 

	
  I.

  	
   

  	
  Consolidated Debt at
  Statement Date

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A.                Debt of the
  Borrower and its Subsidiaries on the Statement Date:

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.                  Non-Recourse
  Debt of the Borrower and its Subsidiaries on the Statement Date:

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  C.                  Consolidated Debt
  at Statement Date: (Lines I.A. - I.B.):

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
   

  	
  Total Capital at
  Statement Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A.                Consolidated
  Debt at Statement Date (Line I.C. above):

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.                  Shareholders’
  Equity at Statement Date:

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  C.                  Any excess of
  the net book value of assets subject to Liens securing Non-Recourse Debt
  (including the total assets of Excluded Subsidiaries) over the amount of the
  related Non-Recourse Debt that is reflected in Shareholders’ Equity:

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  D.                 Total Capital
  at Statement Date (Lines II.A. + II.B . – II.C.):

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  III.

  	
   

  	
  Consolidated Debt to
  Total Capital at Statement Date: (Line I.C.  ̧
  Line II.D.) (cannot exceed 0.65)

  	
   

  	
   

  

 

C-4

 

EXHIBIT D

 

FORM OF ASSIGNMENT AND ASSUMPTION

 

This Assignment and
Assumption (this “Assignment and Assumption”) is dated as of the
Effective Date set forth below and is entered into by and between [Insert name
of Assignor] (the “Assignor”) and [Insert name of Assignee]
(the “Assignee”).  Capitalized terms
used but not defined herein shall have the meanings given to them in the
364-Day Credit Agreement identified below (the “Credit Agreement”),
receipt of a copy of which is hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth
in Annex 1 attached hereto are hereby agreed to and incorporated herein by
reference and made a part of this Assignment and Assumption as if set forth
herein in full.

 

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

 

	
  1.

  	
   

  	
  Assignor:
                                                               

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Assignee:
                                                               
  [and is an

  	
   

  	
   

  
	
   

  	
   

  	
  Affiliate/Approved Fund of [identify Lender](1)]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Borrower:

  	
   

  	
  Equitable Resources,
  Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Administrative Agent:

  	
   

  	
  Bank of America, as the
  administrative agent under the Credit Agreement

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Credit Agreement:

  	
   

  	
  The 364-Day Credit
  Agreement, dated as of November 1, 2002, among Equitable Resources, Inc., the
  Lenders parties thereto, Bank of America, N.A., as Administrative Agent,
  JPMorgan Chase Bank and Bank One, NA, as Co-Syndication Agents, and the other
  agents parties thereto.

  
							

 

(1) Select as applicable.

 

D-1

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Assigned Interest:

  	
   

  	
   

  

 

	
  Aggregate

  Amount of

  Commitment/Loans

  for all Lenders

  	
   

  	
  Amount of

  Commitment

  Assigned

  	
   

  	
  Percentage

  Assigned of

  Commitment(2)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  
								

 

[7.                                   Trade
Date:                                                                       ](3)

 

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

 

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

 

	
   

  	
  ASSIGNOR

  
	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ASSIGNEE

  
	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  

 

(2)
Set forth, to at least 9 decimals, as a percentage of the Commitment of all
Lenders thereunder.

(3)
To be completed if the Assignor and the Assignee intend that the minimum
assignment amount is to be determined as of the Trade Date.

 

D-2

 

	
  [Consented to and]
  Accepted:

  
	
   

  
	
  [NAME OF ADMINISTRATIVE
  AGENT], as

  
	
    Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  [Consented to:]

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  

 

D-3

 

ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

 

STANDARD TERMS AND
CONDITIONS FOR

 

ASSIGNMENT AND
ASSUMPTION

 

1.                                                 Representations
and Warranties.

 

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

 

1.2.                                          Assignee.  The Assignee (a) represents and warrants
that (i) it has full power and authority, and has taken all action necessary,
to execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby and to become a Lender under the Credit
Agreement, (ii) it meets all requirements of an Eligible Assignee under the
Credit Agreement (subject to receipt of such consents as may be required under
the Credit Agreement), (iii) from and after the Effective Date, it shall be
bound by the provisions of the Credit Agreement as a Lender thereunder and, to
the extent of the Assigned Interest, shall have the obligations of a Lender
thereunder, (iv) it has received a copy of the Credit Agreement, together with
copies of the most recent financial statements delivered pursuant to Section
6.01 thereof, as applicable, and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
this Assignment and Assumption and to purchase the Assigned Interest on the
basis of which it has made such analysis and decision independently and without
reliance on the Administrative Agent or any other Lender, and (v) if it is a
Foreign Lender, attached hereto is any documentation required to be delivered
by it pursuant to the terms of the Credit Agreement, duly completed and
executed by the Assignee; and (b) agrees that (i) it will, independently and
without reliance on the Administrative Agent, the Assignor or any other Lender,
and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under the Loan Documents, and (ii) it will perform in accordance with their
terms all of the obligations which by the terms of the Loan Documents are
required to be performed by it as a Lender.

 

2.   Payments.  From and after the Effective Date, the
Administrative Agent shall make all payments in respect of the Assigned
interest (including payments of principal, interest, fees and other amounts) to
the Assignee whether such amounts have accrued prior to or on or after the
Effective Date. The Assignor and the Assignee shall make all appropriate
adjustments in payments by the Administrative Agent for periods prior to the
Effective Date or with respect to the making of this assignment directly between
themselves.

 

3.   General Provisions.  This Assignment and Assumption shall be
binding upon, and inure to the benefit of, the parties hereto and their
respective successors and assigns.  This
Assignment and Assumption may be executed in any number of counterparts, which
together shall constitute one instrument. 
Delivery of an executed counterpart of a signature page of this
Assignment and Assumption 

 

D-4

 

by telecopy shall be effective as delivery of a
manually executed counterpart of this Assignment and Assumption.  This Assignment and Assumption shall be
governed by, and construed in accordance with, the law of the State of New
York.

 

D-5

 

EXHIBIT E-1

 

FORM OF OPINION OF REED SMITH LLP

 

November       , 2002

 

To Bank of America, N.A.,
as

Administrative Agent, and
the Lenders

and the other Agents
Parties to the

Credit Agreement Referred
to Below

 

Ladies and Gentlemen:

 

We have participated in the preparation of the 364-Day Credit Agreement
(the “Credit Agreement”) dated as of November 1, 2002 among Equitable
Resources, Inc., a Pennsylvania corporation (the “Borrower”), the Lenders named
therein, Bank of America, N.A., as Administrative Agent, JPMorgan Chase Bank
and Bank One, NA, as Co-Syndication Agents, and the other agents named therein,
and have acted as special counsel for the Borrower for the purpose of rendering
this opinion pursuant to Section 4.01(a)(v) of the Credit Agreement.  Capitalized terms used herein which are
defined in the Credit Agreement are used herein as therein defined.

 

We have examined originals or copies, certified or otherwise identified
to our satisfaction, of such documents, corporate records, certificates of
public officials and other instruments and have conducted such other
investigations of law as we have deemed necessary or advisable for purposes of
this opinion.  We have assumed, with
respect to all documents which we have examined:  the genuineness of all signatures thereon, the authenticity of
all documents submitted to us as originals, the conformity to the originals of
all documents submitted to us as copies, and the authenticity of the originals
of such copies.

 

In rendering this opinion we have assumed with your permission that (i)
the Credit Agreement has been duly authorized, executed and delivered by
Administrative Agent and each Lender, (ii) the Borrower has been duly
incorporated and is validly existing as a corporation under the laws of the
Commonwealth of Pennsylvania, (iii) the Borrower has duly authorized, executed
and delivered the Credit Agreement and the Notes, and (iv) the execution and
delivery by the Borrower of the Credit Agreement and the Notes require no
consent or approval by any governmental body, agency or official or any filing
with the public utility commissions of Kentucky, Pennsylvania, or West
Virginia.  We understand you have relied
on the opinion of the Borrower’s Deputy General Counsel of even date herewith
with respect to these issues regarding the Borrower.

 

Upon the basis of the foregoing, we are of the opinion that the Credit
Agreement constitutes a legal, valid and binding agreement of the Borrower and
each Note constitutes a legal, valid and binding obligation of the Borrower, in
each case enforceable in accordance with its terms, except as the same may be
limited by applicable bankruptcy, insolvency, fraudulent conveyance, fraudulent
transfer, reorganization, receivership, moratorium or similar laws relating to
or affecting creditors’ rights generally and by general principles of equity,
whether enforcement is sought in a proceeding in equity or at law.  The enforceability of the respective
obligations of the parties to the Credit Agreement and the Note, and the
availability of certain rights and remedies provided for therein, may be
limited by applicable state and federal laws and judicial decisions, but the
remedies provided for in the Credit Agreement are adequate

 

E-1-1

 

for the practical realization of the benefits provided
thereby, except for the consequences of any procedural delay which may result
therefrom.

 

We express no opinion as to the enforceability of any provisions of the
Credit Agreement or any Note providing for the indemnification or exculpation
of any Agent or any Lender (A) in violation of public policy, (B) to the extent
precluded by federal or state securities laws, or (C) purporting to indemnify
or exculpate any Agent or any Lender from the consequences of its own gross
negligence, willful misconduct or strict liability.

 

We are members of the Bar of the State of New York and of the
Commonwealth of Pennsylvania and the foregoing opinion is limited to the laws
of the Commonwealth of Pennsylvania and of the State of New York and the
applicable federal laws of the United States of America.  In giving the foregoing opinion, we express
no opinion as to the effect (if any) of any law of any jurisdiction (except the
Commonwealth of Pennsylvania and the State of New York) in which any Lender is
located which limits the rate of interest that such Lender may charge or
collect.

 

This opinion is rendered solely to you and to Eligible Assignees in
connection with the above matter.  This
opinion may not be relied upon by you or Assignees for any other purpose or
relied upon by any other person without our prior written consent.  The opinions expressed herein are rendered
and speak only as of the date hereof, and we specifically disclaim any responsibility
to update such opinions or to advise you of subsequent developments affecting
such opinions that hereafter may come to our attention.

 

Very
truly yours,

 

E-1-2

 

EXHIBIT E-2

 

 

FORM OF OPINION OF DEPUTY GENERAL
COUNSEL OF EQUITABLE RESOURCES, INC.

 

November      , 2002

 

 

To Bank of America, N.A.,
as

Administrative Agent and
the Lenders and the

other Agents Parties to
the Credit

Agreement Referred to
Below

 

Ladies and Gentlemen:

 

I am Deputy General Counsel of Equitable Resources, Inc. (the
“Borrower”) and have acted as internal counsel for the Borrower in connection
with the 364-Day Credit Agreement (the “Credit Agreement”) dated as of November
1, 2002 among the Borrower, the Lenders parties thereto, Bank of America, N.A.,
as Administrative Agent, JPMorgan Chase Bank and Bank One, NA, as
Co-Syndication Agents, and the other agents named therein.  Capitalized terms which are defined in the
Credit Agreement are used herein as therein defined.  This opinion is being rendered to you at the request of my client
pursuant to Section 4.01(a)(v) of the Credit Agreement.

 

For purposes of rendering this opinion, I have examined the following:

 

1.                                       the
Credit Agreement;

 

2.                                       the
Notes;

 

3.                                       the
Certificate of Incorporation and Bylaws of the Borrower;

 

4.                                       a
Certificate of Good Standing of the Borrower, certified by the Secretary of the
Commonwealth of Pennsylvania on
                          ,
2002; and

 

5.                                       Minutes
of the meeting of the Board of Directors of the Borrower on
                      ,
        .

 

For purposes of rendering this opinion I have relied without
independent investigation upon statements of officers and employees of the
Borrower as to certain factual matters relevant to this opinion.  I have assumed, with respect to all
documents which I have examined:  the
genuineness of all signatures thereon (other than signatures of officers of the
Borrower), the authenticity of all documents submitted to me as originals, the
conformity to the originals of all documents submitted to me as copies, and the
authenticity of the originals of such copies.

 

Upon the basis of the foregoing, I am of the opinion that:

 

1.                                       The
Borrower is a corporation duly incorporated, validly existing and in good
standing under the laws of Pennsylvania and has all corporate powers and
authority and all material governmental licenses, authorizations, consents and
approvals required to carry on its business as now conducted and execute,
deliver and perform its obligations under the Credit Agreement and Notes.

 

E-2-1

 

2.                                       The
execution, delivery and performance by the Borrower of the Credit Agreement and
the Notes (a) are within the corporate powers of the Borrower, (b) have been
duly authorized by all necessary corporate action, (c) require no consent or
approval by, or filing with, the public utility commissions of Kentucky,
Pennsylvania, or West Virginia, or any other Governmental Authority of the
Commonwealth of Pennsylvania or of the Federal government of the United States,
(d) do not contravene, or constitute a default under, the articles of
incorporation or by-laws of the Borrower, (e) do not contravene, or constitute
a default under, any agreement, judgment, injunction, order, decree, or other
instrument, in each case under this clause (e) of which I have actual
knowledge, binding upon the Borrower or any of its Subsidiaries, or (f) result
in the creation or imposition of any Lien on any asset of the Borrower or any
of its Subsidiaries.  The Credit
Agreement has been duly executed and delivered by the Borrower.  The execution and delivery of the Credit
Agreement, and the making and repayment of the Loans or other payment
obligations, do not violate any applicable Law of Pennsylvania or the United
States.

 

3.                                       Except
as set forth in Schedule 5.05 of the Credit Agreement, there is no action, suit or proceeding pending
against, or to the best of my actual knowledge threatened against, the Borrower
or any of its Subsidiaries before any court or arbitrator or any governmental
body, agency or official, in which there is a reasonable possibility of an
adverse decision which could materially adversely affect the business,
consolidated financial position or consolidated results of operations of the
Borrower and its Consolidated Subsidiaries, considered as a whole, or which in
any manner draws into question the validity of the Credit Agreement or the
Notes.

 

4.                                       Each
of the Borrower’s corporate Subsidiaries is a corporation validly existing, and
has all corporate powers and all material governmental licenses,
authorizations, consents and approvals required to carry on its business as now
conducted.

 

5.                                       None
of the Borrower, any Person Controlling the Borrower, or any Subsidiary (a) is
a “holding company,” or a “subsidiary company” of a “holding company,” or an
“affiliate” of a “holding company” or of a “subsidiary company” of a “holding
company,” within the meaning of the Public Utility Holding Company Act of 1935,
or (b) is or is required to be registered as an “investment company” under the
Investment Company Act of 1940.

 

I am a member of the Bar of the Commonwealth of Pennsylvania and the
foregoing opinion is limited (i) to the laws of the Commonwealth of
Pennsylvania, (ii) to the applicable federal laws of the United States of
America, (iii) to the extent set forth in paragraph 2 above, to the public
utility laws of the Commonwealth of Kentucky and the State of West Virginia and
(iv) to the extent set forth in paragraph 4 above, to the general corporation
laws of the applicable States of the United States under which the Borrower’s
Subsidiaries are organized.

 

This opinion is rendered solely to you and to Eligible Assignees in
connection with the Credit Agreement. 
This opinion may not be relied upon by you or Eligible Assignees for any
other purpose or relied upon by any other person without my prior written
consent.  The opinions expressed herein
are rendered and speak only as of the date hereof, and I specifically disclaim
any responsibility to update such opinions or to advise you of subsequent
developments affecting such opinions that hereafter may come to my attention.

 

Very
truly yours,

 

 

Deputy
General Counsel

 

E-2-2Exhibit 10.2

 

EXECUTION COPY

 

	
   

  

 

$250,000,000

 

 

REVOLVING CREDIT AGREEMENT

 

 

Dated as of
November 1, 2002

 

among

 

EQUITABLE RESOURCES, INC.,

as the Borrower,

 

 

BANK OF AMERICA, N.A.,

as Administrative Agent and L/C Issuer,

 

 

JPMORGAN
CHASE BANK,

and

BANK
ONE, NA

 

as Co-Syndication
Agents,

 

PNC
BANK, NATIONAL ASSOCIATION,

and

CITIBANK,
N.A.

 

as
Co-Documentation Agents

 

 

and

 

The Other Lenders
Party Hereto

 

 

BANC OF AMERICA SECURITIES LLC,

and

JPMORGAN SECURITIES INC.,

as

Joint Lead
Arrangers and Co-Book Managers

 

	
   

  

 

 

TABLE
OF CONTENTS

 

	
  ARTICLE
  I.  DEFINITIONS AND ACCOUNTING TERMS

  
	
  1.01

  	
  Defined Terms

  
	
  1.02

  	
  Other Interpretive
  Provisions

  
	
  1.03

  	
  Accounting
  Terms

  
	
  1.04

  	
  Rounding

  
	
  1.05

  	
  References to
  Agreements and Laws

  
	
  1.06

  	
  Times of Day

  
	
  1.07

  	
  Letter
  of Credit Amounts

  
	
   

  	
   

  
	
  ARTICLE
  II.  THE COMMITMENTS AND BORROWINGS

  
	
  2.01

  	
  Loans

  
	
  2.02

  	
  Borrowings, Conversions
  and Continuations of Loans

  
	
  2.03

  	
  Letters of
  Credit

  
	
  2.04

  	
  Prepayments

  
	
  2.05

  	
  Termination or
  Reduction of Commitments

  
	
  2.06

  	
  Repayment
  of Loans

  
	
  2.07

  	
  Interest

  
	
  2.08

  	
  Fees

  
	
  2.09

  	
  Computation of
  Interest and Fees

  
	
  2.10

  	
  Evidence of
  Debt

  
	
  2.11

  	
  Payments
  Generally

  
	
  2.12

  	
  Sharing of
  Payments

  
	
  2.13

  	
  Extension of Stated
  Maturity Date

  
	
  2.14

  	
  Increase
  in Commitments

  
	
   

  	
   

  
	
  ARTICLE III.  TAXES, YIELD PROTECTION AND ILLEGALITY

  
	
  3.01

  	
  Taxes

  
	
  3.02

  	
  Illegality

  
	
  3.03

  	
  Inability to Determine
  Rates

  
	
  3.04

  	
  Increased
  Cost and Reduced Return; Capital Adequacy

  
	
  3.05

  	
  Funding Losses

  
	
  3.06

  	
  Matters
  Applicable to all Requests for Compensation

  
	
  3.07

  	
  Survival

  
	
   

  	
   

  
	
  ARTICLE IV.  CONDITIONS PRECEDENT TO CLOSING DATE AND TO CREDIT EXTENSIONS

  
	
  4.01

  	
  Conditions
  of Closing Date and Initial Credit Extension

  
	
  4.02

  	
  Conditions to all
  Credit Extensions

  
	
   

  	
   

  
	
  ARTICLE V. 
  REPRESENTATIONS AND WARRANTIES

  
	
  5.01

  	
  Corporate Existence and
  Power

  
	
  5.02

  	
  Corporate
  and Governmental Authorization; No Contravention

  
	
  5.03

  	
  Binding Effect

  
	
  5.04

  	
  Financial
  Information

  
	
  5.05

  	
  Litigation

  
	
  5.06

  	
  No Default

  
	
  5.07

  	
  Compliance
  with ERISA

  
	
  5.08

  	
  Environmental
  Matters

  
	
  5.09

  	
  Taxes

  
	
  5.10

  	
  Subsidiaries

  

 

i

 

	
  5.11

  	
  Regulatory
  Restrictions on Borrowing; Margin Regulations

  
	
  5.12

  	
  Full Disclosure

  
	
   

  	
   

  
	
  ARTICLE VI.  AFFIRMATIVE COVENANTS

  
	
  6.01

  	
  Information

  
	
  6.02

  	
  Payment
  of Obligations

  
	
  6.03

  	
  Maintenance of
  Property; Insurance

  
	
  6.04

  	
  Conduct
  of Business and Maintenance of Existence

  
	
  6.05

  	
  Compliance
  with Laws

  
	
  6.06

  	
  Inspection
  of Property, Books and Records

  
	
  6.07

  	
  Use of Proceeds

  
	
  6.08

  	
  Governmental Approvals
  and Filings

  
	
   

  	
   

  
	
  ARTICLE VII.  NEGATIVE COVENANTS

  
	
  7.01

  	
  Liens

  
	
  7.02

  	
  Debt
  to Total Capital

  
	
  7.03

  	
  Transactions with
  Affiliates

  
	
  7.04

  	
  Limitation of Other
  Restrictions on Dividends by Subsidiaries, etc

  
	
  7.05

  	
  Mergers and Sales of Assets

  
	
  7.06

  	
  Change in Nature of
  Business

  
	
  7.07

  	
  Use of Proceeds

  
	
   

  	
   

  
	
  ARTICLE VIII.  EVENTS OF DEFAULT AND REMEDIES

  
	
  8.01

  	
  Events of
  Default

  
	
  8.02

  	
  Remedies Upon Event of
  Default

  
	
  8.03

  	
  Application
  of Funds

  
	
   

  	
   

  
	
  ARTICLE IX.  ADMINISTRATIVE AGENT

  
	
  9.01

  	
  Appointment
  and Authorization of Administrative Agent

  
	
  9.02

  	
  Delegation
  of Duties

  
	
  9.03

  	
  Liability of
  Administrative Agent

  
	
  9.04

  	
  Reliance by
  Administrative Agent

  
	
  9.05

  	
  Notice of
  Default

  
	
  9.06

  	
  Credit
  Decision; Disclosure of Information by Administrative Agent

  
	
  9.07

  	
  Indemnification
  of Administrative Agent

  
	
  9.08

  	
  Administrative
  Agent in its Individual Capacity

  
	
  9.09

  	
  Successor Administrative
  Agent

  
	
  9.10

  	
  Administrative
  Agent May File Proofs of Claim

  
	
  9.11

  	
  Other Agents;
  Arrangers and Managers

  
	
   

  	
   

  
	
  ARTICLE X. 
  MISCELLANEOUS

  
	
  10.01

  	
  Amendments, Etc.

  
	
  10.02

  	
  Notices
  and Other Communications; Facsimile Copies

  
	
  10.03

  	
  No Waiver; Cumulative
  Remedies

  
	
  10.04

  	
  Attorney Costs,
  Expenses and Taxes

  
	
  10.05

  	
  Indemnification by the
  Borrower

  
	
  10.06

  	
  Payments
  Set Aside

  
	
  10.07

  	
  Successors
  and Assigns

  
	
  10.08

  	
  Confidentiality

  
	
  10.09

  	
  Set-off

  
	
  10.10

  	
  Interest
  Rate Limitation

  
	
  10.11

  	
  Counterparts

  
	
  10.12

  	
  Integration

  

 

ii

 

	
  10.13

  	
  Survival of
  Representations and Warranties

  
	
  10.14

  	
  Severability

  
	
  10.15

  	
  Tax Forms

  
	
  10.16

  	
  Governing Law

  
	
  10.17

  	
  Waiver of Right to
  Trial by Jury

  
	
  10.18

  	
  Termination
  of Commitments Under Existing Credit Agreement

  
	
  10.19

  	
  ENTIRE
  AGREEMENT

  
	
   

  	
   

  
	
  SIGNATURES

  

 

iii

 

 

SCHEDULES

 

	
  2.01

  	
  Commitments and Pro
  Rata Shares

  
	
  5.05

  	
  Certain Litigation

  
	
  10.02

  	
  Administrative
  Agent’s Office, Certain Addresses for Notices

  
	
   

  	
   

  
	
  EXHIBITS

  	
   

  
	
   

  	
   

  
	
   

  	
  Form of

  
	
   

  	
   

  
	
  A

  	
  Loan Notice

  
	
  B

  	
  Note

  
	
  C

  	
  Compliance Certificate

  
	
  D

  	
  Assignment and Assumption

  
	
  E-1

  	
  Opinion of Reed Smith LLP

  
	
  E-2

  	
  Opinion of In-House
  Counsel for the Borrower

  

 

iv

 

CREDIT
AGREEMENT

 

This REVOLVING CREDIT AGREEMENT (“Agreement”) is entered into as
of November 1, 2002, among EQUITABLE RESOURCES, INC., a Pennsylvania corporation (the “Borrower”),
each lender from time to time party hereto (collectively, the “Lenders”
and individually, a “Lender”), BANK OF AMERICA, N.A., as Administrative
Agent and L/C Issuer, and JPMORGAN CHASE BANK and BANK ONE, NA, as
Co-Syndication Agents.

 

The Borrower has requested that the Lenders provide a revolving credit
facility and the Lenders are willing to do so on the terms and conditions set
forth herein.

 

In consideration of the mutual covenants and agreements herein
contained, the parties hereto covenant and agree as follows:

 

ARTICLE
I.

DEFINITIONS
AND ACCOUNTING TERMS

 

1.01        Defined Terms.  As used in this Agreement, the following
terms shall have the meanings set forth below:

 

“364-Day Credit
Agreement” means the 364-Day Credit Agreement dated as of even date
herewith by and among the Borrower, Bank of America, N.A., as Administrative
Agent, and the other agents and lenders therein named.

 

“Administrative Agent” means Bank of America in its capacity as
administrative agent under any of the Loan Documents, or any successor
administrative agent.

 

“Administrative Agent’s Office” means the Administrative Agent’s
address and, as appropriate, account as set forth on Schedule 10.02, or
such other address or account as the Administrative Agent may from time to time
notify the Borrower and the Lenders.

 

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

 

“Affiliate” means, with respect to any Person, another Person
that directly, or indirectly through one or more intermediaries, Controls or is
Controlled by or is under common Control with the Person specified.  “Control” means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of a Person, whether through the ability to exercise
voting power, by contract or otherwise. 
“Controlling” and “Controlled” have meanings correlative
thereto.

 

“Agent-Related Persons” means the Administrative Agent, together
with its Affiliates (including, in the case of Bank of America in its capacity
as the Administrative Agent, Bank of America Securities LLC), and the officers,
directors, employees, agents and attorneys-in-fact of such Persons and
Affiliates.

 

“Aggregate
Commitments” means the Commitments of all the Lenders.

 

“Agreement” means this Credit Agreement.

 

“ANPI” means Appalachian NPI, LLC a Delaware limited liability
company.

 

 

“ANPI Obligations” means obligations with respect to the 7.76%
Senior Secured Bonds due February 28, 2016 of ANPI, with respect to the related
swap transaction between ANPI and Credit Suisse First Boston International and
with respect to the ownership interests in Appalachian Natural Gas Trust, in
each case under documentation in place as of the date of this Agreement, with
such changes in such documentation as, in the reasonable opinion of the
Administrative Agent, do not adversely affect the interest of the Lenders.

 

“ANPI Transaction” means the transaction pursuant to which the
ANPI Obligations were incurred.

 

“Applicable Rate” means, from time to time, the following
percentages per annum (set forth in basis points), based upon the Debt Rating
as set forth below:

 

	
  Applicable Rate

  
	
  Pricing

  Level

  	
   

  	
  Debt
  Ratings

  S&P/Moody’s

  	
   

  	
  Facility

  Fee

  	
   

  	
  Utilization

  Fee

  	
   

  	
  Eurodollar

  Rate

  	
   

  	
  Letters

  of

  Credit

  	
   

  	
  Base

  Rate

  	
   

  
	
  1

  	
   

  	
  A+/A1 or

  better

  	
   

  	
  8.0

  	
   

  	
  7.5

  	
   

  	
  22.0

  	
   

  	
  22.0

  	
   

  	
  0.0

  	
   

  
	
  2

  	
   

  	
  A/A2

  	
   

  	
  9.0

  	
   

  	
  10.0

  	
   

  	
  31.0

  	
   

  	
  31.0

  	
   

  	
  0.0

  	
   

  
	
  3

  	
   

  	
  A-/A3

  	
   

  	
  10.0

  	
   

  	
  10.0

  	
   

  	
  42.5

  	
   

  	
  42.5

  	
   

  	
  0.0

  	
   

  
	
  4

  	
   

  	
  BBB+/Baa1

  	
   

  	
  12.5

  	
   

  	
  10.0

  	
   

  	
  52.5

  	
   

  	
  52.5

  	
   

  	
  0.0

  	
   

  
	
  5

  	
   

  	
  BBB/Baa2

  	
   

  	
  15.0

  	
   

  	
  12.5

  	
   

  	
  72.5

  	
   

  	
  72.5

  	
   

  	
  0.0

  	
   

  
	
  6

  	
   

  	
  BBB-/Baa3 or

  worse

  	
   

  	
  25.0

  	
   

  	
  12.5

  	
   

  	
  100.0

  	
   

  	
  100.0

  	
   

  	
  0.0

  	
   

  

 

“Debt Rating” means, as of any date of
determination, the rating as  determined by either S&P or Moody’s
(collectively, the “Debt Ratings”) of the Borrower’s
non-credit-enhanced, senior unsecured long-term debt; provided that if a
Debt Rating is issued by each of the foregoing rating agencies, then the higher
of such Debt Ratings shall apply (with the Debt Rating for Pricing Level 1
being the highest and the Debt Rating for Pricing Level 6 being the lowest),
unless there is a split in Debt Ratings of more than one level, in which case
the Pricing Level that is one level higher than the Pricing Level of the lower
Debt Rating shall apply; and provided  further that if no Debt
Rating is issued by either S&P or Moody’s, then such rating agency shall be
deemed to have established a rating of Pricing Level 6.

 

Initially, the Applicable Rate shall be determined
based upon the Debt Rating specified in the certificate delivered pursuant to Section
4.01(a)(vii).  Thereafter, each
change in the Applicable Rate resulting from a publicly announced change in the
Debt Rating shall be effective during the period commencing on the date of the
public announcement thereof and ending on the date immediately preceding the
effective date of the next such change.

 

“Arranger” means each of Banc of America Securities LLC and
JPMorgan Securities, Inc., in their capacity as co-lead arrangers and co-book
managers.

 

“Assignment and Assumption” means an Assignment and Assumption
substantially in the form of Exhibit D.

 

2

 

“Attorney Costs” means and includes all fees, expenses and
disbursements of any law firm or other external counsel and, without
duplication, the allocated cost of internal legal services and all expenses and
disbursements of internal counsel.

 

“Audited Financial Statements” means the audited consolidated
balance sheet of the Borrower and its Subsidiaries for the fiscal year ended
December 31, 2001 and the related consolidated statements of income or
operations, shareholders’ equity and cash flows for such fiscal year of the Borrower
and its Subsidiaries, including the notes thereto.

 

“Authorizations” means all filings, recordings, and
registrations with, and all validations or exemptions, approvals, orders,
authorizations, consents, franchises, licenses, certificates, and permits from,
any Governmental Authority.

 

“Availability Period”
means the period from and including the Closing Date to the Maturity Date.

 

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

 

“Base Rate” means for any day a fluctuating rate per annum equal
to the higher of (a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of
interest in effect for such day as publicly announced from time to time by Bank
of America as its “prime rate.”  The
“prime rate” is a rate set by Bank of America based upon various factors
including Bank of America’s costs and desired return, general economic
conditions and other factors, and is used as a reference point for pricing some
loans, which may be priced at, above, or below such announced rate.  Any change in such rate announced by Bank of
America shall take effect at the opening of business on the day specified in
the public announcement of such change.

 

“Base Rate Loan” means a Loan that bears interest based on the Base Rate.

 

“Benefit Arrangement” means, at any time, an employee benefit
plan within the meaning of Section 3(3) of ERISA which is not a Plan or a
Multiemployer Plan and which is maintained or otherwise contributed to by any
member of the ERISA Group.

 

“Borrower” has the meaning specified in the introductory
paragraph hereto.

 

“Borrowing” means a borrowing consisting of simultaneous Loans
of the same Type and, in the case of Eurodollar Rate Loans, having the same
Interest Period made by each of the Lenders pursuant to Section 2.01.

 

“Business Day” means any day other than a Saturday, Sunday or
other day on which commercial banks are authorized to close under the Laws of,
or are in fact closed in, the state where the Administrative Agent’s Office is
located and, if such day relates to any Eurodollar Rate Loan, means any such
day on which dealings in Dollar deposits are conducted by and between banks in
the London interbank eurodollar market.

 

“Capital Trust
I” means Equitable Resources Capital Trust I, a Subsidiary of Borrower.

 

“Capital Trust
I Indenture” means that certain Junior Subordinated Indenture dated April
23, 1998 between the Borrower and Bankers Trust Company, as Trustee.

 

“Cash
Collateralize” has the meaning specified in Section 2.03(g).

 

“Change of Control” means, with respect to any Person, an event
or series of events by which:

 

3

 

(a)           any
“person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, but excluding any employee benefit plan of
such person or its subsidiaries, and any person or entity acting in its
capacity as trustee, agent or other fiduciary or administrator of any such
plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under
the Securities Exchange Act of 1934, except that a person or group shall be
deemed to have “beneficial ownership” of all securities that such person or
group has the right to acquire (such right, an “option right”), whether
such right is exercisable immediately or only after the passage of time),
directly or indirectly, of 33 1/3% or more of the equity securities of such
Person entitled to vote for members of the board of directors or equivalent
governing body of such Person on a fully-diluted basis (and taking into account
all such securities that such person or group has the right to acquire pursuant
to any option right); or

 

(b)           during
any period of 12 consecutive months, a majority of the members of the board of
directors or other equivalent governing body of such Person cease to be
composed of individuals (i) who were members of that board or equivalent
governing body on the first day of such period, (ii) whose election or
nomination to that board or equivalent governing body was approved by
individuals referred to in clause (i) above constituting at the time of such
election or nomination at least a majority of that board or equivalent
governing body or (iii) whose election or nomination to that board or other
equivalent governing body was approved by individuals referred to in clauses
(i) and (ii) above constituting at the time of such election or nomination at
least a majority of that board or equivalent governing body (excluding, in the
case of both clause (ii) and clause (iii), any individual whose initial
nomination for, or assumption of office as, a member of that board or
equivalent governing body occurs as a result of an actual or threatened
solicitation of proxies or consents for the election or removal of one or more
directors by any person or group other than a solicitation for the election of
one or more directors by or on behalf of the board of directors).

 

“Closing Date”
means the first date all the conditions precedent in Section 4.01 are
satisfied or waived in accordance with Section 4.01 (or, in the case of Section
4.01(b), waived by the Person entitled to receive the applicable payment).

 

“Code” means the Internal Revenue Code of 1986.

 

“Commitment” means, as to each Lender, its obligation to make
Loans to the Borrower pursuant to Section 2.01, and (b) purchase participations
in L/C Obligations, in an aggregate principal amount at any one time
outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule
2.01 or in the Assignment and Assumption pursuant to which such Lender
becomes a party hereto, as applicable, as such amount may be adjusted from time
to time in accordance with this Agreement.

 

“Compliance Certificate” means a certificate substantially in
the form of Exhibit C.

 

“Consolidated
Debt” means, as of any date of determination, the Debt of the Borrower and
its Subsidiaries on a consolidated basis other than Non-Recourse Debt.

 

“Consolidated
Subsidiaries” means, at any date, any Subsidiary or other entity, the
accounts of which would be consolidated with those of the Borrower in its
consolidated financial statements if such statements were prepared as of such
date.

 

4

 

“Contractual
Obligation” means, as to any Person, any provision of any security issued
by such Person or of any agreement, instrument or other undertaking to which
such Person is a party or by which it or any of its property is bound.

 

“Control” has the
meaning specified in the definition of “Affiliate.”

 

“Credit Extension”
means each of the following:  (a) a
Borrowing and (b) an L/C Credit Extension.

 

“Debt” means, as to any Person at a particular time, without
duplication, all of the following, whether or not included as Debt or
liabilities in accordance with GAAP:

 

(a)           all obligations of such Person for
borrowed money and all obligations of such Person evidenced by bonds,
debentures, notes, loan agreements or other similar instruments;

 

(b)           all non-contingent obligations (and,
for purposes of Section 8.01(e) and the definitions of Material Debt and
Material Financial Obligations, all contingent obligations) of such Person
arising under letters of credit (including standby and commercial), bankers’
acceptances, bank guaranties, surety bonds and similar instruments;

 

(c)           all obligations of such Person to pay
the deferred purchase price of property or services (other than trade accounts
payable in the ordinary course of business);

 

(d)           debt (excluding prepaid interest
thereon) secured by a Lien on property owned or being purchased by such Person
(including debt arising under conditional sales or other title retention
agreements), whether or not such debt shall have been assumed by such Person or
is limited in recourse;

 

(e)           capital leases;

 

(f)            to the extent required to be
included on the Borrower’s consolidated balance sheet as debt or liabilities in
accordance with GAAP, Synthetic Lease Obligations;

 

(g)           all obligations of such Person for
the payment of money under Production Payments; and

 

(h)           all Guarantees of such Person in
respect of any of the foregoing.

 

For the avoidance of
doubt, the parties hereto agree that the obligations of the Borrower and its
Subsidiaries with respect to the Existing Trust Preferred Capital Securities,
the Existing Subordinated Debentures, and the Existing Capital Trust Guaranty,
and obligations of the Borrower and its Subsidiaries with respect to
substantially identical transactions, shall be deemed to constitute Debt.

 

For all purposes hereof,
the Debt of the Borrower shall include the Debt of any partnership or joint
venture (other than a joint venture that is itself a corporation or limited
liability company) in which the Borrower or any Subsidiary of the Borrower is a
general partner or a joint venturer, unless such Debt is expressly made
non-recourse to the Borrower or Subsidiary, as applicable.

 

“Debt Rating” has
the meaning set forth in the definition of “Applicable Rate.”

 

5

 

“Debtor Relief Laws” means the Bankruptcy Code of the United
States, and all other liquidation, conservatorship, bankruptcy, assignment for
the benefit of creditors, moratorium, rearrangement, receivership, insolvency,
reorganization, or similar debtor relief Laws of the United States or other
applicable jurisdictions from time to time in effect and affecting the rights of
creditors generally.

 

“Default” means
any event or condition that constitutes an Event of Default or that, with the
giving of any notice, the passage of time, or both, would be an Event of
Default.

 

“Default Rate”
means an interest rate equal to (a) the Base Rate plus (b) the
Applicable Rate, if any, applicable to Base Rate Loans plus (c) 2% per
annum; provided, however, that with respect to a Eurodollar Rate
Loan, the Default Rate shall be an interest rate equal to the interest rate
(including any Applicable Rate) otherwise applicable to such Loan plus 2% per
annum, in each case to the fullest extent permitted by applicable Laws.

 

“Disposition” or “Dispose” means the sale, transfer,
license, lease or other disposition (including any sale and leaseback transaction)
of any property by any Person, including any sale, assignment, transfer or
other disposal, with or without recourse, of any notes or accounts receivable
or any rights and claims associated therewith.

 

“Dollar” and “$”
mean lawful money of the United States.

 

“Domestic” means
organized under the laws of any state of the United States.

 

“Eligible Assignee” has the meaning specified in Section
10.07(g).

 

“Environmental Laws” means any and all Federal, state, local,
and foreign statutes, laws, regulations, ordinances, rules, judgments, orders,
decrees, permits, concessions, grants, franchises, licenses, agreements or
governmental restrictions relating to pollution and the protection of the
environment or the release of any materials into the environment, including
those related to hazardous substances or wastes, air emissions and discharges
to waste or public systems.

 

“Environmental
Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or
indemnities), of the Borrower or any of its Subsidiaries directly or indirectly
resulting from or based upon (a) violation of any Environmental Law, (b) the
generation, use, handling, transportation, storage, treatment or disposal of
any Hazardous Substances, (c) exposure to any Hazardous Substances, (d) the
release or threatened release of any Hazardous Substances into the environment
or (e) any contract, agreement or other consensual arrangement pursuant to
which liability is assumed or imposed with respect to any of the foregoing.

 

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

 

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

 

“Eurodollar Rate” means for any Interest Period with respect to
any Eurodollar Rate Loan:

 

(a)           the rate per annum equal to the rate
determined by the Administrative Agent to be the offered rate that appears on
the page of the Telerate screen (or any successor thereto) that

 

6

 

displays an
average British Bankers Association Interest Settlement Rate for deposits in
Dollars (for delivery on the first day of such Interest Period) with a term
equivalent to such Interest Period, determined as of approximately 11:00 a.m.
(London time) two Business Days prior to the first day of such Interest Period,
or

 

(b)           if the rate referenced in the
preceding clause (a) does not appear on such page or service or such page or
service shall not be available, the rate per annum equal to the rate determined
by the Administrative Agent to be the offered rate on such other page or other
service that displays an average British Bankers Association Interest
Settlement Rate for deposits in Dollars (for delivery on the first day of such
Interest Period) with a term equivalent to such Interest Period, determined as
of approximately 11:00 a.m. (London time) two Business Days prior to the first
day of such Interest Period, or

 

(c)           if the rates referenced in the
preceding clauses (a) and (b) are not available, the rate per annum determined
by the Administrative Agent as the rate of interest at which deposits in
Dollars for delivery on the first day of such Interest Period in same day funds
in the approximate amount of the Eurodollar Rate Loan being made, continued or
converted by Bank of America and with a term equivalent to such Interest Period
would be offered by Bank of America’s London Branch to major banks in the
London interbank eurodollar market at their request at approximately 4:00 p.m.
(London time) two Business Days prior to the first day of such Interest Period.

 

“Eurodollar Rate Loan” means a Loan that bears interest at a
rate based on the Eurodollar Rate.

 

“Event of
Default” has the meaning specified in Section 8.01.

 

“Excluded
Subsidiary” means at any time a Subsidiary which is not a Material
Subsidiary, and is organized solely for the purpose of holding, directly or
indirectly, an ownership interest in one entity or property (or related
entities or properties), does not engage in any business unrelated to such
entity(ies) or property(ies) or the financing thereof and does not have any
assets or indebtedness other than those related to its interest in such
entity(ies) or property(ies) or the financing thereof and which shall have been
identified as an Excluded Subsidiary at or prior to such time by notice from
the Borrower to the Lenders.

 

“Existing
Borrower Indenture” means the Junior Subordinated Indenture, dated as of
April 23, 1998, between the Borrower and Bankers Trust Company, as Trustee.

 

“Existing
Capital Trust Guaranty” means that certain Capital Securities Guarantee
Agreement dated April 23, 1998 between the Borrower and Bankers Trust Company,
as Guarantee Trustee.

 

“Existing Credit Agreement” means that certain Credit Agreement
dated as of November 13, 2000 among the Borrower, Bank of America, N.A., as
administrative agent, Bank One, NA, as syndication agent, PNC Bank National
Association, as documentation agent, and a syndicate of lenders.

 

“Existing Lenders” means lenders party to the Existing Credit
Agreement.

 

“Existing
Subordinated Debentures” means the 7.35% Junior Subordinated Debentures
issued by the Borrower pursuant to the Existing Borrower Indenture in the
aggregate principal amount of $125,000,000.

 

“Existing Trust
Preferred Capital Securities” means those certain Trust Preferred Capital
Securities issued by Capital Trust I pursuant to the Capital Trust I Indenture
in the principal amount of

 

7

 

$125,000,000, the
proceeds of which were used by Capital Trust I to purchase the Existing
Subordinated Debentures.

 

“Federal Funds Rate” means, for any day, the rate per annum
equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published by the Federal Reserve Bank on the
Business Day next succeeding such day; provided that (a) if such day is
not a Business Day, the Federal Funds Rate for such day shall be such rate on
such transactions on the next preceding Business Day as so published on the
next succeeding Business Day, and (b) if no such rate is so published on such
next succeeding Business Day, the Federal Funds Rate for such day shall be the
average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%)
charged to Bank of America on such day on such transactions as determined by
the Administrative Agent.

 

“Fee Letters” means the letter agreement, dated October 29, 2002
among the Borrower, the Administrative Agent and Bank of America Securities LLC
and the letter agreement, dated October 29, 2002 among the Borrower and
JPMorgan Securities, Inc.

 

“Foreign Lender” has the meaning specified in Section
10.15(a)(i).

 

“Forward Sale” means an obligation to
deliver oil, gas or other minerals to be acquired or produced in the future in
consideration of advance payment therefor.

 

“FRB” means the Board of Governors of the Federal Reserve System
of the United States.

 

“GAAP” means generally accepted accounting principles in the
United States set forth in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and
statements and pronouncements of the Financial Accounting Standards Board or
such other principles as may be approved by a significant segment of the
accounting profession in the United States, that are applicable to the
circumstances as of the date of determination, consistently applied.

 

“Governmental Authority” means any nation or government, any
state or other political subdivision thereof, any agency, authority,
instrumentality, regulatory body, court, administrative tribunal, central bank
or other entity exercising executive, legislative, judicial, taxing, regulatory
or administrative powers or functions of or pertaining to government.

 

“Granting Lender” has the meaning specified in Section
10.07(h).

 

“Guarantee” means, as to any Person, any (a) any obligation,
contingent or otherwise, of such Person guaranteeing or having the economic
effect of guaranteeing any Debt or other obligation payable or performable by
another Person (the “primary obligor”) in any manner, whether directly or
indirectly, and including any obligation of such Person, direct or indirect,
(i) to purchase or pay (or advance or supply funds for the purchase or payment
of) such Debt or other obligation, (ii) to purchase or lease property,
securities or services for the purpose of assuring the obligee in respect of
such Debt or other obligation of the payment or performance of such Debt or
other obligation, (iii) to maintain working capital, equity capital or any
other financial statement condition or liquidity or level of income or cash
flow of the primary obligor so as to enable the primary obligor to pay such
Debt or other obligation, or (iv) entered into for the purpose of assuring in
any other manner the obligee in respect of such Debt or other obligation of the
payment or performance thereof or to protect such obligee against loss in
respect thereof (in whole or in part), or (b) any Lien on any assets of such
Person securing any Debt or other obligation of any other Person, whether or
not such Debt or other obligation is assumed by such Person.

 

8

 

The amount of any Guarantee shall be deemed to be an
amount equal to the stated or determinable amount of the related primary
obligation, or portion thereof, in respect of which such Guarantee is made or,
if not stated or determinable, the maximum reasonably anticipated liability in
respect thereof as determined by the guaranteeing Person in good faith.  The term “Guarantee” as a verb has a
corresponding meaning.

 

“Hazardous Substances” means all explosive or radioactive
substances or wastes and all hazardous or toxic substances, wastes or other
pollutants, including petroleum or petroleum distillates, asbestos or
asbestos-containing materials, polychlorinated biphenyls, radon gas, infectious
or medical wastes and all other substances or wastes of any nature regulated
pursuant to any Environmental Law.

 

“Indemnified Liabilities” has the meaning set forth in Section
10.05.

 

“Indemnitees” has the meaning set forth in Section 10.05.

 

“Intangible Assets”
means assets that are considered to be intangible assets under GAAP, including
customer lists, goodwill, computer software, copyrights, trade names,
trademarks, patents, franchises, licenses, unamortized deferred charges,
unamortized debt discount and capitalized research and development costs.

 

“Interest Payment Date” means, (a) as to any Loan other than a
Base Rate Loan, the last day of each Interest Period applicable to such Loan
and the Maturity Date; provided, however, that if any Interest
Period for a Eurodollar Rate Loan exceeds three months, the respective dates
that fall every three months after the beginning of such Interest Period shall
also be Interest Payment Dates; and (b) as to any Base Rate Loan , the last
Business Day of each March, June, September and December and the Maturity Date.

 

“Interest Period” means, as to each Eurodollar Rate Loan, the
period commencing on the date such Eurodollar Rate Loan is disbursed or
converted to or continued as a Eurodollar Rate Loan and ending on the date one,
two, three or six months thereafter, as selected by the Borrower in its Loan
Notice; provided that:

 

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

 

(ii)           any Interest Period that begins on
the last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the end of such Interest
Period) shall end on the last Business Day of the calendar month at the end of
such Interest Period; and

 

(iii)          no Interest Period shall extend beyond
the Maturity Date.

 

“IRS” means the United States Internal Revenue Service.

 

“Laws” means, collectively, all international, foreign, Federal,
state and local statutes, treaties, rules, guidelines, regulations, ordinances,
codes and administrative or judicial precedents or authorities, including the
interpretation or administration thereof by any Governmental Authority charged
with the enforcement, interpretation or administration thereof, and all
applicable administrative orders, directed duties, requests, licenses,
authorizations and permits of, and agreements with, any Governmental Authority,
in each case whether or not having the force of law.

 

9

 

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

 

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

 

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

 

“L/C Issuer” means Bank of America in its capacity as issuer of
Letters of Credit hereunder, or any successor issuer of Letters of Credit
hereunder.

 

“L/C Obligations” means, as at any date of determination, the
aggregate undrawn amount of all outstanding Letters of Credit plus the
aggregate of all Unreimbursed Amounts, including all L/C Borrowings.

 

“Lender” has the
meaning specified in the introductory paragraph hereto and, as the context
requires, includes the L/C Issuer.

 

“Lending Office” means, as to any Lender, the office or offices
of such Lender described as such in such Lender’s Administrative Questionnaire,
or such other office or offices as a Lender may from time to time notify the
Borrower and the Administrative Agent.

 

“Letter of Credit” means any standby letter of credit issued
hereunder.

 

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

 

“Letter of Credit Expiration Date” means the day that is seven
days prior to the Maturity Date then in effect (or, if such day is not a
Business Day, the next preceding Business Day).

 

“Letter of Credit Sublimit” means an amount equal to
$150,000,000.  The Letter of Credit
Sublimit is part of, and not in addition to, the Aggregate Commitments.

 

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

 

“Loan” means an extension of credit by a Lender to the Borrower
under Article II.

 

“Loan Documents” means this Agreement, each Note, and the Fee
Letters.

 

“Loan Notice” means a notice of (a) a Borrowing, (b) a
conversion of Loans from one Type to the other, or (c) a continuation of
Eurodollar Rate Loans, pursuant to Section 2.02(a), which, if in
writing, shall be substantially in the form of Exhibit A.

 

10

 

“Material Debt” means Debt (other than (i) Non-Recourse Debt and
(ii) the Loans) of the Borrower and one or more Subsidiaries, arising in one or
more related or unrelated transactions, in an aggregate principal or face
amount exceeding $50,000,000.

 

“Material Financial Obligations” means (i) a principal or face
amount of Debt, (ii) payment or collateralization obligations in respect of
Swap Contracts, or (iii) payment obligations in respect of Forward Sales, in
each case of the Borrower or more of its Subsidiaries, arising in one or more
related or unrelated transactions, exceeding in the aggregate $50,000,000.

 

“Material Plan” means, at any time, a Plan or Plans having
aggregate Unfunded Liabilities in excess of $50,000,000.

 

“Material Subsidiary” means any Subsidiary of Borrower for which
(i) its assets and the assets of its consolidated Subsidiaries comprise more
than 5% of the assets of the Borrower and its consolidated Subsidiaries, or
(ii) its revenue and the revenue of its consolidated Subsidiaries comprise more
than 5% of the revenue of the Borrower and its consolidated Subsidiaries, in
each case determined on a consolidated basis in accordance with GAAP as of the
end of the most recent fiscal year.

 

“Maturity Date” means the earlier of (a) the Stated Maturity
Date and (b) the effective date of any other termination, cancellation, or
acceleration of all Commitments under this Agreement.

 

“Moody’s” means Moody’s Investors Service, Inc. and any
successor thereto.

 

“Multiemployer Plan” means, at any time, an employee pension
benefit plan within the meaning of Section
4001(a)(3) of ERISA to which any member of the ERISA Group is then
making or accruing an obligation to make contributions, or has within the
preceding five plan years made contributions, including for these purposes any
Person which ceased to be a member of the ERISA Group during such five year
period.

 

“Non-Recourse Debt” of any Person means Debt secured by a Lien
on one or more assets of such Person, where the rights and remedies of the
holder of such Debt in respect of such Debt do not extend to any other assets
of such Person and, if such Person is organized under the laws of or doing
business in the United States or any political subdivision thereof or therein,
as to which such holder has effectively waived (or subordinated in favor of the
Lenders) such holder’s right to make the election provided under 11 U.S.C. §
1111(b)(1)(A) (a “Recourse Waiver”); provided however, that no Recourse
Waiver shall be required with respect to Production Payments, and no Recourse
Waiver shall be required with respect to the ANPI Obligations.  Debt of an Excluded Subsidiary which is
without recourse to the Borrower or any other Subsidiary shall be deemed
Non-Recourse Debt of such Excluded Subsidiary secured by all assets of such
Excluded Subsidiary (whether or not such Debt is in fact so secured) and no
Recourse Waiver shall be required in respect thereof.  For purposes of this definition, the holders of ANPI Obligations
which are Debt of a Person shall be deemed to have a Lien (to the extent
permitted by Section 7.01(j) hereof) on assets of such Person securing such
ANPI Obligations.

 

“NORESCO” shall mean NORESCO LLC, a Delaware limited liability
company and a wholly-owned subsidiary of the Borrower.

 

“NORESCO Project” shall mean any project of NORESCO or of a
Subsidiary of NORESCO related to the development, design, construction and
operation of energy plant facilities.

 

“Note” means a promissory note made by the Borrower in favor of
a Lender evidencing Loans made by such Lender, substantially in the form of Exhibit
B.

 

11

 

“Obligations” means all advances to, and debts, liabilities,
obligations, covenants and duties of, any the Borrower arising under any Loan
Document or otherwise with respect to any Loan or Letter of Credit, whether
direct or indirect (including those acquired by assumption), absolute or
contingent, due or to become due, now existing or hereafter arising and
including interest and fees that accrue after the commencement by or against
any the Borrower or any Affiliate of the Borrower of any proceeding under any
Debtor Relief Laws naming such Person as the debtor in such proceeding,
regardless of whether such interest and fees are allowed claims in such
proceeding.

 

“Organization Documents” means, (a) with respect to any
corporation, the certificate or articles of incorporation and the bylaws (or
equivalent or comparable constitutive documents with respect to any non-U.S.
jurisdiction); (b) with respect to any limited liability company, the
certificate or articles of formation or organization and operating agreement;
and (c) with respect to any partnership, joint venture, trust or other form of
business entity, the partnership, joint venture or other applicable agreement
of formation or organization and any agreement, instrument, filing or notice
with respect thereto filed in connection with its formation or organization
with the applicable Governmental Authority in the jurisdiction of its formation
or organization and, if applicable, any certificate or articles of formation or
organization of such entity.

 

“Outstanding Amount” means (i) with respect to Loans on any
date, the aggregate outstanding principal amount thereof after giving effect to
any borrowings and prepayments or repayments of Loans occurring on such date;
and (ii) with respect to any L/C Obligations on any date, the amount of such
L/C Obligations on such date after giving effect to any L/C Credit Extension
occurring on such date and any other changes in the aggregate amount of the L/C
Obligations as of such date, including as a result of any reimbursements of
outstanding unpaid drawings under any Letters of Credit or any reductions in
the maximum amount available for drawing under Letters of Credit taking effect
on such date.

 

“Participant” has the meaning specified in Section 10.07(d).

 

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

 

“Person” means any natural person, corporation, limited
liability company, trust, joint venture, association, company, partnership,
Governmental Authority or other entity.

 

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

 

“Production Payment” means an assignment of an interest in a
fixed quantity (measured by proceeds or by volume) of oil and gas or other
hydrocarbons when produced from a specified oil and gas property or properties,
in consideration for a payment in advance of production.

 

“Pro Rata Share” means, with respect to each Lender at any time,
a fraction (expressed as a percentage, carried out to the ninth decimal place),
the numerator of which is the amount of the Commitment of such Lender at such
time and the denominator of which is the amount of the Aggregate Commitments at
such time; provided that if the commitment of each Lender to make Loans
and the obligation of the L/C Issuer to make L/C Credit Extensions have been
terminated pursuant to Section 8.02,

 

12

 

then the Pro Rata Share of each Lender shall be
determined based on the Pro Rata Share of such Lender immediately prior to such
termination and after giving effect to any subsequent assignments made pursuant
to the terms hereof.  The initial Pro
Rata Share of each Lender is set forth opposite the name of such Lender on Schedule
2.01 or in the Assignment and Assumption pursuant to which such Lender
becomes a party hereto, as applicable.

 

“PUC” means any state or local regulatory agency or governmental
authority that exercises jurisdiction over the rates, services, ownership,
capital structure, authority to borrow, operation or production of electricity,
oil, gas or hydrocarbons, or over Persons who own, construct, or operate facilities
or systems that produce, transport, process, or market electricity, oil, gas,
or hydrocarbons.

 

“Register” has the meaning set forth in Section 10.07(c).

 

“Request for Credit Extension” means (a) with respect to a
Borrowing, conversion or continuation of Committed Loans, a Committed Loan
Notice and (b) with respect to an L/C Credit Extension, a Letter of Credit
Application.

 

“Required Lenders” means, as of any date of determination,
Lenders having at least 51% of the Aggregate Commitments or, if the commitment
of each Lender to make Loans and the obligation of the L/C Issuer to make L/C
Credit Extensions have been terminated pursuant to Section 8.02, Lenders
holding in the aggregate at least 51% of the Total Outstandings (with the
aggregate amount of each Lender’s risk participation and funded participation
in L/C Obligations being deemed “held” by such Lender for purposes of this
definition).

 

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

 

“Restricted Payment” means any dividend or other distribution
(whether in cash, securities or other property) with respect to any capital
stock or other equity interest of the Borrower or any Subsidiary, or any
payment (whether in cash, securities or other property), including any sinking
fund or similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any such capital stock or other
equity interest or of any option, warrant or other right to acquire any such
capital stock or other equity interest.

 

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

 

“SEC” means the Securities and Exchange Commission, or any
Governmental Authority succeeding to any of its principal functions.

 

“Shareholders’ Equity” means, as of any date of determination, consolidated
shareholders’ equity of the Borrower and its Subsidiaries as of that date
determined in accordance with GAAP.

 

“SPC” has the meaning specified in Section 10.07(h).

 

13

 

“Stated Maturity Date” means October 31, 2003; provided, however,
if prior to such date the Borrower meets the conditions set forth in Section
2.13, the Stated Maturity Date shall be October 31, 2005.

 

“Subsidiary” of a Person means a corporation, partnership, joint
venture, limited liability company or other business entity of which a majority
of the shares of securities or other interests having ordinary voting power for
the election of directors or other governing body (other than securities or
interests having such power only by reason of the happening of a contingency)
are at the time beneficially owned, or the management of which is otherwise
controlled, directly, or indirectly through one or more intermediaries, or
both, by such Person.  Unless otherwise
specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall
refer to a Subsidiary or Subsidiaries of the Borrower.

 

“Swap Contract” means (a) any and all rate swap transactions,
basis swaps, credit derivative transactions, forward rate transactions,
commodity swaps, commodity options, forward commodity contracts, equity or
equity index swaps or options, bond or bond price or bond index swaps or
options or forward bond or forward bond price or forward bond index
transactions, interest rate options, forward foreign exchange transactions, cap
transactions, floor transactions, collar transactions, currency swap
transactions, cross-currency rate swap transactions, currency options, spot
contracts, or any other similar transactions or any combination of any of the foregoing
(including any options to enter into any of the foregoing), whether or not any
such transaction is governed by or subject to any master agreement, and (b) any
and all transactions of any kind, and the related confirmations, which are
subject to the terms and conditions of, or governed by, any form of master
agreement published by the International Swaps and Derivatives Association,
Inc., any International Foreign Exchange Master Agreement, or any other master
agreement (any such master agreement, together with any related schedules, a “Master
Agreement”), including any such obligations or liabilities under any Master
Agreement.

 

“Synthetic Lease Obligation” means the monetary obligation of a
Person under (a) a so-called synthetic, off-balance sheet or tax retention
lease, or (b) an agreement for the use or possession of property creating
obligations that do not appear on the balance sheet of such Person but which,
upon the insolvency or bankruptcy of such Person, would be characterized as the
indebtedness of such Person (without regard to accounting treatment).

 

“Total Capital” means, at any date, the sum of (i) Consolidated
Debt plus (ii) Shareholders’ Equity (including for this purpose any
amount attributable to stock which is required to be redeemed or is redeemable
at the option of the holder, if certain events or conditions occur or exist or
otherwise), in each case determined at such date less (iii) to the
extent reflected in Shareholders’ Equity, any excess of the net book value of
assets subject to Liens securing Non-Recourse Debt (including the total assets
of Excluded Subsidiaries) over the amount of the related Non-Recourse Debt.

 

“Total Outstandings” means the aggregate Outstanding Amount of
all Loans and all L/C Obligations.

 

“Type” means, with respect to a Loan, its character as a Base
Rate Loan or a Eurodollar Rate Loan.

 

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

 

14

 

the extent that such excess represents a potential liability of a
member of the ERISA Group to the PBGC or any other Person under Title IV
of ERISA.

 

“Uninsured Liabilities” shall mean any losses, damages, costs,
expenses and/or, liabilities (including any losses, damages, costs, expenses or
liabilities resulting from property damage or casualty, general liability,
workers’ compensation claims and business interruption) incurred by the
Borrower or any Subsidiary which are not covered by insurance, but with respect
to which insurance coverage is available to Persons engaged in the same or
similar business as the Borrower and its Subsidiaries.

 

“United States” and “U.S.” mean the United States of
America.

 

“Unreimbursed Amount” has the meaning set forth in Section
2.03(c)(i).

 

1.02        Other
Interpretive Provisions. 
With reference to this Agreement and each other Loan Document, unless
otherwise specified herein or in such other Loan Document:

 

(a)           The meanings of
defined terms are equally applicable to the singular and plural forms of the
defined terms.

 

(b)           (i)            The
words “herein,” “hereto,” “hereof” and “hereunder”
and words of similar import when used in any Loan Document shall refer to such
Loan Document as a whole and not to any particular provision thereof.

 

(ii)           Article, Section, Exhibit and
Schedule references are to the Loan Document in which such reference appears.

 

(iii)          The term “including” is by way
of example and not limitation.

 

(iv)          The term “documents” includes
any and all instruments, documents, agreements, certificates, notices, reports,
financial statements and other writings, however evidenced, whether in physical
or electronic form.

 

(c)           In the computation
of periods of time from a specified date to a later specified date, the word “from”
means “from and including”; the words “to” and “until”
each mean “to but excluding”; and the word “through” means “to
and including.”

 

(d)           Section headings
herein and in the other Loan Documents are included for convenience of
reference only and shall not affect the interpretation of this Agreement or any
other Loan Document.

 

1.03        Accounting Terms.  (a) 
All accounting terms not specifically or completely defined herein shall
be construed in conformity with, and all financial data (including financial
ratios and other financial calculations) required to be submitted pursuant to
this Agreement shall be prepared in conformity with, GAAP applied on a
consistent basis, as in effect from time to time, applied in a manner
consistent with that used in preparing the Audited Financial Statements, except
as otherwise specifically prescribed herein.

 

(b)           If at any time any
change in GAAP would affect the computation of any financial ratio or
requirement set forth in any Loan Document, and either the Borrower or the
Required Lenders shall so request, the Administrative Agent, the Lenders and
the Borrower shall negotiate in good faith to amend such ratio or requirement
to preserve the original intent thereof in light of such change in GAAP
(subject to the approval of the Required Lenders); provided  that,
until so amended, (i) such ratio or requirement

 

15

 

shall continue to be computed in accordance with GAAP
prior to such change therein and (ii) the Borrower shall provide to the
Administrative Agent and the Lenders financial statements and other documents
required under this Agreement or as reasonably requested hereunder setting
forth a reconciliation between calculations of such ratio or requirement made
before and after giving effect to such change in GAAP.

 

1.04        Rounding.  Any financial ratios required to be
maintained by the Borrower pursuant to this Agreement shall be calculated by
dividing the appropriate component by the other component, carrying the result
to one place more than the number of places by which such ratio is expressed
herein and rounding the result up or down to the nearest number (with a
rounding-up if there is no nearest number).

 

1.05        References
to Agreements and Laws. 
Unless otherwise expressly provided herein, (a) references to
Organization Documents, agreements (including the Loan Documents) and other
contractual instruments shall be deemed to include all subsequent amendments,
restatements, extensions, supplements and other modifications thereto, but only
to the extent that such amendments, restatements, extensions, supplements and
other modifications are not prohibited by any Loan Document; and (b) references
to any Law shall include all statutory and regulatory provisions consolidating,
amending, replacing, supplementing or interpreting such Law.

 

1.06        Times of Day.  Unless otherwise specified, all references
herein to times of day shall be references to Eastern time (daylight or
standard, as applicable).

 

1.07        Letter of
Credit Amounts.  Unless otherwise specified, all references
herein to the amount of a Letter of Credit at any time shall be deemed to mean
the maximum face amount of such Letter of Credit after giving effect to all
increases thereof contemplated by such Letter of Credit or the Letter of Credit
Application therefor, whether or not such maximum face amount is in effect at
such time.

 

ARTICLE
II.

THE
COMMITMENTS AND BORROWINGS

 

2.01        Loans.  Subject to the terms and conditions set
forth herein, each Lender severally agrees to make loans (each such loan, a “Loan”)
to the Borrower from time to time, on any Business Day during the Availability
Period, in an aggregate amount not to exceed at any time outstanding the amount
of such Lender’s Commitment; provided, however, that after giving
effect to any Borrowing, (i) the Total Outstandings shall not exceed the
Aggregate Commitments, and (ii) the aggregate Outstanding Amount of the Loans
of any Lender, plus such Lender’s Pro Rata Share of the Outstanding
Amount of all L/C Obligations, shall not exceed such Lender’s Commitment.  Within the limits of each Lender’s
Commitment, and subject to the other terms and conditions hereof, the Borrower
may borrow under this Section 2.01, prepay under Section 2.04,
and reborrow under this Section 2.01. 
Loans may be Base Rate Loans or Eurodollar Rate Loans, as further
provided herein.

 

2.02        Borrowings,
Conversions and Continuations of Loans.

 

(a)           Each Borrowing, each
conversion of Loans from one Type to the other, and each continuation of
Eurodollar Rate Loans shall be made upon the Borrower’s delivery to the
Administrative Agent of an irrevocable written Loan Notice, appropriately
completed and signed by a Responsible Officer of the Borrower, which may be
delivered via facsimile.  Each such
notice must be received by the Administrative Agent not later than 11:00 a.m.
(i) three Business Days prior to the requested date of any Borrowing of,
conversion to or continuation of Eurodollar Rate Loans or of any conversion of
Eurodollar Rate Loans to Base Rate Loans, and (ii) on the requested date of any
Borrowing of Base Rate Loans.

 

16

 

Each Borrowing of, conversion or continuation of Loans
shall be in a principal amount of $5,000,000 or a whole multiple of $1,000,000
in excess thereof.  Each Loan Notice
shall specify (i) whether the Borrower is requesting a Borrowing, a conversion
of Loans from one Type to the other, or a continuation of Eurodollar Rate
Loans, (ii) the requested date of the Borrowing, conversion or continuation, as
the case may be (which shall be a Business Day), (iii) the principal amount of
Loans to be borrowed, converted or continued, (iv) the Type of Loans to be
borrowed or to which existing Loans are to be converted, and (v) if applicable,
the duration of the Interest Period with respect thereto.  If the Borrower fails to specify a Type of
Loan in a Loan Notice or if the Borrower fails to give a timely notice
requesting a conversion or continuation, then the applicable Loans shall be
made as, or converted to, Base Rate Loans. 
Any such automatic conversion to Base Rate Loans shall be effective as
of the last day of the Interest Period then in effect with respect to the
applicable Eurodollar Rate Loans.  If
the Borrower requests a Borrowing of, conversion to, or continuation of
Eurodollar Rate Loans in any such Loan Notice, but fails to specify an Interest
Period, it will be deemed to have specified an Interest Period of one month.

 

(b)           Following receipt of
a Loan Notice, the Administrative Agent shall promptly notify each Lender of
the amount of its Pro Rata Share of the applicable Loans, and if no timely
notice of a conversion or continuation is provided by the Borrower, the
Administrative Agent shall notify each Lender of the details of any automatic
conversion to Base Rate Loans described in the preceding subsection.  Each Lender shall make the amount of its
Loan available to the Administrative Agent in immediately available funds at
the Administrative Agent’s Office not later than 1:00 p.m. on the Business Day
specified in the applicable Loan Notice. 
Upon satisfaction of the applicable conditions set forth in Section
4.02 (and, if such Borrowing is the initial Credit Extension, Section
4.01), the Administrative Agent shall make all funds so received available
to the Borrower in like funds as received by the Administrative Agent either by
(i) crediting the account of the Borrower on the books of Bank of America with
the amount of such funds or (ii) wire transfer of such funds, in each case in
accordance with instructions provided to (and reasonably acceptable to) the
Administrative Agent by the Borrower; provided, however, that if, on the date
the Loan Notice with respect to such Borrowing is given by the Borrower, there
are L/C Borrowings outstanding, then the proceeds of such Borrowing shall be
applied, first, to the payment in full of any such L/C Borrowings and second,
to the Borrower as provided above.

 

(c)           Except as otherwise
provided herein, a Eurodollar Rate Loan may be continued or converted only on
the last day of an Interest Period for such Eurodollar Rate Loan.  During the existence of a Default, no Loans
may be requested as, converted to or continued as Eurodollar Rate Loans without
the consent of the Required Lenders.

 

(d)           The Administrative
Agent shall promptly notify the Borrower and the Lenders of the interest rate
applicable to any Interest Period for Eurodollar Rate Loans upon determination
of such interest rate.  The
determination of the Eurodollar Rate by the Administrative Agent shall be
conclusive in the absence of manifest error. 
At any time that Base Rate Loans are outstanding, the Administrative Agent
shall notify the Borrower and the Lenders of any change in Bank of America’s
prime rate used in determining the Base Rate promptly following the public
announcement of such change.

 

(e)           After giving effect
to all Borrowings, all conversions of Loans from one Type to the other, and all
continuations of Loans as the same Type, there shall not be more than five
Interest Periods in effect with respect to Loans.

 

2.03        Letters of
Credit.

 

(a)           The Letter of Credit
Commitment.

 

17

 

(i)            Subject
to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in
reliance upon the agreements of the other Lenders set forth in this Section
2.03, (1) from time to time on any Business Day during the period from the
Closing Date until the Letter of Credit Expiration Date, to issue Letters of
Credit for the account of the Borrower, and to amend or renew Letters of Credit
previously issued by it, in accordance with subsection (b) below, and (2) to
honor drafts under the Letters of Credit; and (B) the Lenders severally agree
to participate in Letters of Credit issued for the account of the Borrower; provided
that the L/C Issuer shall not be obligated to make any L/C Credit Extension
with respect to any Letter of Credit, and no Lender shall be obligated to
participate in any Letter of Credit if as of the date of such L/C Credit
Extension, (x) the Total Outstandings would exceed the Aggregate Commitments,
(y) the aggregate Outstanding Amount of the Loans of any Lender, plus
such Lender’s Pro Rata Share of the Outstanding Amount of all L/C Obligations,
would exceed such Lender’s Commitment, or (z) the Outstanding Amount of the L/C
Obligations would exceed the Letter of Credit Sublimit.  Within the foregoing limits, and subject to
the terms and conditions hereof, the Borrower’s ability to obtain Letters of
Credit shall be fully revolving, and accordingly the Borrower may, during the
foregoing period, obtain Letters of Credit to replace Letters of Credit that
have expired or that have been drawn upon and reimbursed.

 

(ii)           The
L/C Issuer shall be under no obligation to issue any Letter of Credit if:

 

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

 

(B)           subject
to Section 2.03(b)(iii), the expiry date of such requested Letter of Credit
would occur more than twelve months after the date of issuance or last renewal,
unless the Required Lenders have approved such expiry date;

 

(C)           the
expiry date of such requested Letter of Credit would occur after the Letter of
Credit Expiration Date, unless all the Lenders have approved such expiry date;

 

(D)          the
issuance of such Letter of Credit would violate one or more policies of the L/C
Issuer; or

 

(E)           such
Letter of Credit is (1) in an initial amount less than $500,000, (2) is to be
denominated in a currency other than Dollars, or (3) is to be issued for a
purpose other than to support surety bonds (including appeal bonds), worker’s
compensation requirements and other general corporate purposes.

 

(iii)          The
L/C Issuer shall not amend any Letter of Credit if (A) the L/C Issuer would
have no obligation at such time to issue such Letter of Credit in its amended
form under any of Sections 2.03(a)(ii)(B), (C) or (E)(2) or (3), or (B) the
beneficiary of such Letter of Credit does not accept the proposed amendment to
such Letter of Credit.

 

18

 

(b)           Procedures for
Issuance and Amendment of Letters of Credit; Auto-Renewal Letters of Credit.

 

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

 

(ii)           Promptly
after receipt of any Letter of Credit Application, the L/C Issuer will confirm
with the Administrative Agent (by telephone or in writing) that the
Administrative Agent has received a copy of such Letter of Credit Application
from the Borrower and, if not, the L/C Issuer will provide the Administrative
Agent with a copy thereof.  Upon receipt
by the L/C Issuer of confirmation from the Administrative Agent that the
requested issuance or amendment is permitted in accordance with the terms
hereof, then, subject to the terms and conditions hereof, the L/C Issuer shall,
on the requested date, issue a Letter of Credit for the account of the Borrower
or enter into the applicable amendment, as the case may be, in each case in
accordance with the L/C Issuer’s usual and customary business practices.  Immediately upon the issuance of each Letter
of Credit, each Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from the L/C Issuer a risk participation in
such Letter of Credit in an amount equal to the product of such Lender’s Pro
Rata Share times the amount of such Letter of Credit.

 

(iii)          If
the Borrower so requests in any applicable Letter of Credit Application, the
L/C Issuer may, in its sole and absolute discretion, agree to issue a Letter of
Credit that has automatic renewal provisions (each, an “Auto-Renewal Letter
of Credit”); provided that any such Auto-Renewal Letter of Credit
must permit the L/C Issuer to prevent any such renewal at least once in each
twelve-month period (commencing with the date of issuance of such Letter of
Credit) by giving prior notice to the beneficiary thereof not later than a day
(the “Nonrenewal Notice Date”) in each such twelve-month period to be
agreed upon at the time such Letter of Credit is issued.  Unless otherwise directed by the L/C Issuer,
the Borrower shall not be required to make a specific request to the L/C Issuer
for any such renewal.  Once an
Auto-Renewal Letter of Credit has been issued, the Lenders shall be deemed to
have authorized (but may not require) the L/C Issuer to permit the renewal of
such Letter of Credit at any time to an expiry date not later than the Letter
of Credit Expiration Date; provided, however, that the L/C Issuer
shall not permit any such renewal if (A) the L/C Issuer has determined that it
would have no obligation at such time to issue such Letter of Credit in its
renewed form under the terms hereof (by reason of the provisions of Section
2.03(a)(ii) or otherwise), or (B) it has received notice (which may be by
telephone or in writing) on or before the day that is two Business Days before
the Nonrenewal

 

19

 

Notice Date (1) from the
Administrative Agent that the Required Lenders have elected not to permit such
renewal or (2) from the Administrative Agent, any Lender or the Borrower that
one or more of the applicable conditions specified in Section 4.02 is
not then satisfied.

 

(iv)          Promptly
after its delivery of any Letter of Credit or any amendment to a Letter of
Credit to an advising bank with respect thereto or to the beneficiary thereof,
the L/C Issuer will also deliver to the Borrower and the Administrative Agent a
true and complete copy of such Letter of Credit or amendment.  The Administrative Agent shall give the
Lenders notice of the issuance of any Letter of Credit and any amendment
thereto.

 

(c)           Drawings and
Reimbursements; Funding of Participations.

 

(i)            Upon
receipt from the beneficiary of any Letter of Credit of any notice of a drawing
under such Letter of Credit, the L/C Issuer shall notify the Borrower and the
Administrative Agent thereof.  Not later
than 11:00 a.m. on the date of any payment by the L/C Issuer under a Letter of
Credit (each such date, an “Honor Date”), the Borrower shall reimburse
the L/C Issuer through the Administrative Agent in an amount equal to the
amount of such drawing.  If the Borrower
fails to so reimburse the L/C Issuer by such time, the Administrative Agent
shall promptly notify each Lender of the Honor Date, the amount of the
unreimbursed drawing (the “Unreimbursed Amount”), and the amount of such
Lender’s Pro Rata Share thereof.  In
such event, the Borrower shall be deemed to have requested a Borrowing of Base
Rate Loans to be disbursed on the Honor Date in an amount equal to the
Unreimbursed Amount, without regard to the minimum and multiples specified in Section
2.02 for the principal amount of Base Rate Loans, but subject to the amount
of the unutilized portion of the Aggregate Commitments and the conditions set
forth in Section 4.02 (other than the delivery of a Loan Notice).  Any notice given by the L/C Issuer or the
Administrative Agent pursuant to this Section 2.03(c)(i) may be given by
telephone if immediately confirmed in writing; provided that the lack of
such an immediate confirmation shall not affect the conclusiveness or binding
effect of such notice.

 

(ii)           Each
Lender (including the Lender acting as L/C Issuer) shall upon any notice
pursuant to Section 2.03(c)(i) make funds available to the
Administrative Agent for the account of the L/C Issuer at the Administrative
Agent’s Office in an amount equal to its Pro Rata Share of the Unreimbursed
Amount not later than 1:00 p.m. on the Business Day specified in such notice by
the Administrative Agent, whereupon, subject to the provisions of Section
2.03(c)(iii), each Lender that so makes funds available shall be deemed to
have made a Base Rate Loan to the Borrower in such amount.  The Administrative Agent shall remit the
funds so received to the L/C Issuer.

 

(iii)          With
respect to any Unreimbursed Amount that is not fully refinanced by a Borrowing
of Base Rate Loans because the conditions set forth in Section 4.02
cannot be satisfied or for any other reason, the Borrower shall be deemed to
have incurred from the L/C Issuer an L/C Borrowing in the amount of the
Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be due
and payable on demand (together with interest) and shall bear interest at the
Default Rate.  In such event, each
Lender’s payment to the Administrative Agent for the account of the L/C Issuer
pursuant to Section 2.03(c)(ii) shall be deemed payment in respect of
its participation in such L/C Borrowing and shall constitute an L/C Advance
from such Lender in satisfaction of its participation obligation under this Section
2.03.

 

(iv)          Until
each Lender funds its Loan or L/C Advance pursuant to this Section 2.03(c)
to reimburse the L/C Issuer for any amount drawn under any Letter of Credit,
interest in respect of such Lender’s Pro Rata Share of such amount shall be
solely for the account of the L/C Issuer.

 

20

 

(v)           Each
Lender’s obligation to make Loans or L/C Advances to reimburse the L/C Issuer
for amounts drawn under Letters of Credit, as contemplated by this Section
2.03(c), shall be absolute and unconditional and shall not be affected by
any circumstance, including (A) any set-off, counterclaim, recoupment, defense
or other right which such Lender may have against the L/C Issuer, the Borrower
or any other Person for any reason whatsoever; (B) the occurrence or
continuance of a Default, or (C) any other occurrence, event or condition,
whether or not similar to any of the foregoing; provided, however,
that each Lender’s obligation to make Loans pursuant to this Section 2.03(c)
is subject to the conditions set forth in Section 4.02 (other than delivery by
the Borrower of a Loan Notice).  No such
making of an L/C Advance shall relieve or otherwise impair the obligation of
the Borrower to reimburse the L/C Issuer for the amount of any payment made by
the L/C Issuer under any Letter of Credit, together with interest as provided
herein.

 

(vi)          If
any Lender fails to make available to the Administrative Agent for the account
of the L/C Issuer any amount required to be paid by such Lender pursuant to the
foregoing provisions of this Section 2.03(c) by the time specified in Section
2.03(c)(ii), the L/C Issuer shall be entitled to recover from such Lender
(acting through the Administrative Agent), on demand, such amount with interest
thereon for the period from the date such payment is required to the date on
which such payment is immediately available to the L/C Issuer at a rate per
annum equal to the Federal Funds Rate from time to time in effect.  A certificate of the L/C Issuer submitted to
any Lender (through the Administrative Agent) with respect to any amounts owing
under this clause (vi) shall be conclusive absent manifest error.

 

(d)           Repayment of
Participations.

 

(i)            At
any time after the L/C Issuer has made a payment under any Letter of Credit and
has received from any Lender such Lender’s L/C Advance in respect of such
payment in accordance with Section 2.03(c), if the Administrative Agent
receives for the account of the L/C Issuer any payment in respect of the
related Unreimbursed Amount or interest thereon (whether directly from the
Borrower or otherwise, including proceeds of Cash Collateral (as defined in
Section 2.03(g)) applied thereto by the Administrative Agent), the
Administrative Agent will distribute to such Lender its Pro Rata Share thereof
(appropriately adjusted, in the case of interest payments, to reflect the
period of time during which such Lender’s L/C Advance was outstanding) in the
same funds as those received by the Administrative Agent.

 

(ii)           If
any payment received by the Administrative Agent for the account of the L/C
Issuer pursuant to Section 2.03(c)(i) is required to be returned under
any of the circumstances described in Section 10.06 (including pursuant
to any settlement entered into by the L/C Issuer in its discretion), each
Lender shall pay to the Administrative Agent for the account of the L/C Issuer
its Pro Rata Share thereof on demand of the Administrative Agent, plus interest
thereon from the date of such demand to the date such amount is returned by
such Lender, at a rate per annum equal to the Federal Funds Rate from time to
time in effect.

 

(e)           Obligations
Absolute.  The obligation of the
Borrower to reimburse the L/C Issuer for each drawing under each Letter of
Credit and to repay each L/C Borrowing shall be absolute, unconditional and
irrevocable, and shall be paid strictly in accordance with the terms of this
Agreement under all circumstances, including the following:

 

(i)            any
lack of validity or enforceability of such Letter of Credit, this Agreement, or
any other agreement or instrument relating thereto;

 

21

 

(ii)           the
existence of any claim, counterclaim, set-off, defense or other right that the
Borrower may have at any time against any beneficiary or any transferee of such
Letter of Credit (or any Person for whom any such beneficiary or any such
transferee may be acting), the L/C Issuer or any other Person, whether in
connection with this Agreement, the transactions contemplated hereby or by such
Letter of Credit or any agreement or instrument relating thereto, or any
unrelated transaction;

 

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

 

(iv)          any
payment by the L/C Issuer under such Letter of Credit against presentation of a
draft or certificate that does not strictly comply with the terms of such
Letter of Credit; or any payment made by the L/C Issuer under such Letter of
Credit to any Person purporting to be a trustee in bankruptcy,
debtor-in-possession, assignee for the benefit of creditors, liquidator,
receiver or other representative of or successor to any beneficiary or any
transferee of such Letter of Credit, including any arising in connection with
any proceeding under any Debtor Relief Law; or

 

(v)           any
other circumstance or happening whatsoever, whether or not similar to any of
the foregoing, including any other circumstance that might otherwise constitute
a defense available to, or a discharge of, the Borrower.

 

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

 

(f)            Role of L/C
Issuer.  Each Lender and the
Borrower agree that, in paying any drawing under a Letter of Credit, the L/C
Issuer shall not have any responsibility to obtain any document (other than any
sight draft, certificates and documents expressly required by the Letter of
Credit) or to ascertain or inquire as to the validity or accuracy of any such
document or the authority of the Person executing or delivering any such
document.  None of the L/C Issuer, any
Agent-Related Person, nor any of the respective correspondents, participants or
assignees of the L/C Issuer shall be liable to any Lender for (i) any action
taken or omitted in connection herewith at the request or with the approval of
the Lenders or the Required Lenders, as applicable; (ii) any action taken or
omitted in the absence of gross negligence or willful misconduct; or (iii) the
due execution, effectiveness, validity or enforceability of any document or
instrument related to any Letter of Credit or Letter of Credit
Application.  The Borrower hereby
assumes all risks of the acts or omissions of any beneficiary or transferee
with respect to its use of any Letter of Credit; provided, however,
that this assumption is not intended to, and shall not, preclude the Borrower’s
pursuing such rights and remedies as it may have against the beneficiary or
transferee at law or under any other agreement.  None of the L/C Issuer, any Agent-Related Person, any Lender, nor
any of the respective correspondents, participants or assignees of the L/C
Issuer, shall be liable or responsible to the Borrower for any of the matters
described in clauses (i) through (v) of Section 2.03(e); provided,
however, that anything in such clauses to the contrary notwithstanding,
the Borrower may have a claim against the L/C Issuer, and the L/C Issuer may be
liable to the Borrower, to the extent, but only to the extent, of any direct,
as opposed to consequential or exemplary, damages suffered by the Borrower
which the Borrower proves were caused by the L/C Issuer’s willful misconduct or
gross negligence or the L/C Issuer’s willful failure to pay under any Letter of
Credit after the presentation to it by the beneficiary of a

 

22

 

sight draft and certificate(s) strictly complying with
the terms and conditions of a Letter of Credit.  In furtherance and not in limitation of the foregoing, the L/C
Issuer may accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or
information to the contrary, and the L/C Issuer shall not be responsible for
the validity or sufficiency of any instrument transferring or assigning or purporting
to transfer or assign a Letter of Credit or the rights or benefits thereunder
or proceeds thereof, in whole or in part, which may prove to be invalid or
ineffective for any reason.

 

(g)           Cash Collateral.  Upon the request of the Administrative
Agent, (i) if the L/C Issuer has honored any full or partial drawing request
under any Letter of Credit and such drawing has resulted in an L/C Borrowing,
or (ii) if, as of the Letter of Credit Expiration Date, any Letter of Credit
may for any reason remain outstanding and partially or wholly undrawn, the
Borrower shall immediately Cash Collateralize the then Outstanding Amount of
all L/C Obligations (in an amount equal to such Outstanding Amount determined
as of the date of such L/C Borrowing or the Letter of Credit Expiration Date,
as the case may be).  For purposes
hereof, “Cash Collateralize” means to pledge and deposit with or deliver
to the Administrative Agent, for the benefit of the L/C Issuer and the Lenders,
as collateral for the L/C Obligations, cash or deposit account balances
pursuant to documentation in form and substance satisfactory to the
Administrative Agent and the L/C Issuer (which documents are hereby consented
to by the Lenders).  Derivatives of such
term have corresponding meanings.  The
Borrower hereby grants to the Administrative Agent, for the benefit of the L/C
Issuer and the Lenders, a security interest in all such cash, deposit accounts
and all balances therein and all proceeds of the foregoing.  Cash collateral shall be maintained in blocked,
non-interest bearing deposit accounts at Bank of America.

 

(h)           Applicability of
ISP98 and UCP.  Unless otherwise
expressly agreed by the L/C Issuer and the Borrower when a Letter of Credit is
issued, the rules of the “International Standby Practices 1998” published by
the Institute of International Banking Law & Practice (or such later
version thereof as may be in effect at the time of issuance) shall apply to
each standby Letter of Credit.

 

(i)            Letter of Credit
Fees.  The Borrower shall pay to the
Administrative Agent for the account of each Lender in accordance with its Pro
Rata Share a Letter of Credit fee for each standby Letter of Credit equal to
the Applicable Rate times the daily maximum amount available to be drawn under
such Letter of Credit (whether or not such maximum amount is then in effect
under such Letter of Credit).  Such
Letter of Credit fees shall be computed on a quarterly basis in arrears.  Such Letter of Credit fees shall be due and
payable on the first Business Day after the end of each March, June, September
and December, commencing with the first such date to occur after the issuance
of such Letter of Credit, on the Letter of Credit Expiration Date and
thereafter on demand.  If there is any
change in the Applicable Rate during any quarter, the daily maximum amount of
each Letter of Credit shall be computed and multiplied by the Applicable Rate
separately for each period during such quarter that such Applicable Rate was in
effect.

 

(j)            Fronting Fee and
Documentary and Processing Charges Payable to L/C Issuer.  The Borrower shall pay directly to the L/C
Issuer for its own account a fronting fee with respect to each Letter of Credit
in the amounts and at the times specified in the Fee Letter.  In addition, the Borrower shall pay directly
to the L/C Issuer for its own account the customary issuance, presentation,
amendment and other processing fees, and other standard costs and charges, of
the L/C Issuer relating to Letters of Credit as from time to time in effect.  Such customary fees and standard costs and
charges are due and payable on demand and are nonrefundable.

 

(k)           Conflict with
Letter of Credit Application.  In
the event of any conflict between the terms hereof and the terms of any Letter
of Credit Application, the terms hereof shall control.

 

23

 

2.04        Prepayments.

 

(a)           The Borrower may,
upon notice to the Administrative Agent, at any time or from time to time
voluntarily prepay Loans in whole or in part without premium or penalty; provided
that (i) such notice must be received by the Administrative Agent not later
than 11:00 a.m. (A) three Business Days prior to any date of prepayment of
Eurodollar Rate Loans and (B) on the date of prepayment of Base Rate Loans;
(ii) any prepayment of Eurodollar Loans shall be in a principal amount of
$5,000,000 or a whole multiple of $1,000,000 in excess thereof, and (iii) any
prepayment of Base Rate Loans shall be in a principal amount of $500,000 or a
whole multiple of $100,000 in excess thereof or, in each case, if less, the
entire principal amount thereof then outstanding.  Each such notice shall specify the date and amount of such
prepayment and the Type(s) of Loans to be prepaid.  The Administrative Agent will promptly notify each Lender of its
receipt of each such notice, and of the amount of such Lender’s Pro Rata Share
of such prepayment.  If such notice is
given by the Borrower, the Borrower shall make such prepayment and the payment
amount specified in such notice shall be due and payable on the date specified
therein.  Any prepayment of a Eurodollar
Rate Loan shall be accompanied by all accrued interest thereon, together with
any additional amounts required pursuant to Section 3.05.  Each such prepayment shall be applied to the
Loans of the Lenders in accordance with their respective Pro Rata Shares.

 

(b)           If for any reason
the Total Outstandings at any time exceed the Aggregate Commitments then in
effect, the Borrower shall immediately prepay Loans and/or Cash Collateralize
the L/C Obligations in an aggregate amount equal to such excess; provided,
however, that the Borrower shall not be required to Cash Collateralize
the L/C Obligations pursuant to this Section 2.04(b) unless after the
prepayment in full of the Loans, the Total Outstandings exceed the Aggregate
Commitments then in effect.

 

2.05        Termination or Reduction of
Commitments.  The
Borrower may, upon notice to the Administrative Agent, terminate the Aggregate
Commitments, or from time to time permanently reduce the Aggregate Commitments;
provided that (i) any such notice shall be received by the
Administrative Agent not later than 11:00 a.m. three Business Days prior to the
date of termination or reduction, (ii) any such partial reduction shall be in
an aggregate amount of $10,000,000 or any whole multiple of $1,000,000 in
excess thereof, (iii) the Borrower shall not terminate or reduce the Aggregate
Commitments if, after giving effect thereto and to any concurrent prepayments
hereunder, the Total Outstandings would exceed the Aggregate Commitments, and
(iv) if, after giving effect to any reduction of the Aggregate Commitments, the
Letter of Credit Sublimit exceeds the amount of the Aggregate Commitments, such
Letter of Credit Sublimit shall be automatically reduced by the amount of such
excess.  The Administrative Agent will
promptly notify the Lenders of any such notice of termination or reduction of
the Aggregate Commitments.  Any
reduction of the Aggregate Commitments shall be applied to the Commitment of
each Lender according to its Pro Rata Share. 
All facility and utilization fees accrued until the effective date of
any termination of the Aggregate Commitments shall be paid on the effective
date of such termination.

 

2.06        Repayment of
Loans.

 

The Borrower shall repay to the Lenders on the Maturity Date the
aggregate principal amount of Loans outstanding on such date.

 

2.07        Interest.

 

(a)           Subject to the
provisions of subsection (b) below, (i) each Eurodollar Rate Loan shall bear
interest on the outstanding principal amount thereof for each Interest Period
at a rate per annum equal to the Eurodollar Rate for such Interest Period plus
the Applicable Rate; and (ii) each Base Rate

 

24

 

Loan shall bear interest on the outstanding principal
amount thereof from the applicable borrowing date at a rate per annum equal to
the Base Rate plus the Applicable Rate.

 

(b)           If any amount
payable by the Borrower under any Loan Document is not paid when due (without
regard to any applicable grace periods), whether at stated maturity, by
acceleration or otherwise, such amount shall thereafter bear interest at a
fluctuating interest rate per annum at all times equal to the Default Rate to
the fullest extent permitted by applicable Laws.  Furthermore, while any Event of Default exists, the Borrower
shall pay interest on the principal amount of all outstanding Obligations
hereunder at a fluctuating interest rate per annum at all times equal to the
Default Rate to the fullest extent permitted by applicable Laws.  Accrued and unpaid interest on past due
amounts (including interest on past due interest) shall be due and payable upon
demand.

 

(c)           Interest on each
Loan shall be due and payable in arrears on each Interest Payment Date
applicable thereto and at such other times as may be specified herein.  Interest hereunder shall be due and payable
in accordance with the terms hereof before and after judgment, and before and
after the commencement of any proceeding under any Debtor Relief Law.

 

2.08        Fees.

 

(a)           Facility Fee.  The Borrower shall pay to the Administrative
Agent for the account of each Lender in accordance with its Pro Rata Share, a
facility fee equal to the Applicable Rate times the actual daily amount
of the Aggregate Commitments (or, if the Aggregate Commitments have terminated,
on the Outstanding Amount of all Loans and L/C Obligations), regardless of
usage.  The facility fee shall accrue at
all times during the Availability Period (and thereafter so long as any Loans
or L/C Obligations remain outstanding), including at any time during which one
or more of the conditions in Article IV is not met, and shall be due and
payable quarterly in arrears on the last Business Day of each March, June,
September and December, commencing with the first such date to occur after the
Closing Date, and on the Maturity Date (and, if applicable, thereafter on
demand).  The facility fee shall be
calculated quarterly in arrears, and if there is any change in the Applicable
Rate during any quarter, the actual daily amount shall be computed and
multiplied by the Applicable Rate separately for each period during such
quarter that such Applicable Rate was in effect.

 

(b)           Utilization Fee.  The Borrower shall pay to the Administrative
Agent for the account of each Lender in accordance with its Pro Rata Share, a
utilization fee equal to the Applicable Rate times the Total
Outstandings on each day that the Total Outstandings exceed 33% of the actual
daily amount of the Aggregate Commitments. 
The utilization fee shall be due and payable quarterly in arrears on the
last Business Day of each March, June, September and December, commencing with
the first such date to occur after the Closing Date, and on the Maturity
Date.  The utilization fee shall be calculated
quarterly in arrears and if there is any change in the Applicable Rate during
any quarter, the daily amount shall be computed and multiplied by the
Applicable Rate for each period during which such Applicable Rate was in
effect.  The utilization fee shall
accrue at all times, including at any time during which one or more of the
conditions in Article IV is not met.

 

(c)           Other Fees.

 

(i)  The Borrower shall pay to each Arranger
and the Administrative Agent for their own respective accounts fees in the
amounts and at the times specified in the Fee Letters.  Such fees shall be fully earned when paid
and shall not be refundable for any reason whatsoever.

 

25

 

(ii)           The
Borrower shall pay to the Lenders such fees as shall have been separately agreed
upon in writing in the amounts and at the times so specified.  Such fees shall be fully earned when paid
and shall not be refundable for any reason whatsoever.

 

2.09        Computation
of Interest and Fees. 
All computations of interest for Base Rate Loans when the Base Rate is
determined by Bank of America’s “prime rate” shall be made on the basis of a
year of 365 or 366 days, as the case may be, and actual days elapsed.  All other computations of fees and interest
shall be made on the basis of a 360-day year and actual days elapsed (which
results in more fees or interest, as applicable, being paid than if computed on
the basis of a 365-day year).  Interest
shall accrue on each Loan for the day on which the Loan is made, and shall not
accrue on a Loan, or any portion thereof, for the day on which the Loan or such
portion is paid, provided that any Loan that is repaid on the same day
on which it is made shall, subject to Section 2.11(a), bear interest for
one day.

 

2.10        Evidence of Debt.

 

(a)           The Credit Extensions
made by each Lender shall be evidenced by one or more accounts or records
maintained by such Lender and by the Administrative Agent in the ordinary
course of business.  The accounts or
records maintained by the Administrative Agent and each Lender shall be prima
facie evidence of the amount of the Credit Extensions made by the
Lenders to the Borrower and the interest and payments thereon.  Any failure to so record or any error in
doing so shall not, however, limit or otherwise affect the obligation of the
Borrower hereunder to pay any amount owing with respect to the
Obligations.  In the event of any
conflict between the accounts and records maintained by any Lender and the
accounts and records of the Administrative Agent in respect of such matters,
the accounts and records of the Administrative Agent shall control in the
absence of manifest error.  Upon the
request of any Lender made through the Administrative Agent, the Borrower shall
execute and deliver to such Lender (through the Administrative Agent) a Note,
which shall evidence such Lender’s Loans in addition to such accounts or
records.  Each Lender may attach
schedules to its Note and endorse thereon the date, Type (if applicable),
amount and maturity of its Loans and payments with respect thereto.

 

(b)           In addition to the
accounts and records referred to in subsection (a), each Lender and the
Administrative Agent shall maintain in accordance with its usual practice
accounts or records evidencing the purchases and sales by such Lender of
participations in Letters of Credit.  In
the event of any conflict between the accounts and records maintained by the
Administrative Agent and the accounts and records of any Lender in respect of
such matters, the accounts and records of the Administrative Agent shall control
in the absence of manifest error.

 

2.11        Payments
Generally.

 

(a)           All payments to be
made by the Borrower shall be made without condition or deduction for any
counterclaim, defense, recoupment or setoff. 
Except as otherwise expressly provided herein, all payments by the
Borrower hereunder shall be made to the Administrative Agent, for the account
of the respective Lenders to which such payment is owed, at the Administrative
Agent’s Office in Dollars and in immediately available funds not later than 2:00
p.m. on the date specified herein.  The
Administrative Agent will promptly distribute to each Lender its Pro Rata Share
(or other applicable share as provided herein) of such payment in like funds as
received by wire transfer to such Lender’s Lending Office.  All payments received by the Administrative
Agent after 2:00 p.m. shall be deemed received on the next succeeding Business
Day and any applicable interest or fee shall continue to accrue.

 

(b)           If any payment to be
made by the Borrower shall come due on a day other than a Business Day, payment
shall be made on the next following Business Day, and such extension of time
shall be reflected in computing interest or fees, as the case may be.

 

26

 

(c)           Unless the Borrower
or any Lender has notified the Administrative Agent, prior to the date any
payment is required to be made by it to the Administrative Agent hereunder,
that the Borrower or such Lender, as the case may be, will not make such
payment, the Administrative Agent may assume that the Borrower or such Lender,
as the case may be, has timely made such payment and may (but shall not be so
required to), in reliance thereon, make available a corresponding amount to the
Person entitled thereto.  If and to the
extent that such payment was not in fact made to the Administrative Agent in
immediately available funds, then:

 

(i)            if the Borrower failed to make such
payment, each Lender shall forthwith on demand repay to the Administrative
Agent the portion of such assumed payment that was made available to such
Lender in immediately available funds, together with interest thereon in
respect of each day from and including the date such amount was made available
by the Administrative Agent to such Lender to the date such amount is repaid to
the Administrative Agent in immediately available funds at the Federal Funds
Rate from time to time in effect; and

 

(ii)           if any Lender failed to make such
payment, such Lender shall forthwith on demand pay to the Administrative Agent
the amount thereof in immediately available funds, together with interest
thereon for the period from the date such amount was made available by the
Administrative Agent to the Borrower to the date such amount is recovered by
the Administrative Agent (the “Compensation Period”) at a rate per annum
equal to the Federal Funds Rate from time to time in effect. If such Lender
pays such amount to the Administrative Agent, then such amount shall constitute
such Lender’s Loan included in the applicable Borrowing.  If such Lender does not pay such amount
forthwith upon the Administrative Agent’s demand therefor, the Administrative
Agent may make a demand therefor upon the Borrower, and the Borrower shall pay
such amount to the Administrative Agent, together with interest thereon for the
Compensation Period at a rate per annum equal to the rate of interest
applicable to the applicable Borrowing. 
Nothing herein shall be deemed to relieve any Lender from its obligation
to fulfill its Commitment or to prejudice any rights which the Administrative
Agent or the Borrower may have against any Lender as a result of any default by
such Lender hereunder.

 

A notice of the Administrative Agent to any Lender or the Borrower with
respect to any amount owing under this subsection (c) shall be conclusive,
absent manifest error.

 

(d)           If any Lender makes
available to the Administrative Agent funds for any Loan to be made by such
Lender as provided in the foregoing provisions of this Article II, and
such funds are not made available to the Borrower by the Administrative Agent
because the conditions to the applicable Credit Extension set forth in Article
IV are not satisfied or waived in accordance with the terms hereof, the
Administrative Agent shall return such funds (in like funds as received from
such Lender) to such Lender, without interest.

 

(e)           The obligations of
the Lenders hereunder to make Loans and to fund participations in Letters of
Credit are several and not joint.  The
failure of any Lender to make any Loan or to fund any such participation on any
date required hereunder shall not relieve any other Lender of its corresponding
obligation to do so on such date, and no Lender shall be responsible for the
failure of any other Lender to so make its Loan or purchase its participation.

 

(f)            Nothing herein
shall be deemed to obligate any Lender to obtain the funds for any Loan in any
particular place or manner or to constitute a representation by any Lender that
it has obtained or will obtain the funds for any Loan in any particular place
or manner.

 

27

 

2.12        Sharing of
Payments.  If,
other than as expressly provided elsewhere herein, any Lender shall obtain on
account of the Loans made by it, or the participations in L/C Obligations held
by it, any payment (whether voluntary, involuntary, through the exercise of any
right of set-off, or otherwise) in excess of its ratable share (or other share
contemplated hereunder) thereof, such Lender shall immediately (a) notify the
Administrative Agent of such fact, and (b) purchase from the other Lenders such
participations in the Loans made by them, and/or such subparticipations in the
participations in L/C Obligations held by them, as the case may be, as shall be
necessary to cause such purchasing Lender to share the excess payment in
respect of such Loans or such participations, as the case may be, pro rata with
each of them; provided, however, that if all or any portion of
such excess payment is thereafter recovered from the purchasing Lender under
any of the circumstances described in Section 10.06 (including pursuant
to any settlement entered into by the purchasing Lender in its discretion),
such purchase shall to that extent be rescinded and each other Lender shall
repay to the purchasing Lender the purchase price paid therefor, together with
an amount equal to such paying Lender’s ratable share (according to the
proportion of (i) the amount of such paying Lender’s required repayment to (ii)
the total amount so recovered from the purchasing Lender) of any interest or
other amount paid or payable by the purchasing Lender in respect of the total
amount so recovered, without further interest thereon.  The Borrower agrees that any Lender so
purchasing a participation from another Lender may, to the fullest extent
permitted by law, exercise all its rights of payment (including the right of
set-off, but subject to Section 10.09) with respect to such
participation as fully as if such Lender were the direct creditor of the
Borrower in the amount of such participation. 
The Administrative Agent will keep records (which shall be conclusive
and binding in the absence of manifest error) of participations purchased under
this Section and will in each case notify the Lenders following any such
purchases or repayments.  Each Lender
that purchases a participation pursuant to this Section shall from and after
such purchase have the right to give all notices, requests, demands, directions
and other communications under this Agreement with respect to the portion of
the Obligations purchased to the same extent as though the purchasing Lender
were the original owner of the Obligations purchased.

 

2.13        Extension
of Stated Maturity Date.

 

Without further action by or consent from the
Lenders, the Stated Termination Date shall be extended to October 31, 2005
(or, if such date is not a Eurodollar Business Day, the next preceding
Eurodollar Business Day) if the following requirements are satisfied:  on or before September 30, 2003 Borrower
shall have provided to the Administrative Agent the following, in form and
substance satisfactory to the Administrative Agent (a) a copy of an order
of the Pennsylvania Public Utility Commission approving the Borrower’s
incurring indebtedness hereunder with a maturity date of October 31, 2005,
(b) an opinion of counsel to the Borrower (which may be internal counsel)
stating that no other Authorizations are required by the PUC in those states
which are identified by the Borrower as being the states in which the Borrower
is subject to regulation by a PUC, and (c) copies of corporate resolutions
certified by the Secretary or Assistant Secretary of the Borrower, or such
other evidence as may be satisfactory to the Administrative Agent,
demonstrating that Borrower’s incurrence of indebtedness hereunder with a
maturity date of October 31, 2005 has been duly authorized by all necessary
corporate action, together with an opinion of counsel to the Borrower (which
may be internal counsel) to such effect. 
The Administrative Agent shall promptly notify the Lenders when the
foregoing conditions have been satisfied, and the extension shall be effective
as of the date of such notice.

 

2.14        Increase in Commitments.

 

(a)           Provided
there exists no Default, upon notice to the Administrative Agent (which shall
promptly notify the Lenders), the Borrower may on a one-time basis, request an
increase in the Aggregate Commitments by an amount not exceeding
$75,000,000.  At the time of sending
such notice, the Borrower (in consultation with the Administrative Agent) shall
specify the time period within which each

 

28

 

Lender is requested to
respond (which shall in no event be less than ten Business Days from the date
of delivery of such notice to the Lenders). 
Each Lender shall notify the Administrative Agent within such time
period whether or not it agrees to increase its Commitment and, if so, whether
by an amount equal to, greater than, or less than its Pro Rata Share of such
requested increase.  Any Lender not
responding within such time period shall be deemed to have declined to increase
its Commitment.  The Administrative
Agent shall notify the Borrower and each Lender of the Lenders’ responses to
each request made hereunder.  To achieve
the full amount of a requested increase, the Borrower may also invite
additional Eligible Assignees to become Lenders pursuant to a joinder agreement
in form and substance satisfactory to the Administrative Agent and its counsel.

 

(b)           If
the Aggregate Commitments are increased in accordance with this Section, the
Administrative Agent and the Borrower shall determine the effective date (the “Increase
Effective Date”) and the final allocation of such increase.  The Administrative Agent shall promptly
notify the Borrower and the Lenders of the final allocation of such increase
and the Increase Effective Date.  As a
condition precedent to such increase, the Borrower shall deliver to the
Administrative Agent a certificate of each Loan Party dated as of the Increase
Effective Date (in sufficient copies for each Lender) signed by a Responsible
Officer of such Loan Party (i) certifying and attaching the resolutions adopted
by such Loan Party approving or consenting to such increase, and (ii) in the
case of the Borrower, certifying that, before and after giving effect to such
increase, (A) the representations and warranties contained in Article V
and the other Loan Documents are true and correct on and as of the Extension
Effective Date, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they are true and correct
as of such earlier date, and except that for purposes of this Section 2.14,
the representations and warranties contained in subsections (a) and (b) of Section
5.04 shall be deemed to refer to the most recent statements furnished
pursuant to subsections (a) and (b), respectively, of Section 6.01, and
(B) no Default exists.  The Borrower
shall prepay any Loans outstanding on the Increase Effective Date (and pay any
additional amounts required pursuant to Section 3.05) to the extent
necessary to keep the outstanding Loans ratable with any revised Pro Rata
Shares arising from any nonratable increase in the Commitments under this
Section.

 

(c)           This
Section shall supersede any provisions in Sections 2.11 or 10.01
to the contrary.

 

ARTICLE
III.

TAXES, YIELD PROTECTION AND
ILLEGALITY

 

3.01        Taxes.

 

(a)           Any and all payments
by the Borrower to or for the account of the Administrative Agent or any Lender
under any Loan Document shall be made free and clear of and without deduction
for any and all present or future taxes, duties, levies, imposts, deductions,
assessments, fees, withholdings or similar charges, and all liabilities with
respect thereto, excluding, in the case of the Administrative Agent and
each Lender, taxes imposed on or measured by its overall net income, and
franchise taxes imposed on it (in lieu of net income taxes), by the
jurisdiction (or any political subdivision thereof) under the Laws of which the
Administrative Agent or such Lender, as the case may be, is organized or
maintains a lending office (all such non-excluded taxes, duties, levies,
imposts, deductions, assessments, fees, withholdings or similar charges, and
liabilities being hereinafter referred to as “Taxes”).  If the Borrower shall be required by any
Laws to deduct any Taxes from or in respect of any sum payable under any Loan
Document to the Administrative Agent or any Lender, (i) the sum payable shall
be increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this
Section), each of the Administrative Agent and such Lender receives an amount
equal to the sum it would have received had no such deductions been made, (ii)
the Borrower shall make such deductions, (iii) the Borrower shall pay the full
amount deducted to the relevant taxation authority or other authority in

 

29

 

accordance with applicable Laws, and (iv) within 30
days after the date of such payment, the Borrower shall furnish to the
Administrative Agent (which shall forward the same to such Lender) the original
or a certified copy of a receipt evidencing payment thereof.

 

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

 

(c)           If the Borrower
shall be required to deduct or pay any Taxes or Other Taxes from or in respect
of any sum payable under any Loan Document to the Administrative Agent or any
Lender, the Borrower shall also pay to the Administrative Agent or to such
Lender, as the case may be, at the time interest is paid, such additional
amount that the Administrative Agent or such Lender specifies is necessary to
preserve the after-tax yield (after factoring in all taxes, including taxes
imposed on or measured by net income) that the Administrative Agent or such
Lender would have received if such Taxes or Other Taxes had not been imposed.

 

(d)           The Borrower agrees
to indemnify the Administrative Agent and each Lender for (i) the full amount
of Taxes and Other Taxes (including any Taxes or Other Taxes imposed or
asserted by any jurisdiction on amounts payable under this Section) paid by the
Administrative Agent and such Lender, (ii) amounts payable under Section
3.01(c) and (iii) any liability (including additions to tax, penalties,
interest and expenses) arising therefrom or with respect thereto, in each case
whether or not such Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority.  Payment under this subsection (d) shall be made within 30 days
after the date the Lender or the Administrative Agent makes a demand therefor.

 

3.02        Illegality.  If any Lender determines
that any Law has made it unlawful, or that any Governmental Authority has
asserted that it is unlawful, for any Lender or its applicable Lending Office
to make, maintain or fund Eurodollar Rate Loans, or to determine or charge
interest rates based upon the Eurodollar Rate, then, on notice thereof by such
Lender to the Borrower through the Administrative Agent, any obligation of such
Lender to make or continue Eurodollar Rate Loans or to convert Base Rate Loans
to Eurodollar Rate Loans shall be suspended until such Lender notifies the
Administrative Agent and the Borrower that the circumstances giving rise to
such determination no longer exist. 
Upon receipt of such notice, the Borrower shall, upon demand from such
Lender (with a copy to the Administrative Agent), prepay or, if applicable,
convert all Eurodollar Rate Loans of such Lender to Base Rate Loans, either on
the last day of the Interest Period therefor, if such Lender may lawfully
continue to maintain such Eurodollar Rate Loans to such day, or immediately, if
such Lender may not lawfully continue to maintain such Eurodollar Rate
Loans.  Upon any such prepayment or
conversion, the Borrower shall also pay accrued interest on the amount so
prepaid or converted.  Each Lender
agrees to designate a different Lending Office if such designation will avoid
the need for such notice and will not, in the good faith judgment of such
Lender, otherwise be materially disadvantageous to such Lender.

 

3.03        Inability
to Determine Rates.  If
the Required Lenders determine that for any reason adequate and reasonable
means do not exist for determining the Eurodollar Rate for any requested
Interest Period with respect to a proposed Eurodollar Rate Loan, or that the
Eurodollar Rate for any requested Interest Period with respect to a proposed Eurodollar
Rate Loan does not adequately and fairly reflect the cost to such Lenders of
funding such Loan, the Administrative Agent will promptly so notify the
Borrower and each Lender.  Thereafter,
the obligation of the Lenders to make or maintain Eurodollar Rate Loans shall
be suspended until the Administrative Agent (upon the instruction of the
Required Lenders)

 

30

 

revokes such notice. 
Upon receipt of such notice, the Borrower may revoke any pending request
for a Borrowing of, conversion to or continuation of Eurodollar Rate Loans or,
failing that, will be deemed to have converted such request into a request for
a Borrowing of Base Rate Loans in the amount specified therein.

 

3.04        Increased Cost and Reduced Return;
Capital Adequacy.

 

(a)           If any Lender
determines that as a result of the introduction of or any change in or in the
interpretation of any Law, or such Lender’s compliance therewith, there shall
be any increase in the cost to such Lender of agreeing to make or making,
funding or maintaining Eurodollar Rate Loans or (as the case may be) issuing or
participating in Letters of Credit, or a reduction in the amount received or
receivable by such Lender in connection with any of the foregoing (excluding for
purposes of this subsection (a) any such increased costs or reduction in amount
resulting from (i) Taxes or Other Taxes (as to which Section 3.01 shall
govern), (ii) changes in the basis of taxation of overall net income or overall
gross income by the United States or any foreign jurisdiction or any political
subdivision of either thereof under the Laws of which such Lender is organized
or has its Lending Office, and (iii) reserve requirements contemplated by Section
3.04(c)), then from time to time upon demand of such Lender (with a copy of
such demand to the Administrative Agent), the Borrower shall pay to such Lender
such additional amounts as will compensate such Lender for such increased cost
or reduction.

 

(b)           If any Lender
determines that the introduction of any Law regarding capital adequacy or any
change therein or in the interpretation thereof, or compliance by such Lender
(or its Lending Office) therewith, has the effect of reducing the rate of
return on the capital of such Lender or any corporation controlling such Lender
as a consequence of such Lender’s obligations hereunder (taking into
consideration its policies with respect to capital adequacy and such Lender’s
desired return on capital), then from time to time upon demand of such Lender (with
a copy of such demand to the Administrative Agent), the Borrower shall pay to
such Lender such additional amounts as will compensate such Lender for such
reduction.

 

(c)           The Borrower shall
pay to each Lender, as long as such Lender shall be required to maintain
reserves with respect to liabilities or assets consisting of or including
Eurocurrency funds or deposits (currently known as “Eurocurrency liabilities”),
additional interest on the unpaid principal amount of each Eurodollar Rate Loan
equal to the actual costs of such reserves allocated to such Loan by such
Lender (as determined by such Lender in good faith, which determination shall
be conclusive), which shall be due and payable on each date on which interest
is payable on such Loan, provided the Borrower shall have received at
least 15 days’ prior notice (with a copy to the Administrative Agent) of such
additional interest from such Lender. 
If a Lender fails to give notice 15 days prior to the relevant Interest
Payment Date, such additional interest shall be due and payable 15 days from
receipt of such notice.  Each Lender
will promptly notify the Borrower and the Administrative Agent of any event of
which it has knowledge, occurring after the date hereof, which will entitle
such Lender to compensation pursuant to this Section and will designate a
different Lending Office if such designation will avoid the need for, or reduce
the amount of, such compensation and will not, in the judgment of such Lender,
be otherwise disadvantageous to such Lender.

 

3.05        Funding Losses.  Upon demand of any Lender
(with a copy to the Administrative Agent) from time to time, the Borrower shall
promptly compensate such Lender for and hold such Lender harmless from any
loss, cost or expense incurred by it as a result of:

 

(a)           any continuation,
conversion, payment or prepayment of any Loan other than a Base Rate Loan on a
day other than the last day of the Interest Period for such Loan (whether
voluntary, mandatory, automatic, by reason of acceleration, or otherwise);

 

31

 

(b)           any failure by the
Borrower (for a reason other than the failure of such Lender to make a Loan) to
prepay, borrow, continue or convert any Loan other than a Base Rate Loan on the
date or in the amount notified by the Borrower; or

 

(c)           any assignment of a
Eurodollar Rate Loan on a day other than the last day of the Interest Period
therefor as a result of a request by the Borrower pursuant to Section 10.16;

 

including any loss or expense arising from the liquidation or
reemployment of funds obtained by it to maintain such Loan (excluding loss of
anticipated profits) or from fees payable to terminate the deposits from which
such funds were obtained.  The Borrower
shall also pay any customary administrative fees charged by such Lender in
connection with the foregoing.

 

For purposes of calculating amounts payable by the Borrower to the
Lenders under this Section 3.05, each Lender shall be deemed to have
funded each Eurodollar Rate Loan made by it at the Eurodollar Rate for such
Loan by a matching deposit or other borrowing in the London interbank
eurodollar market for a comparable amount and for a comparable period, whether
or not such Eurodollar Rate Loan was in fact so funded.

 

3.06        Matters Applicable to all Requests for
Compensation.  A
certificate of the Administrative Agent or any Lender claiming compensation
under this Article III and setting forth the additional amount or
amounts to be paid to it hereunder shall be conclusive in the absence of
manifest error.  In determining such
amount, the Administrative Agent or such Lender may use any reasonable
averaging and attribution methods.

 

3.07        Survival.  All of the Borrower’s
obligations under this Article III shall survive termination of the
Aggregate Commitments and repayment of all other Obligations hereunder.

 

ARTICLE IV.

CONDITIONS
PRECEDENT TO CLOSING DATE AND TO CREDIT EXTENSIONS

 

4.01        Conditions of Closing Date and Initial
Credit Extension.  The
obligation of each Lender to make its initial Credit Extension, hereunder is
subject to satisfaction of the following conditions precedent:

 

(a)           The Administrative
Agent’s receipt of the following, each of which shall be originals or
facsimiles (followed promptly by originals) unless otherwise specified, each
properly executed by a Responsible Officer of the Borrower, each dated the
Closing Date (or, in the case of certificates of governmental officials, a
recent date before the Closing Date) and each in form and substance
satisfactory to the Administrative Agent and its legal counsel:

 

(i)            executed counterparts of this
Agreement, sufficient in number for distribution to the Administrative Agent,
each Lender and the Borrower;

 

(ii)           a Note executed by the Borrower in
favor of each Lender requesting a Note;

 

(iii)          such certificates of resolutions or
other action, incumbency certificates and/or other certificates of a
Responsible Officer of the Borrower as the Administrative Agent may require
evidencing the identity, authority and capacity of each Responsible Officer thereof
authorized to act as a Responsible Officer in connection with this Agreement
and the other Loan Documents to which the Borrower is a party;

 

32

 

(iv)          a certificate of the Pennsylvania
Secretary of State evidencing that the Borrower is duly organized or formed,
and is validly existing, in good standing under the laws of the State of
Pennsylvania;

 

(v)           a favorable opinion of Reed Smith
LLP, counsel to the Borrower, addressed to the Administrative Agent and each
Lender, as to the matters set forth in Exhibit E-1 and a favorable
opinion of the deputy general counsel of the Borrower, addressed to the
Administrative Agent and each Lender, as to the matters set forth in Exhibit
E-2;

 

(vi)          a certificate signed by a Responsible
Officer of the Borrower certifying (A) that the conditions specified in Sections
4.02(a) and (b) have been satisfied, (B) that there has been no
material adverse change since December 31, 2001 in the business, assets,
liabilities (actual or contingent), operations, or condition (financial or
otherwise) of the Borrower and its subsidiaries taken as a whole; and (C) the
current Debt Ratings;

 

(vii)         evidence that the Commitments under (i)
the Existing Credit Agreement and (ii) the Credit Agreement dated as of
November 8, 2001 among the Borrower, Bank of America, N.A., as administrative
agent, Bank One, NA, as syndication agent, PNC Bank National Association, as
documentation agent, and a syndicate of lenders have been or concurrently with
the Closing Date are being terminated, and that the Borrower has repaid all
amounts owed thereunder upon such termination;

 

(viii)        evidence that the Borrower is entering
into the 364-Day Credit Agreement to be effective as of the Closing Date; and

 

(ix)           such other assurances, certificates,
documents, consents or opinions as the Administrative Agent, the L/C Issuer or
the Required Lenders reasonably may require.

 

(b)           Any fees required to
be paid on or before the Closing Date shall have been paid.

 

(c)           Unless waived by the
Administrative Agent, the Borrower shall have paid all Attorney Costs of the
Administrative Agent to the extent invoiced prior to or on the Closing Date.

 

4.02        Conditions
to all Credit Extensions.  The
obligation of each Lender to honor any Request for Credit Extension (other than
a Loan Notice requesting only a conversion of Loans to the other Type, or a
continuation of Eurodollar Rate Loans) is subject to the following conditions
precedent:

 

(a)           The representations
and warranties of the Borrower contained in Article V (except the
representations and warranties in Sections 5.04(c), 5.05 and 5.06,
as to any matter which has theretofore been disclosed in writing by the
Borrower to the Lenders by written notice given to the Administrative Agent) or
in any other Loan Document, or which are contained in any document furnished at
any time under or in connection herewith or therewith, shall be true and
correct on and as of the date of such Credit Extension.

 

(b)           No Default shall
exist, or would result from such proposed Credit Extension.

 

(c)           The Administrative
Agent and, if applicable, the L/C Issuer shall have received a Request for
Credit Extension in accordance with the requirements hereof.

 

33

 

Each Request for
Extension (other than a Loan Notice requesting only a conversion of Loans to
the other Type or a continuation of Eurodollar Rate Loans) submitted by the
Borrower shall be deemed to be a representation and warranty that the
conditions specified in Sections 4.02(a) and (b) have been
satisfied on and as of the date of the applicable Credit Extension.

 

ARTICLE V.

REPRESENTATIONS
AND WARRANTIES

 

The Borrower represents and warrants that:

 

5.01        Corporate
Existence and Power.  The Borrower is a corporation duly
incorporated, validly existing and in good standing under the laws of the
jurisdiction of its incorporation, and has all corporate powers and all
material Authorizations required to carry on its business as now conducted.

 

5.02        Corporate and Governmental
Authorization; No Contravention.  The Borrower’s incurrence of Debt hereunder,
and the execution, delivery and performance by the Borrower of this Agreement
and the Notes, are within the corporate powers of the Borrower, have been duly
authorized by all necessary corporate action, require no action by or in
respect of, or filing with, any Governmental Authority (except that the
approval of the Pennsylvania Public Utility is required for the extension of
the Stated Maturity Date as described in Section 2.13), and do not
contravene, or constitute a default under, any provision of applicable law or
regulation or of the certificate of incorporation or by-laws of the Borrower or
of any agreement, judgment, injunction, order, decree or other instrument
binding upon the Borrower or any of its Subsidiaries, or result in the creation
or imposition of any Lien on any asset of the Borrower or any of its
Subsidiaries.

 

5.03        Binding Effect. 
This Agreement constitutes a valid and binding agreement of the
Borrower, and each Note, when executed and delivered in accordance with this
Agreement, will constitute a valid and binding obligation of the Borrower, in
each case enforceable in accordance with its terms, except as such enforcement
may be limited by bankruptcy, insolvency or similar laws of general application
relating to the enforcement of creditors’ rights.

 

5.04        Financial
Information.

 

(a)           The consolidated balance sheet of the
Borrower and its Consolidated Subsidiaries as of December 31, 2001, and the
related consolidated statements of income, cash flows and changes in
stockholders’ equity for the fiscal year then ended, reported on by Ernst &
Young LLP, independent certified public accountants for the Borrower, and set
forth in the Borrower’s 2001 Form 10-K, a copy of which has been delivered to
each of the Lenders, (i) fairly present, in conformity with GAAP, the
consolidated financial position of the Borrower and its Consolidated
Subsidiaries as of such date and their consolidated results of operations and
cash flows for such fiscal year, and (ii) show, to the extent required by GAAP,
all material indebtedness and other liabilities, direct or contingent, of the
Borrower and its Subsidiaries as of the date thereof, including liabilities for
taxes, material commitments and Debt.

 

(b)           The unaudited
consolidated balance sheet of the Borrower and its Consolidated Subsidiaries as
of June 30, 2002, and the related unaudited consolidated statements of income
and cash flows for the three months then ended, set forth in the Borrower’s
Latest Form 10-Q, a copy of which has been delivered to each of the Lenders,
fairly present, in conformity with GAAP applied on a basis consistent with the
financial statements referred to in subsection (a) of this Section, the
consolidated financial position of the Borrower and its Consolidated
Subsidiaries as of such date and their consolidated results of operations and
cash flows for such three month period (subject to normal year-end
adjustments).

 

34

 

(c)           Since December 31,
2001 there has been no material adverse change in the business, financial
position or results of operations of the Borrower and its Consolidated
Subsidiaries, considered as a whole.

 

5.05        Litigation. Except for the litigation described on
Schedule 5.05 (the “Scheduled Litigation”) there is no action,
suit, proceeding or investigation pending against, or, to the knowledge of the
Borrower, threatened against or affecting, the Borrower or any of its
Subsidiaries before any Governmental Authority in which there is a reasonable
possibility of an adverse decision which could materially adversely affect the
business, consolidated financial position or consolidated results of operations
of the Borrower and its Consolidated Subsidiaries, considered as a whole, or
which in any manner draws into question the validity or enforceability of this
Agreement or the Notes.  The Scheduled
Litigation is not reasonably expected by the Borrower to have a material
adverse effect on the business, financial condition, results of operations or
prospects of the Borrower and its Consolidated Subsidiaries, considered as a
whole.

 

5.06        No Default. 
Neither the Borrower nor any of its Subsidiaries is in default under or
with respect to any contractual obligation which could be reasonably expected
to have a material adverse effect on the business, financial condition, results
of operations or prospects of the Borrower and its Consolidated Subsidiaries,
considered as a whole.

 

5.07        Compliance
with ERISA.  Each member of the ERISA Group has fulfilled
its obligations under the minimum funding standards of ERISA and the Internal
Revenue Code with respect to each Plan and is in compliance in all material
respects with the presently applicable provisions of ERISA and the Internal
Revenue Code with respect to each Plan. 
No member of the ERISA Group has (i) sought a waiver of the minimum
funding standard under Section 412
of the Internal Revenue Code in respect of any Plan, (ii) failed to make any
contribution or payment to any Plan or Multiemployer Plan or in respect of any
Benefit Arrangement, or made any amendment to any Plan or Benefit Arrangement,
which has resulted or could result in the imposition of a Lien or the posting
of a bond or other security under ERISA or the Internal Revenue Code, or (iii)
incurred any liability under Title IV of ERISA other than a liability to the
PBGC for premiums under Section 4007
of ERISA.

 

5.08        Environmental
Matters.  In the ordinary course of its business, the
Borrower conducts an ongoing review of the effect of Environmental Laws on the
business, operations and properties of the Borrower and its Subsidiaries, in
the course of which it identifies and evaluates associated liabilities and
costs (including, without limitation, any capital or operating expenditures
required for clean-up or closure of properties presently or previously owned,
any capital or operating expenditures required to achieve or maintain
compliance with environmental protection standards imposed by law or as a condition
of any license, permit or contract, any related constraints on operating
activities, including any periodic or permanent shutdown of any facility or
reduction in the level of or change in the nature of operations conducted
thereat, any costs or liabilities in connection with off-site disposal of
wastes or Hazardous Substances, and any actual or potential liabilities to
third parties, including employees, and any related costs and expenses).  On the basis of this review, the Borrower
has concluded that such associated liabilities and costs, including the costs
of compliance with Environmental Laws, are unlikely to have a material adverse
effect on the business, financial condition, results of operations or prospects
of the Borrower and its Consolidated Subsidiaries, considered as a whole.

 

5.09        Taxes. 
The Borrower and its Subsidiaries have filed all United States Federal
income tax returns and all other material tax returns which are required to be
filed by them, and have paid all taxes due pursuant to such returns or pursuant
to any assessment received by the Borrower or any Subsidiary (other than those
not yet delinquent and payable without premium or penalty, and except for those
being diligently contested in good faith by appropriate proceedings, and in
each case, for which adequate

 

35

 

reserves and
provisions for taxes have been made on the books of the Borrower and each
Subsidiary).  The charges, accruals and
reserves on the books of the Borrower and its Subsidiaries in respect of taxes
or other governmental charges are, in the opinion of the Borrower, adequate.

 

5.10        Subsidiaries. 
Each of the Borrower’s corporate Subsidiaries is a corporation duly
incorporated, validly existing and in good standing under the laws of its
jurisdiction of incorporation, and has all corporate powers and all material
governmental authorizations required to carry on its business as now conducted,
except where the absence of any of the foregoing could not reasonably be expected
to have a material adverse effect on the business, financial condition, results
of operations or prospects of the Borrower and its Consolidated Subsidiaries,
considered as a whole.

 

5.11        Regulatory Restrictions on Borrowing;
Margin Regulations.

 

(a)           None of the
Borrower, any Person Controlling the Borrower, or any Subsidiary is an “investment company” within the meaning of
the Investment Company Act of 1940, as amended, or a “holding company,” or a “subsidiary company” of a “holding company,” or an “affiliate” of a “holding company” or of a “subsidiary company” of a “holding company,” within the meaning of
the Public Utility Holding Company Act of 1935, as amended.

 

(b)           Margin stock does
not constitute more than 25% of the assets of the Borrower and its Subsidiaries.

 

5.12        Full Disclosure. 
No statement, information, report, representation, or warranty made by
the Borrower in any Loan Document or furnished to the Administrative Agent or
any Lender by or on behalf of the Borrower in connection with any Loan Document
contains any untrue statement of a material fact or omits any material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading.

 

ARTICLE VI.

AFFIRMATIVE
COVENANTS

 

The Borrower
agrees that, so long as any Lender has any Commitment hereunder, any Letter of
Credit remains outstanding or any amount payable hereunder remains unpaid:

 

6.01        Information. 
The Borrower will deliver to each of the Lenders:

 

(a)           as soon as available, and in any
event within 90 days (and 75 days after the end of the fiscal year ending
December 31, 2003, if applicable and 60 days after the end of the fiscal year
ending December 31, 2004, if applicable) after the end of each fiscal year of
the Borrower, a consolidated balance sheet of the Borrower and its Consolidated
Subsidiaries as of the end of such fiscal year and the related consolidated
statements of income, cash flows and changes in stockholders’ equity for such
fiscal year, setting forth in each case in comparative form the figures for the
previous fiscal year, all in reasonable detail and prepared in accordance with
GAAP, audited and accompanied by a report and opinion of an independent
certified public accountant of nationally recognized standing selected by the
Borrower, which report and opinion shall be prepared in accordance with
generally accepted auditing standards and shall not be subject to any “going
concern” or like qualification or exception or any qualification or exception
as to the scope of such audit;

 

(b)           as soon as available, and in any
event within 45 days (and 40 days after the end of each fiscal quarter
beginning March 31, 2003, if applicable) after the end of each of the first
three quarters of

 

36

 

each fiscal year
of the Borrower, a consolidated balance sheet of the Borrower and its
Consolidated Subsidiaries as of the end of such quarter and the related
consolidated statements of income and cash flows for such quarter and for the
portion of the Borrower’s fiscal year ended at the end of such quarter, setting
forth in the case of such statements of income and cash flows, in comparative
form the figures for the corresponding quarter and the corresponding portion of
the Borrower’s previous fiscal year, all certified (subject to normal year-end
adjustments) as to fairness of presentation, conformity to GAAP and consistency
by the chief financial officer or the chief accounting officer of the Borrower;

 

(c)           simultaneously with the delivery of
each set of financial statements referred to in clauses (a) and (b) above, a
certificate of a Responsible Officer of the Borrower substantially in the form
of the Compliance Certificate attached hereto;

 

(d)           within five days after any officer of
the Borrower obtains actual knowledge of any Default, if such Default is then
continuing, a certificate of a Responsible Officer of the Borrower setting
forth the details thereof and the action which the Borrower is taking or
proposes to take with respect thereto;

 

(e)           promptly upon the mailing thereof to
the shareholders of the Borrower generally, copies of all financial statements,
reports and proxy statements so mailed;

 

(f)            promptly upon the filing thereof,
copies of all registration statements (other than the exhibits thereto and any
registration statements on Form S-8 or its equivalent) and reports on Forms
10-K, 10-Q and 8-K (or their equivalents) which the Borrower shall have filed
with the Securities and Exchange Commission;

 

(g)           if and when any member of the ERISA
Group (i) gives or is required to give notice to the PBGC of any “reportable event” (as defined in Section 4043 of ERISA) with respect to any
Plan which might constitute grounds for a termination of such Plan under Title
IV of ERISA, or knows that the plan administrator of any Plan has given or is
required to give notice of any such reportable event, a copy of the notice of
such reportable event given or required to be given to the PBGC; (ii) receives
notice of complete or partial withdrawal liability under Title IV of ERISA or
notice that any Multiemployer Plan is in reorganization, is insolvent or has
been terminated, a copy of such notice; (iii) receives notice from the PBGC
under Title IV of ERISA of an intent to terminate, impose liability (other than
for premiums under Section 4007
of ERISA) in respect of, or appoint a trustee to administer any Plan, a copy of
such notice; (iv) applies for a waiver of the minimum funding standard under Section 412 of the Internal Revenue Code,
a copy of such application; (v) gives notice of intent to terminate any Plan
under Section 4041(c) of ERISA, a
copy of such notice and other information filed with the PBGC; (vi) gives
notice of withdrawal from any Plan pursuant to Section
4063 of ERISA, a copy of such notice; or (vii) fails to make any
payment or contribution to any Plan or Multiemployer Plan or in respect of any
Benefit Arrangement or makes any amendment to any Plan or Benefit Arrangement
which has resulted or could result in the imposition of a Lien or the posting
of a bond or other security, a certificate of the chief financial officer or
the chief accounting officer of the Borrower setting forth details as to such
occurrence and action, if any, which the Borrower or applicable member of the
ERISA Group is required or proposes to take; and

 

(h)           from time to time, such additional
information regarding the financial position or business of the Borrower and
its Subsidiaries as the Administrative Agent, at the request of any Lender, may
reasonably request.

 

Documents required
to be delivered pursuant to Section 6.01(a), (b) or (f)
(to the extent any such documents are included in materials otherwise filed
with the SEC) may be delivered electronically and if

 

37

 

so delivered,
shall be deemed to have been delivered on the date (i) (A) on which the
Borrower posts such documents, or provides a link thereto on the Borrower’s
website on the Internet at the website address listed on Schedule 10.02;
or (B) on which such documents are posted on the Borrower’s behalf on
IntraLinks/IntraAgency or another relevant website, if any, to which each
Lender and the Administrative Agent have access (whether a commercial,
third-party website or whether sponsored by the Administrative Agent), and (ii)
on which the Borrower notifies (which may be by facsimile or electronic mail)
the Administrative Agent and each Lender of the posting of any such documents; provided
that the Borrower shall deliver paper copies or soft copies (by electronic
mail) of such documents to the Administrative Agent or any Lender that requests
the Borrower to deliver such paper copies or soft copies until a written
request to cease delivering paper copies or soft copies is given by the
Administrative Agent or such Lender. 
Notwithstanding anything contained herein, in every instance the
Borrower shall be required to provide paper copies of the Compliance
Certificates required by Section 6.01(c) to the Administrative Agent and
each of the Lenders.  Except for such
Compliance Certificates, the Administrative Agent shall have no obligation to
request the delivery or to maintain copies of the documents referred to above,
and in any event shall have no responsibility to monitor compliance by the
Borrower with any such request for delivery, and each Lender shall be solely
responsible for requesting delivery to it or maintaining its copies of such
documents.

 

6.02        Payment of
Obligations.  The Borrower will pay and discharge, and
will cause each Subsidiary to pay and discharge, at or before maturity, all
their respective material obligations and liabilities (including, without
limitation, tax liabilities and claims of materialmen, warehousemen and the
like, which if unpaid might by law give rise to a Lien), except where the same
may be contested in good faith by appropriate proceedings, and will maintain,
and will cause each Subsidiary to maintain, in accordance with generally
accepted accounting principles, appropriate reserves for the accrual of any of
the same.

 

6.03        Maintenance
of Property; Insurance.

 

(a)           The Borrower will
keep, and will cause each Subsidiary to keep, all material property useful and
necessary in its business in good working order and condition, ordinary wear
and tear excepted.

 

(b)           The Borrower will,
and will cause each of its Subsidiaries to, maintain (either in the name of the
Borrower or in such Subsidiary’s own name) with financially sound and
responsible insurance companies, insurance on all their respective properties
in at least such amounts, against at least such risks and with such risk
retention as are usually maintained, insured against or retained, as the case
may be, in the same general area by companies of established repute engaged in
the same or a similar business; and will furnish to the Lenders, upon request
from the Administrative Agent, information presented in reasonable detail as to
the insurance so carried.

 

6.04        Conduct of Business and Maintenance of
Existence.  The Borrower will preserve, renew and keep in
full force and effect, and will cause each Subsidiary to preserve, renew and
keep in full force and effect their respective legal existence and good
standing under the Laws of the jurisdiction of its organization and their
respective rights, privileges and franchises necessary or desirable in the
normal conduct of business; provided that nothing in this Section 6.04 shall
prohibit (i) the merger of a Subsidiary into the Borrower or the merger or
consolidation of a Subsidiary with or into another Person if the corporation
surviving such consolidation or merger is a domestic Subsidiary and if, in each
case, after giving effect thereto, no Default shall have occurred and be
continuing, or (ii) the termination of the corporate existence of any
Subsidiary if the Borrower in good faith determines that such termination is in
the best interest of the Borrower and is not materially disadvantageous to the
Lenders.

 

38

 

6.05        Compliance with Laws.  The Borrower will comply, and cause each
Subsidiary to comply, in all material respects with all applicable laws,
ordinances, rules, regulations, and requirements of governmental authorities
(including, without limitation, Environmental Laws and ERISA and the rules and
regulations thereunder) except where the necessity of compliance therewith is
contested in good faith by appropriate proceedings.

 

6.06        Inspection of Property, Books and Records.  The Borrower will keep, and will cause each
Subsidiary to keep, proper books of record and account in which full, true and
correct entries shall be made of all dealings and transactions in relation to
its business and activities; and will permit, and will cause each Subsidiary to
permit, representatives of any Lender at such Lender’s expense to visit and
inspect any of their respective properties, to examine and make abstracts from
any of their respective books and records, and to discuss their respective
affairs, finances and accounts with their respective officers, employees and
independent public accountants, all at such reasonable times and as often as
may reasonably be desired.

 

6.07        Use of Proceeds.  The proceeds of the Loans made under this
Agreement will be used by the Borrower (i) for working capital, capital
expenditures and other lawful corporate purposes, and (ii) as support for the
Borrower’s commercial paper program.

 

6.08        Governmental Approvals and Filings.  The Borrower will, and will cause each
Subsidiary to, keep and maintain in full force and effect all action by or in
respect of, or filing with, any Governmental Authority necessary in connection
with (a) the execution and delivery of this Agreement, or any Note issued
hereunder by the Borrower, (b) the consummation by the Borrower of the
transactions herein or therein contemplated, (c) the performance of or
compliance with the terms and conditions hereof or thereof by the Borrower, or
(d) any other actions required to ensure the legality, validity, binding
effect, enforceability or admissibility in evidence hereof or thereof.

 

ARTICLE
VII.

NEGATIVE
COVENANTS

 

So long as any Lender
shall have any Commitment hereunder, any Loan or other Obligation hereunder
shall remain unpaid or unsatisfied, or any Letter of Credit shall remain
outstanding:

 

7.01        Liens.  Neither the Borrower nor
any Subsidiary shall, directly or indirectly, create, incur, assume or suffer
to exist any Lien on any asset now owned or hereafter acquired by it, except:

 

(a)           Liens existing on
the date of this Agreement securing Debt outstanding on the date of this Agreement
in an aggregate principal or face amount not exceeding $10,000,000;

 

(b)           any Lien existing on
any asset of any person at the time such person becomes a Subsidiary, and not
created in contemplation of such event;

 

(c)           any Lien on any
asset securing Debt incurred or assumed for the purpose of financing all or any
part of the cost of acquiring such asset, provided that such Lien attaches to
such asset concurrently with or within 90 days after completion of the
acquisition thereof;

 

(d)           Liens on the assets
of NORESCO or on the assets of a Subsidiary of NORESCO attributable to a
NORESCO Project securing obligations of NORESCO or such Subsidiary with respect
to surety bonds and similar instruments obtained by NORESCO or such Subsidiary
with respect to such NORESCO Project;

 

39

 

(e)           any Lien on any
asset of any person existing at the time such person is merged or consolidated
with or into the Borrower or a Subsidiary and not created in contemplation of
such event;

 

(f)            any Lien existing
on any asset prior to the acquisition thereof by the Borrower or a Subsidiary,
and not created in contemplation of such acquisition;

 

(g)           any Lien arising out
of the refinancing, extension, renewal or refunding of any Debt secured by any
Lien permitted by any of the foregoing clauses of this Section; provided that
such Debt is not increased and is not secured by any additional assets;

 

(h)           Liens arising in the
ordinary course of its business which (i) do not secure Debt or obligations in
respect of Swap Contracts, (ii) do not secure any obligation in an amount
exceeding $20,000,000 and (iii) do not in the aggregate materially detract from
the value of its assets or materially impair the use thereof in the operation
of its business;

 

(i)            Liens on cash and
cash equivalents securing obligations in respect of Swap Contracts, provided
that the aggregate amount of cash and cash equivalents subject to such Liens
may at no time exceed $25,000,000;

 

(j)            Liens on the oil
and gas properties, revenue therefrom, and other assets related to the ANPI
Transaction securing ANPI Obligations, as such Liens are described in
documentation in place as of the date of this Agreement, with such changes in
such documentation as, in the reasonable opinion of the Administrative Agent,
do not adversely affect the interest of the Lenders;

 

(k)           Production Payments
and Liens on the properties covered thereby to secure performance obligations
in connection therewith, provided that the aggregate principal amount of
balance sheet obligations in respect of Production Payments may at no time
exceed $500,000,000; and

 

(l)            Liens not otherwise
permitted by the foregoing clauses of this Section securing Debt in an
aggregate principal or face amount at any date not to exceed $100,000,000.

 

7.02        Debt to Total Capital.          Consolidated
Debt will at no time exceed 65% of Total Capital.

 

7.03        Transactions with Affiliates.            The Borrower will
not, and will not permit any Subsidiary to, directly or indirectly, pay any
funds to or for the account of, make any investment (whether by acquisition of
stock or indebtedness, by loan, advance, transfer of property, guarantee or
other agreement to pay, purchase or service, directly or indirectly, any Debt,
or otherwise) in, lease, sell, transfer or otherwise dispose of any assets,
tangible or intangible, to, or participate in, or effect, any transaction with,
any Affiliate, except on an arms-length basis on terms at least as favorable to
the Borrower or such Subsidiary than could have been obtained from a third
party who was not an Affiliate; provided
that the foregoing provisions of this Section shall not prohibit any
such Person from declaring or paying any lawful dividend or other payment
ratably in respect of all of its capital stock of the relevant class so long
as, after giving effect thereto, no Default shall have occurred and be
continuing.

 

7.04        Limitation of Other Restrictions on Dividends by Subsidiaries, etc.        The Borrower will not permit any
Subsidiary to be or become subject to any restriction of any nature (whether
arising by operation of law, by agreement, by its articles of incorporation,
by-laws or other constituent documents of such Subsidiary, or otherwise) on the
right of such Subsidiary from time to time to (w) declare and pay dividends
or distributions with respect to capital stock owned by the Borrower or any
Subsidiary, (x) pay any indebtedness, obligations or liabilities from time
to time owed to the Borrower or any Subsidiary,

 

40

 

(y) make loans or
advances to the Borrower or any Subsidiary, or (z) transfer any of its
properties or assets to the Borrower or any Subsidiary, except:

 

(a)           legal restrictions of general applicability under the
corporation law under which such Subsidiary is incorporated, and fraudulent
conveyance or similar laws of general applicability for the benefit of
creditors of such Subsidiary generally;

 

(b)           with respect to clause (z) above:  (i) non-assignment provisions of any
executory contract or of any lease by the Borrower or such Subsidiary as
lessee, and (ii) restrictions on transfer of property subject to a Lien
permitted by Section
7.01 for the benefit of the holder of such Lien;

 

(c)           restrictions applicable solely to an Excluded Subsidiary.

 

7.05        Mergers
and Sales of Assets.  The Borrower will not (i) consolidate or
merge with or into any other Person or (ii) sell, lease or otherwise transfer,
directly or indirectly, all or substantially all of the assets of the Borrower
and its Subsidiaries, taken as a whole, to any other Person; provided that the Borrower may merge with
another Person if (x) the Borrower is the corporation surviving such merger and
(y) after giving effect to such merger, no Default shall have occurred and be
continuing.

 

7.06        Change in
Nature of Business.  The
Borrower shall not, nor shall it permit any Subsidiary to, directly or
indirectly, engage in any material line of business substantially different
from those lines of business conducted by the Borrower and its Subsidiaries on
the date hereof or any business substantially related or incidental thereto.

 

7.07        Use of Proceeds.  The Borrower shall not use
the proceeds of any Credit Extension, whether directly or indirectly, for a
purpose that entails a violation of Regulation U of the FRB.

 

ARTICLE
VIII.

EVENTS
OF DEFAULT AND REMEDIES

 

8.01        Events of
Default.  Any of
the following shall constitute an Event of Default:

 

(a)           Non-Payment.  The Borrower fails to pay (i) when and as
required to be paid herein, any amount of principal of any Loan or any L/C
Obligation, or (ii) within five days after the same becomes due, any interest
on any Loan or on any L/C Obligation, or any facility, utilization or other fee
due hereunder, or any other amount payable hereunder or under any other Loan Document;
or

 

(b)           Specific
Covenants.  The Borrower fails to
perform or observe any term, covenant or agreement contained in Article VI
(other than those contained in Sections 6.01 (other than 6.01(d))
through 6.06) or Article VII; or

 

(c)           Other Defaults.  The Borrower fails to perform or observe any
other covenant or agreement (not specified in subsection (a) or (b) above)
contained in any Loan Document on its part to be performed or observed and such
failure continues for 30 days; or

 

(d)           Representations
and Warranties.  Any representation,
warranty, certification or statement of fact made or deemed made by or on
behalf of the Borrower, in any other Loan Document, or in any document
delivered in connection herewith or therewith shall be incorrect or misleading
when made or deemed made; provided that
(except in the case of any representation, warranty or certification made with

 

41

 

respect to any financial
statement of the Borrower) if such lack of correctness is capable of being
remedied or cured within a 30-day period, Borrower shall have a period of 30
days after written notice thereof has been given to Borrower by Administrative
Agent (acting on the request of one or more Lenders) within which to remedy or cure
such lack of correctness; or

 

(e)           Cross-Payment
Default; Cross-Acceleration.  The
Borrower or any Subsidiary (A) fails to make any payment when due (whether by
scheduled maturity, required prepayment, acceleration, demand, or otherwise) in
respect of any Material Financial Obligations, or (B) fails to observe or
perform any other agreement or condition relating to any Material Debt or
contained in any instrument or agreement evidencing, securing or relating
thereto, or any other event occurs, the effect of which default or other event
is to cause the maturity of such Material Debt to be accelerated or to cause
such Material Debt to be repurchased, prepaid, defeased or redeemed
(automatically or otherwise), or an offer to repurchase, prepay, defease or redeem
such Debt to be made, prior to its stated maturity; or

 

(f)            Insolvency
Proceedings, Etc.  The Borrower or
any Material Subsidiary institutes or consents to the institution of any
proceeding under any Debtor Relief Law, or makes an assignment for the benefit
of creditors; or applies for or consents to the appointment of any receiver,
trustee, custodian, conservator, liquidator, rehabilitator or similar officer
for it or for all or any material part of its property; or any receiver,
trustee, custodian, conservator, liquidator, rehabilitator or similar officer
is appointed without the application or consent of such Person and the
appointment continues undischarged or unstayed for 60 calendar days; or any
proceeding under any Debtor Relief Law relating to any such Person or to all or
any material part of its property is instituted without the consent of such
Person and continues undismissed or unstayed for 60 calendar days, or an order
for relief is entered in any such proceeding; or

 

(g)           Inability to Pay
Debts; Attachment.  (i) The Borrower
or any Material Subsidiary admits in writing its inability or fails generally
to pay its debts as they become due, or (ii) any writ or warrant of attachment
or execution or similar process is issued or levied against all or any material
part of the property of any such Person and is not released, vacated or fully
bonded within 30 days after its issue or levy; or

 

(h)           Judgments.  There is entered against the Borrower or any
Subsidiary final judgments or orders for the payment of money in an aggregate
amount exceeding $50,000,000 (to the extent not covered by independent
third-party insurance as to which the insurer does not dispute coverage), and
(A) enforcement proceedings are commenced by any creditor upon such judgment or
order, or (B) there is a period of 30 consecutive days during which a stay of
enforcement of such judgment, by reason of a pending appeal or otherwise, is
not in effect; or

 

(i)            ERISA.  Any member of the ERISA Group shall fail to pay when due an amount or amounts
aggregating in excess of $5,000,000 which it shall have become liable to pay
under Title IV of ERISA; or notice of intent to terminate a Material Plan shall
be filed under Title IV of ERISA by any member of the ERISA Group, any plan
administrator or any combination of the foregoing; or the PBGC shall institute
proceedings under Title IV of ERISA to terminate, to impose liability (other
than for premiums under Section 4007
of ERISA) in respect of, or to cause a trustee to be appointed to administer, any
Material Plan; or a condition shall exist by reason of which the PBGC would be
entitled to obtain a decree adjudicating that any Material Plan must be
terminated; or there shall occur a complete or partial withdrawal from, or 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 ERISA Group to incur a
current payment obligation in excess of $25,000,000 in the aggregate; or

 

42

 

(j)            Invalidity of
Loan Documents.  Any Loan Document
(other than the Fee Letters), at any time after its execution and delivery and
for any reason other than as expressly permitted hereunder or satisfaction in
full of all the Obligations, ceases to be in full force and effect; or the
Borrower or any other Person contests in any manner the validity or
enforceability of any Loan Document; or the Borrower denies that it has any or
further liability or obligation under any Loan Document, or purports to revoke,
terminate or rescind any Loan Document; or

 

(k)           Change of Control.  There occurs any Change of Control with
respect to the Borrower.

 

8.02        Remedies
Upon Event of Default.  If
any Event of Default occurs and is continuing, the Administrative Agent shall,
at the request of, or may, with the consent of, the Required Lenders, take any
or all of the following actions:

 

(a)           declare the
commitment of each Lender to make Loans and any obligations of the L/C Issuer
to make L/C Credit Extensions to be terminated, whereupon such commitments and
obligation shall be terminated;

 

(b)           declare the unpaid
principal amount of all outstanding Loans, all interest accrued and unpaid
thereon, and all other amounts owing or payable hereunder or under any other
Loan Document to be immediately due and payable, without presentment, demand,
protest or other notice of any kind, all of which are hereby expressly waived
by the Borrower;

 

(c)           require that the
Borrower Cash Collateralize the L/C Obligations (in an amount equal to the then
Outstanding Amount thereof); and

 

(d)           exercise on behalf
of itself and the Lenders all rights and remedies available to it and the
Lenders under the Loan Documents or applicable law;

 

provided, however, that upon
the occurrence of an actual or deemed entry of an order for relief with respect
to the Borrower under the Bankruptcy Code of the United States, the obligation
of each Lender to make Loans and any obligation of the L/C Issuer to make L/C
Credit Extensions shall automatically terminate, the unpaid principal amount of
all outstanding Loans and all interest and other amounts as aforesaid shall
automatically become due and payable, and the obligation of the Borrower to
Cash Collateralize the L/C Obligations as aforesaid shall automatically become
effective, in each case without further act of the Administrative Agent or any
Lender.

 

8.03        Application
of Funds.  After
the exercise of remedies provided for in Section 8.02 (or after the
Loans have automatically become immediately due and payable and the L/C
Obligations have automatically been required to be Cash Collateralized as set
forth in the proviso to Section 8.02), any amounts received on account
of the Obligations shall be applied by the Administrative Agent in the
following order:

 

First, to payment of that portion of
the Obligations constituting fees, indemnities, expenses and other amounts
(including Attorney Costs and amounts payable under Article III) payable
to the Administrative Agent in its capacity as such;

 

Second, to payment of that portion
of the Obligations constituting fees, indemnities and other amounts (other than
principal and interest) payable to the Lenders (including Attorney Costs and
amounts payable under Article III), ratably among them in proportion to
the amounts described in this clause Second payable to them;

 

43

 

Third, to payment of that portion of
the Obligations constituting accrued and unpaid interest on the Loans, ratably
among the Lenders in proportion to the respective amounts described in this
clause Third payable to them;

 

Fourth, to payment of that portion
of the Obligations constituting unpaid principal of the Loans and L/C
Borrowings, ratably among the Lenders in proportion to the respective amounts
described in this clause Fourth held by them;

 

Fifth, to the Administrative Agent
for the account of the L/C Issuer, to Cash Collateralize that portion of L/C
Obligations comprised of the aggregate undrawn amount of Letters of Credit; and

 

Last, the balance, if any, after all
of the Obligations have been indefeasibly paid in full, to the Borrower or as
otherwise required by Law.

 

Subject to Section 2.03(c), amounts used to Cash Collateralize the
aggregate undrawn amount of Letters of Credit pursuant to clause Fifth above
shall be applied to satisfy drawings under such Letters of Credit as they
occur.  If any amount remains on deposit
as Cash Collateral after all Letters of Credit have either been fully drawn or
expired, such remaining amount shall be applied to the other Obligations, if
any, in the order set forth above.

 

ARTICLE IX.

ADMINISTRATIVE
AGENT

 

9.01        Appointment and Authorization of
Administrative Agent.

 

(a)           Each Lender hereby
irrevocably appoints, designates and authorizes the Administrative Agent to
take such action on its behalf under the provisions of this Agreement and each
other Loan Document and to exercise such powers and perform such duties as are
expressly delegated to it by the terms of this Agreement or any other Loan
Document, together with such powers as are reasonably incidental thereto.  Notwithstanding any provision to the
contrary contained elsewhere herein or in any other Loan Document, the
Administrative Agent shall not have any duties or responsibilities, except
those expressly set forth herein, nor shall the Administrative Agent have or be
deemed to have any fiduciary relationship with any Lender or participant, and
no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or any other Loan Document or
otherwise exist against the Administrative Agent.  Without limiting the generality of the foregoing sentence, the
use of the term “agent” herein and in the other Loan Documents with reference
to the Administrative Agent is not intended to connote any fiduciary or other
implied (or express) obligations arising under agency doctrine of any
applicable Law.  Instead, such term is
used merely as a matter of market custom, and is intended to create or reflect
only an administrative relationship between independent contracting parties.

 

(b)           The L/C Issuer shall
act on behalf of the Lenders with respect to any Letters of Credit issued by it
and the documents associated therewith, and the L/C Issuer shall have all of
the benefits and immunities (i) provided to the Administrative Agent in this
Article IX with respect to any acts taken or omissions suffered by the L/C
Issuer in connection with Letters of Credit issued by it or proposed to be
issued by it and the applications and agreements for Letters of Credit
pertaining to such Letters of Credit as fully as if the term “Administrative
Agent” as used in this Article IX and in the definition of “Agent-Related
Person” included the L/C Issuer with respect to such acts or omissions, and
(ii) as additionally provided herein with respect to the L/C Issuer.

 

9.02        Delegation of
Duties.  The
Administrative Agent may execute any of its duties under this Agreement or any
other Loan Document by or through agents, employees or attorneys-in-fact and
shall be

 

44

 

entitled to advice of counsel and other consultants or
experts concerning all matters pertaining to such duties.  The Administrative Agent shall not be
responsible for the negligence or misconduct of any agent or attorney-in-fact
that it selects in the absence of gross negligence or willful misconduct.

 

9.03        Liability
of Administrative Agent.  No
Agent-Related Person shall (a) be liable for any action taken or omitted to be
taken by any of them under or in connection with this Agreement or any other
Loan Document or the transactions contemplated hereby (except for its own gross
negligence or willful misconduct in connection with its duties expressly set
forth herein), or (b) be responsible in any manner to any Lender or participant
for any recital, statement, representation or warranty made by the Borrower or
any officer thereof, contained herein or in any other Loan Document, or in any
certificate, report, statement or other document referred to or provided for
in, or received by the Administrative Agent under or in connection with, this
Agreement or any other Loan Document, or the validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement or any other Loan
Document, or for any failure of the Borrower or any other party to any Loan
Document to perform its obligations hereunder or thereunder.  No Agent-Related Person shall be under any
obligation to any Lender or participant to ascertain or to inquire as to the
observance or performance of any of the agreements contained in, or conditions
of, this Agreement or any other Loan Document, or to inspect the properties,
books or records of the Borrower or any Affiliate thereof.

 

9.04        Reliance
by Administrative Agent.

 

(a)           The Administrative
Agent shall be entitled to rely, and shall be fully protected in relying, upon
any writing, communication, signature, resolution, representation, notice,
consent, certificate, affidavit, letter, telegram, facsimile, telex or
telephone message, electronic mail message, statement or other document or
conversation believed by it to be genuine and correct and to have been signed,
sent or made by the proper Person or Persons, and upon advice and statements of
legal counsel (including counsel to the Borrower), independent accountants and
other experts selected by the Administrative Agent.  The Administrative Agent shall be fully justified in failing or
refusing to take any action under any Loan Document unless it shall first
receive such advice or concurrence of the Required Lenders as it deems
appropriate and, if it so requests, it shall first be indemnified to its
satisfaction by the Lenders against any and all liability and expense which may
be incurred by it by reason of taking or continuing to take any such
action.  The Administrative Agent shall
in all cases be fully protected in acting, or in refraining from acting, under
this Agreement or any other Loan Document in accordance with a request or
consent of the Required Lenders (or such greater number of Lenders as may be
expressly required hereby in any instance) and such request and any action
taken or failure to act pursuant thereto shall be binding upon all the Lenders.

 

(b)           For purposes of
determining compliance with the conditions specified in Section 4.01,
each Lender that has signed this Agreement shall be deemed to have consented
to, approved or accepted or to be satisfied with, each document or other matter
required thereunder to be consented to or approved by or acceptable or
satisfactory to a Lender unless the Administrative Agent shall have received
notice from such Lender prior to the proposed Closing Date specifying its
objection thereto.

 

9.05        Notice of
Default.  The
Administrative Agent shall not be deemed to have knowledge or notice of the
occurrence of any Default, except with respect to defaults in the payment of
principal, interest and fees required to be paid to the Administrative Agent
for the account of the Lenders, unless the Administrative Agent shall have
received written notice from a Lender or the Borrower referring to this
Agreement, describing such Default and stating that such notice is a “notice of
default.”  The Administrative Agent will
notify the Lenders of its receipt of any such notice.  The Administrative Agent shall take such action with respect to
such Default as may be directed by the Required Lenders in accordance with Article
VIII; provided, however, that unless and until the
Administrative Agent has

 

45

 

received any such direction, the Administrative Agent
may (but shall not be obligated to) take such action, or refrain from taking
such action, with respect to such Default as it shall deem advisable or in the
best interest of the Lenders.

 

9.06        Credit Decision; Disclosure of
Information by Administrative Agent. 
Each Lender acknowledges that no Agent-Related Person
has made any representation or warranty to it, and that no act by the
Administrative Agent hereafter taken, including any consent to and acceptance
of any assignment or review of the affairs of the Borrower or any Affiliate
thereof, shall be deemed to constitute any representation or warranty by any
Agent-Related Person to any Lender as to any matter, including whether
Agent-Related Persons have disclosed material information in their
possession.  Each Lender represents to
the Administrative Agent that it has, independently and without reliance upon
any Agent-Related Person and based on such documents and information as it has
deemed appropriate, made its own appraisal of and investigation into the
business, prospects, operations, property, financial and other condition and
creditworthiness of the Borrower and their respective Subsidiaries, and all
applicable bank or other regulatory Laws relating to the transactions
contemplated hereby, and made its own decision to enter into this Agreement and
to extend credit to the Borrower hereunder. 
Each Lender also represents that it will, independently and without
reliance upon any Agent-Related Person and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit analysis, appraisals and decisions in taking or not taking action under
this Agreement and the other Loan Documents, and to make such investigations as
it deems necessary to inform itself as to the business, prospects, operations,
property, financial and other condition and creditworthiness of the
Borrower.  Except for notices, reports
and other documents expressly required to be furnished to the Lenders by the
Administrative Agent herein, the Administrative Agent shall not have any duty
or responsibility to provide any Lender with any credit or other information
concerning the business, prospects, operations, property, financial and other
condition or creditworthiness of the Borrower or any of its Affiliates which
may come into the possession of any Agent-Related Person.

 

9.07        Indemnification of Administrative
Agent.  Whether or
not the transactions contemplated hereby are consummated, the Lenders shall
indemnify upon demand each Agent-Related Person (to the extent not reimbursed
by or on behalf of the Borrower and without limiting the obligation of the
Borrower to do so), pro rata, and hold harmless each Agent-Related Person from
and against any and all Indemnified Liabilities incurred by it; provided,
however, that no Lender shall be liable for the payment to any
Agent-Related Person of any portion of such Indemnified Liabilities to the
extent determined in a final, nonappealable judgment by a court of competent
jurisdiction to have resulted from such Agent-Related Person’s own gross
negligence or willful misconduct; provided, however, that no
action taken in accordance with the directions of the Required Lenders shall be
deemed to constitute gross negligence or willful misconduct for purposes of
this Section.  Without limitation of the
foregoing, each Lender shall reimburse the Administrative Agent upon demand for
its ratable share of any costs or out-of-pocket expenses (including Attorney
Costs) incurred by the Administrative Agent in connection with the preparation,
execution, delivery, administration, modification, amendment or enforcement
(whether through negotiations, legal proceedings or otherwise) of, or legal
advice in respect of rights or responsibilities under, this Agreement, any
other Loan Document, or any document contemplated by or referred to herein, to
the extent that the Administrative Agent is not reimbursed for such expenses by
or on behalf of the Borrower.  The
undertaking in this Section shall survive termination of the Aggregate
Commitments, the payment of all other Obligations and the resignation of the
Administrative Agent.

 

9.08        Administrative Agent in its Individual
Capacity.  Bank of
America and its Affiliates may make loans to, issue Letters of Credit for the
account of, accept deposits from, acquire equity interests in and generally
engage in any kind of banking, trust, financial advisory, underwriting or other
business with the Borrower and its Affiliates as though Bank of America were
not the Administrative Agent or the L/C Issuer hereunder and without notice to
or consent of the Lenders.  The Lenders

 

46

 

acknowledge that, pursuant to such activities, Bank of
America or its Affiliates may receive information regarding the Borrower or its
Affiliates (including information that may be subject to confidentiality
obligations in favor of the Borrower or such Affiliate) and acknowledge that
the Administrative Agent shall be under no obligation to provide such
information to them.  With respect to
its Loans, Bank of America shall have the same rights and powers under this
Agreement as any other Lender and may exercise such rights and powers as though
it were not the Administrative Agent or the L/C Issuer, and the terms “Lender”
and “Lenders” include Bank of America in its individual capacity.

 

9.09        Successor
Administrative Agent.  The
Administrative Agent may resign as Administrative Agent upon 30 days’ notice to
the Lenders; provided that any such resignation by Bank of America shall also
constitute its resignation as L/C Issuer. 
If the Administrative Agent resigns under this Agreement, the Required
Lenders shall appoint from among the Lenders a successor administrative agent
for the Lenders, which successor administrative agent shall be consented to by
the Borrower at all times other than during the existence of an Event of
Default (which consent of the Borrower shall not be unreasonably withheld or
delayed).  If no successor administrative
agent is appointed prior to the effective date of the resignation of the
Administrative Agent, the Administrative Agent may appoint, after consulting
with the Lenders and the Borrower, a successor administrative agent from among
the Lenders.

 

Upon the acceptance of its appointment as successor administrative
agent hereunder, the Person acting as such successor administrative agent shall
succeed to all the rights, powers and duties of the retiring Administrative
Agent and L/C Issuer, and the respective terms “Administrative Agent” and “L/C
Issuer” shall mean such successor administrative agent and Letter of Credit
Issuer and the retiring Administrative Agent’s appointment, powers and duties
as Administrative Agent shall be terminated and the retiring L/C Issuer’s
rights, powers and duties as such shall be terminated, without any other or
further act or deed on the part of such retiring L/C Issuer or any other
Lender, other than the obligation of the successor L/C Issuer to issue Letters
of Credit in substitution for the Letters of Credit, if any, outstanding at the
time of such succession or to make other arrangements satisfactory to the
retiring L/C Issuer to effectively assume the obligations of the retiring L/C
Issuer with respect to such Letters of Credit. 
After any retiring Administrative Agent’s resignation hereunder as
Administrative Agent, the provisions of this Article IX and Sections 10.04
and 10.05 shall inure to its benefit as to any actions taken or omitted
to be taken by it while it was Administrative Agent under this Agreement.  If no successor administrative agent has
accepted appointment as Administrative Agent by the date which is 30 days
following a retiring Administrative Agent’s notice of resignation, the retiring
Administrative Agent’s resignation shall nevertheless thereupon become
effective and the Lenders shall perform all of the duties of the Administrative
Agent hereunder until such time, if any, as the Required Lenders appoint a
successor agent as provided for above.

 

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

 

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

 

47

 

other amounts due the
Lenders and the Administrative Agent under Sections 2.08 and 10.04)
allowed in such judicial proceeding; and

 

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

 

and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Lender to make such payments to the
Administrative Agent and, in the event that the Administrative Agent shall
consent to the making of such payments directly to the Lenders, to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses,
disbursements and advances of the Administrative Agent and its agents and
counsel, and any other amounts due the Administrative Agent under Sections
2.08 and 10.04.

 

Nothing contained herein shall be deemed to authorize the Administrative
Agent to authorize or consent to or accept or adopt on behalf of any Lender any
plan of reorganization, arrangement, adjustment or composition affecting the
Obligations or the rights of any Lender or to authorize the Administrative
Agent to vote in respect of the claim of any Lender in any such proceeding.

 

9.11        Other
Agents; Arrangers and Managers.  None of the Lenders or other Persons
identified on the facing page or signature pages of this Agreement as a
“syndication agent,” “documentation agent,” “co-agent,” “co-book manager,”
“lead manager,” “arranger” or “co-lead arranger” or shall have any right,
power, obligation, liability, responsibility or duty under this Agreement other
than, in the case of such Lenders, those applicable to all Lenders as
such.  Without limiting the foregoing,
none of the Lenders or other Persons so identified shall have or be deemed to
have any fiduciary relationship with any Lender.  Each Lender acknowledges that it has not relied, and will not
rely, on any of the Lenders or other Persons so identified in deciding to enter
into this Agreement or in taking or not taking action hereunder.

 

ARTICLE X.

MISCELLANEOUS

 

10.01      Amendments,
Etc.  No amendment or
waiver of any provision of this Agreement or any other Loan Document, and no
consent to any departure by the Borrower therefrom, shall be effective unless
in writing signed by the Required Lenders and the Borrower, and acknowledged by
the Administrative Agent, and each such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given; provided,
however, that no such amendment, waiver or consent shall:

 

(a)           extend or increase
the Commitment of any Lender (or reinstate any Commitment terminated pursuant
to Section 8.02) without the written consent of such Lender;

 

(b)           postpone any date
fixed by this Agreement or any other Loan Document for any payment of
principal, interest, fees or other amounts due to the Lenders (or any of them)
hereunder or under any other Loan Document without the written consent of each
Lender directly affected thereby;

 

(c)           reduce the principal
of, or the rate of interest specified herein on, any Loan or L/C Borrowing, or
(subject to clause (iv) of the second proviso to this Section 10.01) any
fees or other amounts payable hereunder or under any other Loan Document
without the written consent of each Lender directly affected thereby; provided,
however, that only the consent of the Required Lenders shall be
necessary to amend the definition of “Default Rate” or to waive any obligation
of the Borrower to pay interest at the Default Rate;

 

48

 

(d)           change Section
2.12 or Section 8.03 in a manner that would alter the pro rata
sharing of payments required thereby without the written consent of each
Lender; or

 

(e)           change any provision
of this Section or the definition of “Required Lenders” or any other provision
hereof specifying the number or percentage of Lenders required to amend, waive
or otherwise modify any rights hereunder or make any determination or grant any
consent hereunder, without the written consent of each Lender;

 

and, provided  further, that (i) no amendment, waiver or
consent shall, unless in writing and signed by the L/C Issuer in addition to
the Lenders required above, affect the rights or duties of the L/C Issuer under
this Agreement or any Letter of Credit Application relating to any Letter of
Credit issued or to be issued by it; (ii) no amendment, waiver or consent
shall, unless in writing and signed by the Administrative Agent in addition to
the Lenders required above, affect the rights or duties of the Administrative
Agent under this Agreement or any other Loan Document; (iii) Section
10.07(h) may not be amended, waived or otherwise modified without the
consent of each Granting Lender all or any part of whose Loans are being funded
by an SPC at the time of such amendment, waiver or other modification; and (iv)
the Fee Letters may be amended, or rights or privileges thereunder waived, in a
writing executed only by the parties thereto.

 

10.02      Notices and Other Communications;
Facsimile Copies.

 

(a)           General.  Unless otherwise expressly provided herein,
all notices and other communications provided for hereunder shall be in writing
(including by facsimile transmission). 
All such written notices shall be mailed, faxed or delivered to the
applicable address, facsimile number or (subject to subsection (c) below)
electronic mail address, and all notices and other communications expressly
permitted hereunder to be given by telephone shall be made to the applicable
telephone number, as follows:

 

(i)            if to the Borrower, the
Administrative Agent or the L/C Issuer, to the address, facsimile number,
electronic mail address or telephone number specified for such Person on Schedule
10.02 or to such other address, facsimile number, electronic mail address
or telephone number as shall be designated by such party in a notice to the
other parties; and

 

(ii)           if to any other Lender, to the
address, facsimile number, electronic mail address or telephone number
specified in its Administrative Questionnaire or to such other address,
facsimile number, electronic mail address or telephone number as shall be
designated by such party in a notice to the Borrower, the Administrative Agent
and the L/C Issuer.

 

All such notices and other communications shall be
deemed to be given or made upon the earlier to occur of (i) actual receipt by
the relevant party hereto and (ii) (A) if delivered by hand or by courier, when
signed for by or on behalf of the relevant party hereto; (B) if delivered by
mail, four Business Days after deposit in the mails, postage prepaid; (C) if
delivered by facsimile, when sent and receipt has been confirmed by telephone;
and (D) if delivered by electronic mail (which form of delivery is subject to
the provisions of subsection (c) below), when delivered.  In no event shall a voicemail message be
effective as a notice, communication or confirmation hereunder.

 

(b)           Effectiveness of
Facsimile Documents and Signatures. 
Loan Documents may be transmitted and/or signed by facsimile.  The effectiveness of any such documents and
signatures shall, subject to applicable Law, have the same force and effect as
manually-signed originals and shall be binding on the Borrower, the
Administrative Agent and the Lenders. 
The Administrative Agent may also

 

49

 

require that any such documents and signatures be
confirmed by a manually-signed original thereof; provided, however,
that the failure to request or deliver the same shall not limit the
effectiveness of any facsimile document or signature.

 

(c)           Limited Use of
Electronic Mail.  Electronic
mail and Internet and intranet websites may be used only to distribute routine
communications, such as financial statements and other information as provided
in Section 6.01, and to distribute Loan Documents for execution by the
parties thereto, and may not be used for any other purpose.

 

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

 

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

 

10.04      Attorney Costs,
Expenses and Taxes. 
The Borrower agrees (a) to pay or reimburse the Administrative Agent for
all costs and expenses incurred in connection with the development,
preparation, negotiation and execution of this Agreement and the other Loan
Documents and any amendment, waiver, consent or other modification of the
provisions hereof and thereof (whether or not the transactions contemplated
hereby or thereby are consummated), and the consummation and administration of
the transactions contemplated hereby and thereby, including all Attorney Costs,
and (b) to pay or reimburse the Administrative Agent and each Lender for all
costs and expenses incurred in connection with the enforcement, attempted
enforcement, or preservation of any rights or remedies under this Agreement or
the other Loan Documents (including all such costs and expenses incurred during
any “workout” or restructuring in respect of the Obligations and during any
legal proceeding, including any proceeding under any Debtor Relief Law),
including all Attorney Costs.  The
foregoing costs and expenses shall include all search, filing, recording, title
insurance and appraisal charges and fees and taxes related thereto, and other
out-of-pocket expenses incurred by the Administrative Agent and the cost of
independent public accountants and other outside experts retained by the
Administrative Agent or any Lender.  All
amounts due under this Section 10.04 shall be payable within ten
Business Days after demand therefore. 
The agreements in this Section shall survive the termination of the
Aggregate Commitments and repayment of all other Obligations.

 

10.05      Indemnification
by the Borrower. 
Whether or not the transactions contemplated hereby are consummated, the
Borrower shall indemnify and hold harmless each Agent-Related Person, each
Lender and their respective Affiliates, directors, officers, employees,
counsel, agents and attorneys-in-fact (collectively the “Indemnitees”)
from and against any and all liabilities, obligations, losses, damages,
penalties, claims, demands, actions, judgments, suits, costs, expenses and
disbursements

 

50

 

(including Attorney Costs) of any kind or nature
whatsoever which may at any time be imposed on, incurred by or asserted against
any such Indemnitee in any way relating to or arising out of or in connection
with (a) the execution, delivery, enforcement, performance or administration of
any Loan Document or any other agreement, letter or instrument delivered in
connection with the transactions contemplated thereby or the consummation of
the transactions contemplated thereby, (b) any Commitment, Loan or Letter of
Credit or the use or proposed use of the proceeds therefrom (including any refusal
by the L/C Issuer to honor a demand for payment under a Letter of Credit if the
documents presented in connection with such demand do not strictly comply with
the terms of such Letter of Credit), (c) any actual or alleged presence or
release of Hazardous Substances on or from any property currently or formerly
owned or operated by the Borrower or any Subsidiary of the Borrower, or any
Environmental Liability related in any way to the Borrower or any Subsidiary of
the Borrower, or (d) any actual or prospective claim, litigation, investigation
or proceeding relating to any of the foregoing, whether based on contract, tort
or any other theory (including any investigation of, preparation for, or
defense of any pending or threatened claim, investigation, litigation or
proceeding) and regardless of whether any Indemnitee is a party thereto (all
the foregoing, collectively, the “Indemnified Liabilities”), in all cases, whether or not caused by or arising, in
whole or in part, out of the negligence of the Indemnitee; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent
that such liabilities, obligations, losses, damages, penalties, claims,
demands, actions, judgments, suits, costs, expenses or disbursements are
determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of
such Indemnitee.  No Indemnitee shall be
liable for any damages arising from the use by others of any information or
other materials obtained through IntraLinks or other similar information
transmission systems in connection with this Agreement.  All amounts due under this Section 10.05
shall be payable within ten Business Days after demand therefore.  The agreements in this Section shall survive
the resignation of the Administrative Agent, the replacement of any Lender, the
termination of the Aggregate Commitments and the repayment, satisfaction or
discharge of all the other Obligations.

 

10.06      Payments Set
Aside.  To the extent
that any payment by or on behalf of the Borrower is made to the Administrative
Agent or any Lender, or the Administrative Agent or any Lender exercises its
right of set-off, and such payment or the proceeds of such set-off or any part
thereof is subsequently invalidated, declared to be fraudulent or preferential,
set aside or required (including pursuant to any settlement entered into by the
Administrative Agent or such Lender in its discretion) to be repaid to a
trustee, receiver or any other party, in connection with any proceeding under
any Debtor Relief Law or otherwise, then (a) to the extent of such recovery,
the obligation or part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment had not been
made or such set-off had not occurred, and (b) each Lender severally agrees to
pay to the Administrative Agent upon demand its applicable share of any amount
so recovered from or repaid by the Administrative Agent, plus interest thereon
from the date of such demand to the date such payment is made at a rate per
annum equal to the Federal Funds Rate from time to time in effect.

 

10.07      Successors
and Assigns.

 

(a)           The provisions of this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby, except that the Borrower
may not assign or otherwise transfer any of its rights or obligations hereunder
without the prior written consent of each Lender and no Lender may assign or
otherwise transfer any of its rights or obligations hereunder except (i) to an
Eligible Assignee in accordance with the provisions of subsection (b) of this
Section, (ii) by way of participation in accordance with the provisions of
subsection (d) of this Section, (iii) by way of pledge or assignment of a
security interest subject to the restrictions of subsection (f) or (i) of this
Section, or (iv) to an SPC in accordance with the provisions of subsection (h)
of this Section (and any other attempted assignment or transfer by any party
hereto shall be null and void).  Nothing
in this Agreement,

 

51

 

expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby, Participants
to the extent provided in subsection (d) of this Section and, to the extent
expressly contemplated hereby, the Indemnitees) any legal or equitable right,
remedy or claim under or by reason of this Agreement.

 

(b)           Any Lender may at any time assign to
one or more Eligible Assignees all or a portion of its rights and obligations
under this Agreement (including all or a portion of its Commitment and the
Loans (including for purposes of this subsection (b), participations in L/C
Obligations) at the time owing to it); provided that (i) except in the
case of an assignment of the entire remaining amount of the assigning Lender’s
Commitment and the Loans at the time owing to it or in the case of an assignment
to a Lender or an Affiliate of a Lender or an Approved Fund (as defined in
subsection (g) of this Section) with respect to a Lender, the aggregate amount
of the Commitment (which for this purpose includes Loans outstanding
thereunder) subject to each such assignment, determined as of the date the
Assignment and Assumption with respect to such assignment is delivered to the
Administrative Agent or, if “Trade Date” is specified in the Assignment and
Assumption, as of the Trade Date, shall not be less than $5,000,000  unless
each of the Administrative Agent and, so long as no Event of Default has
occurred and is continuing, the Borrower otherwise consents (each such consent
not to be unreasonably withheld or delayed); (ii) each partial assignment shall
be made as an assignment of a proportionate part of all the assigning Lender’s
rights and obligations under this Agreement with respect to the Loans or the
Commitment assigned; (iii) any assignment of a Commitment must be approved by
the Administrative Agent and the L/C Issuer unless the Person that is the
proposed assignee is itself a Lender (whether or not the proposed assignee
would otherwise qualify as an Eligible Assignee), such approval not to be
unreasonably withheld or delayed; and (iv) the parties to each assignment shall
execute and deliver to the Administrative Agent an Assignment and Assumption,
together with a processing and recordation fee of $3,500.  Subject to acceptance and recording thereof
by the Administrative Agent pursuant to subsection (c) of this Section, from
and after the effective date specified in each Assignment and Assumption, the
Eligible Assignee thereunder shall be a party to this Agreement and, to the
extent of the interest assigned by such Assignment and Assumption, have the rights
and obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto but shall continue to be entitled to the benefits of Sections
3.01, 3.04, 3.05, 10.04 and 10.05 with respect
to facts and circumstances occurring prior to the effective date of such
assignment).  Upon request, the Borrower
(at its expense) shall execute and deliver a Note to the assignee Lender.  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
subsection shall be treated for purposes of this Agreement as a sale by such
Lender of a participation in such rights and obligations in accordance with
subsection (d) of this Section.

 

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

 

(d)           Any Lender may at any time, without
the consent of, or notice to, the Borrower or the Administrative Agent, sell
participations to any Person (other than a natural person or the Borrower or
any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”)
in all or a portion of such

 

52

 

Lender’s rights
and/or obligations under this Agreement (including all or a portion of its
Commitment and/or the Loans (including for purposes of this subsection (b),
participations in L/C Obligations) owing to it); provided that
(i) such Lender’s obligations under this Agreement shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations and (iii) the Borrower, the
Administrative Agent and the other Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement.  Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any  provision of this Agreement; provided
that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, waiver or other
modification described in the first proviso to Section 10.01 that
directly affects such Participant. 
Subject to subsection (e) of this Section, the Borrower agrees that each
Participant shall be entitled to the benefits of Sections 3.01, 3.04
and 3.05  to the same extent as if it were a Lender and had acquired
its interest by assignment pursuant to subsection (b) of this Section.  To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 10.09  as
though it were a Lender, provided such Participant agrees to be subject
to Section 2.12 as though it were a Lender.

 

(e)           A Participant shall not be entitled
to receive any greater payment under Section 3.01 or 3.04  than
the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Borrower’s prior written consent.  A Participant that would be a Foreign Lender
if it were a Lender shall not be entitled to the benefits of Section 3.01
unless the Borrower is notified of the participation sold to such Participant
and such Participant agrees, for the benefit of the Borrower, to comply with Section
10.15 as though it were a Lender.

 

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

 

(g)           As used herein, the following terms
have the following meanings:

 

“Eligible
Assignee” means (a) a Lender; (b) an Affiliate of a Lender; (c) an Approved
Fund; and (d) any other Person (other than a natural person) approved by (i)
the Administrative Agent, and (ii) unless an Event of Default has occurred and
is continuing, the Borrower (each such approval not to be unreasonably withheld
or delayed); provided that notwithstanding the foregoing, “Eligible
Assignee” shall not include the Borrower or any of the Borrower’s Affiliates or
Subsidiaries.

 

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

 

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

 

(h)           Notwithstanding
anything to the contrary contained herein, any Lender (a “Granting Lender”)
may grant to a special purpose funding vehicle identified as such in writing
from time to time by the Granting Lender to the Administrative Agent and the
Borrower (an “SPC”) the option to provide all or

 

53

 

any part of any Loan that such Granting Lender would
otherwise be obligated to make pursuant to this Agreement; provided that
(i) nothing herein shall constitute a commitment by any SPC to fund any Loan,
and (ii) if an SPC elects not to exercise such option or otherwise fails to
make all or any part of such Loan, the Granting Lender shall be obligated to
make such Loan pursuant to the terms hereof. 
Each party hereto hereby agrees that (i) neither the grant to any SPC
nor the exercise by any SPC of such option shall increase the costs or expenses
or otherwise increase or change the obligations of the Borrower under this
Agreement (including its obligations under Section 3.04), (ii) no SPC
shall be liable for any indemnity or similar payment obligation under this
Agreement for which a Lender would be liable, and (iii) the Granting Lender
shall for all purposes, including the approval of any amendment, waiver or
other modification of any provision of any Loan Document, remain the lender of
record hereunder.  The making of a Loan
by an SPC hereunder shall utilize the Commitment of the Granting Lender to the
same extent, and as if, such Loan were made by such Granting Lender.  In furtherance of the foregoing, each party
hereto hereby agrees (which agreement shall survive the termination of this
Agreement) that, prior to the date that is one year and one day after the
payment in full of all outstanding commercial paper or other senior debt of any
SPC, it will not institute against, or join any other Person in instituting
against, such SPC any bankruptcy, reorganization, arrangement, insolvency, or
liquidation proceeding under the laws of the United States or any State
thereof.  Notwithstanding anything to
the contrary contained herein, any SPC may (i) with notice to, but without
prior consent of the Borrower and the Administrative Agent and with payment of
a processing fee of $3,500, assign all or any portion of its right to receive
payment with respect to any Loan to the Granting Lender and (ii) disclose on a
confidential basis any non-public information relating to its funding of Loans
to any rating agency, commercial paper dealer or provider of any surety or
Guarantee or credit or liquidity enhancement to such SPC.

 

(i)            Notwithstanding anything to the contrary
contained herein, any Lender that is a Fund may create a security interest in
all or any portion of the Loans owing to it and the Note, if any, held by it to
the trustee for holders of obligations owed, or securities issued, by such Fund
as security for such obligations or securities, provided that unless and
until such trustee actually becomes a Lender in compliance with the other
provisions of this Section 10.07, (i) no such pledge shall release the
pledging Lender from any of its obligations under the Loan Documents and (ii)
such trustee shall not be entitled to exercise any of the rights of a Lender
under the Loan Documents even though such trustee may have acquired ownership
rights with respect to the pledged interest through foreclosure or otherwise.

 

(j)            Notwithstanding
anything to the contrary contained herein, if at any time Bank of America
assigns all of its Commitment and Loans pursuant to subsection (b) above, Bank
of America may, (i) upon 30 days’ notice to the Borrower and the Lenders,
resign as L/C Issuer.  In the event of
any such resignation as L/C Issuer, the Borrower shall be entitled to appoint
from among the Lenders a successor L/C Issuer hereunder; provided, however,
that no failure by the Borrower to appoint any such successor shall affect the
resignation of Bank of America as L/C Issuer. 
If Bank of America resigns as L/C Issuer, it shall retain all the rights
and obligations of the L/C Issuer hereunder with respect to all Letters of
Credit outstanding as of the effective date of its resignation as L/C Issuer
and all L/C Obligations with respect thereto (including the right to require
the Lenders to make Base Rate Loans or fund risk participations in Unreimbursed
Amounts pursuant to Section 2.03(c)).

 

10.08      Confidentiality.  Each of the Administrative
Agent and the Lenders agrees to maintain the confidentiality of the Information
(as defined below), except that Information may be disclosed (a) to its
and its Affiliates’ directors, officers, employees and agents, including
accountants, legal counsel and other advisors (it being understood that the
Persons to whom such disclosure is made will be informed of the confidential
nature of such Information and instructed to keep such Information
confidential); (b) to the extent requested by any regulatory authority;
(c) to the extent required by applicable laws or regulations or by any
subpoena or similar legal process; (d) to any other party to this Agreement;
(e) in connection with the exercise of any remedies hereunder or any suit,
action or proceeding relating to this

 

54

 

Agreement or the enforcement of rights hereunder; (f)
subject to an agreement containing provisions substantially the same as those
of this Section, to (i) any Eligible Assignee of or Participant in, or any
prospective Eligible Assignee of or Participant in, any of its rights or
obligations under this Agreement or (ii) any direct or indirect contractual
counterparty or prospective counterparty (or such contractual counterparty’s or
prospective counterparty’s professional advisor) to any credit derivative
transaction relating to obligations of the Borrower; (g) with the consent of
the Borrower; (h) to the extent such Information (i) becomes publicly
available other than as a result of a breach of this Section or (ii) becomes
available to the Administrative Agent or any Lender on a nonconfidential basis
from a source other than the Borrower; or (i) to the National Association of
Insurance Commissioners or any other similar organization.  In addition, the Administrative Agent and
the Lenders may disclose the existence of this Agreement and information about
this Agreement to market data collectors, similar service providers to the
lending industry, and service providers to the Administrative Agent and the
Lenders in connection with the administration and management of this Agreement,
the other Loan Documents, the Commitments, and the Credit Extensions.  For the purposes of this Section, “Information”
means all information received from the Borrower relating to its business,
other than any such information that is available to the Administrative Agent
or any Lender on a nonconfidential basis prior to disclosure by the
Borrower.  Any Person required to
maintain the confidentiality of Information as provided in this Section shall
be considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.

 

10.09      Set-off.  In addition to any rights
and remedies of the Lenders provided by law, upon the occurrence and during the
continuance of any Event of Default, each Lender is authorized at any time and
from time to time, without prior notice to the Borrower, any such notice being
waived by the Borrower to the fullest extent permitted by law, to set off and
apply any and all deposits (general or special, time or demand, provisional or
final) at any time held by, and other indebtedness at any time owing by, such
Lender to or for the credit or the account of the Borrower against any and all
Obligations owing to such Lender hereunder or under any other Loan Document,
now or hereafter existing, irrespective of whether or not the Administrative
Agent or such Lender shall have made demand under this Agreement or any other
Loan Document and although such Obligations may be contingent or unmatured or
denominated in a currency different from that of the applicable deposit or
indebtedness.  Each Lender agrees
promptly to notify the Borrower and the Administrative Agent after any such
set-off and application made by such Lender; provided, however,
that the failure to give such notice shall not affect the validity of such
set-off and application.

 

10.10      Interest
Rate Limitation.  Notwithstanding
anything to the contrary contained in any Loan Document, the interest paid or
agreed to be paid under the Loan Documents shall not exceed the maximum rate of
non-usurious interest permitted by applicable Law (the “Maximum Rate”).  If the Administrative Agent or any Lender
shall receive interest in an amount that exceeds the Maximum Rate, the excess
interest shall be applied to the principal of the Loans or, if it exceeds such
unpaid principal, refunded to the Borrower. 
In determining whether the interest contracted for, charged, or received
by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person
may, to the extent permitted by applicable Law, (a) characterize any payment
that is not principal as an expense, fee, or premium rather than interest, (b)
exclude voluntary prepayments and the effects thereof, and (c) amortize,
prorate, allocate, and spread in equal or unequal parts the total amount of
interest throughout the contemplated term of the Obligations hereunder.

 

To the extent that the interest rate laws of the State of Texas are
applicable to the Loans for purposes of determining the “maximum rate” or the
“maximum amount,” then those terms mean the “weekly ceiling” from time to time
in effect under Texas Finance Code § 303.001, as limited by Texas Finance Code
§ 303.009, and, to the extent that this Agreement is deemed an open end account
as such

 

55

 

term is defined in Texas Finance Code Section
301.002(a)(14), the Lenders retain the right to modify the interest rate in
accordance with applicable law.

 

The parties agree that Texas Finance Code, Chapter 346, which regulates
certain revolving loan accounts and revolving triparty accounts, shall not
apply to any revolving loan accounts created under this Agreement or the Notes
or maintained in connection therewith.

 

10.11      Counterparts.  This Agreement may be
executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

 

10.12      Integration.  This Agreement, together
with the other Loan Documents, comprises the complete and integrated agreement
of the parties on the subject matter hereof and thereof and supersedes all
prior agreements, written or oral, on such subject matter.  In the event of any conflict between the
provisions of this Agreement and those of any other Loan Document, the
provisions of this Agreement shall control; provided that the inclusion
of supplemental rights or remedies in favor of the Administrative Agent or the
Lenders in any other Loan Document shall not be deemed a conflict with this
Agreement.  Each Loan Document was
drafted with the joint participation of the respective parties thereto and
shall be construed neither against nor in favor of any party, but rather in
accordance with the fair meaning thereof.

 

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

 

10.14      Severability.  If any provision of this
Agreement or the other Loan Documents is held to be illegal, invalid or
unenforceable, (a) the legality, validity and enforceability of the remaining
provisions of this Agreement and the other Loan Documents shall not be affected
or impaired thereby and (b) the parties shall endeavor in good faith
negotiations to replace the illegal, invalid or unenforceable provisions with valid
provisions the economic effect of which comes as close as possible to that of
the illegal, invalid or unenforceable provisions.  The invalidity of a provision in a particular jurisdiction shall
not invalidate or render unenforceable such provision in any other
jurisdiction.

 

10.15      Tax Forms.  (a)  (i) 
Each Lender that is not a “United States person” within the meaning of
Section 7701(a)(30) of the Code (a “Foreign Lender”) shall deliver to
the Administrative Agent, prior to receipt of any payment subject to
withholding under the Code (or upon accepting an assignment of an interest
herein), two duly signed completed copies of either IRS Form W-8BEN or any
successor thereto (relating to such Foreign Lender and entitling it to an
exemption from, or reduction of, withholding tax on all payments to be made to
such Foreign Lender by the Borrower pursuant to this Agreement) or IRS Form
W-8ECI or any successor thereto (relating to all payments to be made to such
Foreign Lender by the Borrower pursuant to this Agreement) or such other
evidence satisfactory to the Borrower and the Administrative Agent that such
Foreign Lender is entitled to an exemption from, or reduction of, U.S.
withholding tax, including any exemption pursuant to Section 881(c) of the
Code.  Thereafter and from time to time,
each such Foreign Lender shall (A) promptly submit to the Administrative Agent
such additional duly completed and signed copies of one of such forms (or such
successor forms as shall be adopted from time to time by the relevant United
States taxing authorities) as may then be available under then current United
States laws and regulations to avoid, or such evidence as is satisfactory to
the Borrower and the Administrative Agent of any available exemption from or
reduction of, United States

 

56

 

withholding taxes in respect of all payments to be
made to such Foreign Lender by the Borrower pursuant to this Agreement, (B)
promptly notify the Administrative Agent of any change in circumstances which
would modify or render invalid any claimed exemption or reduction, and (C) take
such steps as shall not be materially disadvantageous to it, in the reasonable
judgment of such Lender, and as may be reasonably necessary (including the re-designation
of its Lending Office) to avoid any requirement of applicable Laws that the
Borrower make any deduction or withholding for taxes from amounts payable to
such Foreign Lender.

 

(ii)           Each Foreign
Lender, to the extent it does not act or ceases to act for its own account with
respect to any portion of any sums paid or payable to such Lender under any of
the Loan Documents (for example, in the case of a typical participation by such
Lender), shall deliver to the Administrative Agent on the date when such
Foreign Lender ceases to act for its own account with respect to any portion of
any such sums paid or payable, and at such other times as may be necessary in
the determination of the Administrative Agent (in the reasonable exercise of
its discretion), (A) two duly signed completed copies of the forms or
statements required to be provided by such Lender as set forth above, to
establish the portion of any such sums paid or payable with respect to which
such Lender acts for its own account that is not subject to U.S. withholding
tax, and (B) two duly signed completed copies of IRS Form W-8IMY (or any
successor thereto), together with any information such Lender chooses to
transmit with such form, and any other certificate or statement of exemption
required under the Code, to establish that such Lender is not acting for its
own account with respect to a portion of any such sums payable to such Lender.

 

(iii)          The Borrower shall
not be required to pay any additional amount to any Foreign Lender under Section
3.01 (A) with respect to any Taxes required to be deducted or withheld on
the basis of the information, certificates or statements of exemption such
Lender transmits with an IRS Form W-8IMY pursuant to this Section 10.15(a)
or (B) if such Lender shall have failed to satisfy the foregoing provisions of
this Section 10.15(a); provided that if such Lender shall have
satisfied the requirement of this Section 10.15(a) on the date such
Lender became a Lender or ceased to act for its own account with respect to any
payment under any of the Loan Documents, nothing in this Section 10.15(a)
shall relieve the Borrower of its obligation to pay any amounts pursuant to Section
3.01 in the event that, as a result of any change in any applicable law,
treaty or governmental rule, regulation or order, or any change in the
interpretation, administration or application thereof, such Lender is no longer
properly entitled to deliver forms, certificates or other evidence at a
subsequent date establishing the fact that such Lender or other Person for the
account of which such Lender receives any sums payable under any of the Loan
Documents is not subject to withholding or is subject to withholding at a
reduced rate.

 

(iv)          The Administrative
Agent may, without reduction, withhold any Taxes required to be deducted and
withheld from any payment under any of the Loan Documents with respect to which
the Borrower is not required to pay additional amounts under this Section
10.15(a).

 

(b)           Upon the request of
the Administrative Agent, each Lender that is a “United States person” within
the meaning of Section 7701(a)(30) of the Code shall deliver to the
Administrative Agent two duly signed completed copies of IRS Form W-9.  If such Lender fails to deliver such forms,
then the Administrative Agent may withhold from any interest payment to such
Lender an amount equivalent to the applicable back-up withholding tax imposed
by the Code, without reduction.

 

(c)           If any Governmental
Authority asserts that the Administrative Agent did not properly withhold or
backup withhold, as the case may be, any tax or other amount from payments made
to or for the account of any Lender, such Lender shall indemnify the
Administrative Agent therefore, including all penalties and interest, any taxes
imposed by any jurisdiction on the amounts payable to the Administrative Agent
under this Section, and costs and expenses (including Attorney Costs) of the
Administrative Agent.  The obligation of
the Lenders under this Section shall survive the termination of

 

57

 

the Aggregate Commitments, repayment of all other
Obligations hereunder and the resignation of the Administrative Agent.

 

10.16      Governing Law.

 

(a)           THIS AGREEMENT SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH
STATE;
PROVIDED THAT THE ADMINISTRATIVE AGENT AND EACH LENDER SHALL RETAIN ALL
RIGHTS ARISING UNDER FEDERAL LAW.

 

(b)           ANY LEGAL ACTION OR
PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE
BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN THE BOROUGH OF
MANHATTAN OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND BY
EXECUTION AND DELIVERY OF THIS AGREEMENT, THE BORROWER, THE ADMINISTRATIVE
AGENT AND EACH LENDER CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO
THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS.  THE BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER
IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF
VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION
IN RESPECT OF ANY LOAN DOCUMENT OR OTHER DOCUMENT RELATED THERETO.  THE BORROWER, THE ADMINISTRATIVE AGENT AND
EACH LENDER WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS,
WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF SUCH STATE.

 

10.17      Waiver
of Right to Trial by Jury.  EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO
TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY
LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE
DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY LOAN
DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW
EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR
OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A
JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR
A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE
SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

 

10.18      Termination of Commitments Under
Existing Credit Agreement.  The
commitments of the Existing Lenders under the Existing Credit Agreement shall
terminate on the Closing Date. 
Execution of this Agreement by Lenders who are Existing Lenders shall
constitute a waiver of the notice provisions in Sections 2.09 and 9.01
of the Existing Credit Agreement.

 

10.19      ENTIRE AGREEMENT.  THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT
THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE
OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG
THE PARTIES.

 

58

 

IN
WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed as of the date first above written.

 

	
   

  	
  EQUITABLE RESOURCES, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Philip P. Conti

  
	
   

  	
  Name:

  	
  Philip P. Conti

  	
   

  
	
   

  	
  Title:

  	
  Vice President – Finance and Treasurer

  
					

 

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  BANK OF AMERICA, N.A., as

  
	
   

  	
  Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Ronald E. McKaig

  
	
   

  	
  Name:

  	
  Ronald E. McKaig

  
	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A., as

  
	
   

  	
  a Lender and L/C Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Ronald E. McKaig

  
	
   

  	
  Name:

  	
  Ronald E. McKaig

  
	
   

  	
  Title:

  	
  Managing Director

  

 

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  JPMORGAN CHASE BANK,

  
	
   

  	
  as a Lender and Co-Syndication Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Robert C. Mertensotto

  
	
   

  	
  Name:  

  	
  Robert C. Mertensotto

  
	
   

  	
  Title:

  	
  Managing Director

  
				

 

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  BANK ONE, NA,

  
	
   

  	
  as a Lender and Co-Syndication Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Mary Lu D. Cramer

  
	
   

  	
  Name:

  	
  Mary Lu D. Cramer

  
	
   

  	
  Title:

  	
  Director

  
				

 

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  PNC BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  as a Lender and Co-Documentation Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Thomas A. Majeski

  
	
   

  	
  Name:  

  	
  Thomas A. Majeski

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  CITIBANK, N.A.,

  
	
   

  	
  as a Lender and Co-Documentation Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Costas Rigas

  
	
   

  	
  Name:  

  	
  Costas Rigas

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  BMO NESBITT BURNS FINANCING, INC.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Thomas H. Peer

  
	
   

  	
  Name:

  	
  Thomas H. Peer

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  MELLON BANK, N.A.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Mark W. Rogers

  
	
   

  	
  Name:

  	
  Mark W. Rogers

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  SUNTRUST BANK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Linda Lee Stanley

  
	
   

  	
  Name:

  	
  Linda L. Stanley

  
	
   

  	
  Title:

  	
  Director

  
				

 

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  BARCLAYS BANK PLC,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Douglas Bernegger

  
	
   

  	
  Name:

  	
  Douglas Bernegger

  
	
   

  	
  Title:

  	
  Director

  
				

 

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  THE BANK OF TOKYO-MITSUBISHI, LTD.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ John McGhee

  
	
   

  	
  Name:

  	
  John McGhee

  
	
   

  	
  Title:

  	
  Vice President and Manager

  
				

 

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ John N. Watt

  
	
   

  	
  Name:

  	
  John N. Watt

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

	
   

  	
  FIFTH THIRD BANK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Christopher S. Helmeci

  
	
   

  	
  Name:  

  	
  Christopher S. Helmeci

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

 

[Signature Page to
Equitable Resources, Inc. Revolving Credit Agreement]

 

 

SCHEDULE 2.01

 

COMMITMENTS

AND
PRO RATA SHARES

 

	
  Institution

  	
   

  	
  Title

  	
   

  	
  Allocation

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank of America,
  N.A.

  	
   

  	
  Administrative Agent

  	
   

  	
  $

  	
  28,000,000.00

  	
   

  
	
  JPMorgan Chase
  Bank

  	
   

  	
  Co-Syndication Agent

  	
   

  	
  $

  	
  28,000,000.00

  	
   

  
	
  Bank One, NA

  	
   

  	
  Co-Syndication Agent

  	
   

  	
  $

  	
  28,000,000.00

  	
   

  
	
  PNC Bank,
  National Association

  	
   

  	
  Co-Documentation Agent

  	
   

  	
  $

  	
  28,000,000.00

  	
   

  
	
  Citibank, N.A.

  	
   

  	
  Co-Documentation Agent

  	
   

  	
  $

  	
  28,000,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Barclays Bank
  PLC

  	
   

  	
   

  	
   

  	
  $

  	
  17,500,000.00

  	
   

  
	
  BMO Nesbitt
  Burns Financing, Inc.

  	
   

  	
   

  	
   

  	
  $

  	
  17,500,000.00

  	
   

  
	
  Mellon Bank,
  N.A.

  	
   

  	
   

  	
   

  	
  $

  	
  17,500,000.00

  	
   

  
	
  SunTrust Bank

  	
   

  	
   

  	
   

  	
  $

  	
  17,500,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Bank of
  Tokyo-Mitsubishi, Ltd.

  	
   

  	
   

  	
   

  	
  $

  	
  15,000,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Bank of New
  York

  	
   

  	
   

  	
   

  	
  $

  	
  12,500,000.00

  	
   

  
	
  Fifth Third Bank

  	
   

  	
   

  	
   

  	
  $

  	
  12,500,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Commitments

  	
   

  	
   

  	
   

  	
  $

  	
  250,000,000.00

  	
   

  

 

 

SCHEDULE 5.05

 

CERTAIN
LITIGATION

 

A jury verdict and a judgment were rendered against the Borrower and a
subsidiary on October 17, 2002 in a civil lawsuit in Knott County Circuit
Court, Kentucky.  Plaintiff claimed that
the well pump house accident that injured him was caused by the company’s
natural gas well adjacent to his property. 
The jury entered a verdict for $50,000 for medical expenses and lost
wages and $270 million for pain and suffering and punitive damages, and an
appealable judgment has been entered against the Borrower and a subsidiary in
such amount. While the Borrower believes the damages are insured, it considers
the claim to be meritless and intends to vigorously pursue all post-verdict
motions and appellate remedies.

 

 

SCHEDULE 10.02

 

ADMINISTRATIVE
AGENT’S OFFICE,

CERTAIN
ADDRESSES FOR NOTICES

 

BORROWER:

 

Equitable Resources, Inc.

One Oxford Centre

301 Grant Street, Suite 3300

Pittsburgh, PA 15219

Attention: Assistant Treasurer

Telephone: (412) 553-5769

Facsimile: (412) 553-7781

Electronic Mail: mgegick@eqt.com

Website Address:      www.eqt.com

 

ADMINISTRATIVE AGENT:

 

Administrative
Agent’s Office

(for
payments and Request for Credit Extensions):

Bank of America, N.A.

901 Main Street, 14th Floor

Dallas, TX  75202-3714

Attention:  Mr. Ben Cosgrove

Telephone:  (214) 209-9254

Facsimile:   (214) 290-9439

Electronic Mail: 
ben.cosgrove@bankofamerica.com

 

Account No.:  1292000883

Ref:  Equitable Resources, Inc.

ABA# 111000012

 

Other
Notices as Administrative Agent:

 

Bank of America, N.A.

Agency Management Services

901 Main Street, 14th Floor

Dallas, TX  75202-3714

Attention:  Mr. Ben Cosgrove

Telephone:  (214) 209-9254

Facsimile:   (214) 290-9439

Electronic Mail: ben.cosgrove@bankofamerica.com

 

 

with a copy to:

 

Bank of America, N.A.

333 Clay Street, Suite 4550

Houston, TX  77002

Attention:  Mr. Ronald E. McKaig

Managing Director

Telephone:  (713) 651-4881

Facsimile:   (713) 651-4808

Electronic Mail: ronald.e.mckaig@bankofamerica.com

 

L/C ISSUER:

 

Bank of America, N.A.

Trade Operations-Los Angeles #22621

333 S. Beaudry Avenue, 19th Floor

Mail Code:  CA9-703-19-23

Los Angeles, CA 90017-1466

Attention:  Sandra Leon

Vice President

Telephone:  213.345.5231

Facsimile:  213.345.6694

Electronic Mail: 
Sandra.Leon@bankofamerica.com

 

 

EXHIBIT
A

 

FORM OF
LOAN NOTICE

Date: 
                 ,
        

 

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

 

Ladies and Gentlemen:

 

Reference is made to that certain Revolving Credit Agreement, dated as
of November 1, 2002 (as amended, restated, extended, supplemented or otherwise
modified in writing from time to time, the “Agreement;” the terms
defined therein being used herein as therein defined), among Equitable
Resources, Inc., a Pennsylvania corporation (the “Borrower”), the
Lenders from time to time party thereto, Bank of America, N.A., as
Administrative Agent and L/C Issuer, and JPMorgan Chase Bank and Bank One, NA,
as Co-Syndication Agents.

 

The undersigned hereby requests (select one):

 

	
  o  A Borrowing of Loans

  	
   

  	
  o  A conversion or continuation of Loans

  
	
   

  	
   

  	
   

  
	
  1.             On
                                                                              
  (a Business Day).

  
	
   

  	
   

  	
   

  
	
  2.             In
  the amount of
  $                                   .

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  3.             Comprised
  of
                                                       .

  	
   

  	
   

  
	
   

  	
  [Type of Loan
  requested]

  	
   

  	
   

  	
   

  
					

 

4.             For Eurodollar Rate
Loans:  with an Interest Period of
       months.

 

The undersigned hereby certifies that the following statements will be
true on the date of the proposed before and after giving effect thereto and to
the application of the proceeds therefrom:

 

(a)           the
representations and warranties of the Borrower contained in Article V of the
Agreement are true and correct as of the date hereof (except such
representations and warranties which expressly refer to an earlier date, which
are true and correct as of such earlier date, and except for the
following:  [described any exceptions to
the representations and warranties in Section 5.04(c), 5.05 and 5.06
that have been disclosed to the Administrative Agent, and identify when such
disclosure was made and in what document]); and

 

(b)           no
Default has occurred and is continuing, or would result from the proposed
Borrowing.

 

[The Borrowing requested herein complies with the proviso to the first
sentence of Section 2.01 of the Agreement.]

 

	
   

  	
  EQUITABLE
  RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

A-1

 

EXHIBIT B

 

FORM OF
NOTE

                                     

 

FOR VALUE RECEIVED, the undersigned (the “Borrower”),
hereby promises to pay to                                       
or registered assigns (the “Lender”), in accordance with the provisions
of the Agreement (as hereinafter defined), the principal amount of each Loan
from time to time made by the Lender to the Borrower under that certain Revolving
Credit Agreement, dated as of November 1, 2002 (as amended, restated, extended,
supplemented or otherwise modified in writing from time to time, the “Agreement;”
the terms defined therein being used herein as therein defined), among the
Borrower, the Lenders from time to time party thereto, Bank of America, N.A.,
as Administrative Agent and L/C Issuer, and JPMorgan Chase Bank and Bank One,
NA, as Co-Syndication Agents.

 

The Borrower promises to pay interest on the unpaid principal amount of
each Loan from the date of such Loan until such principal amount is paid in
full, at such interest rates and at such times as provided in the
Agreement.  All payments of principal
and interest shall be made to the Administrative Agent for the account of the
Lender in Dollars in immediately available funds at the Administrative Agent’s
Office.  If any amount is not paid in
full when due hereunder, such unpaid amount shall bear interest, to be paid
upon demand, from the due date thereof until the date of actual payment (and
before as well as after judgment) computed at the per annum rate set forth in
the Agreement.

 

This Note is one of the Notes referred to in the Agreement, is entitled
to the benefits thereof and may be prepaid in whole or in part subject to the
terms and conditions provided therein. 
Upon the occurrence and continuation of one or more of the Events of
Default specified in the Agreement, all amounts then remaining unpaid on this
Note shall become, or may be declared to be, immediately due and payable all as
provided in the Agreement.  Loans made
by the Lender shall be evidenced by one or more loan accounts or records
maintained by the Lender in the ordinary course of business. The Lender may
also attach schedules to this Note and endorse thereon the date, amount and
maturity of its Loans and payments with respect thereto.

 

This Note is a Loan Document and is subject to Section 10.10 of the
Agreement, which is incorporated herein by reference the same as if set forth
herein verbatim.

 

The Borrower, for itself, its successors and assigns, hereby waives
diligence, presentment, protest and demand and notice of protest, demand,
dishonor and non-payment of this Note.

 

B-1

 

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
ENTIRELY WITHIN SUCH STATE; PROVIDED THAT THE ADMINISTRATIVE AGENT AND EACH
LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

 

 

	
   

  	
  EQUITABLE
  RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

B-2

 

LOANS AND PAYMENTS WITH RESPECT THERETO

 

	
  Date

  	
   

  	
  Type of
  Loan

  Made

  	
   

  	
  Amount of

  Loan Made

  	
   

  	
  End of

  Interest

  Period

  	
   

  	
  Amount of

  Principal or

  Interest Paid

  This Date

  	
   

  	
  Outstanding

  Principal

  Balance This

  Date

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

B-3

 

EXHIBIT C

 

FORM OF
COMPLIANCE CERTIFICATE

 

Financial Statement Date:
                        ,
       

 

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

 

Ladies and Gentlemen:

 

Reference is made to that certain Revolving Credit Agreement, dated as
of November 1, 2002 (as amended, restated, extended, supplemented or otherwise
modified in writing from time to time, the “Agreement;” the terms
defined therein being used herein as therein defined), among Equitable
Resources, Inc., a Pennsylvania corporation (the “Borrower”), the
Lenders from time to time party thereto, Bank of America, N.A., as Administrative
Agent and L/C Issuer, and JPMorgan Chase Bank and Bank One, NA, as
Co-Syndication Agents.

 

The undersigned
Responsible Officer hereby certifies as of the date hereof that he/she is the
                                                       
of the Borrower, and that, as such, he/she is authorized to execute and deliver
this Certificate to the Administrative Agent on the behalf of the Borrower, and
that:

 

[Use following paragraph 1 for
fiscal year-end
financial statements]

 

1.             Attached hereto as Schedule
1 are the year-end audited financial statements required by Section
6.01(a) of the Agreement for the fiscal year of the Borrower ended as of
the above date, together with the report and opinion of an independent
certified public accountant required by such section.  Such financial statements fairly present the financial condition,
results of operations and cash flows of the Borrower and its Subsidiaries in
accordance with GAAP as at such date and for such period.

 

[select one]

[are attached hereto as Schedule 1]

—or—

[are available in electronic format and have been delivered pursuant to
Section 6.01 of the Agreement].

 

[Use following paragraph 1 for
fiscal quarter-end
financial statements]

 

1.             Attached hereto as Schedule
1 are the unaudited financial statements required by Section 6.01(b)
of the Agreement for the fiscal quarter of the Borrower ended as of the above
date.  Such financial statements fairly
present the financial condition, results of operations and cash flows of the
Borrower and its Subsidiaries in accordance with GAAP as at such date and for
such period, subject only to normal year-end audit adjustments and the absence
of footnotes.

 

[select one]

[are attached hereto as Schedule 1]

—or—

[are available in electronic format and have been delivered pursuant to
Section 6.01 of the Agreement].

 

C-1

 

2.             The undersigned has
reviewed and is familiar with the terms of the Agreement and has made, or has
caused to be made under his/her supervision, a detailed review of the
transactions and condition (financial or otherwise) of the Borrower during the
accounting period covered by the attached financial statements.

 

3.             A review of the
activities of the Borrower during such fiscal period has been made under the
supervision of the undersigned with a view to determining whether during such
fiscal period the Borrower performed and observed all its Obligations under the
Loan Documents, and

 

[select one:]

 

[to the best knowledge of the undersigned during such fiscal period,
(a) the Borrower performed and observed each covenant and condition of the Loan
Documents applicable to it, and (b) no Default exists.]

 

—or—

[the following covenants or conditions have not been performed or
observed [or: the following Default exists] and the following is a list of each
such Default and its nature and status:]

 

4.             The representations
and warranties of the Borrower contained in Article V of the Agreement
(except with respect to the representations and warranties in Sections 5.04(c),
5.05 and 5.06, to the extent disclosed herein), or which are
contained in any document furnished at any time under or in connection with the
Loan Documents, are true and correct on and as of the date hereof, except to
the extent that such representations and warranties specifically refer to an
earlier date, in which case they are true and correct as of such earlier date,
and except that for purposes of this Compliance Certificate, the
representations and warranties contained in subsections (a) and (b) of Section
5.04 of the Agreement shall be deemed to refer to the most recent
statements furnished pursuant to clauses (a) and (b), respectively, of Section
6.01 of the Agreement, including the statements in connection with which
this Compliance Certificate is delivered.

 

[the following is a description of the nature and status of each event
or circumstance which causes the representations and warranties in Section[s]
[5.04(c)], [5.05] and [5.06], to be untrue on the date
hereof:]

 

5.             The financial
covenant analyses and information set forth on Schedule 2 attached
hereto are true and accurate on and as of the date of this Certificate.

 

IN WITNESS WHEREOF,
the undersigned has executed this Certificate as 

of
                       ,
                .

 

	
   

  	
  EQUITABLE
  RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

C-2

 

SCHEDULE 1

 

Financial Statements

 

C-3

 

For the
Quarter/Year ended

                           (“Statement
Date”)

 

SCHEDULE 2

to the Compliance Certificate

($ in 000’s)

 

Section
7.07 – Debt to Capital.

 

	
  I.

  	
   

  	
  Consolidated Debt at Statement Date

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A.

  	
   

  	
  Debt of the Borrower and its Subsidiaries on the
  Statement Date:

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.

  	
   

  	
  Non-Recourse Debt of the Borrower and its
  Subsidiaries on the Statement Date:

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  C.

  	
   

  	
  Consolidated Debt at Statement Date (Lines I.A. -
  I.B.):

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
   

  	
  Total Capital at Statement Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A.

  	
   

  	
  Consolidated Debt at Statement Date (Line I.C.
  above):

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.

  	
   

  	
  Shareholders’ Equity at Statement Date:

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  C.

  	
   

  	
  Any excess of the net book value of assets subject
  to Liens securing Non-Recourse Debt (including the total assets of Excluded
  Subsidiaries) over the amount of the related Non-Recourse Debt that is
  reflected in Shareholders’ Equity:

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  D.

  	
   

  	
  Total Capital at Statement Date (Lines II.A. + II.B
  – II.C.):

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  III.

  	
   

  	
  Consolidated Debt to Total Capital at Statement
  Date:

  (Line I.C.  ̧ Line II.D.)
  (cannot exceed 0.65)

  	
   

  	
   

  

 

C-4

 

EXHIBIT D

 

FORM OF
ASSIGNMENT AND ASSUMPTION

 

This Assignment and Assumption (this “Assignment and Assumption”)
is dated as of the Effective Date set forth below and is entered into by and
between [Insert
name of Assignor] (the “Assignor”) and [Insert name of Assignee]
(the “Assignee”).  Capitalized
terms used but not defined herein shall have the meanings given to them in the
Revolving Credit Agreement identified below (the “Credit Agreement”),
receipt of a copy of which is hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth
in Annex 1 attached hereto are hereby agreed to and incorporated herein by
reference and made a part of this Assignment and Assumption as if set forth
herein in full.

 

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

 

	
  1.

  	
  Assignor:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Assignee:

  	
   

  	
   [and is an

  
	
   

  	
  Affiliate/Approved
  Fund of [identify
  Lender](1)]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Borrower:

  	
  Equitable Resources, Inc.

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Administrative Agent:

  	
  Bank of America, as the administrative agent under
  the Credit Agreement

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Credit Agreement:

  	
  The Revolving Credit Agreement, dated as of November
  1, 2002, among Equitable Resources, Inc., the Lenders parties thereto, Bank
  of America, N.A., as Administrative Agent and L/C Issuer, JPMorgan Chase Bank
  and Bank One, NA, as Co-Syndication Agents, and the other agents parties
  thereto.

  
					

 

(1)  Select as applicable.

 

D-1

 

	
  6.

  	
  Assigned Interest:

  	
   

  

 

	
  Aggregate

  Amount of

  Commitment/Loans

  for all Lenders

  	
   

  	
  Amount of

  Commitment

  Assigned

  	
   

  	
  Percentage

  Assigned of

  Commitment(2)

  	
   

  
	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  
								

 

[7.            Trade
Date:                                     ](3)

 

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

 

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

 

	
   

  	
  ASSIGNOR

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNOR]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ASSIGNEE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNEE]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

(2)  Set forth, to at least 9
decimals, as a percentage of the Commitment of all Lenders thereunder.

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

 

D-2

 

	
  [Consented to and] Accepted:

  	
   

  
	
   

  	
   

  
	
  [NAME OF ADMINISTRATIVE AGENT], as

  	
   

  
	
   
  Administrative Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  [Consented to:]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

D-3

 

ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

 

STANDARD TERMS AND
CONDITIONS FOR

 

ASSIGNMENT AND
ASSUMPTION

 

1.         Representations and Warranties.

 

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

 

1.2.      Assignee.  The Assignee (a) represents and warrants that (i) it has full
power and authority, and has taken all action necessary, to execute and deliver
this Assignment and Assumption and to consummate the transactions contemplated
hereby and to become a Lender under the Credit Agreement, (ii) it meets all requirements
of an Eligible Assignee under the Credit Agreement (subject to receipt of such
consents as may be required under the Credit Agreement), (iii) from and after
the Effective Date, it shall be bound by the provisions of the Credit Agreement
as a Lender thereunder and, to the extent of the Assigned Interest, shall have
the obligations of a Lender thereunder, (iv) it has received a copy of the
Credit Agreement, together with copies of the most recent financial statements
delivered pursuant to Section 6.01 thereof, as applicable, and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Assignment and Assumption and to
purchase the Assigned Interest on the basis of which it has made such analysis
and decision independently and without reliance on the Administrative Agent or
any other Lender, and (v) if it is a Foreign Lender, attached hereto is any
documentation required to be delivered by it pursuant to the terms of the Credit
Agreement, duly completed and executed by the Assignee; and (b) agrees that (i)
it will, independently and without reliance on the Administrative Agent, the
Assignor or any other Lender, and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under the Loan Documents, and (ii) it will
perform in accordance with their terms all of the obligations which by the
terms of the Loan Documents are required to be performed by it as a Lender.

 

2.         Payments. 
From and after the Effective Date, the Administrative Agent shall make
all payments in respect of the Assigned interest (including payments of
principal, interest, fees and other amounts) to the Assignee whether such
amounts have accrued prior to or on or after the Effective Date. The Assignor
and the Assignee shall make all appropriate adjustments in payments by the
Administrative Agent for periods prior to the Effective Date or with respect to
the making of this assignment directly between themselves.

 

3.         General Provisions. 
This Assignment and Assumption shall be binding upon, and inure to the
benefit of, the parties hereto and their respective successors and
assigns.  This Assignment and Assumption
may be executed in any number of counterparts, which together shall constitute
one instrument.  Delivery of an executed
counterpart of a signature page of this Assignment and Assumption

 

D-4

 

by telecopy shall be
effective as delivery of a manually executed counterpart of this Assignment and
Assumption.  This Assignment and
Assumption shall be governed by, and construed in accordance with, the law of
the State of New York.

 

D-5

 

EXHIBIT E-1

 

FORM
OF OPINION OF REED SMITH LLP

 

November
   , 2002

 

To Bank of America, N.A., as

Administrative Agent, and the Lenders

and the other Agents Parties to the

Credit Agreement Referred to Below

 

Ladies and Gentlemen:

 

We have participated in the preparation of the Revolving Credit
Agreement (the “Credit Agreement”) dated as of November 1, 2002 among Equitable
Resources, Inc., a Pennsylvania corporation (the “Borrower”), the Lenders named
therein, Bank of America, N.A., as Administrative Agent and L/C Issuer,
JPMorgan Chase Bank and Bank One, NA, as Co-Syndication Agents, and the other
agents named therein, and have acted as special counsel for the Borrower for
the purpose of rendering this opinion pursuant to Section 4.01(a)(v) of the Credit
Agreement.  Capitalized terms used
herein which are defined in the Credit Agreement are used herein as therein
defined.

 

We have examined originals or copies, certified or otherwise identified
to our satisfaction, of such documents, corporate records, certificates of
public officials and other instruments and have conducted such other
investigations of law as we have deemed necessary or advisable for purposes of
this opinion.  We have assumed, with
respect to all documents which we have examined:  the genuineness of all signatures thereon, the authenticity of
all documents submitted to us as originals, the conformity to the originals of
all documents submitted to us as copies, and the authenticity of the originals
of such copies.

 

In rendering this opinion we have assumed with your permission that (i)
the Credit Agreement has been duly authorized, executed and delivered by
Administrative Agent and each Lender, (ii) the Borrower has been duly
incorporated and is validly existing as a corporation under the laws of the
Commonwealth of Pennsylvania, (iii) the Borrower has duly authorized, executed
and delivered the Credit Agreement and the Notes, and (iv) the execution and
delivery by the Borrower of the Credit Agreement and the Notes require no
consent or approval by any governmental body, agency or official or any filing
with the public utility commissions of Kentucky, Pennsylvania, or West
Virginia.  We understand you have relied
on the opinion of the Borrower’s Deputy General Counsel of even date herewith
with respect to these issues regarding the Borrower.

 

Upon the basis of the foregoing, we are of the opinion that the Credit
Agreement constitutes a legal, valid and binding agreement of the Borrower and
each Note constitutes a legal, valid and binding obligation of the Borrower, in
each case enforceable in accordance with its terms, except as the same may be
limited by applicable bankruptcy, insolvency, fraudulent conveyance, fraudulent
transfer, reorganization, receivership, moratorium or similar laws relating to
or affecting creditors’ rights generally and by general principles of equity,
whether enforcement is sought in a proceeding in equity or at law.  The enforceability of the respective
obligations of the parties to the Credit Agreement and the Note, and the
availability of certain rights and remedies provided for therein, may be
limited by applicable state and federal laws and judicial decisions, but the
remedies provided for in the Credit Agreement are adequate

 

E-1-1

 

for the practical realization of the benefits provided
thereby, except for the consequences of any procedural delay which may result
therefrom.

 

We express no opinion as to the enforceability of any provisions of the
Credit Agreement or any Note providing for the indemnification or exculpation
of any Agent or any Lender (A) in violation of public policy, (B) to the extent
precluded by federal or state securities laws, or (C) purporting to indemnify
or exculpate any Agent or any Lender from the consequences of its own gross
negligence, willful misconduct or strict liability.

 

We are members of the Bar of the State of New York and of the
Commonwealth of Pennsylvania and the foregoing opinion is limited to the laws
of the Commonwealth of Pennsylvania and of the State of New York and the
applicable federal laws of the United States of America.  In giving the foregoing opinion, we express
no opinion as to the effect (if any) of any law of any jurisdiction (except the
Commonwealth of Pennsylvania and the State of New York) in which any Lender is
located which limits the rate of interest that such Lender may charge or
collect.

 

This opinion is rendered solely to you and to Eligible Assignees in
connection with the above matter.  This
opinion may not be relied upon by you or Assignees for any other purpose or
relied upon by any other person without our prior written consent.  The opinions expressed herein are rendered
and speak only as of the date hereof, and we specifically disclaim any
responsibility to update such opinions or to advise you of subsequent
developments affecting such opinions that hereafter may come to our attention.

 

Very truly yours,

 

E-1-2

 

EXHIBIT E-2

 

FORM
OF OPINION OF DEPUTY GENERAL COUNSEL OF EQUITABLE RESOURCES, INC.

 

November
   , 2002

 

To Bank of America, N.A., as

Administrative Agent and the Lenders and the

other Agents Parties to the Credit

Agreement Referred to Below

 

Ladies and Gentlemen:

 

I am Deputy General Counsel of Equitable Resources, Inc. (the
“Borrower”) and have acted as internal counsel for the Borrower in connection
with the Revolving Credit Agreement (the “Credit Agreement”) dated as of
November 1, 2002 among the Borrower, the Lenders parties thereto, Bank of America,
N.A., as Administrative Agent and L/C Issuer, JPMorgan Chase Bank and Bank One,
NA, as Co-Syndication Agents, and the other agents named therein.  Capitalized terms which are defined in the
Credit Agreement are used herein as therein defined.  This opinion is being rendered to you at the request of my client
pursuant to Section 4.01(a)(v) of the Credit Agreement.

 

For purposes of rendering this opinion, I have examined the following:

 

1.             the Credit
Agreement;

 

2.             the Notes;

 

3.             the Certificate of
Incorporation and Bylaws of the Borrower;

 

4.             a Certificate of
Good Standing of the Borrower, certified by the Secretary of the Commonwealth
of Pennsylvania on
                   ,
2002; and

 

5.             Minutes of the
meeting of the Board of Directors of the Borrower on
                 
   ,       .

 

For purposes of rendering this opinion I have relied without
independent investigation upon statements of officers and employees of the
Borrower as to certain factual matters relevant to this opinion.  I have assumed, with respect to all
documents which I have examined:  the
genuineness of all signatures thereon (other than signatures of officers of the
Borrower), the authenticity of all documents submitted to me as originals, the
conformity to the originals of all documents submitted to me as copies, and the
authenticity of the originals of such copies.

 

Upon the basis of the foregoing, I am of the opinion that:

 

1.             The Borrower is a
corporation duly incorporated, validly existing and in good standing under the
laws of Pennsylvania and has all corporate powers and authority and all
material governmental licenses, authorizations, consents and approvals required
to carry on its business as now conducted and execute, deliver and perform its
obligations under the Credit Agreement and Notes.

 

E-2-1

 

2.             The execution,
delivery and performance by the Borrower of the Credit Agreement and the Notes
(a) are within the corporate powers of the Borrower, (b) have been duly
authorized by all necessary corporate action, (c) require no consent or
approval by, or filing with, the public utility commissions of Kentucky,
Pennsylvania, or West Virginia, or any other Governmental Authority of the
Commonwealth of Pennsylvania or of the Federal government of the United States,
(d) do not contravene, or constitute a default under, the articles of
incorporation or by-laws of the Borrower, (e) do not contravene, or constitute
a default under, any agreement, judgment, injunction, order, decree, or other
instrument, in each case under this clause (e) of which I have actual
knowledge, binding upon the Borrower or any of its Subsidiaries, or (f) result
in the creation or imposition of any Lien on any asset of the Borrower or any
of its Subsidiaries.  The Credit
Agreement has been duly executed and delivered by the Borrower.  The execution and delivery of the Credit
Agreement, and the making and repayment of the Loans or other payment
obligations, do not violate any applicable Law of Pennsylvania or the United
States.

 

3.             Except as set forth
in Schedule 5.05 of the Credit Agreement, there is no action, suit or proceeding pending
against, or to the best of my actual knowledge threatened against, the Borrower
or any of its Subsidiaries before any court or arbitrator or any governmental
body, agency or official, in which there is a reasonable possibility of an
adverse decision which could materially adversely affect the business,
consolidated financial position or consolidated results of operations of the
Borrower and its Consolidated Subsidiaries, considered as a whole, or which in
any manner draws into question the validity of the Credit Agreement or the
Notes.

 

4.             Each of the
Borrower’s corporate Subsidiaries is a corporation validly existing, and has
all corporate powers and all material governmental licenses, authorizations,
consents and approvals required to carry on its business as now conducted.

 

5.             None of the
Borrower, any Person Controlling the Borrower, or any Subsidiary (a) is a
“holding company,” or a “subsidiary company” of a “holding company,” or an
“affiliate” of a “holding company” or of a “subsidiary company” of a “holding
company,” within the meaning of the Public Utility Holding Company Act of 1935,
or (b) is or is required to be registered as an “investment company” under the
Investment Company Act of 1940.

 

I am a member of the Bar of the Commonwealth of Pennsylvania and the
foregoing opinion is limited (i) to the laws of the Commonwealth of
Pennsylvania, (ii) to the applicable federal laws of the United States of
America, (iii) to the extent set forth in paragraph 2 above, to the public
utility laws of the Commonwealth of Kentucky and the State of West Virginia and
(iv) to the extent set forth in paragraph 4 above, to the general corporation laws
of the applicable States of the United States under which the Borrower’s
Subsidiaries are organized.

 

This opinion is rendered solely to you and to Eligible Assignees in
connection with the Credit Agreement. 
This opinion may not be relied upon by you or Eligible Assignees for any
other purpose or relied upon by any other person without my prior written
consent.  The opinions expressed herein
are rendered and speak only as of the date hereof, and I specifically disclaim
any responsibility to update such opinions or to advise you of subsequent
developments affecting such opinions that hereafter may come to my attention.

 

Very truly yours,

 

 

Deputy General Counsel

 

E-2-2

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