Document:

Exhibit 4.03

 

EXECUTION COPY

 

 

$250,000,000

 

CREDIT
AGREEMENT

 

among

 

SOUTHWESTERN PUBLIC SERVICE COMPANY,

 

as Borrower,

 

The Several
Lenders from Time to Time Parties Hereto,

 

BARCLAYS BANK PLC

 

and

 

HARRIS NESBITT FINANCING, INC.,

 

as
Documentation Agents,

 

THE BANK OF NEW YORK

 

and

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

 

as Syndication
Agents,

 

and

 

JPMORGAN CHASE BANK, N.A.,

 

as
Administrative Agent

 

Dated as of April 21,
2005

 

 

J.P. MORGAN
SECURITIES INC. and BNY CAPITAL MARKETS, INC.,

as Joint Lead Arrangers
and Bookrunners

 

 

TABLE OF CONTENTS

 

	
  SECTION 1.

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  1.1

  	
  Defined
  Terms

  	
   

  
	
  1.2

  	
  Other
  Definitional Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  AMOUNT AND TERMS OF REVOLVING COMMITMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  Revolving
  Commitments

  	
   

  
	
  2.2

  	
  Procedure
  for Revolving Loan Borrowing

  	
   

  
	
  2.3

  	
  Fees.

  	
   

  
	
  2.4

  	
  Termination
  or Reduction of Revolving Commitments

  	
   

  
	
  2.5

  	
  Optional
  Prepayments

  	
   

  
	
  2.6

  	
  Conversion
  and Continuation Options

  	
   

  
	
  2.7

  	
  Limitations
  on Eurodollar Tranches

  	
   

  
	
  2.8

  	
  Interest
  Rates and Payment Dates

  	
   

  
	
  2.9

  	
  Computation
  of Interest and Fees

  	
   

  
	
  2.10

  	
  Inability
  to Determine Interest Rate

  	
   

  
	
  2.11

  	
  Pro
  Rata Treatment and Payments

  	
   

  
	
  2.12

  	
  Requirements of
  Law

  	
   

  
	
  2.13

  	
  Taxes

  	
   

  
	
  2.14

  	
  Indemnity

  	
   

  
	
  2.15

  	
  Change of Lending
  Office

  	
   

  
	
  2.16

  	
  Replacement of
  Lenders

  	
   

  
	
  2.17

  	
  Extension
  of Revolving Termination Date

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  LETTERS OF CREDIT

  	
   

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  L/C
  Commitment

  	
   

  
	
  3.2

  	
  Procedure
  for Issuance of Letter of Credit

  	
   

  
	
  3.3

  	
  Fees and Other
  Charges

  	
   

  
	
  3.4

  	
  L/C Participations

  	
   

  
	
  3.5

  	
  Reimbursement
  Obligation of the Borrower

  	
   

  
	
  3.6

  	
  Obligations
  Absolute

  	
   

  
	
  3.7

  	
  Letter
  of Credit Payments

  	
   

  
	
  3.8

  	
  Applications

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
  4.1

  	
  Financial
  Condition

  	
   

  
	
  4.2

  	
  No
  Change

  	
   

  
	
  4.3

  	
  Existence;
  Compliance with Law

  	
   

  
	
  4.4

  	
  Power;
  Authorization; Enforceable Obligations

  	
   

  
	
  4.5

  	
  No
  Legal Bar

  	
   

  
	
  4.6

  	
  Litigation

  	
   

  

 

 

	
  4.7

  	
  Ownership
  of Property; Liens

  	
   

  
	
  4.8

  	
  Taxes

  	
   

  
	
  4.9

  	
  Federal
  Regulations

  	
   

  
	
  4.10

  	
  ERISA

  	
   

  
	
  4.11

  	
  Investment
  Company Act; Other Regulations

  	
   

  
	
  4.12

  	
  Use
  of Proceeds

  	
   

  
	
  4.13

  	
  Accuracy
  of Information, etc

  	
   

  
	
  4.14

  	
  Solvency

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  CONDITIONS PRECEDENT

  	
   

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  Conditions
  to Initial Extension of Credit

  	
   

  
	
  5.2

  	
  Conditions
  to Each Extension of Credit

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  AFFIRMATIVE COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  Financial
  Statements

  	
   

  
	
  6.2

  	
  Certificates;
  Other Information

  	
   

  
	
  6.3

  	
  Payment
  of Obligations and Taxes

  	
   

  
	
  6.4

  	
  Maintenance
  of Existence; Compliance

  	
   

  
	
  6.5

  	
  Maintenance
  of Property; Insurance

  	
   

  
	
  6.6

  	
  Inspection
  of Property; Books and Records; Discussions

  	
   

  
	
  6.7

  	
  Notices

  	
   

  
	
  6.8

  	
  Environmental
  Laws

  	
   

  
	
  6.9

  	
  Ownership
  of Significant Subsidiaries

  	
   

  
	
  6.10

  	
  Scope
  of Buisness

  	
   

  
	
  6.11

  	
  Significant
  Subsidiaries

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
  NEGATIVE COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  Ratio
  of Funded Debt to Total Capital

  	
   

  
	
  7.2

  	
  Liens

  	
   

  
	
  7.3

  	
  Fundamental
  Changes

  	
   

  
	
  7.4

  	
  Disposition
  of Property

  	
   

  
	
  7.5

  	
  Transactions
  with Affiliates

  	
   

  
	
  7.6

  	
  Swap
  Agreements

  	
   

  
	
  7.7

  	
  Clauses
  Restricting Subsidiary Distributions

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
  EVENTS OF DEFAULT

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
  THE AGENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  9.1

  	
  Appointment

  	
   

  
	
  9.2

  	
  Delegation
  of Duties

  	
   

  
	
  9.3

  	
  Exculpatory
  Provisions

  	
   

  
	
  9.4

  	
  Reliance
  by Administrative Agent

  	
   

  
	
  9.5

  	
  Notice
  of Default

  	
   

  
	
  9.6

  	
  Non-Reliance
  on Agents and Other Lenders

  	
   

  

 

 

	
  9.7

  	
  Indemnification

  	
   

  
	
  9.8

  	
  Agent
  in Its Individual Capacity

  	
   

  
	
  9.9

  	
  Successor
  Administrative Agent

  	
   

  
	
  9.10

  	
  Documentation
  Agent and Syndication Agent

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  10.1

  	
  Amendments
  and Waivers

  	
   

  
	
  10.2

  	
  Notices

  	
   

  
	
  10.3

  	
  No
  Waiver; Cumulative Remedies

  	
   

  
	
  10.4

  	
  Survival
  of Representations and Warranties

  	
   

  
	
  10.5

  	
  Payment
  of Expenses and Taxes

  	
   

  
	
  10.6

  	
  Successors
  and Assigns; Participations and Assignments

  	
   

  
	
  10.7

  	
  Adjustments;
  Set-off

  	
   

  
	
  10.8

  	
  Counterparts

  	
   

  
	
  10.9

  	
  Severability

  	
   

  
	
  10.10

  	
  Integration

  	
   

  
	
  10.11

  	
  GOVERNING
  LAW

  	
   

  
	
  10.12

  	
  Submission
  To Jurisdiction; Waivers

  	
   

  
	
  10.13

  	
  Acknowledgements

  	
   

  
	
  10.14

  	
  Confidentiality

  	
   

  
	
  10.15

  	
  WAIVERS
  OF JURY TRIAL

  	
   

  
	
  10.16

  	
  Delivery
  of Addenda

  	
   

  
	
  10.17

  	
  USA
  Patriot Act Notice

  	
   

  

 

 

	
  SCHEDULES:

  
	
   

  
	
  1.1A

  	
  Revolving
  Commitments

  
	
  1.1B

  	
  Existing Letters of Credit

  
	
  4.1

  	
  Financial Condition

  
	
  4.2

  	
  No Change

  
	
  4.6

  	
  Litigation

  
	
  4.7

  	
  Ownership of Property;
  Liens

  
	
  7.2

  	
  Existing Liens

  

 

	
  EXHIBITS:

  
	
   

  
	
  A

  	
  Form of
  Closing Certificate

  
	
  B

  	
  Form of
  Assignment and Assumption

  
	
  C

  	
  Form of
  Exemption Certificate

  
	
  D

  	
  Form of
  Addendum

  
	
  E-1

  	
  Form of
  New Lender Supplement

  
	
  E-2

  	
  Form of
  Increased Revolving Commitment Activation Notice

  
	
  F-1

  	
  Form of
  Extension Request

  
	
  F-2

  	
  Form of Continuation Notice

  

 

 

CREDIT AGREEMENT (this “Agreement”), dated as of April 21,
2005, among SOUTHWESTERN PUBLIC SERVICE COMPANY, a New Mexico corporation (the “Borrower”),
the several banks and other financial institutions or entities from time to
time parties to this Agreement (the “Lenders”), BARCLAYS BANK PLC and
HARRIS NESBITT FINANCING, INC., as documentation agents (in such capacity, the “Documentation
Agents”), THE BANK OF NEW YORK and WELLS FARGO BANK, NATIONAL ASSOCIATION,
as syndication agents (in such capacity, the “Syndication Agents”), and
JPMORGAN CHASE BANK, N.A., as administrative agent.

 

The parties hereto hereby agree as follows:

 

SECTION 1.           DEFINITIONS

 

1.1           Defined Terms.  As used in this Agreement, the terms listed
in this Section 1.1 shall have the respective meanings set forth in this Section 1.1.

 

“ABR”: 
for any day, a rate per annum (rounded upwards, if necessary, to the
next 1/16 of 1%) equal to the greater of (a) the Prime Rate in effect on
such day and (b) the Federal Funds Effective Rate in effect on such day
plus 1⁄2 of 1%.  For purposes hereof, “Prime
Rate” shall mean the rate of interest per annum publicly announced from
time to time by JPMorgan Chase Bank, N.A. as its prime rate in effect at its
principal office in New York City (the Prime Rate not being intended to be the
lowest rate of interest charged by JPMorgan Chase Bank, N.A. in connection with
extensions of credit to debtors).  Any
change in the ABR due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective as of the opening of business on the
effective day of such change in the Prime Rate or the Federal Funds Effective
Rate, respectively.

 

“ABR Loans”: 
Revolving Loans the rate of interest applicable to which is based upon
the ABR.

 

“Addendum”: 
an instrument, substantially in the form of Exhibit D, by which a
Lender becomes a party to this Agreement as of the Closing Date.

 

“Administrative Agent”:  JPMorgan Chase Bank, N.A., together with its
affiliates, as an arranger of the Revolving Commitments and as the
administrative agent for the Lenders under this Agreement and the other Loan
Documents, together with any of its successors.

 

“Affiliate”: 
as to any Person, any other Person that, directly or indirectly, is in
Control of, is Controlled by, or is under common Control with, such Person.

 

“Agents”: 
the collective reference to the Syndication Agents, the Documentation
Agents and the Administrative Agent.

 

“Aggregate Exposure”:  with respect to any Lender at any time, an
amount equal to the amount of such Lender’s Revolving Commitment then in effect
or, if the Revolving Commitments have been terminated, the amount of such
Lender’s Revolving Extensions of Credit then outstanding.

 

“Aggregate Exposure Percentage”:  with respect to any Lender at any time, the
ratio (expressed as a percentage) of such Lender’s Aggregate Exposure at such
time to the Aggregate Exposure of all Lenders at such time.

 

“Agreement”: 
as defined in the preamble hereto.

 

 

“Applicable Margin”:  The rate per annum set forth under the
relevant column heading below based on the applicable Debt Rating:

 

	
  Level

  	
   

  	
  Debt Rating

  	
   

  	
  Commitment

  Fee

  	
   

  	
  ABR

  Loans

  	
   

  	
  Eurodollar

  Loans/

  Letters of Credit

  	
   

  
	
  I

  	
   

  	
  >A/A2

  	
   

  	
  0.08

  	
  %

  	
  0

  	
  %

  	
  0.30

  	
  %

  
	
  II

  	
   

  	
  A-/A3

  	
   

  	
  0.10

  	
  %

  	
  0

  	
  %

  	
  0.375

  	
  %

  
	
  III

  	
   

  	
  BBB+/Baa1

  	
   

  	
  0.125

  	
  %

  	
  0

  	
  %

  	
  0.475

  	
  %

  
	
  IV

  	
   

  	
  BBB/Baa2

  	
   

  	
  0.15

  	
  %

  	
  0

  	
  %

  	
  0.575

  	
  %

  
	
  V

  	
   

  	
  BBB-/Baa3

  	
   

  	
  0.175

  	
  %

  	
  0

  	
  %

  	
  0.75

  	
  %

  
	
  VI

  	
   

  	
  <BB+/Ba1

  	
   

  	
  0.20

  	
  %

  	
  0

  	
  %

  	
  1.00

  	
  %

  

 

provided that for each
Excess Utilization Day, the Applicable Margin set forth above on such day shall
be increased by 0.125% for (a) Eurodollar Loans and Letters of Credit and (b) ABR
Loans if the Debt Rating on such day is in Level VI.

 

For purposes of this definition, “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
senior unsecured non-credit enhanced long-term indebtedness for borrowed money;
provided that if there is a split in Debt Ratings, then the higher* of such Debt Ratings shall
apply, unless there is a split in Debt Ratings of more than one level,
in which case the level that is one level higher than the lower Debt Rating
shall apply. The Debt Ratings shall be determined from the most recent public
announcement of any changes in the Debt Ratings.  If the rating system of S&P or Moody’s
shall change, the Borrower and the Administrative Agent shall negotiate in good
faith to amend this definition to reflect such changed rating system and,
pending the effectiveness of such amendment (which shall require the approval
of Required Lenders), the Debt Rating shall be determined by reference to the
rating most recently in effect prior to such change.

 

“Application”:  an application, in such form as the
applicable Issuing Lender may specify from time to time, requesting such
Issuing Lender to open a Letter of Credit.

 

“Assignee”: 
as defined in Section 10.6(b).

 

“Assignment and Assumption”:  an Assignment and Assumption, substantially
in the form of Exhibit B.

 

“Available Revolving Commitment”:  as to any Lender at any time, an amount equal
to the excess, if any, of (a) such Lender’s Revolving Commitment then in
effect over (b) such Lender’s Revolving Extensions of Credit then
outstanding.

 

“Benefitted Lender”:  as defined in Section 10.7(a).

 

* It being understood and
agreed, by way of example, that a Debt Rating of A-is one level higher than a
Debt Rating of BBB+.

 

 

“Board”: 
the Board of Governors of the Federal Reserve System of the United
States (or any successor).

 

“Borrower”: 
as defined in the preamble hereto.

 

“Borrowing Date”:  any Business Day specified by the Borrower as
a date on which the Borrower requests the Lenders to make Revolving Loans
hereunder.

 

“Business Day”:  a day other than a Saturday, Sunday or other
day on which commercial banks in New York City are authorized or required by
law to close, provided, that with respect to notices and determinations
in connection with, and payments of principal and interest on, Eurodollar
Loans, such day is also a day for trading by and between banks in Dollar
deposits in the interbank eurodollar market.

 

“Capital Lease Obligations”:  as to any Person, the obligations of such
Person to pay rent or other amounts under any lease of (or other arrangement
conveying the right to use) real or personal property, or a combination
thereof, which obligations are required to be classified and accounted for as
capital leases on a balance sheet of such Person under GAAP and, for the
purposes of this Agreement, the amount of such obligations at any time shall be
the capitalized amount thereof at such time determined in accordance with GAAP.

 

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

 

“Change in Control”:  Xcel Energy Inc. ceasing to directly own,
beneficially and of record, 100% of each class of issued and outstanding common
stock of the Borrower free and clear of all Liens.

 

“Closing Date”:  the date on which the conditions precedent
set forth in Section 5.1 shall have been satisfied, which date is April 21,
2005.

 

“Code”: 
the Internal Revenue Code of 1986, as amended from time to time.

 

“Commodity Swap Agreement”:  any
agreement with respect to any swap, forward, future or derivative transaction
or option or similar agreement involving, or settled by reference to,
commodities.

 

“Commonly Controlled Entity”:  an entity, whether or not incorporated, that
is under common control with the Borrower within the meaning of Section 4001
of ERISA or is part of a group that includes the Borrower and that is treated
as a single employer under Section 414 of the Code.

 

“Confidential Information Memorandum”:  the Confidential Information Memorandum dated
March 2005 and furnished to certain Lenders.

 

“Continuation Notice”:  as defined in Section 2.17(a).

 

“Continuing Lender”:  as defined in Section 2.17(a).

 

 

“Contractual Obligation”:  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”: 
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.

 

“Debt Rating”:  as defined in the definition of “Applicable
Margin.”

 

“Default”: 
any of the events specified in Section 8, whether or not any
requirement for the giving of notice, the lapse of time, or both, has been
satisfied.

 

“Designated Significant Subsidiary”:  any Significant Subsidiary designated as such
by the Borrower in accordance with Section 6.11, so long as such
designation shall not have been revoked pursuant to Section 6.11.

 

“Disposition”:  with respect to any property, any sale,
lease, sale and leaseback, conveyance, transfer or other disposition
thereof.  The terms “Dispose” and “Disposed
of” shall have correlative meanings.

 

“Documentation Agents”:  as defined in the preamble hereto.

 

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

 

“Environmental Laws”:  any and all foreign, Federal, state, local or
municipal laws, rules, orders, regulations, statutes, ordinances, codes,
decrees, requirements of any Governmental Authority or other Requirements of
Law (including common law) regulating, relating to or imposing liability or
standards of conduct concerning protection of human health or the environment,
as now or may at any time hereafter be in effect.

 

“ERISA”: 
the Employee Retirement Income Security Act of 1974, as amended from
time to time.

 

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

 

“Eurodollar Base Rate”:  with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, the rate per annum determined on the
basis of the rate for deposits in Dollars for a period equal to such Interest
Period commencing on the first day of such Interest Period appearing on Page 3750
of the Telerate screen as of 11:00 A.M., London time, two Business Days
prior to the beginning of such Interest Period. 
In the event that such rate does not appear on Page 3750 of the
Telerate screen (or otherwise on such screen), the “Eurodollar Base Rate”
shall be determined by reference to such other comparable publicly available
service for displaying eurodollar rates as may be selected by the
Administrative Agent or, in the absence of such availability, by reference to
the rate at which the Administrative Agent is offered Dollar deposits at or
about 11:00 A.M., New York City time,

 

 

two Business Days prior to the
beginning of such Interest Period in the interbank eurodollar market where its
eurodollar and foreign currency and exchange operations are then being
conducted for delivery on the first day of such Interest Period for the number
of days comprised therein.

 

“Eurodollar Loans”:  Revolving Loans the rate of interest
applicable to which is based upon the Eurodollar Rate.

 

“Eurodollar Rate”:  with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, a rate per annum determined for such
day in accordance with the following formula (rounded upward to the nearest
1/100th of 1%):

 

	
  Eurodollar Base Rate

  
	
  1.00 - Eurocurrency Reserve
  Requirements

  

 

 “Eurodollar
Tranche”:  the collective reference
to Eurodollar Loans the then current Interest Periods with respect to all of
which begin on the same date and end on the same later date (whether or not
such Revolving Loans shall originally have been made on the same day).

 

“Event of Default”:  any of the events specified in Section 8,
provided that any requirement for the giving of notice, the lapse of
time, or both, has been satisfied.

 

“Excess Utilization Day”:  each day on which the Total Revolving
Extensions of Credit on such day exceed 50% of the Total Revolving Commitments
on such day.

 

“Existing Credit Agreement”:  the Credit Agreement, dated as of February 17,
2004, among the Borrower, Bank One, NA, as agent, and the lenders party
thereto.

 

“Existing Letters of Credit” means the
letters of credit set forth on Schedule 1.1B that have been issued prior
to the Closing Date by JPMorgan Chase Bank, N.A.

 

“Extension Request”:  as defined in Section 2.17(a).

 

“Federal Funds Effective Rate”:  for any day, the weighted average of the
rates on overnight federal funds transactions with members of the Federal
Reserve System arranged by federal funds brokers, as published on the next
succeeding Business Day by the Federal Reserve Bank of New York, or, if
such rate is not so published for any day that is a Business Day, the average
of the quotations for the day of such transactions received by JPMorgan Chase
Bank, N.A. from three federal funds brokers of recognized standing selected by
it.

 

“Fee Payment Date”:  (a) the third Business Day following the
last day of each March, June, September and December and (b) the
last day of the Revolving Commitment Period.

 

“FERC”: 
the Federal Energy Regulatory Commission and any successor thereto.

 

“Funded Debt”:  of any Person at any date, without
duplication, (i) all indebtedness of such Person for borrowed money; (ii) the
deferred and unpaid balance of the purchase price owing by such Person on
account of any assets or services purchased (other than trade payables and
other accrued liabilities incurred in the ordinary course of business that are
not overdue by more than 180 days unless being contested in good faith) if such
purchase price is (A) due more than nine months from the date of
incurrence of the obligation in respect thereof or (B) evidenced by a note
or a similar written instrument; (iii) all Capital Lease Obligations of
such Person; (iv) all indebtedness secured by a Lien on any property

 

 

owned by such Person, whether
or not such indebtedness has been assumed by such Person or is nonrecourse to
such Person; (v) notes payable and drafts accepted representing extensions
of credit to such Person whether or not representing obligations for borrowed
money (other than such notes or drafts for the purchase price of assets or
services to the extent such purchase price is excluded from clause (ii) above);
(vi) indebtedness of such Person evidenced by bonds, notes or similar
written instruments; (vii) any non-contingent obligation of such Person in
respect of  letters of credit and bankers’
acceptances issued for the account of such Person (other than such letters of
credit, bankers’ acceptances and drafts for the purchase price of assets or
services to the extent such purchase price is excluded from clause (ii) above);
(viii) net obligations of such Person under Swap Agreements which constitute
interest rate agreements or currency agreements; (ix) guaranty obligations
of such Person with respect to indebtedness for borrowed money of another
Person (including Affiliates); (x) all Off-Balance Sheet Liabilities of such
Person; and (xi) in the case of the Borrower, any amounts due under Trust
Preferred Securities; provided, however, that in no event shall
any calculation of Funded Debt of the Borrower include deferred taxes.

 

“Funding Office”:  the office of the Administrative Agent
specified in Section 10.2 or such other office as may be specified from
time to time by the Administrative Agent as its funding office by written
notice to the Borrower and the Lenders.

 

“GAAP”: 
generally accepted accounting principles in the United States as in
effect from time to time; provided that in the event that any “Accounting
Change” (as defined below) shall occur and such change results in a change in
the method of calculation of financial covenants, standards or terms in this
Agreement, then (i) the Borrower and the Administrative Agent agree to
enter into negotiations in order to amend such provisions of this Agreement so
as to reflect equitably such Accounting Changes with the desired result that
the criteria for evaluating the Borrower’s financial condition shall be the
same after such Accounting Changes as if such Accounting Changes had not been
made and (ii) until such time as such an amendment shall have been
executed and delivered by the Borrower, the Administrative Agent and the
Required Lenders, all financial covenants (including those contained in Section 7.1),
standards and terms in this Agreement shall continue to be calculated or
construed as if such Accounting Changes had not occurred.  “Accounting Changes” refers to changes in
accounting principles required or permitted by the promulgation of any rule,
regulation, pronouncement or opinion by the Financial Accounting Standards
Board of the American Institute of Certified Public Accountants or, if
applicable, the SEC.

 

“Governmental Authority”:  any nation or government, any state or other
political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative functions of or
pertaining to government, any securities exchange and any self-regulatory
organization (including the National Association of Insurance Commissioners).

 

“Guarantee Obligation”:  as to any Person (the “guaranteeing person”),
any obligation, including a reimbursement, counterindemnity or similar
obligation, of the guaranteeing Person that guarantees or in effect guarantees,
or which is given to induce the creation of a separate obligation by another
Person (including any bank under any letter of credit) that guarantees or in
effect guarantees, any Indebtedness, leases, dividends or other obligations
(the “primary obligations”) of any other third Person (the “primary
obligor”) in any manner, whether directly or indirectly, including any
obligation of the guaranteeing person, whether or not contingent, (i) to
purchase any such primary obligation or any property constituting direct or
indirect security therefor, (ii) to advance or supply funds (1) for
the purchase or payment of any such primary obligation or (2) to maintain
working capital or equity capital of the primary obligor or otherwise to
maintain the net worth or solvency of the primary obligor, (iii) to
purchase property, securities or services primarily for the purpose of assuring
the owner of any such primary obligation of the ability of the primary obligor
to make payment of such primary obligation or (iv) otherwise to assure or
hold harmless the owner of any such primary obligation against loss in respect

 

 

thereof; provided, however,
that the term Guarantee Obligation shall not include endorsements of
instruments for deposit or collection in the ordinary course of business.  The amount of any Guarantee Obligation of any
guaranteeing person shall be deemed to be the lower of (a) an amount equal
to the stated or determinable amount of the primary obligation in respect of
which such Guarantee Obligation is made and (b) the maximum amount for
which such guaranteeing person may be liable pursuant to the terms of the
instrument embodying such Guarantee Obligation, unless such primary obligation
and the maximum amount for which such guaranteeing person may be liable are not
stated or determinable, in which case the amount of such Guarantee Obligation
shall be such guaranteeing person’s maximum reasonably anticipated liability in
respect thereof as determined by the Borrower in good faith.

 

“Increased Revolving Commitment Activation Notice”:  a notice substantially in the form of Exhibit E-2.

 

“Increased Revolving Commitment Closing Date”:  any Business Day designated as such in an
Increased Revolving Commitment Activation Notice.

 

“Indebtedness”:  of any Person at any date, without
duplication, (a) all indebtedness of such Person for borrowed money, (b) all
obligations of such Person for the deferred purchase price of property or
services (other than current trade payables or liabilities incurred in the
ordinary course of such Person’s business), (c) all obligations of such
Person evidenced by notes, bonds, debentures or other similar instruments, (d) all
indebtedness created or arising under any conditional sale or other title
retention agreement with respect to property acquired by such Person (even
though the rights and remedies of the seller or lender under such agreement in
the event of default are limited to repossession or sale of such property), (e) all
Capital Lease Obligations of such Person, (f) all non-contingent
obligations of such Person in respect of acceptances, letters of credit, surety
bonds or similar arrangements, (g) the liquidation value of all
mandatorily redeemable preferred Capital Stock of such Person, (h) all
Guarantee Obligations of such Person in respect of obligations of the kind
referred to in clauses (a) through (g) above, (i) all
obligations of the kind referred to in clauses (a) through (h) above
secured by (or for which the holder of such obligation has an existing right,
contingent or otherwise, to be secured by) any Lien on property (including
accounts and contract rights) owned by such Person, whether or not such Person
has assumed or become liable for the payment of such obligation, and (j) all
net obligations of such Person in respect of Swap Agreements.  The Indebtedness of any Person shall include
the Indebtedness of any other entity (including any partnership in which such
Person is a general partner) to the extent such Person is liable therefor as a
result of such Person’s ownership interest in or other relationship with such
entity, except to the extent the terms of such Indebtedness expressly provide
that such Person is not liable therefor.

 

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

 

“Insolvent”: 
pertaining to a condition of Insolvency.

 

“Interest Payment Date”:  (a) as to any ABR Loan, the last day of
each March, June, September and December to occur while such
Revolving Loan is outstanding and the Revolving Termination Date of such
Revolving Loan, (b) as to any Eurodollar Loan having an Interest Period of
three months or less, the last day of such Interest Period, (c) as to any
Eurodollar Loan having an Interest Period longer than three months, each day
that is three months, or a whole multiple thereof, after the first day of such
Interest Period and the last day of such Interest Period and (d) as to any
Revolving Loan, the date of any repayment or prepayment made in respect
thereof.

 

 

“Interest Period”:  as to any Eurodollar Loan, (a) initially,
the period commencing on the borrowing or conversion date, as the case may be,
with respect to such Eurodollar Loan and ending one, two, three or six months
thereafter, as selected by the Borrower in its notice of borrowing or notice of
conversion, as the case may be, given with respect thereto; and (b) thereafter,
each period commencing on the last day of the next preceding Interest Period
applicable to such Eurodollar Loan and ending one, two, three or six months
thereafter, as selected by the Borrower by irrevocable notice to the
Administrative Agent not later than 11:00 A.M., New York City time, on the
date that is three Business Days prior to the last day of the then current
Interest Period with respect thereto; provided that, all of the
foregoing provisions relating to Interest Periods are subject to the following:

 

(i)            if
any Interest Period would otherwise end on a day that is not a Business Day,
such Interest Period shall be extended to the next succeeding Business Day
unless the result of such extension would be to carry such Interest Period into
another calendar month in which event such Interest Period shall end on the
immediately preceding Business Day;

 

(ii)           the
Borrower may not select an Interest Period that would extend beyond the
Revolving Termination Date; and

 

(iii)          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 a
calendar month.

 

“Issuing Lender”:  each of JPMorgan Chase Bank, N.A., The Bank
of New York and Wells Fargo Bank, National Association, or any affiliate of any
of the foregoing, each in its capacity as issuer of any Letter of Credit.  Any other Lender selected by the Borrower to
be an Issuing Lender shall become an Issuing Lender with the consent of the
Administrative Agent and such Lender, in such capacity.

 

“L/C Commitment”:  $30,000,000.

 

“L/C Obligations”:  at any time, an amount equal to the sum of (a) the
aggregate then undrawn and unexpired amount of the then outstanding Letters of
Credit and (b) the aggregate amount of drawings under Letters of Credit
that have not then been reimbursed pursuant to Section 3.5.

 

“L/C Participants”:  with respect to each Issuing Lender, the
collective reference to all the Lenders other than such Issuing Lender.

 

“Lenders”: 
as defined in the preamble hereto.

 

“Letters of Credit”:  letters of credit issued pursuant to Section 3.1
(and including in any case the Existing Letters of Credit).

 

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

 

“Loan Documents”:  this Agreement, the Notes and any amendment,
waiver, supplement or other modification to any of the foregoing.

 

 

“Material Adverse Effect”:  any event, development or circumstance that
has had or could reasonably be expected to have a material adverse effect on (a) the
business, operations, property or condition (financial or otherwise) of the
Borrower and its Subsidiaries taken as a whole or (b) the validity or
enforceability of any of this Agreement or any other Loan Document or the
rights and remedies of the Administrative Agent or the Lenders hereunder and
thereunder.

 

“Material Indebtedness”:  Indebtedness (other than the Revolving Loans
and Letters of Credit), or obligations in respect of one or more Swap
Agreements or Commodity Swap Agreements, of any one or more of the Borrower and
its Significant Subsidiaries in an aggregate principal amount exceeding
$50,000,000.  For purposes of determining
Material Indebtedness, the “principal amount” of the obligations of the
Borrower or any Significant Subsidiary in respect of any Swap Agreement or any
Commodity Swap Agreement at any time shall be the maximum aggregate amount
(giving effect to any netting agreements) that the Borrower or such Significant
Subsidiary would be required to pay if such Swap Agreement or Commodity Swap
Agreement, as applicable, were terminated at such time.

 

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

 

“Multiemployer Plan”:  a Plan that is a multiemployer plan as
defined in Section 4001(a)(3) of ERISA.

 

“New Lender”: 
as defined in Section 2.1(c).

 

“New Lender Supplement”:  as defined in Section 2.1(c).

 

“Non-Excluded Taxes”:  as defined in Section 2.13(a).

 

“Non-Extending Lender”:  as defined in Section 2.17(a).

 

“Non-U.S. Lender”:  as defined in Section 2.13(d).

 

“Notes”: 
the collective reference to any promissory note evidencing Revolving
Loans.

 

“Obligations”:  the unpaid principal of and interest on
(including interest accruing after the maturity of the Revolving Loans and
Reimbursement Obligations and interest accruing after the filing of any
petition in bankruptcy, or the commencement of any insolvency, reorganization
or like proceeding, relating to the Borrower, whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding) the
Revolving Loans and all other obligations and liabilities of the Borrower to
the Administrative Agent or to any Lender, whether direct or indirect, absolute
or contingent, due or to become due, or now existing or hereafter incurred,
which may arise under, out of, or in connection with, this Agreement, any other
Loan Document, the Letters of Credit or any other document made, delivered or
given in connection herewith or therewith, whether on account of principal,
interest, reimbursement obligations, fees, indemnities, costs, expenses
(including all fees, charges and disbursements of counsel to the Administrative
Agent or to any Lender that are required to be paid by the Borrower pursuant
hereto) or otherwise.

 

“Off-Balance Sheet Liability”:  of a Person, (i) any repurchase
obligation or liability of such Person with respect to accounts or notes receivable
sold by such Person, (ii) any liability under any Sale and Leaseback
Transaction of such Person which is not a Capital Lease Obligation and (iii) all
Synthetic Lease Obligations of such Person. 
The amount of liability under a Sale and Leaseback Transaction of any
Person shall be the amount that would be shown as a liability on a balance
sheet of

 

 

such Person prepared in
accordance with GAAP if such lease or agreement were accounted for as a Capital
Lease Obligation.

 

“Other Taxes”:  any and all present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar
levies arising from any payment made hereunder or from the execution, delivery
or enforcement of, or otherwise with respect to, this Agreement or any other Loan
Document.

 

“Participant”:  as defined in Section 10.6(c).

 

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

 

 “Permitted
Lien”:  (i) any Lien securing a
tax, assessment or other governmental charge or levy or the claim of a
materialman, mechanic, carrier, warehouseman or landlord for labor, materials,
supplies or rentals incurred in the ordinary course of business, but only if
payment thereof shall not at the time be required to be made in accordance with
Section 6.3; (ii) any Lien on the properties and assets of a
Significant Subsidiary of the Borrower securing an obligation owing to the
Borrower or another Significant Subsidiary; (iii) any Lien consisting of a
deposit or pledge made in the ordinary course of business in connection with,
or to secure payment of, obligations under workers’ compensation, unemployment
insurance, social security or retirement benefits or similar legislation; (iv) any
Lien arising pursuant to an order of attachment, distraint or similar legal
process arising in connection with legal proceedings, but only if no Event of
Default exists in respect of such order; (v) any Lien existing on (A) any
property or asset of any Person at the time such Person becomes a Subsidiary or
(B) any property or asset at the time such property or asset is acquired
by the Borrower or a Subsidiary, but only, in the case of either (A) or
(B), if and so long as (1) such Lien was not created in contemplation of
such Person becoming a Subsidiary or such property or asset being acquired, (2) such
Lien is and will remain confined to the property or asset subject to it at the
time such Person becomes a Subsidiary or such property or asset is acquired and
to improvements thereafter erected on or attached to such property or asset or
any property or asset acquired in substitution or replacement thereof, (3) such
Lien secures only the obligation secured thereby at the time such Person
becomes a Subsidiary or such property or asset is acquired and (4) the
obligation secured by such Lien is not in default; (vi) any Lien in
existence on the Closing Date to the extent set forth on Schedule 7.2, but
only, in the case of each such Lien, to the extent it secures an obligation
outstanding on the Closing Date to the extent set forth on such Schedule; (vii) any
Lien securing Purchase Money Indebtedness but only if, in the case of each such
Lien, (A) such Lien shall at all times be confined solely to the property
or asset the purchase price of which was financed through the incurrence of the
Purchase Money Indebtedness secured by such Lien and to improvements thereafter
erected on or attached to such property or asset or any property or asset
acquired in substitution or replacement thereof and (B) such Lien attached
to such property or asset within 90 days of the acquisition of such property or
asset; (viii) deposits made in the ordinary course of business to secure
the performance of bids, trade contracts (other than Indebtedness), operating
leases, surety and appeal bonds, performance bonds and other obligations of a
like nature incurred in the ordinary course of business; (ix) deposits
securing liability to insurance carriers under insurance or self-insurance
arrangements; (x) easements, reservations, rights-of-way, restrictions, survey
exceptions and other similar encumbrances as to real property which customarily
exist on properties of corporations engaged in similar activities and similarly
situated and which do not materially interfere with the conduct of the business
of the Borrower or any Significant

 

 

Subsidiary conducted at the
property subject thereto; (xi) leases and subleases of property owned or leased
by the Borrower or any Significant Subsidiary not interfering with the ordinary
conduct of the business of the Borrower and the Significant Subsidiaries; (xii)
Liens securing obligations, neither assumed by the Borrower or any Significant
Subsidiary nor on account of which the Borrower or any Significant Subsidiary
customarily pays interest, upon real estate or under which any Significant
Subsidiary has a right-of-way, easement, franchise or other servitude or of
which any Significant Subsidiary is the lessee of the whole thereof or any
interest therein for the purpose of locating transmission and distribution
lines and related support structures, pipe lines, substations, measuring
stations, tanks, pumping or delivery equipment or similar equipment; (xiii)
Liens arising by virtue of any statutory or common law provision relating to
banker’s liens, rights of setoff or similar rights as to deposit accounts or
other funds maintained with a depository institution; (xiv) any Lien
constituting a renewal, extension or replacement of a Lien constituting a
Permitted Lien by virtue of clause (v), (vi) or (vii) of this
definition, but only if (A) at the time such Lien is granted and
immediately after giving effect thereto, no Default or Event of Default would
exist, (B) such Lien is limited to all or a part of the property or asset
that was subject to the Lien so renewed, extended or replaced and to
improvements thereafter erected on or attached to such property or asset or any
property or asset acquired in substitution or replacement thereof, (C) the
principal amount of the obligations secured by such Lien does not exceed the
principal amount of the obligations secured by the Lien so renewed, extended or
replaced and (D) the obligations secured by such Lien bear interest at a
rate per annum not exceeding the rate borne by the obligations secured by the
Lien so renewed, extended or replaced except for any increase that is
commercially reasonable at the time of such increase; (xv) Liens on any
property of any Significant Subsidiary securing Indebtedness of such
Significant Subsidiary; and (xvi) Liens not described in clauses (i) through
(xv), inclusive, securing Indebtedness or other liabilities or obligations of
the Borrower and/or its Significant Subsidiaries in an aggregate principal
amount outstanding not to exceed 10% of the consolidated net worth of the Borrower
and its Subsidiaries at the time of such incurrence.

 

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

 

“Plan”: 
at a particular time, any employee benefit plan that is covered by ERISA
and in respect of which the Borrower or a Commonly Controlled Entity is (or, if
such plan were terminated at such time, would under Section 4069 of ERISA
be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

 

“PUHCA” means the Public Utility Holding
Company Act of 1935, as amended from time to time

 

“Purchase Money Indebtedness”:  Indebtedness of the Borrower that is incurred
to finance part or all of (but not more than) the purchase price of a tangible
asset; provided that (i) neither the Borrower nor any Subsidiary
had at any time prior to such purchase any interest in such asset other than a
security interest or an interest as lessee under an operating lease and (ii) such
Indebtedness is incurred within 90 days after such purchase.

 

“Refinancing”:  as defined in Section 5.1(b).

 

“Register”: 
as defined in Section 10.6(b).

 

“Regulation U”:  Regulation U of the Board as in effect from
time to time.

 

“Reimbursement Obligation”:  the obligation of the Borrower to reimburse
the applicable Issuing Lender pursuant to Section 3.5 for amounts drawn
under Letters of Credit.

 

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

 

 

“Reportable Event”:  any of the events set forth in Section 4043(c) of
ERISA, other than those events as to which the thirty day notice period is
waived under PBGC Reg. § 4043.

 

“Required Lenders”:  at any time, the holders of more than 50% of
the Total Revolving Commitments then in effect or, if the Revolving Commitments
have been terminated, the Total Revolving Extensions of Credit then
outstanding.

 

“Requirement of Law”:  as to any Person, the Certificate of
Incorporation and By-Laws or other organizational or governing documents of
such Person, and any law, treaty, rule or regulation or determination of
an arbitrator or a court or other Governmental Authority, in each case
applicable to or binding upon such Person or any of its property or to which
such Person or any of its property is subject.

 

“Responsible Officer”:  the chief executive officer, president, chief
financial officer or treasurer of the Borrower.

 

“Revolving Commitment”:  as to any Lender, the obligation of such
Lender to make Revolving Loans and participate in Letters of Credit in an
aggregate principal and/or face amount not to exceed the amount set forth under
the heading “Revolving Commitment” opposite such Lender’s name on Schedule 1.1A
or in the Assignment and Assumption or New Lender Supplement pursuant to which
such Lender became a party hereto, as the same may be changed from time to time
pursuant to the terms hereof.  The
original amount of the Total Revolving Commitments is $250,000,000.

 

“Revolving Commitment Period”:  as to any Lender, the period from and
including the Closing Date to the Revolving Termination Date applicable
thereto.

 

“Revolving Extensions of Credit”:  as to any Lender at any time, an amount equal
to the sum of (a) the aggregate principal amount of all Revolving Loans
held by such Lender then outstanding and (b) such Lender’s Revolving
Percentage of the L/C Obligations then outstanding.

 

“Revolving Loans”:  as defined in Section 2.1(a).

 

“Revolving Percentage”:  as to any Lender at any time, the percentage
which such Lender’s Revolving Commitment then constitutes of the Total
Revolving Commitments or, at any time after the Revolving Commitments shall
have expired or terminated, the percentage which the aggregate principal amount
of such Lender’s Revolving Loans then outstanding constitutes of the aggregate
principal amount of the Revolving Loans then outstanding, provided,
that, in the event that the Revolving Loans are paid in full prior to the
reduction to zero of the Total Revolving Extensions of Credit, the Revolving
Percentages shall be determined in a manner designed to ensure that the other
outstanding Revolving Extensions of Credit shall be held by the Lenders on a comparable
basis.

 

“Revolving Termination Date”:  April 21, 2010; provided that
with respect to Continuing Lenders only, the Revolving Termination Date may be
extended to April 21, 2011 pursuant to Section 2.17.

 

“Sale and Leaseback Transaction”:  any arrangement, directly or indirectly, with
any Person whereby a seller or transferor shall sell or otherwise transfer any
real or personal property and concurrently therewith lease, or repurchase under
an extended purchase contract, conditional sales or other title retention
agreement, the same or substantially similar property.

 

“S&P”: 
Standard & Poor’s Ratings Services, a division of the McGraw
Hill Companies, Inc. or any successor thereto.

 

 

“SEC”: 
the Securities and Exchange Commission and any successor thereto.

 

“Significant Subsidiary”:  (a) any current or subsequently acquired
Subsidiary the total assets of which equal or exceed 15% of the consolidated
total assets of the Borrower and its Subsidiaries and (b) any Designated
Significant Subsidiary.

 

“Single Employer Plan”:  any Plan that is covered by Title IV of
ERISA, but that is not a Multiemployer Plan.

 

“Solvent”: 
when used with respect to any Person, means that, as of any date of
determination, (a) the amount of the “present fair saleable value” of the
assets of such Person will, as of such date, exceed the amount of all “liabilities
of such Person, contingent or otherwise”, as of such date, as such quoted terms
are determined in accordance with applicable federal and state laws governing
determinations of the insolvency of debtors, (b) the present fair saleable
value of the assets of such Person will, as of such date, be greater than the
amount that will be required to pay the liability of such Person on its debts
as such debts become absolute and matured, (c) such Person will not have,
as of such date, an unreasonably small amount of capital with which to conduct
its business, and (d) such Person will be able to pay its debts as they
mature.  For purposes of this definition,
(i) “debt” means liability on a “claim”, and (ii) “claim” means any
(x) right to payment, whether or not such a right is reduced to judgment,
liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed,
undisputed, legal, equitable, secured or unsecured or (y) right to an equitable
remedy for breach of performance if such breach gives rise to a right to
payment, whether or not such right to an equitable remedy is reduced to
judgment, fixed, contingent, matured or unmatured, disputed, undisputed,
secured or unsecured.

 

“Subsidiary”: 
as to any Person, a corporation, partnership, limited liability company
or other entity of which shares of stock or other ownership interests having
ordinary voting power (other than stock or such other ownership interests
having such power only by reason of the happening of a contingency) to elect a
majority of the board of directors or other managers of such corporation,
partnership or other entity are at the time owned, or the management of which
is otherwise controlled, directly or indirectly through one or more
intermediaries, or both, by such Person. 
Unless otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries”
in this Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower.

 

“Swap Agreement”:  any agreement
with respect to any swap, forward, future or derivative transaction or option
or similar agreement involving, or settled by reference to, one or more
interest rates, currencies, equity or debt instruments or securities, including
indices relating thereto, or any similar transaction or any combination of
these transactions; provided that no phantom stock or similar
plan providing for payments only on account of services provided by current or
former directors, officers, employees or consultants of the Borrower or any of
its Subsidiaries shall be a “Swap Agreement”.

 

“Synthetic Lease Obligation”:  the monetary obligation of a Person under (i) a
so-called synthetic or off-balance sheet or tax retention lease or (ii) an
agreement for the use or possession of property creating obligations that do
not appear on the balance sheet of such Person but which, upon the insolvency
or bankruptcy of such Person, would be characterized as indebtedness of such
Person (without regard to accounting treatment).  The amount of Synthetic Lease Obligations of
any Person under any such lease or agreement shall be the amount which would be
shown as a liability on a balance sheet of such Person prepared in accordance
with GAAP if such lease or agreement were accounted for as a Capital Lease
Obligation.

 

“Syndication Agents”:  as defined in the preamble hereto.

 

 

“Total Capital”:  the sum of (A) stockholder’s equity,
which is the sum of common stock, premium on common stock, retained earnings
and preferred stock, but which excludes Trust Preferred Securities to the
extent included in Funded Debt and (B) Funded Debt, all determined with
respect to the Borrower and its Subsidiaries on a consolidated basis in
accordance with GAAP.

 

“Total Revolving Commitments”:  at any time, the aggregate amount of the
Revolving Commitments then in effect.

 

“Total Revolving Extensions of Credit”:  at any time, the aggregate amount of the
Revolving Extensions of Credit of the Lenders outstanding at such time.

 

“Transferee”: 
any Assignee or Participant.

 

“Trust
Indenture Act”:  the Trust Indenture
Act of 1939, as amended.

 

 “Trust Preferred Securities”:  any preferred securities issued by a Trust
Preferred Securities Subsidiary, where such preferred securities have the
following characteristics:

 

(i)            such
Trust Preferred Securities Subsidiary lends substantially all of the proceeds
from the issuance of such preferred securities to the Borrower or a
wholly-owned direct or indirect Subsidiary of the Borrower in exchange for
subordinated debt issued by the Borrower or such wholly-owned direct or
indirect Subsidiary, respectively;

 

(ii)           such
preferred securities contain terms providing for the deferral of interest
payments corresponding to provisions providing for the deferral of interest
payments on the subordinated debt; and

 

(iii)          the
Borrower or a wholly-owned direct or indirect Subsidiary of the Borrower (as
the case may be) makes periodic interest payments on the subordinated debt,
which interest payments are in turn used by the Trust Preferred Securities
Subsidiary to make corresponding payments to the holders of such preferred
securities.

 

“Trust
Preferred Securities Subsidiary”: 
any Delaware business trust (or similar entity) (i) all of the
common equity interest of which is owned (either directly or indirectly through
one or more Wholly Owned Subsidiaries of the Borrower) at all times by the
Borrower, (ii) that has been formed for the purpose of issuing Trust
Preferred Securities and (iii) substantially all of the assets of which
consist at all times solely of subordinated debt issued by the Borrower or a
wholly-owned direct or indirect Subsidiary of the Borrower (as the case may be)
and payments made from time to time on such subordinated debt.

 

“Type”: 
as to any Revolving Loan, its nature as an ABR Loan or a Eurodollar
Loan.

 

“United States”:  the United States of America.

 

“Voting Stock”:  Capital Stock issued by a corporation, or
equivalent interests in any other Person, the holders of which are ordinarily,
in the absence of contingencies, entitled to vote for the election of directors
(or persons performing similar functions) of such Person, even if the right so
to vote has been suspended by the happening of such contingency.

 

 

“Wholly Owned Subsidiary”:  as to any Person, any other Person all of the
Capital Stock of which (other than directors’ qualifying shares required by
law) is owned by such Person directly and/or through other Wholly Owned
Subsidiaries.

 

1.2           Other
Definitional Provisions  (a) Unless otherwise specified therein,
all terms defined in this Agreement shall have the defined meanings when used
in the other Loan Documents or any certificate or other document made or
delivered pursuant hereto or thereto.

 

(b)  As
used herein and in the other Loan Documents, and any certificate or other
document made or delivered pursuant hereto or thereto, (i) accounting
terms relating to the Borrower not defined in Section 1.1 and accounting
terms partly defined in Section 1.1, to the extent not defined, shall have
the respective meanings given to them under GAAP, (ii) the words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without
limitation”, (iii) the word “incur” shall be construed to mean incur,
create, issue, assume, become liable in respect of or suffer to exist (and the
words “incurred” and “incurrence” shall have correlative meanings), (iv) the
words “asset” and “property” shall be construed to have the same meaning and
effect and to refer to any and all tangible and intangible assets and
properties, including cash, Capital Stock, securities, revenues, accounts,
leasehold interests and contract rights, and (v) references to agreements
or other Contractual Obligations shall, unless otherwise specified, be deemed
to refer to such agreements or Contractual Obligations as amended,
supplemented, restated or otherwise modified from time to time.

 

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

 

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

 

SECTION 2.           AMOUNT AND TERMS OF REVOLVING COMMITMENTS

 

2.1           Revolving Commitments.  (a) Subject to the terms and conditions
hereof, each Lender severally agrees to make revolving credit loans (“Revolving
Loans”) to the Borrower from time to time during the Revolving Commitment
Period in an aggregate principal amount at any one time outstanding which, when
added to such Lender’s Revolving Percentage of the L/C Obligations then
outstanding, does not exceed the amount of such Lender’s Revolving
Commitment.  During the Revolving
Commitment Period the Borrower may use the Revolving Commitments by borrowing,
prepaying the Revolving Loans in whole or in part, and reborrowing, all in
accordance with the terms and conditions hereof.  The Revolving Loans may from time to time be
Eurodollar Loans or ABR Loans, as determined by the Borrower and notified to
the Administrative Agent in accordance with Sections 2.2 and 2.6.

 

(b) At any time
prior to the fourth anniversary of the Closing Date, the Borrower and any one
or more Lenders (including New Lenders) may agree that such Lender(s) shall
make, obtain or increase the amount of their Revolving Commitments by executing
and delivering to the Administrative Agent an Increased Revolving Commitment
Activation Notice specifying the amount of such increase and the applicable
Increased Revolving Commitment Closing Date (which may be no later than the
fourth anniversary of the Closing Date). 
Notwithstanding the foregoing, (i) the aggregate amount of
incremental

 

 

Revolving Commitments obtained
pursuant to this Section 2.1(b) shall not exceed $50,000,000, (ii) incremental
Revolving Commitments may not be made, obtained or increased after the
occurrence and during the continuation of a Default or Event of Default,
including after giving effect to the incremental Revolving Commitments in
question, (iii) the increase effected pursuant to this paragraph shall be
in a minimum amount of at least $25,000,000 and (iv) no more than one
Increased Revolving Commitment Closing Date may be selected by the Borrower
during the term of this Agreement.  No
Lender shall have any obligation to participate in any increase described in
this paragraph unless it agrees to do so in its sole discretion.

 

(c) Any additional
bank, financial institution or other entity which, with the consent of the
Borrower and the Administrative Agent (which consent shall not be unreasonably
withheld), elects to become a “Lender” under this Agreement in connection with
an increase described in Section 2.1(b) shall execute a New Lender
Supplement (each, a “New Lender Supplement”), substantially in the form
of Exhibit E-1, whereupon such bank, financial institution or other
entity (a “New Lender”) shall become a Lender for all purposes and to
the same extent as if originally a party hereto and shall be bound by and
entitled to the benefits of this Agreement.

 

(d) On each
Increased Revolving Commitment Closing Date on which there are Revolving Loans
outstanding, the New Lender(s) and/or Lender(s) that have increased their
Revolving Commitments shall make Revolving Loans, the proceeds of which will be
used to prepay the Revolving Loans of other Lenders, so that, after giving
effect thereto, the resulting Revolving Loans outstanding are allocated among
the Lenders in accordance with Section 2.11(a) based on the
respective Revolving Percentages of the Lenders after giving effect to such
Increased Revolving Commitment Closing Date.

 

(e) The
Borrower shall repay the outstanding Revolving Loans of each Lender on the
Revolving Termination Date applicable to such Lender.

 

2.2           Procedure for
Revolving Loan Borrowing.   The Borrower may borrow under the Revolving
Commitments during the Revolving Commitment Period on any Business Day, provided
that the Borrower shall give the Administrative Agent irrevocable notice (which
notice must be received by the Administrative Agent prior to 11:00 A.M.,
New York City time, (a) three Business Days prior to the requested
Borrowing Date, in the case of Eurodollar Loans (or, with respect to any
Eurodollar Loans to be made on the Closing Date, such shorter time period as
may be agreed by the Administrative Agent) or (b) on the requested
Borrowing Date, in the case of ABR Loans), specifying (i) the amount and
Type of Revolving Loans to be borrowed, (ii) the requested Borrowing Date
and (iii) in the case of Eurodollar Loans, the respective lengths of the
initial Interest Period therefor.  Each
borrowing under the Revolving Commitments shall be in an amount equal to (x) in
the case of ABR Loans, $1,000,000 or a whole multiple thereof (or, if the then
aggregate Available Revolving Commitments are less than $1,000,000, such lesser
amount) and (y) in the case of Eurodollar Loans, $5,000,000 or a whole multiple
of $1,000,000 in excess thereof.  Upon
receipt of any such notice from the Borrower, the Administrative Agent shall
promptly notify each Lender thereof. 
Each Lender will make the amount of its pro  rata share of
each borrowing available to the Administrative Agent for the account of the
Borrower at the Funding Office prior to 12:00 Noon, New York City time, on the
Borrowing Date requested by the Borrower in funds immediately available to the
Administrative Agent.  Such borrowing
will then be made available to the Borrower by the Administrative Agent
crediting the account of the Borrower on the books of such office with the
aggregate of the amounts made available to the Administrative Agent by the
Lenders and in like funds as received by the Administrative Agent.

 

2.3           Fees.  (a)  The Borrower agrees to pay to the
Administrative Agent for the account of each Lender a commitment fee for the
period from and including the date hereof to the last day of the Revolving
Commitment Period applicable thereto, computed at the Applicable Margin on the
average daily amount of the Available Revolving Commitment of such Lender
during the period for which payment is made, payable quarterly in arrears on
each Fee Payment Date.

 

 

(b)  The
Borrower agrees to pay to the Administrative Agent the fees in the amounts and
on the dates as set forth in any fee agreements with the Administrative Agent
and to perform any other obligations contained therein.

 

2.4           Termination or
Reduction of Revolving Commitments.  The Borrower shall have the right, upon not
less than three Business Days’ notice to the Administrative Agent, to terminate
the Revolving Commitments or, from time to time, to reduce the amount of the
Revolving Commitments; provided that no such termination or reduction of
Revolving Commitments shall be permitted if, after giving effect thereto and to
any prepayments of the Revolving Loans made on the effective date thereof, the
Total Revolving Extensions of Credit would exceed the Total Revolving
Commitments.  Any such reduction shall be
in an amount equal to $1,000,000, or a whole multiple thereof, and shall reduce
permanently the Revolving Commitments then in effect.  Following an Extension Request pursuant to Section 2.17,
the Borrower may terminate the Revolving Commitments of the Non-Extending
Lenders; provided that the Borrower shall prepay the Revolving Loans of
such Non-Extending Lenders on the effective date of such termination, together
with accrued but unpaid interest and fees thereon and all other amounts then
payable hereunder to such Non-Extending Lenders.

 

2.5           Optional Prepayments.  The Borrower may at any time and from time to
time prepay the Revolving Loans, in whole or in part, without premium or
penalty, upon irrevocable notice delivered to the Administrative Agent no later
than 11:00 A.M., New York City time, three Business Days prior thereto, in
the case of Eurodollar Loans, and no later than 11:00 A.M., New York City
time, on the prepayment date, in the case of ABR Loans, which notice shall
specify the date and amount of prepayment and whether the prepayment is of
Eurodollar Loans or ABR Loans; provided, that if a Eurodollar Loan is
prepaid on any day other than the last day of the Interest Period applicable
thereto, the Borrower shall also pay any amounts owing pursuant to Section 2.14.  Upon receipt of any such notice the
Administrative Agent shall promptly notify each Lender thereof.  If any such notice is given, the amount
specified in such notice shall be due and payable on the date specified
therein, together with accrued interest to such date on the amount prepaid.  Partial prepayments of Revolving Loans shall
be in an aggregate principal amount of $1,000,000 or a whole multiple thereof.

 

2.6           Conversion and
Continuation Options.  (a)  
The Borrower may elect from time to time to convert Eurodollar Loans to
ABR Loans by giving the Administrative Agent prior irrevocable notice of such
election no later than 11:00 A.M., New York City time, on the Business Day
preceding the proposed conversion date, provided that any such
conversion of Eurodollar Loans may only be made on the last day of an Interest
Period with respect thereto.  The
Borrower may elect from time to time to convert ABR Loans to Eurodollar Loans
by giving the Administrative Agent prior irrevocable notice of such election no
later than 11:00 A.M., New York City time, on the third Business Day
preceding the proposed conversion date (which notice shall specify the length
of the initial Interest Period therefor), provided that no ABR Loan may
be converted into a Eurodollar Loan when any Event of Default has occurred and
is continuing and the Administrative Agent or the Required Lenders have
determined in its or their sole discretion not to permit such conversions.  Upon receipt of any such notice the
Administrative Agent shall promptly notify each Lender thereof.

 

(b)  Any
Eurodollar Loan may be continued as such upon the expiration of the then
current Interest Period with respect thereto by the Borrower giving irrevocable
notice to the Administrative Agent, in accordance with the applicable
provisions of the term “Interest Period” set forth in Section 1.1, of the
length of the next Interest Period to be applicable to such Revolving Loans, provided
that no Eurodollar Loan may be continued as such when any Event of Default has
occurred and is continuing and the Administrative Agent has or the Required
Lenders have determined in its or their sole discretion not to permit such
continuations, and provided, further, that if the Borrower shall
fail to give any required notice as described above in this paragraph or if
such continuation is not permitted

 

 

pursuant to the preceding
proviso such Revolving Loans shall be automatically converted to ABR Loans on
the last day of such then expiring Interest Period.  Upon receipt of any such notice the
Administrative Agent shall promptly notify each Lender thereof.

 

2.7           Limitations on
Eurodollar Tranches.  Notwithstanding anything to the contrary in
this Agreement, all borrowings, conversions and continuations of Eurodollar
Loans and all selections of Interest Periods shall be in such amounts and be
made pursuant to such elections so that, (a) after giving effect thereto,
the aggregate principal amount of the Eurodollar Loans comprising each
Eurodollar Tranche shall be equal to $5,000,000 or a whole multiple of
$1,000,000 in excess thereof and (b) no more than ten Eurodollar Tranches
shall be outstanding at any one time.

 

2.8           Interest Rates
and Payment Dates. 
(a)   Each Eurodollar Loan
shall bear interest for each day during each Interest Period with respect
thereto at a rate per annum equal to the Eurodollar Rate determined for such
day plus the Applicable Margin.

 

(b)  Each
ABR Loan shall bear interest at a rate per annum equal to the ABR plus the
Applicable Margin.

 

(c)  (i) If
all or a portion of the principal amount of any Revolving Loan or Reimbursement
Obligation shall not be paid when due (whether at the stated maturity, by
acceleration or otherwise), all outstanding Revolving Loans and Reimbursement
Obligations (whether or not overdue) shall bear interest at a rate per annum equal
to (x) in the case of the Revolving Loans, the rate that would otherwise be
applicable thereto pursuant to the foregoing provisions of this Section plus
2% or (y) in the case of Reimbursement Obligations, the rate applicable to ABR
Loans plus 2%, and (ii) if all or a portion of any interest payable
on any Revolving Loan or Reimbursement Obligation or any commitment fee or
other amount payable hereunder shall not be paid when due (whether at the
stated maturity, by acceleration or otherwise), such overdue amount shall bear
interest at a rate per annum equal to the rate then applicable to ABR Loans plus
2%, in each case, with respect to clauses (i) and (ii) above, from
the date of such non-payment until such amount is paid in full (as well after
as before judgment).

 

(d) 
Interest shall be payable in arrears on each Interest Payment Date, provided
that interest accruing pursuant to paragraph (c) of this Section shall
be payable from time to time on demand.

 

2.9           Computation of
Interest and Fees. 
(a)   Interest and fees
payable pursuant hereto shall be calculated on the basis of a 360-day
year for the actual days elapsed, except that, with respect to ABR Loans the
rate of interest on which is calculated on the basis of the Prime Rate, the
interest thereon shall be calculated on the basis of a 365- (or 366-,
as the case may be) day year for the actual days elapsed.  The Administrative Agent shall as soon as
practicable notify the Borrower and the Lenders of each determination of a
Eurodollar Rate.  Any change in the
interest rate on a Revolving Loan resulting from a change in the ABR or the
Eurocurrency Reserve Requirements shall become effective as of the opening of
business on the day on which such change becomes effective.  The Administrative Agent shall as soon as
practicable notify the Borrower and the Lenders of the effective date and the
amount of each such change in interest rate.

 

(b)  Each
determination of an interest rate by the Administrative Agent pursuant to any
provision of this Agreement shall be conclusive and binding on the Borrower and
the Lenders in the absence of manifest error. 
The Administrative Agent shall, at the request of the Borrower, deliver
to the Borrower a statement showing the quotations used by the Administrative
Agent in determining any interest rate pursuant to Section 2.8(a).

 

 

2.10         Inability to
Determine Interest Rate.  If prior to the first day of any Interest
Period, the Administrative Agent shall give telecopy or telephonic notice
thereof to the Borrower and the Lenders that:

 

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

 

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

 

then (x) any Eurodollar
Loans requested to be made on the first day of such Interest Period shall be
made as ABR Loans, (y) any Revolving Loans that were to have been
converted on the first day of such Interest Period to Eurodollar Loans shall be
continued as ABR Loans and (z) any outstanding Eurodollar Loans shall be
converted, on the last day of the then-current Interest Period, to ABR
Loans.  Until such notice has been
withdrawn by the Administrative Agent, no further Eurodollar Loans shall be
made or continued as such, nor shall the Borrower have the right to convert
Revolving Loans to Eurodollar Loans.

 

2.11         Pro Rata Treatment
and Payments. 
(a)   Except as otherwise
expressly provided herein, each borrowing by the Borrower from the Lenders
hereunder, each payment by the Borrower on account of any commitment fee and
any reduction of the Revolving Commitments of the Lenders shall be made pro
rata according to the respective Revolving Percentages of the Lenders.

 

(b) 
Except as otherwise expressly provided herein, each payment (including each
prepayment) by the Borrower on account of principal of and interest on the
Revolving Loans shall be made pro  rata according to the
respective outstanding principal amounts of the Revolving Loans then held by
the Lenders.

 

(c)  All
payments (including prepayments) to be made by the Borrower hereunder, whether
on account of principal, interest, fees or otherwise, shall be made without
setoff or counterclaim and shall be made prior to 12:00 Noon, New York City
time, on the due date thereof to the Administrative Agent, for the account of
the Lenders, at the Funding Office, in Dollars and in immediately available
funds.  The Administrative Agent shall
distribute such payments to the Lenders promptly upon receipt in like funds as
received.  If any payment hereunder
(other than payments on the Eurodollar Loans) becomes due and payable on a day
other than a Business Day, such payment shall be extended to the next
succeeding Business Day.  If any payment
on a Eurodollar Loan becomes due and payable on a day other than a Business
Day, the maturity thereof shall be extended to the next succeeding Business Day
unless the result of such extension would be to extend such payment into
another calendar month, in which event such payment shall be made on the
immediately preceding Business Day.  In
the case of any extension of any payment of principal pursuant to the preceding
two sentences, interest thereon shall be payable at the then applicable rate
during such extension.

 

(d) 
Unless the Administrative Agent shall have been notified in writing by any
Lender prior to a borrowing that such Lender will not make the amount that
would constitute its share of such borrowing available to the Administrative
Agent, the Administrative Agent may assume that such Lender is making such
amount available to the Administrative Agent, and the Administrative Agent may,
in reliance upon such assumption, make available to the Borrower a
corresponding amount.  If such amount is
not made available to the Administrative Agent by the required time on the
Borrowing Date therefor,

 

 

such Lender shall pay to the
Administrative Agent, on demand, such amount with interest thereon, at a rate
equal to the greater of (i) the Federal Funds Effective Rate and (ii) a
rate determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation, for the period until such Lender makes
such amount immediately available to the Administrative Agent.  A certificate of the Administrative Agent
submitted to any Lender with respect to any amounts owing under this paragraph
shall be conclusive in the absence of manifest error.  If such Lender’s share of such borrowing is
not made available to the Administrative Agent by such Lender within three
Business Days after such Borrowing Date, the Administrative Agent shall also be
entitled to recover such amount with interest thereon at the rate per annum
applicable to ABR Loans, on demand, from the Borrower.  Nothing herein shall be deemed to limit the
rights of the Borrower against such Lender.

 

(e) 
Unless the Administrative Agent shall have been notified in writing by the
Borrower prior to the date of any payment due to be made by the Borrower
hereunder that the Borrower will not make such payment to the Administrative
Agent, the Administrative Agent may assume that the Borrower is making such
payment, and the Administrative Agent may, but shall not be required to, in
reliance upon such assumption, make available to the Lenders their respective
shares of a corresponding amount.  If
such payment is not made to the Administrative Agent by the Borrower within three
Business Days after such due date, the Administrative Agent shall be entitled
to recover, on demand, from each Lender to which any amount which was made
available pursuant to the preceding sentence, such amount with interest thereon
at the rate per annum equal to the daily average Federal Funds Effective
Rate.  Nothing herein shall be deemed to
limit the rights of the Administrative Agent or any Lender against the
Borrower.

 

2.12         Requirements of Law.  (a)  
If the adoption of or any change in any Requirement of Law or in the
interpretation or application thereof or compliance by any Lender with any
request or directive (whether or not having the force of law) from any central
bank or other Governmental Authority made subsequent to the date hereof:

 

(i)  shall subject any Lender to any tax of any kind whatsoever
with respect to this Agreement, any Letter of Credit, any Application or any
Eurodollar Loan made by it, or change the basis of taxation of payments to such
Lender in respect thereof (except, in each case, for Non-Excluded Taxes covered
by Section 2.13 and changes in the rate of tax on the overall net income
of such Lender);

 

(ii)  shall impose, modify or hold applicable any reserve, special
deposit, compulsory loan or similar requirement against assets held by,
deposits or other liabilities in or for the account of, advances, loans or
other extensions of credit by, or any other acquisition of funds by, any office
of such Lender that is not otherwise included in the determination of the
Eurodollar Rate; or

 

(iii)    shall impose on
such Lender any other condition;

 

and the result of any of the foregoing is to
increase the cost to such Lender, by an amount that such Lender deems to be
material, of making, converting into, continuing or maintaining Eurodollar
Loans or issuing or participating in Letters of Credit, or to reduce any amount
receivable hereunder in respect thereof, then, in any such case, the Borrower
shall pay such Lender, reasonably promptly after its demand, any additional
amounts necessary to compensate such Lender for such increased cost or reduced
amount receivable.  If any Lender becomes
entitled to claim any additional amounts pursuant to this paragraph, it shall
promptly notify the Borrower (with a copy to the Administrative Agent) of the
event by reason of which it has become so entitled, setting forth in reasonable
detail the calculations upon which such Lender determined such amounts.

 

 

(b)  If
any Lender shall have determined that the adoption of or any change in any
Requirement of Law regarding capital adequacy or in the interpretation or
application thereof or compliance by such Lender or any corporation controlling
such Lender with any request or directive regarding capital adequacy (whether
or not having the force of law) from any Governmental Authority made subsequent
to the date hereof shall have the effect of reducing the rate of return on such
Lender’s or such corporation’s capital as a consequence of its obligations
hereunder or under or in respect of any Letter of Credit to a level below that
which such Lender or such corporation could have achieved but for such
adoption, change or compliance (taking into consideration such Lender’s or such
corporation’s policies with respect to capital adequacy) by an amount deemed by
such Lender to be material, then from time to time, after submission by such
Lender to the Borrower (with a copy to the Administrative Agent) of a written
request therefor setting forth in reasonable detail the calculations upon which
such Lender determined such amounts, the Borrower shall pay to such Lender
reasonably promptly after such submission such additional amount or amounts as
will compensate such Lender or such corporation for such reduction.

 

(c)  A
certificate as to any additional amounts payable pursuant to this Section submitted
by any Lender to the Borrower (with a copy to the Administrative Agent) shall
be conclusive in the absence of manifest error. 
Notwithstanding anything to the contrary in this Section, the Borrower
shall not be required to compensate a Lender pursuant to this Section for
any amounts incurred more than six months prior to the date that such Lender
notifies the Borrower of such Lender’s intention to claim compensation
therefor; provided that, if within such six-month period circumstances
occur that give rise to such claim having a retroactive effect, then such
six-month period shall be extended to include the period of such retroactive
effect.  The obligations of the Borrower
pursuant to this Section shall survive the termination of this Agreement
and the payment of the Revolving Loans and all other amounts payable hereunder.

 

2.13         Taxes.  (a) All payments made by the Borrower
under this Agreement shall be made free and clear of, and without deduction or
withholding for or on account of, any present or future income, stamp or other
taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now
or hereafter imposed, levied, collected, withheld or assessed by any
Governmental Authority, excluding net income taxes and franchise taxes (imposed
in lieu of net income taxes) imposed on the Administrative Agent or any Lender
as a result of a present or former connection between the Administrative Agent
or such Lender and the jurisdiction of the Governmental Authority imposing such
tax or any political subdivision or taxing authority thereof or therein (other
than any such connection arising solely from the Administrative Agent or such
Lender having executed, delivered or performed its obligations or received a
payment under, or enforced, this Agreement or any other Loan Document).  If any such non-excluded taxes, levies,
imposts, duties, charges, fees, deductions or withholdings (“Non-Excluded
Taxes”) or Other Taxes are required to be withheld from any amounts payable
to the Administrative Agent or any Lender hereunder, the amounts so payable to
the Administrative Agent or such Lender shall be increased to the extent
necessary to yield to the Administrative Agent or such Lender (after payment of
all Non-Excluded Taxes and Other Taxes) interest or any such other amounts
payable hereunder at the rates or in the amounts specified in this Agreement, provided,
however, that the Borrower shall not be required to increase any such
amounts payable to any Lender with respect to any Non-Excluded Taxes (i) that
are attributable to such Lender’s failure to comply with the requirements of
paragraph (d) or (e) of this Section or (ii) that are
United States withholding taxes imposed on amounts payable to such Lender at
the time such Lender becomes a party to this Agreement, except to the extent
that such Lender’s assignor (if any) was entitled, at the time of assignment,
to receive such additional amounts from the Borrower with respect to such
Non-Excluded Taxes pursuant to this paragraph, so long as such additional
amounts payable by the Borrower are not increased thereby.

 

 

(b)  In
addition, the Borrower shall pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

 

(c) 
Whenever any Non-Excluded Taxes or Other Taxes are payable by the Borrower, as
promptly as possible thereafter the Borrower shall send to the Administrative
Agent for its own account or for the account of the relevant Lender, as the
case may be, a certified copy of an original official receipt received by the
Borrower showing payment thereof or such other evidence of payment as is
reasonably satisfactory to the Administrative Agent.  If the Borrower fails to pay any Non-Excluded
Taxes or Other Taxes when due to the appropriate taxing authority or fails to
remit to the Administrative Agent the required receipts or other documentary
evidence, the Borrower shall indemnify the Administrative Agent and the Lenders
for any incremental Non-Excluded Taxes, interest or penalties that may become payable
by the Administrative Agent or any Lender as a result of any such failure.

 

(d)   Each Lender (or Transferee) that is not a “U.S.
Person” as defined in Section 7701(a)(30) of the Code (a “Non-U.S.
Lender”) shall deliver to the Borrower and the Administrative Agent (or, in
the case of a Participant, to the Lender from which the related participation
shall have been purchased) two copies of either U.S. Internal Revenue Service Form W-8BEN
or Form W-8ECI, or, in the case of a Non-U.S. Lender claiming exemption
from U.S. federal withholding tax under Section 871(h) or 881(c) of
the Code with respect to payments of “portfolio interest”, a statement
substantially in the form of Exhibit C and a Form W-8BEN, or
any subsequent versions thereof or successors thereto, properly completed and
duly executed by such Non-U.S. Lender claiming complete exemption from, or a
reduced rate of, U.S. federal withholding tax on all payments by the Borrower
under this Agreement and the other Loan Documents.  Such forms shall be delivered by each Non-U.S.
Lender on or before the date it becomes a party to this Agreement (or, in the
case of any Participant, on or before the date such Participant purchases the
related participation).  In addition,
each Non-U.S. Lender shall deliver such forms promptly upon the obsolescence or
invalidity of any form previously delivered by such Non-U.S. Lender.  Each Non-U.S. Lender shall promptly notify
the Borrower at any time it determines that it is no longer in a position to
provide any previously delivered certificate to the Borrower (or any other form
of certification adopted by the U.S. taxing authorities for such purpose).  Notwithstanding any other provision of this
paragraph, a Non-U.S. Lender shall not be required to deliver any form pursuant
to this paragraph that such Non-U.S. Lender is not legally able to deliver.

 

(e)  A
Lender that is entitled to an exemption from or reduction of non-U.S.
withholding tax under the law of the jurisdiction in which the Borrower is
located, or any treaty to which such jurisdiction is a party, with respect to
payments under this Agreement shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law or
reasonably requested by the Borrower, such properly completed and executed
documentation prescribed by applicable law as will permit such payments to be
made without withholding or at a reduced rate, provided that such Lender
is legally entitled to complete, execute and deliver such documentation and in
such Lender’s judgment such completion, execution or submission would not
materially prejudice the legal position of such Lender.

 

(f)  If the Administrative Agent or any Lender
determines, in its sole discretion, that it has received a refund of any Non-Excluded
Taxes or Other Taxes as to which it has been indemnified by the Borrower or
with respect to which the Borrower has paid additional amounts pursuant to this
Section 2.13, it shall pay over such refund to the Borrower (but only to
the extent of indemnity payments made, or additional amounts paid, by the
Borrower under this Section 2.13 with respect to the Non-Excluded Taxes or
Other Taxes giving rise to such refund), net of all associated out-of-pocket
expenses of the Administrative Agent or such Lender and without interest (other
than any interest paid by the relevant Governmental Authority with respect to
such refund); provided, that the Borrower, upon the request of the
Administrative Agent or such Lender, shall repay the amount paid over to the Borrower
(plus any

 

 

penalties,
interest or other charges imposed by the relevant Governmental Authority) to
the Administrative Agent or such Lender in the event the Administrative Agent
or such Lender is required to repay such refund to such Governmental Authority.
This paragraph shall not be construed to require the Administrative Agent or
any Lender to make available its tax returns (or any other information relating
to its taxes which it deems confidential) to the Borrower or any other Person.

 

(g)  The
agreements in this Section shall survive the termination of this Agreement
and the payment of the Revolving Loans and all other amounts payable hereunder.

 

2.14         Indemnity.  The Borrower agrees to indemnify each Lender
for, and to hold each Lender harmless from, any loss or expense that such
Lender may sustain or incur as a consequence of (a) default by the
Borrower in making a borrowing of, conversion into or continuation of
Eurodollar Loans after the Borrower has given a notice requesting the same in
accordance with the provisions of this Agreement, (b) default by the
Borrower in making any prepayment of or conversion from Eurodollar Loans after
the Borrower has given a notice thereof in accordance with the provisions of
this Agreement or (c) the making of a prepayment of Eurodollar Loans on a
day that is not the last day of an Interest Period with respect thereto.  Such indemnification may include an amount
equal to the excess, if any, of (i) the amount of interest that would have
accrued on the amount so prepaid, or not so borrowed, converted or continued,
for the period from the date of such prepayment or of such failure to borrow,
convert or continue to the last day of such Interest Period (or, in the case of
a failure to borrow, convert or continue, the Interest Period that would have
commenced on the date of such failure) in each case at the applicable rate of
interest for such Revolving Loans provided for herein (excluding, however, the
Applicable Margin included therein, if any) over (ii) the amount of
interest (as reasonably determined by such Lender) that would have accrued to
such Lender on such amount by placing such amount on deposit for a comparable
period with leading banks in the interbank eurodollar market.  A certificate as to any amounts payable
pursuant to this Section submitted to the Borrower by any Lender shall be
conclusive in the absence of manifest error. 
This covenant shall survive the termination of this Agreement and the
payment of the Revolving Loans and all other amounts payable hereunder.

 

2.15         Change of Lending
Office. 
Each Lender agrees that, upon the occurrence of any event giving rise to
the operation of Section 2.12 or 2.13(a) with respect to such Lender,
it will use reasonable efforts (subject to overall policy considerations of
such Lender) to designate another lending office for any Revolving Loans
affected by such event with the object of avoiding the consequences of such
event; provided, that such designation is made on terms that, in the
sole judgment of such Lender, cause such Lender and its lending office(s) to
suffer no economic, legal or regulatory disadvantage, and provided, further,
that nothing in this Section shall affect or postpone any of the
obligations of the Borrower or the rights of any Lender pursuant to Section 2.12
or 2.13(a).

 

2.16         Replacement of
Lenders. 
The Borrower shall be permitted to replace any Lender that (a) requests
reimbursement for amounts owing pursuant to Section 2.12 or 2.13(a), (b) defaults
in its obligation to make Revolving Loans hereunder or (c) is a
Non-Extending Lender, with a replacement financial institution or other entity;
provided that (i) such replacement does not conflict with any
Requirement of Law, (ii) no Event of Default shall have occurred and be
continuing at the time of such replacement, (iii) in the case of clause (a) above,
prior to any such replacement, such Lender shall have taken no action under Section 2.15
so as to eliminate the continued need for payment of amounts owing pursuant to Section 2.12
or 2.13(a), (iv) the replacement financial institution shall purchase, at
par, all Revolving Loans and other amounts owing to such replaced Lender on or
prior to the date of replacement, (v) the Borrower shall be liable to such
replaced Lender under Section 2.14 if any Eurodollar Loan owing to such
replaced Lender shall be purchased other than on the last day of the Interest
Period relating thereto, (vi) the replacement financial institution, if
not already a Lender, shall be reasonably satisfactory to the Administrative
Agent, (vii) the replaced Lender shall be obligated to make such
replacement in

 

 

accordance with the provisions
of Section 10.6 (provided that the Borrower shall be obligated to pay the
registration and processing fee referred to therein), (viii) until such
time as such replacement shall be consummated, the Borrower shall pay all
additional amounts (if any) required pursuant to Section 2.12 or 2.13(a),
as the case may be, and (ix) any such replacement shall not be deemed to
be a waiver of any rights that the Borrower, the Administrative Agent or any
other Lender shall have against the replaced Lender.

 

2.17         Extension of
Revolving Termination Date.  (a) The Borrower may, by written notice
to the Administrative Agent in the form of Exhibit F-1 (the “Extension Request”) given no
earlier than the first anniversary of the Closing Date but no later than 45
days prior to the then applicable Revolving Termination Date, request that the
then applicable Revolving Termination Date be extended to the date that is one
calendar year after the then applicable Revolving Termination Date.  Such extension shall be effective with
respect to each Lender that, by a written notice in the form of Exhibit F-2
(a “Continuation Notice”)
to the Administrative Agent given no later than 20 days prior to the then
applicable Revolving Termination Date, consents, in its sole discretion, to
such extension (each Lender giving a Continuation Notice being referred to
herein as a “Continuing Lender”
and each Lender other than a Continuing Lender being referred to herein as a “Non-Extending Lender”), provided that (i) such extension shall be
effective only if the aggregate Revolving Commitments of the Continuing Lenders
constitute at least 66-2/3% of the Total Revolving Commitments on the
date of the Extension Request, (ii) any Lender that fails to submit a
Continuation Notice at least 20 days prior to the then applicable Revolving
Termination Date shall be deemed not to have consented to such extension and
shall constitute a Non-Extending Lender and (iii) the Borrower may give
only one Extension Request during the term of this Agreement.  No Lender shall have any obligation to
consent to any extension of the Revolving Termination Date.  The Administrative Agent shall notify each
Lender of the receipt of an Extension Request promptly after receipt
thereof.  The Administrative Agent shall
notify the Borrower and the Lenders no later than 15 days prior to the then
applicable Revolving Termination Date whether the Administrative Agent has
received Continuation Notices from Lenders holding Revolving Commitments
aggregating at least 66-2/3% of the Total Revolving Commitments on the
date of the Extension Request.

 

(b) The Revolving
Commitment of each Non-Extending Lender shall terminate at the close of business
on the Revolving Termination Date in effect prior to the delivery of such
Extension Request without giving any effect to such proposed extension.  In accordance with Section 2.1(e), on
such Revolving Termination Date, the Borrower shall pay to the Administrative
Agent, for the account of each Non-Extending Lender, an amount equal to such
Non-Extending Lender’s Revolving Loans, together with accrued but unpaid
interest and fees thereon and all other amounts then payable hereunder to such
Non-Extending Lender.  If, however, on or
before the date which is 10 days prior to the Revolving Termination Date in
effect prior to the delivery of an Extension Request pursuant to this Section 2.17,
the Borrower obtains a replacement Lender pursuant to Section 2.16 for any
such Non-Extending Lender and such replacement Lender agrees to the extension
of the Revolving Termination Date pursuant to this Section 2.17, then such
replacement Lender shall for all purposes of this Section 2.17 and this
Agreement be deemed to be a Continuing Lender, and the Revolving Loans of such
Lender shall not be due and payable pursuant to this Section 2.17(b).

 

SECTION 3.           LETTERS
OF CREDIT

 

3.1           L/C Commitment.  (a) Subject to the terms and conditions
hereof, each Issuing Lender, in reliance on the agreements of the other Lenders
set forth in Section 3.4(a), agrees to issue Letters of Credit for the
account of the Borrower on any Business Day during the Revolving Commitment
Period in such form as may be approved from time to time by such Issuing
Lender; provided that no Issuing Lender shall issue any Letter of Credit
if, (i) after giving effect to such issuance, (A) the L/C Obligations
would exceed the L/C Commitment or (B) the aggregate amount of the
Available Revolving

 

 

Commitments would be less than
zero or (ii) such Issuing Lender shall have received written notice from
the Administrative Agent or the Borrower, at least one Business Day prior to
the requested date of issuance or amendment of the applicable Letter of Credit,
that one or more applicable conditions contained in Section 5.2 shall not
have been satisfied.  On the Closing
Date, each Existing Letter of Credit shall be deemed to be a Letter of Credit
issued hereunder for the account of the Borrower.  Each Letter of Credit shall (i) be
denominated in Dollars and (ii) expire no later than the earlier of (x)
the first anniversary of its date of issuance and (y) the date that is five
Business Days prior to the Revolving Termination Date (as it may be extended), provided
that any Letter of Credit with a one-year term may provide for the renewal
thereof for additional one-year periods (which shall in no event extend beyond
the date referred to in clause (y) above).

 

(b)  No
Issuing Lender shall at any time be obligated to issue any Letter of Credit if
such issuance would conflict with, or cause such Issuing Lender or any L/C
Participant to exceed any limits imposed by, any applicable Requirement of Law.

 

3.2           Procedure for
Issuance of Letter of Credit.  The Borrower may from time to time request
that an Issuing Lender issue a Letter of Credit by delivering to such Issuing
Lender at its address set forth in its Issuing Lender Agreement an Application
therefor, completed to the satisfaction of such Issuing Lender, and such other
certificates, documents and other papers and information as such Issuing Lender
may request.  Upon receipt of any
Application, such Issuing Lender will process such Application and the
certificates, documents and other papers and information delivered to it in
connection therewith in accordance with its customary procedures and shall
promptly issue the Letter of Credit requested thereby (but in no event shall an
Issuing Lender be required to issue any Letter of Credit earlier than three
Business Days after its receipt of the Application therefor and all such other
certificates, documents and other papers and information relating thereto) by
issuing the original of such Letter of Credit to the beneficiary thereof or as
otherwise may be agreed to by such Issuing Lender and the Borrower.  Such Issuing Lender shall furnish a copy of
such Letter of Credit to the Borrower promptly following the issuance
thereof.  The applicable Issuing Lender
shall promptly furnish to the Administrative Agent, which shall in turn
promptly furnish to the Lenders, notice of the issuance of each Letter of
Credit (including the amount thereof).

 

3.3           Fees and Other Charges.  (a) The Borrower will pay a fee on all
outstanding Letters of Credit at a per annum rate equal to the Applicable
Margin then in effect with respect to Eurodollar Loans, shared ratably among
the Lenders and payable quarterly in arrears on each Fee Payment Date after the
issuance date.  In addition, the Borrower
shall pay to the applicable Issuing Lender for its own account a fronting fee
for each Letter of Credit requested by the Borrower in such amount and at such
times as may be set forth in a separate letter agreement between the Borrower
and such Issuing Lender (each, an “Issuing Lender Agreement”), which
shall contain such Issuing Lender’s address for notices..

 

(b)   In addition to the foregoing fees, the
Borrower shall pay or reimburse each Issuing Lender for such normal and
customary costs and expenses as are incurred or charged by such Issuing Lender
in issuing, negotiating, effecting payment under, amending or otherwise
administering any Letter of Credit.

 

3.4           L/C Participations.  (a)  Each Issuing Lender irrevocably
agrees to grant and hereby grants to each L/C Participant, and, to induce such
Issuing Lender to issue Letters of Credit, each L/C Participant irrevocably
agrees to accept and purchase and hereby accepts and purchases from such
Issuing Lender, on the terms and conditions set forth below, for such L/C
Participant’s own account and risk an undivided interest equal to such L/C
Participant’s Revolving Percentage in such Issuing Lender’s obligations and
rights under and in respect of each Letter of Credit and the amount of each
draft paid by

 

 

such Issuing Lender
thereunder.  Each L/C Participant agrees
with each Issuing Lender that, if a draft is paid under any Letter of Credit
for which such Issuing Lender is not reimbursed in full by the Borrower in
accordance with the terms of this Agreement, such L/C Participant shall pay to
such Issuing Lender upon demand at such Issuing Lender’s address for notices
specified herein an amount equal to such L/C Participant’s Revolving Percentage
of the amount of such draft, or any part thereof, that is not so
reimbursed.  Each L/C Participant’s
obligation to pay such amount shall be absolute and unconditional and shall not
be affected by any circumstance, including (i) any setoff, counterclaim,
recoupment, defense or other right that such L/C Participant may have against
such Issuing Lender, the Borrower or any other Person for any reason
whatsoever, (ii) the occurrence or continuance of a Default or an Event of
Default or the failure to satisfy any of the other conditions specified in Section 5,
(iii) any adverse change in the condition (financial or otherwise) of the
Borrower, (iv) any breach of this Agreement or any other Loan Document by
the Borrower or any other L/C Participant or (v) any other circumstance,
happening or event whatsoever, whether or not similar to any of the foregoing

 

(b)  If
any amount required to be paid by any L/C Participant to an Issuing Lender
pursuant to Section 3.4(a) in respect of any unreimbursed portion of
any payment made by such Issuing Lender under any Letter of Credit is paid to
such Issuing Lender within three Business Days after the date such payment is
due, such L/C Participant shall pay to such Issuing Lender on demand an amount
equal to the product of (i) such amount, times (ii) the daily average
Federal Funds Effective Rate during the period from and including the date such
payment is required to the date on which such payment is immediately available
to such Issuing Lender, times (iii) a fraction the numerator of which is
the number of days that elapse during such period and the denominator of which
is 360.  If any such amount required to be
paid by any L/C Participant pursuant to Section 3.4(a) is not made
available to an Issuing Lender by such L/C Participant within three Business
Days after the date such payment is due, such Issuing Lender shall be entitled
to recover from such L/C Participant, on demand, such amount with interest
thereon calculated from such due date at the rate per annum applicable to ABR
Loans.  A certificate of an Issuing
Lender submitted to any L/C Participant with respect to any amounts owing under
this Section shall be conclusive in the absence of manifest error.

 

(c) 
Whenever, at any time after an Issuing Lender has made payment under any Letter
of Credit and has received from any L/C Participant its pro  rata
share of such payment in accordance with Section 3.4(a), such Issuing
Lender receives any payment related to such Letter of Credit (whether directly
from the Borrower or otherwise, including proceeds of collateral applied
thereto by such Issuing Lender), or any payment of interest on account thereof,
such Issuing Lender will distribute to such L/C Participant its pro  rata
share thereof; provided, however, that in the event that any such
payment received by an Issuing Lender shall be required to be returned by such
Issuing Lender, such L/C Participant shall return to such Issuing Lender the
portion thereof previously distributed by such Issuing Lender to it.

 

3.5           Reimbursement
Obligation of the Borrower.  If any draft is paid under any Letter of
Credit, the Borrower shall reimburse the applicable Issuing Lender for the
amount of (a) the draft so paid and (b) any taxes, fees, charges or
other costs or expenses incurred by such Issuing Lender in connection with such
payment, not later than 12:00 Noon, New York City time, on (i) the
Business Day that the Borrower receives notice of such draft, if such notice is
received on such day prior to 10:00 A.M., New York City time, or (ii) if
clause (i) above does not apply, the Business Day immediately following
the day that the Borrower receives such notice. 
Each such payment shall be made to the applicable Issuing Lender at its
address set forth in its Issuing Lender Agreement in Dollars and in immediately
available funds.  Interest shall be
payable on any such amounts from the date on which the relevant draft is paid
until payment in full at the rate set forth in (x) until the Business Day next
succeeding the date of the relevant notice, Section 2.8(b) and (y)
thereafter, Section 2.8(c).

 

 

3.6           Obligations Absolute.  The Borrower’s obligations under this Section 3
shall be absolute and unconditional under any and all circumstances and
irrespective of any setoff, counterclaim or defense to payment that the
Borrower may have or have had against any Issuing Lender, any beneficiary of a
Letter of Credit or any other Person. 
The Borrower also agrees with each Issuing Lender that, absent gross
negligence or willful misconduct of such Issuing Lender, such Issuing Lender
shall not be responsible for, and the Borrower’s Reimbursement Obligations
under Section 3.5 shall not be affected by, among other things, the
validity or genuineness of documents or of any endorsements thereon, even
though such documents shall in fact prove to be invalid, fraudulent or forged,
or any dispute between or among the Borrower and any beneficiary of any Letter
of Credit or any other party to which such Letter of Credit may be transferred
or any claims whatsoever of the Borrower against any beneficiary of such Letter
of Credit or any such transferee.  No
Issuing Lender shall be liable for any error, omission, interruption or delay
in transmission, dispatch or delivery of any message or advice, however
transmitted, in connection with any Letter of Credit, except for errors or
omissions resulting from the gross negligence or willful misconduct of such
Issuing Lender.  The Borrower agrees that
any action taken or omitted by an Issuing Lender under or in connection with
any Letter of Credit or the related drafts or documents, if done in the absence
of gross negligence or willful misconduct, shall be binding on the Borrower and
shall not result in any liability of such Issuing Lender to the Borrower; provided
that the Borrower shall not be precluded from asserting any claim for direct
(but not consequential) damages suffered by the Borrower to the extent caused
by (i) the gross negligence or willful misconduct of such Issuing Lender
in determining whether a request presented under any Letter of Credit issued by
it complied with the terms of such Letter of Credit or (ii) such Issuing
Lender’s willful failure or gross negligence in failing to pay under any Letter
of Credit issued by it after the presentation to it of a request strictly
complying with the terms and conditions of such Letter of Credit.

 

3.7           Letter of Credit Payments.  If any draft shall be presented for payment
under any Letter of Credit, the applicable Issuing Lender shall promptly notify
the Borrower of the date and amount thereof. 
The responsibility of the applicable Issuing Lender to the Borrower in
connection with any draft presented for payment under any Letter of Credit
shall, in addition to any payment obligation expressly provided for in such
Letter of Credit, be limited to determining that the documents (including each
draft) delivered under such Letter of Credit in connection with such
presentment are substantially in conformity with such Letter of Credit.

 

3.8           Applications.  To the extent that any provision of any
Application related to any Letter of Credit is inconsistent with the provisions
of this Section 3, the provisions of this Section 3 shall apply.

 

SECTION 4.           REPRESENTATIONS AND
WARRANTIES

 

To induce the Administrative Agent and the Lenders
to enter into this Agreement and to make the Revolving Loans and issue or
participate in the Letters of Credit, the Borrower hereby represents and
warrants to the Administrative Agent and each Lender that:

 

4.1           Financial Condition.  The audited consolidated balance sheet of the
Borrower as of December 31, 2004, and the related consolidated statement
of income and cash flows for the fiscal year then ended, reported on by and
accompanied by an unqualified report from Deloitte & Touche LLP,
present fairly the consolidated financial condition of the Borrower as of such
date, and the consolidated results of its operations and its consolidated cash
flows for the fiscal year then ended. 
All such financial statements, including the related schedules and notes
thereto, have been prepared in accordance with GAAP applied consistently
throughout the periods involved (except as approved by the aforementioned firm
of accountants and disclosed therein). 
Except as set forth on Schedule 4.1, neither the Borrower nor any
Significant Subsidiary has any material Guarantee Obligations, contingent
liabilities and liabilities for

 

 

taxes, or any long-term leases
or unusual forward or long-term commitments, including any interest rate or
foreign currency swap or exchange transaction or other obligation in respect of
derivatives, that are not reflected in the most recent financial statements
referred to in this paragraph.

 

4.2           No Change.  Except as set forth on Schedule 4.2,
since December 31, 2004, there has been no development or event that has
had or could reasonably be expected to have a Material Adverse Effect.

 

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

 

4.4           Power; Authorization; Enforceable
Obligations.  The Borrower has the
corporate power and authority to make, deliver and perform the Loan Documents
to which it is a party and to obtain extensions of credit hereunder.  The Borrower has taken all necessary
organizational action to authorize the execution, delivery and performance of
the Loan Documents to which it is a party and to authorize the extensions of
credit on the terms and conditions of this Agreement.  No consent or authorization of, filing with,
notice to or other act by or in respect of, any Governmental Authority or any
other Person is required in connection with (a) any extension of credit
hereunder when made (except for consents, authorizations, filings, notices or
other acts required with respect to such extension of credit that have been
obtained or made and are in full force and effect at the time of such extension
of credit) or (b) the execution, delivery, performance, validity or
enforceability of this Agreement or any of the Loan Documents.  Each Loan Document has been duly executed and
delivered on behalf of the Borrower. 
This Agreement constitutes, and each other Loan Document upon execution
will constitute, a legal, valid and binding obligation of the Borrower, enforceable
against the Borrower in accordance with its terms, except as enforceability may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting the enforcement of creditors’ rights generally and by
general equitable principles (whether enforcement is sought by proceedings in
equity or at law).

 

4.5           No Legal Bar.  The execution, delivery and performance of
this Agreement and the other Loan Documents, the issuance of Letters of Credit,
the borrowings hereunder and the use of the proceeds thereof will not (a) violate
any (i) Requirement of Law or (ii) Contractual Obligation of the
Borrower or any Significant Subsidiary (except in the case of this clause (a) to
the extent any such violations could not, in the aggregate, reasonably be
expected to have a Material Adverse Effect) and (b) result in, or require,
the creation or imposition of any Lien on any of their respective properties or
revenues pursuant to any Requirement of Law or any such Contractual Obligation.

 

4.6           Litigation.  Except as set forth on Schedule 4.6, no
litigation, investigation or proceeding of or before any arbitrator or
Governmental Authority is pending or, to the knowledge of the Borrower,
threatened by or against the Borrower or any Significant Subsidiary or against
any of their respective properties or revenues (a) with respect to any of
the Loan Documents or any of the transactions contemplated hereby or thereby,
or (b) that could reasonably be expected to have a Material Adverse
Effect.

 

 

4.7           Ownership of Property; Liens.  Except (i) for assets disposed of in the
ordinary course of business since December 31, 2004 and (ii) as set
forth on Schedule 4.7, on the Closing Date the Borrower and its
Significant Subsidiaries have good title, free of all Liens other than
Permitted Liens, to all of the material assets reflected in the Borrower’s
consolidated balance sheet as of December 31, 2004 as owned by the
Borrower and/or its Significant Subsidiaries.

 

4.8           Taxes.  Each of the Borrower and each Significant
Subsidiary has filed or caused to be filed all Federal, state and other
material tax returns that are required to be filed and has paid all taxes shown
to be due and payable on said returns or on any assessments made against it or
any of its property and all other taxes, fees or other charges imposed on it or
any of its property by any Governmental Authority (other than (i) those
that are not in the aggregate material and (ii) any taxes, fees or other
charges the amount or validity of which are currently being contested in good
faith by appropriate proceedings and with respect to which reserves in
conformity with GAAP have been provided on the books of the Borrower or such
Significant Subsidiary).

 

4.9           Federal Regulations.  No part of the proceeds of any Revolving
Loans, and no other extensions of credit hereunder, will be used (a) for “buying”
or “carrying” any “margin stock” within the respective meanings of each of the
quoted terms under Regulation U as now and from time to time hereafter in
effect for any purpose that violates the provisions of the Regulations of the
Board or (b) for any purpose that violates the provisions of the
Regulations of the Board.  If requested
by any Lender or the Administrative Agent, the Borrower will furnish to the
Administrative Agent and each Lender a statement to the foregoing effect in
conformity with the requirements of FR Form G-3 or FR Form U-1,
as applicable, referred to in Regulation U.

 

4.10         ERISA.  Except as could not reasonably be expected to
have a Material Adverse Effect, (a) neither a Reportable Event nor an “accumulated
funding deficiency” (within the meaning of Section 412 of the Code or Section 302
of ERISA), as applicable, has occurred during the five-year period prior to the
date on which this representation is made or deemed made with respect to any
Plan subject to Title IV of ERISA, Section 412 of the Code or Section 302
of ERISA, and each Plan has complied in all material respects with the
applicable provisions of ERISA and the Code; (b) no termination of a
Single Employer Plan has occurred, and no Lien on the assets of the Borrower or
any Significant Subsidiary in favor of the PBGC or a Plan has arisen, during
such five-year period; (c) the present value of all accrued benefits under
each Single Employer Plan (based on those assumptions used to fund such Plans)
did not, as of the last annual valuation date for which a valuation report is
available prior to the date on which this representation is made or deemed
made, exceed the value of the assets of such Plan allocable to such accrued
benefits by a material amount; and (d) neither the Borrower nor any
Commonly Controlled Entity has had a complete or partial withdrawal from any
Multiemployer Plan that has resulted or could reasonably be expected to result
in a material liability under ERISA, and, to the knowledge of the Borrower or
any Commonly Controlled Entity, neither the Borrower nor any Commonly
Controlled Entity would become subject to any material liability under ERISA if
the Borrower or any Commonly Controlled Entity were to withdraw completely from
all Multiemployer Plans as of the valuation date most closely preceding the
date on which this representation is made or deemed made.  Neither the Borrower nor any Commonly
Controlled Entity has knowledge that any such Multiemployer Plan is in
Reorganization or Insolvent.

 

4.11         Investment Company Act; Other
Regulations.  The Borrower is not an “investment
company”, or a company “controlled” by an “investment company”, within the
meaning of the Investment Company Act of 1940, as amended.  The Borrower is not subject to regulation
under any Requirement of Law (other than Regulation X of the Board, the New
Mexico Public Regulation Commission and PUHCA) that limits its ability to incur
Indebtedness.

 

 

4.12         Use of Proceeds.  The proceeds of the Revolving Loans and the
Letters of Credit shall be used to effect the Refinancing, to pay fees and
expenses incurred in connection therewith and for general corporate purposes
(including commercial paper support).

 

4.13         Accuracy of Information, etc.  The information, taken as a whole, contained
in this Agreement, the other Loan Documents, the Confidential Information
Memorandum or the other documents, certificates or statements furnished by or
on behalf of the Borrower to the Administrative Agent or the Lenders, or any of
them, for use in connection with the transactions contemplated by this
Agreement or the other Loan Documents, did not contain as of the date such
information was so furnished (or, in the case of the Confidential Information
Memorandum, together with all other information so furnished to the Lenders
prior to the Closing Date, as of the date of this Agreement), any untrue
statement of a material fact or omit to state a material fact necessary to make
the information contained herein or therein not misleading in light of the
circumstances under which such information was furnished.  The projections and pro  forma
financial information contained in the materials referenced above are based
upon good faith estimates and assumptions believed by management of the
Borrower to be reasonable at the time made, it being recognized by the Lenders
that such financial information as it relates to future events is not to be
viewed as fact and that actual results during the period or periods covered by
such financial information may differ from the projected results set forth
therein by a material amount.

 

4.14         Solvency.  The Borrower is, and after giving effect to
the incurrence of all Indebtedness and obligations being incurred in connection
herewith will be, Solvent.

 

SECTION 5.           CONDITIONS PRECEDENT

 

5.1           Conditions to Initial Extension of
Credit.  The agreement of each Lender
to make the initial extension of credit requested to be made by it is subject
to the satisfaction, prior to or concurrently with the making of such extension
of credit on the Closing Date, of the following conditions precedent:

 

(a)  Credit
Agreement.  The Administrative Agent
shall have received this Agreement or, in the case of the Lenders, an Addendum,
executed and delivered by the Administrative Agent, the Borrower and each
Person listed on Schedule 1.1A.

 

(b)  Termination of Existing Credit Facility.  The Administrative Agent shall have received
satisfactory evidence that the Existing Credit Agreement shall have been
terminated, all commitments thereunder shall have been terminated and all
amounts owing thereunder shall have been paid in full (the “Refinancing”).

 

(c)  Financial Statements.  The Lenders shall have received audited
consolidated financial statements of the Borrower for the 2002, 2003 and 2004
fiscal years, and such financial statements shall not, in the reasonable
judgment of the Lenders, reflect any material adverse change in the
consolidated financial condition of the Borrower, as reflected in the financial
statements or projections contained in the Confidential Information Memorandum.

 

(d)  Projections.  The Lenders shall have received satisfactory
projections, on an annual basis, of the Borrower and its Subsidiaries through
2009.

 

 

(e)  Approvals.  All governmental and third party approvals,
if any, required as of the Closing Date in connection with the Refinancing and
the transactions contemplated hereby shall have been obtained on satisfactory
terms and shall be in full force and effect.

 

(f)  Fees. 
The Lenders and the Administrative Agent shall have received all fees
required to be paid, and all expenses for which invoices have been presented
(including the reasonable fees and expenses of legal counsel), on or before the
Closing Date.

 

(g)  Closing Certificate; Certified Articles of
Incorporation; Good Standing Certificates. 
The Administrative Agent shall have received (i) a certificate of
the Borrower, dated the Closing Date, substantially in the form of Exhibit A,
with appropriate insertions and attachments, including the articles of
incorporation of the Borrower certified by the relevant authority of the
jurisdiction of organization of the Borrower, and (ii) a long form good
standing certificate for the Borrower from its jurisdiction of organization.

 

(h)  Legal Opinions.  The Administrative Agent shall have received
the following executed legal opinions:

 

(i)    the legal opinion of Jones Day, special New
York counsel to the Borrower; and

 

(ii)   the legal opinion of Hinkle, Hensley, Shanor &
Martin.

 

Each such legal opinion shall
cover such matters incident to the transactions contemplated by this Agreement
as the Administrative Agent may reasonably require.

 

5.2           Conditions to Each Extension of
Credit.  The agreement of each Lender
to make any extension of credit requested to be made by it on any date
(including its initial extension of credit) is subject to the satisfaction of
the following conditions precedent:

 

(a)      Representations and Warranties.  Each of the representations and warranties
made by the Borrower in or pursuant to the Loan Documents (other than the
representations and warranties contained in Sections 4.2 and 4.6, which
representations and warranties need only be true and correct on and as of the
Closing Date) shall be true and correct in all material respects on and as of
such date as if made on and as of such date, except to the extent any such
representation or warranty is stated to relate solely to an earlier date, in
which case such representation or warranty shall have been true and correct in
all material respects as of such earlier date.

 

(b)     No Default.  No Default or Event of Default shall have
occurred and be continuing on such date or after giving effect to the
extensions of credit requested to be made on such date.

 

(c)      Other Documents.  In the case of any extension of credit made
on an Increased Revolving Commitment Closing Date, the Administrative Agent
shall have received such customary documents and information as it may
reasonably request.

 

Each borrowing by and
issuance of a Letter of Credit on behalf of the Borrower hereunder shall
constitute a representation and warranty by the Borrower as of the date of such
extension of credit that the conditions contained in this Section 5.2 have
been satisfied.

 

 

SECTION 6.           AFFIRMATIVE COVENANTS

 

The Borrower hereby agrees that, so long as the
Revolving Commitments remain in effect, any Letter of Credit remains
outstanding or any Revolving Loan or other amount is owing to any Lender or the
Administrative Agent hereunder:

 

6.1           Financial Statements.  The Borrower shall furnish to the
Administrative Agent (which shall in turn furnish to the Lenders):

 

(a)      as soon as available, but in any event
within 90 days after the end of each fiscal year of the Borrower, a copy
of the audited consolidated balance sheet of the Borrower and its consolidated
Subsidiaries as of the end of such year and the related audited consolidated
statements of income and of cash flows for such year, setting forth in each
case in comparative form the figures for the previous year, reported on without
a “going concern” or like qualification or exception, or qualification arising
out of the scope of the audit, by Deloitte & Touche LLP or other
independent certified public accountants of nationally recognized standing; and

 

(b)     as soon as available, but in any event not
later than 45 days after the end of each of the first three quarterly periods
of each fiscal year of the Borrower, the unaudited consolidated balance sheet
of the Borrower and its consolidated Subsidiaries as at the end of such quarter
and the related unaudited consolidated statements of income and of cash flows
for such quarter and the portion of the fiscal year through the end of such
quarter, setting forth in each case in comparative form the figures for the
previous year, certified by a Responsible Officer as being fairly stated in all
material respects (subject to normal year-end audit adjustments).

 

All such financial
statements shall present fairly, in all material respects, the financial
position of the Borrower and its Subsidiaries and shall be prepared in
reasonable detail and in accordance with GAAP applied (except as approved by
such accountants or officer, as the case may be, and disclosed in reasonable
detail therein) consistently throughout the periods reflected therein and with
prior periods.

 

6.2           Certificates; Other Information.  The Borrower shall furnish to the
Administrative Agent (which shall in turn furnish to the Lenders, or, in the
case of clause (c), to the relevant Lender):

 

(a)      concurrently with the delivery of any
financial statements pursuant to Section 6.1, (i) a certificate of a
Responsible Officer stating that, to the best of such Responsible Officer’s
knowledge, during such period the Borrower has observed or performed all of its
covenants and other agreements, and satisfied every condition contained in this
Agreement and the other Loan Documents to which it is a party to be observed,
performed or satisfied by it, and that such Responsible Officer has obtained no
knowledge of any Default or Event of Default except as specified in such
certificate and (ii) a compliance certificate containing all information
and calculations necessary for determining compliance by the Borrower with the
provisions of Section 7.1 of this Agreement as of the last day of the
fiscal quarter or fiscal year of the Borrower, as the case may be;

 

(b)     within five days after the same are sent,
copies of all financial statements and reports that the Borrower sends to the
holders of any class of its debt securities or public equity securities and,
within five days after the same are filed, copies of all reports on Forms 10-K,
10-Q and 8-K that the Borrower files with the SEC; and

 

 

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

 

6.3           Payment of Obligations and Taxes.  The Borrower shall and shall cause each of
its Significant Subsidiaries to pay, discharge or otherwise satisfy at or
before maturity or before they become delinquent, as the case may be, all its
obligations (including, without limitation, obligations with respect to taxes)
of whatever nature which, if unpaid, undischarged or otherwise unsatisfied are
or might become a Lien or other charge upon any properties of the Borrower or
any Significant Subsidiary, except that neither the Borrower nor any Subsidiary
shall be required to pay, discharge or otherwise satisfy any such obligation (a) whose
amount, applicability or validity is being contested in good faith by
appropriate proceedings and for which the Borrower or such Subsidiary has
provided adequate reserves in accordance with GAAP or (ii) where failure
to pay, discharge or otherwise satisfy such obligation could not, in the
aggregate, reasonably be expected to result in a Material Adverse Effect.

 

6.4           Maintenance of Existence;
Compliance.  The Borrower shall and
shall cause each of its Significant Subsidiaries:

 

(a)  to
preserve, renew and keep in full force and effect its organizational existence,
except as otherwise permitted by Section 7.3;

 

(b)  to
take all reasonable action to maintain all rights, privileges and franchises
necessary or desirable in the normal conduct of its business, except (i) as
otherwise permitted by Section 7.3 and (ii) to the extent that
failure to do so could not, in the aggregate, reasonably be expected to have a
Material Adverse Effect; and

 

(c) 
to comply with all Contractual Obligations and Requirements of Law, except to
the extent that failure to comply therewith could not, in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

6.5           Maintenance of Property; Insurance.  The Borrower shall and shall cause each of
its Significant Subsidiaries to (a) keep all property useful and necessary
in its business in good working order and condition, ordinary wear and tear
excepted and except where the failure to do so could not, in the aggregate,
reasonably be expected to result in a Material Adverse Effect, and (b) maintain
with financially sound and reputable insurance companies insurance on its
property in at least such amounts (subject to deductibles and self-retention
limits) and against at least such risks as are usually insured against in the
same general area by companies engaged in the same or a similar business.

 

6.6           Inspection of Property; Books and
Records; Discussions.  The Borrower
shall and shall cause each of its Significant Subsidiaries to (a) keep
proper books of records and account in which full, true and correct entries in
conformity with GAAP and all Requirements of Law shall be made of all dealings
and transactions in relation to its business and activities and (b) from
time to time during normal business hours and on reasonable prior notice,
permit representatives of any Lender to visit and inspect any of its properties
(subject to such physical security
requirements as the Borrower or the applicable Significant Subsidiary may
require) and examine and make abstracts from any of its books and
records (except to the extent that such
access is restricted by law or by a bona fide non-disclosure agreement not
entered into for the purpose of evading the requirements of this Section 6.6),
at any reasonable time and as often as may reasonably be desired and to
discuss the business, operations, properties and financial and other condition
of the Borrower and the Significant Subsidiaries with officers and employees of
the Borrower and the Significant Subsidiaries and with their independent
certified public accountants.

 

 

6.7           Notices.  Promptly after any officer of the Borrower
with responsibility for the matter in question becomes aware thereof, the
Borrower shall give notice to the Administrative Agent (which shall in turn
furnish such notice to the Lenders) of:

 

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

 

(b)  any (i) default or event of default
under any Contractual Obligation of the Borrower or any Significant Subsidiary
or (ii) litigation, investigation or proceeding that may exist at any time
between the Borrower or any Significant Subsidiary, on the one hand, and any
Governmental Authority, on the other hand, that in either case, if not cured
could reasonably be expected to have a Material Adverse Effect;

 

(c)  (i) the occurrence of any Reportable
Event with respect to any Plan, a failure to make any required contribution to
a Plan, the creation of any Lien in favor of the PBGC or a Plan or any
withdrawal from, or the termination, Reorganization or Insolvency of, any
Multiemployer Plan or (ii) the institution of proceedings or the taking of
any other action by the PBGC or the Borrower or any Commonly Controlled Entity
or any Multiemployer Plan with respect to the withdrawal from, or the
termination, Reorganization or Insolvency of, any Plan, which in any case could
reasonably be expected to have a Material Adverse Effect; and

 

(d)  any development or event that has had or
could reasonably be expected to have a Material Adverse Effect.

 

Each notice pursuant to this
Section 6.7 shall be accompanied by a statement of a Responsible Officer
setting forth details of the occurrence referred to therein and stating what
action the Borrower or such Significant Subsidiary proposes to take with
respect thereto.

 

6.8           Environmental Laws. The
Borrower shall and shall cause each of its Significant Subsidiaries to:

 

(a)  except to the
extent that failure to do so could not, in the aggregate, reasonably be
expected to have a Material Adverse Effect, comply with, and ensure compliance
by all tenants and subtenants, if any, with, all applicable Environmental Laws,
and obtain and comply with and maintain, and ensure that all tenants and
subtenants, if any, obtain and comply with and maintain, any and all licenses,
approvals, notifications, registrations or permits required by applicable
Environmental Laws; and

 

(b)  except to the
extent that failure to do so could not, in the aggregate, reasonably be
expected to have a Material Adverse Effect, conduct and complete all
investigations, studies, sampling and testing, and all remedial, removal and
other actions required under Environmental Laws and promptly comply in all
material respects with all lawful orders and directives of all Governmental
Authorities regarding Environmental Laws.

 

6.9           Ownership of Significant
Subsidiaries.  Except as permitted by
Section 6.11 or 7.3, the Borrower shall at all times, directly or
indirectly own, beneficially and of record, 100% of each class of issued and
outstanding common stock of each Significant Subsidiary.

 

6.10         Scope of Business.  The Borrower shall, and shall cause each
Significant Subsidiary to, engage only in energy-related businesses,
functionally related businesses (as interpreted under PUHCA) or such other
businesses as may be permitted pursuant to an order issued by the SEC pursuant
to PUHCA.

 

 

6.11         Significant Subsidiaries.  So long as no Default or Event of Default
then exists or arises as a result thereof, the Borrower may from time to time
by written notice delivered to the Administrative Agent:

 

(a)  designate any Subsidiary as a Significant Subsidiary; and

 

(b)  with respect to any Designated Significant Subsidiary, revoke
its designation as a Significant Subsidiary; provided that the assets of
such Designated Significant Subsidiary could
have been disposed of pursuant to the provisions of Section 7.4 if such
transaction were treated as a Disposition of the assets of such Designated
Significant Subsidiary.

 

SECTION 7.           NEGATIVE COVENANTS

 

The Borrower hereby agrees that, so long as the
Revolving Commitments remain in effect, any Letter of Credit remains
outstanding or any Revolving Loan or other amount is owing to any Lender or the
Administrative Agent hereunder:

 

7.1           Ratio of Funded Debt to Total
Capital.  The Borrower shall not
permit the ratio of Funded Debt of the Borrower and its Subsidiaries on a
consolidated basis to Total Capital as at the last day of any fiscal quarter of
the Borrower to exceed 0.65 to 1.00.

 

7.2           Liens.  The Borrower shall not, and shall not permit
any of its Significant Subsidiaries to, directly or indirectly, create, incur,
assume or suffer to exist any Lien upon any of its property, whether now owned
or hereafter acquired, except for Permitted Liens.

 

7.3           Fundamental Changes.  The Borrower shall not, and shall not permit
any of its Significant Subsidiaries to, directly or indirectly, merge or
consolidate with any Person, except that, if after giving effect thereto no
Default or Event of Default would exist, this Section 7.3 shall not apply
to (a) any merger or consolidation of the Borrower with any one or more
Persons so long as (i) the successor entity (if other than the Borrower)
assumes, in form reasonably satisfactory to the Administrative Agent, all of
the obligations of the Borrower under this Agreement, (ii) the successor
(whether or not the Borrower) has a debt rating issued (and confirmed after
giving effect to such merger or consolidation) by S&P and Moody’s of at
least BBB- and Baa3, in each case with a stable outlook and (iii) the
successor (whether or not the Borrower) is a “public utility company” (as
defined in PUHCA), (b) any merger or consolidation of a Significant
Subsidiary with another Subsidiary, provided that the continuing Person
shall be a Significant Subsidiary, and (c) any
merger or consolidation of a Significant Subsidiary with another Person if
after giving effect thereto the survivor is no longer a Significant Subsidiary
and the assets of such Significant Subsidiary could have been Disposed of
pursuant to the provisions of Section 7.4 if such transaction were treated
as a Disposition of the assets of such Significant Subsidiary.  In the event of any merger or
consolidation of or by the Borrower in which the Borrower is not the surviving
entity, the surviving entity of such merger or consolidation shall deliver to
the Administrative Agent for the benefit of the Lenders all information
reasonably necessary to comply with the identification requirements of the Act
(as defined in Section 10.17).

 

7.4           Disposition of Property.  The Borrower shall not, and shall not permit
any of its Significant Subsidiaries to, directly or indirectly, Dispose of any
of its property, whether now owned or hereafter acquired, except:

 

(a)  any Disposition of any asset or any interest
therein in the ordinary course of business;

 

(b)  any Disposition of any obsolete or retired
property not used or useful in its business;

 

 

(c)  any Disposition of any asset or any interest
therein to the Borrower or a Significant Subsidiary;

 

(d)  Dispositions
of assets to the extent that the net proceeds thereof are invested or
re-invested, or held as cash or cash equivalents for reinvestment, in each case
in other energy-related assets of the Borrower or any Significant Subsidiary;

 

(e)  the transfer of operational control of
transmission assets by the Borrower or any Significant Subsidiary to a regional
transmission organization, independent system operator or independent
transmission company approved by or required by the FERC pursuant to a FERC
order; and

 

(f)  any Disposition of any asset or any interest
therein the book value of which, together with the book value of any other
assets and interests therein Disposed of by the Borrower and the Significant
Subsidiaries during the twelve-month period ending with the month during which
such Disposition occurs, other than Dispositions to which this Section 7.4
does not otherwise apply by virtue of clauses (a), (b), (c), (d) or (e) hereof,
represents less than 10% of the consolidated total assets of the Borrower and
its Subsidiaries, as reflected on the financial statements most recently
delivered pursuant to Section 6.1(a) or (b) prior to such
Disposition, provided that the book value of all assets and interests
Disposed of before the Revolving Termination Date pursuant to this clause (f) shall
not exceed 30% of the consolidated total assets of the Borrower and its
Subsidiaries, as reflected on the financial statements most recently delivered
pursuant to Section 6.1(a) or (b) prior to such Disposition.

 

7.5           Transactions with Affiliates.  The Borrower shall not, and shall not permit
any of its Significant Subsidiaries to, directly or indirectly, enter into any
transaction with any Affiliate (other than the Borrower or any Significant
Subsidiary) unless such transaction is upon fair and reasonable terms no less
favorable to the Borrower or such Significant Subsidiary than it would obtain
in a comparable arm’s length transaction with a Person that is not an
Affiliate; provided, however, that this Section 7.5 shall
not prohibit (a) any transaction subject to the jurisdiction of the FERC,
the SEC or any applicable state regulatory commission or (b) any
allocation of taxes, tax benefits and tax credits required by PUHCA.

 

7.6           Swap Agreements.  The Borrower shall not, and shall not permit
any of its Significant Subsidiaries to, directly or indirectly, enter into any
Swap Agreement, except (a) Swap Agreements entered into to hedge or
mitigate risks to which the Borrower or any Significant Subsidiary has actual
exposure or in respect of an anticipated transaction and (b) Swap
Agreements entered into in order to effectively cap, collar or exchange
interest rates (from fixed to floating rates, from one floating rate to another
floating rate or otherwise) with respect to any interest-bearing liability or
investment of the Borrower or any Significant Subsidiary.

 

7.7           Clauses Restricting Subsidiary
Distributions.  The Borrower shall
not, and shall not permit any of its Significant Subsidiaries to, directly or
indirectly, enter into or suffer to exist or become effective (including by way
of amendment, supplement or other modification of an agreement existing on the
Closing Date) any consensual encumbrance or restriction on the ability of any
Significant Subsidiary of the Borrower to make payments, directly or
indirectly, to its shareholders by way of dividends, repayment of loans or
intercompany charges, or other returns on investments that is more restrictive
than any such encumbrance or restriction applicable to such Significant
Subsidiary on the Closing Date; provided that this Section 7.7
shall not apply to (a) limitations or restrictions imposed by law or in
regulatory proceedings or (b) financial covenants contained in any
agreement or indenture

 

 

requiring compliance with
financial tests or ratios, so long as such financial covenants could not
reasonably be expected to impair the Borrower’s ability to repay the
Obligations as and when due.

 

SECTION 8.           EVENTS OF DEFAULT

 

If any of the following events shall occur and be
continuing:

 

(a)  the Borrower shall fail to pay any principal
of any Revolving Loan or Reimbursement Obligation when due in accordance with
the terms hereof; or the Borrower shall fail to pay any interest on any
Revolving Loan or Reimbursement Obligation, or any other amount payable
hereunder or under any other Loan Document, within five days after any such
interest or other amount becomes due in accordance with the terms hereof; or

 

(b)  any representation or warranty made or deemed
made by the Borrower herein or in any other Loan Document or that is contained
in any certificate, document or financial or other statement furnished by it at
any time under or in connection with this Agreement or any such other Loan
Document shall prove to have been inaccurate in any material respect on or as
of the date made or deemed made; or

 

(c)  the Borrower shall default in the observance
or performance of any agreement contained in Section 6.4(a) (with
respect to the Borrower only), Section 6.7(a) or Section 7 of
this Agreement; or

 

(d)  the Borrower shall default in the observance
or performance of any other agreement contained in this Agreement or any other
Loan Document (other than as provided in paragraphs (a) through (c) of
this Section), and such default shall continue unremedied for a period of 30
days after notice to the Borrower from the Administrative Agent or the Required
Lenders; or

 

(e)  any event or condition occurs that results in
any Material Indebtedness becoming due prior to its scheduled maturity or that
enables or permits the holder or holders of any Material Indebtedness or any
trustee or agent on its or their behalf to cause any Material Indebtedness to
become due, or to require the prepayment, repurchase, redemption or defeasance
thereof, prior to its scheduled maturity; provided that this
clause (e) shall not apply to secured Indebtedness that becomes due
as a result of the voluntary sale or transfer of the property or assets
securing such Indebtedness; or

 

(f)  (i) the Borrower or any Significant
Subsidiary shall commence any case, proceeding or other action (A) under
any existing or future law of any jurisdiction, domestic or foreign, relating
to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have
an order for relief entered with respect to it, or seeking to adjudicate it a
bankrupt or insolvent, or seeking reorganization, arrangement, adjustment,
winding-up, liquidation, dissolution, composition or other relief with respect
to it or its debts, or (B) seeking appointment of a receiver, trustee,
custodian, conservator or other similar official for it or for all or any
substantial part of its assets, or the Borrower or any Significant Subsidiary
shall make a general assignment for the benefit of its creditors; or (ii) there
shall be commenced against the Borrower or any Significant Subsidiary any case,
proceeding or other action of a nature referred to in clause (i) above
that (A) results in the entry of an order for relief or any such
adjudication or appointment or (B) remains undismissed or undischarged for
a period of 60 days; or (iii) there shall be commenced against the Borrower
or any Significant Subsidiary any case, proceeding or other action seeking
issuance of a warrant of attachment, execution, distraint or similar process
against all or any substantial part of its assets that results in the entry of
an order for any such relief that shall not have been vacated,

 

 

discharged, or stayed or
bonded pending appeal within 60 days from the entry thereof; or (iv) the
Borrower or any Significant Subsidiary shall take any corporate action in
furtherance of, or indicating its consent to, approval of, or acquiescence in,
any of the acts set forth in clause (i), (ii), or (iii) above; or (v) the
Borrower or any Significant Subsidiary shall generally not, or shall be unable
to, or shall admit in writing its inability to, pay its debts as they become
due; or

 

(g)  (i) any Person shall engage in any
non-exempt “prohibited transaction” (as defined in Section 406 of ERISA or
Section 4975 of the Code) involving any Plan, (ii) any “accumulated
funding deficiency” (as defined in Section 302 of ERISA), whether or not
waived, shall exist with respect to any Plan subject to Section 412 of the
Code or Section 302 of ERISA or any Lien in favor of the PBGC or a Plan
shall arise on the assets of any Commonly Controlled Entity, (iii) a
Reportable Event shall occur with respect to, or proceedings shall commence to
have a trustee appointed, or a trustee shall be appointed, to administer or to
terminate, any Single Employer Plan, which Reportable Event or commencement of
proceedings or appointment of a trustee is, in the reasonable opinion of the
Required Lenders, likely to result in the termination of such Plan for purposes
of Title IV of ERISA, (iv) any Single Employer Plan shall terminate for
purposes of Title IV of ERISA, (v) in connection with a withdrawal from,
or the Insolvency or Reorganization of, a Multiemployer Plan, any Commonly
Controlled Entity shall, or is reasonably likely to, incur any unpaid liability
or (vi) any other similar event or condition shall occur or exist with
respect to a Plan; and in each case in clauses (i) through (vi) above,
such event or condition, together with all other such events or conditions, if
any, could reasonably be expected to have a Material Adverse Effect; or

 

(h)  one or more judgments or decrees shall be
entered against the Borrower or any Significant Subsidiary involving in the
aggregate a liability (not paid or fully covered by insurance as to which the
relevant insurance company has acknowledged coverage) of $50,000,000 or more,
and such judgments or decrees shall not have been vacated, discharged, stayed
or bonded pending appeal within 30 days from the entry thereof; or

 

(i)  a Change in Control shall occur;

 

then, and in any such event,
(A) if such event is an Event of Default specified in paragraph (f) above,
automatically the Revolving Commitments shall immediately terminate and the
Revolving Loans (with accrued interest thereon) and all other amounts owing
under this Agreement and the other Loan Documents shall immediately become due
and payable, and (B) if such event is any other Event of Default, either
or both of the following actions may be taken: 
(i) with the consent of the Required Lenders, the Administrative
Agent may, or upon the request of the Required Lenders, the Administrative
Agent shall, by notice to the Borrower declare the Revolving Commitments to be
terminated forthwith, whereupon the Revolving Commitments shall immediately
terminate; and (ii) with the consent of the Required Lenders, the
Administrative Agent may, or upon the request of the Required Lenders, the
Administrative Agent shall, by notice to the Borrower, declare the Revolving
Loans (with accrued interest thereon) and all other amounts owing under this
Agreement and the other Loan Documents to be due and payable forthwith, whereupon
the same shall immediately become due and payable.  With respect to all Letters of Credit with
respect to which presentment for honor shall not have occurred at the time of
an acceleration pursuant to this paragraph, the Borrower shall at such time deposit
in a cash collateral account opened by the Administrative Agent an amount equal
to the aggregate then undrawn and unexpired amount of such Letters of
Credit.  Amounts held in such cash
collateral account shall be applied by the Administrative Agent to the payment
of drafts drawn under such Letters of Credit. 
During the continuance of an Event of Default, the Administrative Agent
may, or upon the request of the Required Lenders shall, apply any Excess
Balance (as defined below) to repay the Obligations.  If all Obligations (other than L/C
Obligations in respect of undrawn Letters of Credit) have been paid in full,

 

 

the Excess Balance shall be
returned to the Borrower (or such other Person as may be lawfully entitled
thereto).  If no Event of Default is then
continuing, the Administrative Agent shall return to the Borrower the balance
in the cash collateral account.  For
purposes hereof, “Excess Balance” means the amount by which the balance in the
cash collateral account exceeds the undrawn and unexpired amount of the Letters
of Credit.  Except as expressly provided
above in this Section, presentment, demand, protest and all other notices of
any kind are hereby expressly waived by the Borrower.

 

SECTION 9.           THE AGENTS

 

9.1           Appointment.  Each Lender hereby irrevocably designates and
appoints the Administrative Agent as the agent of such Lender under this
Agreement and the other Loan Documents, and each such Lender irrevocably
authorizes the Administrative Agent, in such capacity, to take such action on its
behalf under the provisions of this Agreement and the other Loan Documents and
to exercise such powers and perform such duties as are expressly delegated to
the Administrative Agent by the terms of this Agreement and the other Loan
Documents, together with such other powers as are reasonably incidental
thereto.   Notwithstanding any provision
to the contrary elsewhere in this Agreement, the Administrative Agent shall not
have any duties or responsibilities, except those expressly set forth herein,
or any fiduciary relationship with any Lender, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read
into this Agreement or any other Loan Document or otherwise exist against the
Administrative Agent.

 

9.2           Delegation of Duties.  The Administrative Agent may execute any of
its duties under this Agreement and the other Loan Documents by or through
agents or attorneys-in-fact and shall be entitled to advice of counsel
concerning all matters pertaining to such duties.  The Administrative Agent shall not be
responsible for the negligence or misconduct of any agents or attorneys in-fact
selected by it with reasonable care.

 

9.3           Exculpatory Provisions.  Neither any Agent nor any of their respective
officers, directors, employees, agents, attorneys-in-fact or affiliates shall
be (i) liable for any action lawfully taken or omitted to be taken by it
or such Person under or in connection with this Agreement or any other Loan
Document (except to the extent that any of the foregoing are found by a final
and nonappealable decision of a court of competent jurisdiction to have
resulted from its or such Person’s own gross negligence or willful misconduct)
or (ii) responsible in any manner to any of the Lenders for any recitals,
statements, representations or warranties made by the Borrower or any officer
thereof contained in this Agreement or any other Loan Document or in any
certificate, report, statement or other document referred to or provided for
in, or received by the Agents under or in connection with, this Agreement or
any other Loan Document or for the value, validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement or any other Loan Document or
for any failure of the Borrower to perform its obligations hereunder or
thereunder.  The Agents shall not be
under any obligation to any Lender to ascertain or to inquire as to the
observance or performance of any of the agreements contained in, or conditions
of, this Agreement or any other Loan Document, or to inspect the properties,
books or records of the Borrower. 
Neither any Agent nor any of their respective officers, directors,
employees, agents, attorneys-in-fact or affiliates shall, except as expressly
set forth herein and in the other Loan Documents, have any duty to disclose,
and shall not be liable for the failure to disclose, any information relating
to the Borrower or any of its Affiliates that is communicated to or obtained by
the Person serving as an Agent or any of its Affiliates in any capacity.

 

9.4           Reliance by Administrative Agent.  The Administrative Agent shall be entitled to
rely, and shall be fully protected in relying, upon any instrument, writing,
resolution, notice, consent, certificate, affidavit, letter, telecopy, telex or
teletype message, statement, order 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 may deem and treat
the payee of any Note as the owner thereof for all purposes unless such Note
has been assigned in accordance with the provisions of Section 10.6
hereof.  The Administrative Agent shall
be fully justified in failing or refusing to take any action under this
Agreement or any other Loan Document unless it shall first receive such advice
or concurrence of the Required Lenders (or, if so specified by this Agreement,
all Lenders) as it deems appropriate or it shall first be indemnified to its
satisfaction by the Lenders against any and all liability and expense that may
be incurred by it by reason of taking or continuing to take any such action.  The Administrative Agent shall in all cases
be fully protected in acting, or in refraining from acting, under this
Agreement and the other Loan Documents in accordance with a request of the
Required Lenders (or, if so specified by this Agreement, all Lenders), and such
request and any action taken or failure to act pursuant thereto shall be
binding upon all the Lenders and all future holders of the Revolving Loans.

 

9.5           Notice of Default.  The Administrative Agent shall not be deemed
to have knowledge or notice of the occurrence of any Default or Event of
Default unless the Administrative Agent has received notice from a Lender or
the Borrower referring to this Agreement, describing such Default or Event of
Default and stating that such notice is a “notice of default”.  In the event that the Administrative Agent
receives such a notice, the Administrative Agent shall give notice thereof to
the Lenders.  The Administrative Agent
shall take such action with respect to such Default or Event of Default as shall
be reasonably directed by the Required Lenders (or, if so specified by this
Agreement, all Lenders); provided that unless and until the
Administrative Agent shall have received such directions, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to such Default or Event of Default as it
shall deem advisable in the best interests of the Lenders.

 

9.6           Non-Reliance on Agents and Other
Lenders.  Each Lender expressly
acknowledges that neither the Agents nor any of their respective officers,
directors, employees, agents, attorneys-in-fact or affiliates have made any
representations or warranties to it and that no act by any Agent hereafter
taken, including any review of the affairs of the Borrower or any affiliate of
the Borrower, shall be deemed to constitute any representation or warranty by
any Agent to any Lender.  Each Lender
represents to the Agents that it has, independently and without reliance upon
any Agent or any other Lender, and based on such documents and information as
it has deemed appropriate, made its own appraisal of and investigation into the
business, operations, property, financial and other condition and
creditworthiness of the Borrower and its affiliates and made its own decision
to make its Revolving Loans hereunder and enter into this Agreement.  Each Lender also represents that it will,
independently and without reliance upon any Agent or any other Lender, and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under this Agreement and the other Loan Documents,
and to make such investigation as it deems necessary to inform itself as to the
business, operations, property, financial and other condition and
creditworthiness of the Borrower and its affiliates.  Except for notices, reports and other
documents expressly required to be furnished to the Lenders by the
Administrative Agent hereunder, the Administrative Agent shall not have any
duty or responsibility to provide any Lender with any credit or other
information concerning the business, operations, property, condition (financial
or otherwise), prospects or creditworthiness of the Borrower or any affiliate
of the Borrower that may come into the possession of the Administrative Agent
or any of its officers, directors, employees, agents, attorneys-in-fact or
affiliates.

 

9.7           Indemnification.  The Lenders agree to indemnify each Agent in its
capacity as such (to the extent not reimbursed by the Borrower and without
limiting the obligation of the Borrower to do so), ratably according to their
respective Aggregate Exposure Percentages in effect on the date on which
indemnification is sought under this Section (or, if indemnification is
sought after the date upon which the Revolving Commitments shall have
terminated and the Revolving Loans shall have been paid

 

 

in full, ratably in accordance
with such Aggregate Exposure Percentages immediately prior to such date), from
and against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind
whatsoever that may at any time (whether before or after the payment of the Revolving
Loans) be imposed on, incurred by or asserted against such Agent in any way
relating to or arising out of, the Revolving Commitments, this Agreement, any
of the other Loan Documents or any documents contemplated by or referred to
herein or therein or the transactions contemplated hereby or thereby or any
action taken or omitted by such Agent under or in connection with any of the
foregoing; provided that no Lender shall be liable for the payment of
any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements that are found by a
final and nonappealable decision of a court of competent jurisdiction to have
resulted from such Agent’s gross negligence or willful misconduct.  The agreements in this Section shall
survive the payment of the Revolving Loans and all other amounts payable
hereunder.

 

9.8           Agent in Its Individual Capacity.  Each Agent and its affiliates may make loans
to, accept deposits from and generally engage in any kind of business with the
Borrower as though such Agent were not an Agent.  With respect to its Revolving Loans made or
renewed by it and with respect to any Letter of Credit issued or participated
in by it, each Agent shall have the same rights and powers under this Agreement
and the other Loan Documents as any Lender and may exercise the same as though
it were not an Agent, and the terms “Lender” and “Lenders” shall include each
Agent in its individual capacity.

 

9.9           Successor Administrative Agent.  The Administrative Agent may resign as
Administrative Agent upon 10 days’ notice to the Lenders and the Borrower.  If the Administrative Agent shall resign as
Administrative Agent under this Agreement and the other Loan Documents, then
the Required Lenders shall appoint from among the Lenders a successor agent for
the Lenders, which successor agent shall (unless an Event of Default under Section 8(a) or
Section 8(f) with respect to the Borrower shall have occurred and be
continuing) be subject to approval by the Borrower (which approval shall not be
unreasonably withheld or delayed), whereupon such successor agent shall succeed
to the rights, powers and duties of the Administrative Agent, and the term “Administrative
Agent” shall mean such successor agent effective upon such appointment and
approval, and the former Administrative Agent’s rights, powers and duties as
Administrative Agent shall be terminated, without any other or further act or
deed on the part of such former Administrative Agent or any of the parties to
this Agreement or any holders of the Revolving Loans.  If no successor agent has accepted
appointment as Administrative Agent by the date that is 10 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 assume and 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.  After any retiring Administrative Agent’s
resignation as Administrative Agent, the provisions of this Section 9
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Administrative Agent under this Agreement and the other Loan
Documents.

 

9.10         Documentation Agents and Syndication
Agents.  Neither any Documentation
Agent nor any Syndication Agent shall have any duties or responsibilities
hereunder in its capacity as such.

 

SECTION 10.         MISCELLANEOUS

 

10.1         Amendments and Waivers.  Neither this Agreement, any other Loan
Document, nor any terms hereof or thereof may be amended, supplemented or
modified except in accordance with the provisions of this Section 10.1.  The Required Lenders and the Borrower may,
or, with the written consent of the Required Lenders, the Administrative Agent
and the Borrower may, from time to time, (a) enter into written
amendments, supplements or modifications hereto and to the other Loan Documents
for

 

 

the purpose of adding any
provisions to this Agreement or the other Loan Documents or changing in any
manner the rights of the Lenders or of the Borrower hereunder or thereunder or (b) waive,
on such terms and conditions as the Required Lenders or the Administrative
Agent, as the case may be, may specify in such instrument, any of the
requirements of this Agreement or the other Loan Documents or any Default or
Event of Default and its consequences; provided, however, that no
such waiver and no such amendment, supplement or modification shall (i) except
as set forth in Section 2.17, forgive the principal amount or extend the
final scheduled date of maturity of any Revolving Loan or Reimbursement
Obligation, reduce the stated rate of any interest or fee payable hereunder
(except in connection with the waiver of applicability of any post-default
increase in interest rates (which waiver shall be effective with the consent of
the Required Lenders)) or extend the scheduled date of any payment thereof, or
increase the amount or extend the expiration date of any Lender’s Revolving
Commitment, in each case without the written consent of each Lender directly
affected thereby; (ii) eliminate or reduce the voting rights of any Lender
under this Section 10.1 without the written consent of such Lender; (iii) reduce
any percentage specified in the definition of Required Lenders or consent to
the assignment or transfer by the Borrower of any of its rights and obligations
under this Agreement and the other Loan Documents, in each case without the
written consent of all Lenders; (iv) amend, modify or waive any provision
of Section 2.11(a) or Section 2.11(b) without the written
consent of each Lender directly affected thereby, (v) amend, modify or
waive any provision of Section 9 without the written consent of the Administrative
Agent; or (vi) amend, modify or waive any provision of Section 3
without the written consent of each Issuing Lender.  Notwithstanding anything contained in this Section 10.1,
the affirmative vote of Lenders holding at least 66-2/3% of the Total
Revolving Commitments then in effect (or, if the Revolving Commitments have
been terminated, the Total Revolving Extensions of Credit then outstanding)
shall be required to amend, modify or waive any provision of Section 2.17;
provided that the Revolving Termination Date with respect to any Lender
may not be extended with respect to such Lender without its written
consent.  Any such waiver and any such
amendment, supplement or modification shall apply equally to each of the
Lenders and shall be binding upon the Borrower, the Lenders, the Administrative
Agent and all future holders of the Revolving Loans.  In the case of any waiver, the Borrower, the
Lenders and the Administrative Agent shall be restored to their former position
and rights hereunder and under the other Loan Documents, and any Default or
Event of Default waived shall be deemed to be cured and not continuing; but no
such waiver, except to the extent expressly provided therein, shall extend to
any subsequent or other Default or Event of Default, or impair any right
consequent thereon.

 

10.2         Notices.  All notices, requests and demands to or upon
the respective parties hereto to be effective shall be in writing (including by
electronic transmission or telecopy), and, unless otherwise expressly provided
herein, shall be deemed to have been duly given or made when delivered, or
three Business Days after being deposited in the mail, postage prepaid, or, in
the case of telecopy notice, when received, addressed as follows in the case of
the Borrower and the Administrative Agent, and as set forth in an
administrative questionnaire delivered to the Administrative Agent in the case
of the Lenders, or to such other address as may be hereafter notified by the
respective parties hereto:

 

	
  Borrower:

  	
   

  	
  800 Nicollet
  Mall

  
	
   

  	
   

  	
  Minneapolis,
  MN 55402

  
	
   

  	
   

  	
  Attention:
  Treasurer

  
	
   

  	
   

  	
  Telecopy:
  612-215-5311

  
	
   

  	
   

  	
  Telephone:
  612-215-4627

  
	
   

  	
   

  	
   

  
	
  Administrative Agent:

  	
   

  	
  c/o Loan and
  Agency Services Group

  
	
   

  	
   

  	
  1111 Fannin,
  10th Floor

  
	
   

  	
   

  	
  Houston, TX
  77002

  
	
   

  	
   

  	
  Attention:
  Jamie Garcia

  
	
   

  	
   

  	
  Telecopy:
  713-427-6307

  

 

 

	
   

  	
   

  	
  Telephone:
  713-750-2377

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  JPMorgan
  Chase Bank, N.A.

  
	
   

  	
   

  	
  270 Park
  Avenue, 4th Floor

  
	
   

  	
   

  	
  New York, NY
  10017

  
	
   

  	
   

  	
  Attention:
  Peter Ling

  
	
   

  	
   

  	
  Telecopy:
  212-270-0213

  
	
   

  	
   

  	
  Telephone:
  212-270-4676

  
	
   

  	
   

  	
   

  
	
  and, if regarding Letters

  of Credit, with a copy to:

  	
   

  	
  JPMorgan
  Chase LOC Tampa

  
	
   

  	
   

  	
  10420
  Highland Mn Dr

  
	
   

  	
   

  	
  Block 2,
  Floor 4

  
	
   

  	
   

  	
  Tampa, FL
  33610

  
	
   

  	
   

  	
  Attention:
  James Alonzo

  
	
   

  	
   

  	
  Telecopy:
  813-432-5161

  
	
   

  	
   

  	
  Telephone:
  813-432-6339

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  And if to
  any other Issuing Lender, at

  its address for notices set forth in its

  Issuing Lender Agreement.

  

 

; provided that any
notice, request or demand to or upon the Administrative Agent or the Lenders
shall not be effective until received.

 

Unless and until the
Administrative Agent is notified in writing by the Borrower to the contrary,
the Borrower hereby authorizes the Administrative Agent to rely on any notices
in respect of the making, extension, conversion or continuation of Revolving
Loans and the Types of Revolving Loans and the Interest Periods applicable to
Eurodollar Loans given by any Responsible Officer or any designee of a
Responsible Officer of which the Administrative Agent is notified in
writing.  Notices by the Borrower in
respect of the making, extension, conversion or continuation of Revolving Loans
and the Types of Revolving Loans and the Interest Periods applicable to
Eurodollar Loans may be given telephonically, and the Borrower agrees that the
Administrative Agent may rely on any such notices made by any person or persons
which the Administrative Agent in good faith believes to be acting on behalf of
the Borrower.  The Borrower agrees to
deliver promptly to the Administrative Agent a written confirmation of any
telephonic notice, if such confirmation is requested by the Administrative Agent.  Notices and other communications to the
Lenders hereunder may be delivered or furnished by electronic communications
pursuant to procedures approved by the Administrative Agent; provided
that the foregoing shall not apply to notices pursuant to Section 2 unless
otherwise agreed by the Administrative Agent and the applicable Lender.  The Administrative Agent or the Borrower may,
in its discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by it; provided
that approval of such procedures may be limited to particular notices or
communications.

 

Information
required to be delivered pursuant to Sections 6.1 and 6.2(b) shall be
deemed to have been delivered on the date on which the Borrower provides notice
to the Administrative Agent (which notice the Administrative Agent shall
promptly provide to the Lenders)  that
such information has been posted on the SEC website on the Internet at
sec.gov/edaux/searches.htm, on the Borrower’s IntraLinks site at intralinks.com
or at another website identified in such notice and accessible by the Lenders
without charge.

 

10.3         No Waiver; Cumulative Remedies.  No failure to exercise and no delay in
exercising, on the part of the Administrative Agent or any Lender, any right,
remedy, power or privilege

 

 

hereunder or under the other
Loan Documents 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.

 

10.4         Survival of Representations and
Warranties.  All representations and
warranties made hereunder, in the other Loan Documents and in any document,
certificate or statement delivered pursuant hereto or in connection herewith
shall survive the execution and delivery of this Agreement and the making of
the Revolving Loans and other extensions of credit hereunder.

 

10.5         Payment of Expenses and Taxes.  The Borrower agrees (a) to pay or
reimburse the Administrative Agent for all its out-of-pocket costs and expenses
incurred in connection with the development, preparation and execution of, and
any amendment, supplement or modification to, this Agreement and the other Loan
Documents and any other documents prepared in connection herewith or therewith,
and the consummation and administration of the transactions contemplated hereby
and thereby, including the reasonable fees and disbursements of counsel to the
Administrative Agent and filing and recording fees and expenses, with
statements with respect to the foregoing to be submitted to the Borrower prior
to the Closing Date (in the case of amounts to be paid on the Closing Date) and
from time to time thereafter on a quarterly basis or such other periodic basis
as the Administrative Agent shall deem appropriate, (b) to pay or
reimburse each Lender and the Administrative Agent for all its costs and
expenses incurred in connection with the enforcement or preservation of any
rights under this Agreement, the other Loan Documents and any such other
documents, including the reasonable fees and disbursements of counsel
(including the allocated fees and expenses of in-house counsel) to each Lender
and of counsel to the Administrative Agent, (c) to pay, indemnify, and
hold each Lender and the Administrative Agent harmless from, any and all
recording and filing fees and any and all liabilities with respect to, or
resulting from any delay in paying, stamp, excise and other taxes, if any, that
may be payable or determined to be payable in connection with the execution and
delivery of, or consummation or administration of any of the transactions
contemplated by, or any amendment, supplement or modification of, or any waiver
or consent under or in respect of, this Agreement, the other Loan Documents and
any such other documents, and (d) to pay, indemnify, and hold each Lender
and the Administrative Agent and their respective officers, directors,
employees, affiliates, agents and controlling persons (each, an “Indemnitee”)
harmless from and against any and all other liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of this Agreement, the other Loan
Documents and any such other documents, including any of the foregoing relating
to the use of proceeds of the Revolving Loans or the violation of,
noncompliance with or liability under, any Environmental Law applicable to the
operations of the Borrower or any of its Subsidiaries or any of their
properties and the reasonable fees and expenses of legal counsel in connection
with claims, actions or proceedings by any Indemnitee against the Borrower
under any Loan Document (all the foregoing in this clause (d), collectively, the
“Indemnified Liabilities”), provided, that the Borrower shall
have no obligation hereunder to any Indemnitee with respect to Indemnified
Liabilities to the extent such Indemnified Liabilities resulted from the gross
negligence or willful misconduct of such Indemnitee.  Without limiting the foregoing, and to the
extent permitted by applicable law, the Borrower agrees not to assert and to
cause its Subsidiaries not to assert, and hereby waives and agrees to cause its
Subsidiaries to waive, all rights for contribution or any other rights of
recovery with respect to all claims, demands, penalties, fines, liabilities,
settlements, damages, costs and expenses of whatever kind or nature, under or
related to Environmental Laws, that any of them might have by statute or
otherwise against any Indemnitee, except to the extent that such claims,
demands, penalties, fines, liabilities, settlements, damages, costs and
expenses have resulted from the gross negligence or willful misconduct of such
Indemnitee.  All amounts due under this Section 10.5
shall be payable not later than 10 days after written

 

 

demand therefor.  Statements payable by the Borrower pursuant
to this Section 10.5 shall be submitted to the Borrower at the address of
the Borrower set forth in Section 10.2, or to such other Person or address
as may be hereafter designated by the Borrower in a written notice to the
Administrative Agent.  The agreements in
this Section 10.5 shall survive repayment of the Revolving Loans and all
other amounts payable hereunder.

 

10.6         Successors and Assigns;
Participations and Assignments.  (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 (including any affiliate of an Issuing Lender that issues any Letter of
Credit), except that (i) the Borrower may not assign or otherwise transfer
any of its rights or obligations hereunder without the prior written consent of
each Lender (and any attempted assignment or transfer by the Borrower without
such consent shall be null and void) and (ii) no Lender may assign or
otherwise transfer its rights or obligations hereunder except in accordance
with this Section.

 

(b)(i)  Subject to the conditions set forth in paragraph (b)(ii) below,
any Lender may assign to one or more financial institutions or other entities
(each, an “Assignee”) all or a portion of its rights and obligations
under this Agreement (including all or a portion of its Revolving Commitments
and the Revolving Loans at the time owing to it) with the prior written consent
of:

 

(A) the Borrower (such consent not to be
unreasonably withheld or delayed), provided that no consent of the
Borrower shall be required for an assignment to a Lender or, if an Event of
Default has occurred and is continuing, any other Person; and

 

(B) the Administrative Agent and each
Issuing Lender.

 

(ii) Assignments shall be subject to the
following additional conditions:

 

(A) except in the case of an assignment
to a Lender or an affiliate of a Lender or an assignment of the entire
remaining amount of the assigning Lender’s Revolving Commitments or Revolving
Loans, the amount of the Revolving Commitments or Revolving Loans of the
assigning Lender subject to each such assignment (determined as of the date the
Assignment and Assumption with respect to such assignment is delivered to the
Administrative Agent) shall not be less than $5,000,000 unless each of the
Borrower, the Administrative Agent and each Issuing Lender otherwise consent, provided
that (1) no such consent of the Borrower shall be required if an Event of
Default has occurred and is continuing and (2) such amounts shall be
aggregated in respect of each Lender and its affiliates, if any;

 

(B) 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; and

 

(C) the Assignee, if it shall not be a
Lender, shall deliver to the Administrative Agent an administrative
questionnaire.

 

(iii) Subject to acceptance and recording thereof pursuant to
paragraph (b)(iv) below, from and after the effective date specified
in each Assignment and Assumption the Assignee thereunder shall be a party
hereto 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 2.12, 2.13, 2.14 and 10.5 in respect of

 

 

the period that it was a Lender). 
Any assignment or transfer by a Lender of rights or obligations under
this Agreement that does not comply with this Section 10.6 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 paragraph (c) of
this Section.

 

(iv)  The Administrative Agent, acting for this purpose as an
agent of the Borrower, shall maintain at one of its offices 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 Revolving Commitments of, and
principal amount of the Revolving 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, the Issuing Lenders 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.

 

(v)  Upon its receipt of a duly completed Assignment and
Assumption executed by an assigning Lender and an Assignee, the Assignee’s
completed administrative questionnaire (unless the Assignee shall already be a
Lender hereunder), the processing and recordation fee referred to in
paragraph (b) of this Section and any written consent to such
assignment required by paragraph (b) of this Section, the Administrative
Agent shall accept such Assignment and Assumption and record the information
contained therein in the Register.  No
assignment shall be effective for purposes of this Agreement unless it has been
recorded in the Register as provided in this paragraph.

 

(c)(i)  Any Lender may, without the consent of the Borrower or the
Administrative Agent, sell participations to one or more banks or other
entities (a “Participant”) in all or a portion of such Lender’s rights
and obligations under this Agreement (including all or a portion of its
Revolving Commitments and the Revolving Loans owing to it); provided
that (A) such Lender’s obligations under this Agreement shall remain
unchanged, (B) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations and (C) the
Borrower, the Administrative Agent, each Issuing Lender 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 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
may provide that such Lender will not, without the consent of the Participant,
agree to any amendment, modification or waiver that (1) requires the
consent of such Lender pursuant to the proviso to the second sentence of Section 10.1
and (2) directly affects such Participant. 
Subject to paragraph (c)(ii) of this Section, the Borrower agrees
that each Participant shall be entitled to the benefits of Sections 2.12, 2.13
and 2.14 to the same extent as if it were a Lender and had acquired its
interest by assignment pursuant to paragraph (b) of this Section.  To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 10.7(b) as
though it were a Lender, provided such Participant shall be subject to Section 10.7(a) as
though it were a Lender.

 

(ii)  A Participant shall not be entitled to receive any greater
payment under Section 2.12 or 2.13 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. 
In addition, any Participant that is a Non-U.S. Lender shall not be
entitled to the benefits of Section 2.13 unless such Participant complies
with Section 2.13(d).

 

(d)  Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Agreement to secure
obligations to a Federal Reserve Bank.

 

 

(e)  The
Borrower, upon receipt of written notice from the relevant Lender, agrees to
issue Notes to any Lender requiring Notes to facilitate transactions of the
type described in paragraph (d) above.

 

10.7         Adjustments; Set-off.  (a)  Except to the extent that this
Agreement expressly provides for payments to be allocated to a particular
Lender, if any Lender (a “Benefitted Lender”) shall, at any time after
the Revolving Loans and other amounts payable hereunder shall immediately
become due and payable pursuant to Section 8, receive any payment of all
or part of the Obligations owing to it, or receive any collateral in respect
thereof (whether voluntarily or involuntarily, by set-off, pursuant to events
or proceedings of the nature referred to in Section 8(f), or otherwise),
in a greater proportion than any such payment to or collateral received by any
other Lender, if any, in respect of the Obligations owing to such other Lender,
such Benefitted Lender shall purchase for cash from the other Lenders a
participating interest in such portion of the Obligations owing to each such
other Lender, or shall provide such other Lenders with the benefits of any such
collateral, as shall be necessary to cause such Benefitted Lender to share the
excess payment or benefits of such collateral ratably with each of the Lenders;
provided, however, that if all or any portion of such excess
payment or benefits is thereafter recovered from such Benefitted Lender, such
purchase shall be rescinded, and the purchase price and benefits returned, to
the extent of such recovery, but without interest.

 

(b)  In
addition to any rights and remedies of the Lenders provided by law, each Lender
shall have the right, without prior notice to the Borrower, any such notice
being expressly waived by the Borrower to the extent permitted by applicable
law, upon any amount becoming due and payable by the Borrower hereunder
(whether at the stated maturity, by acceleration or otherwise), to set off and
appropriate and apply against such amount any and all deposits (general or special,
time or demand, provisional or final), in any currency, and any other credits,
indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, at any time held or
owing by such Lender or any branch or agency or Affiliate thereof to or for the
credit or the account of the Borrower, as the case may be.  Each Lender agrees promptly to notify the
Borrower and the Administrative Agent after any such setoff and application
made by such Lender, provided that the failure to give such notice shall
not affect the validity of such setoff and application.

 

10.8         Counterparts.  This Agreement may be executed by one or more
of the parties to this Agreement on any number of separate counterparts, and
all of said counterparts taken together shall be deemed to constitute one and
the same instrument.  Delivery of an
executed signature page of this Agreement by facsimile transmission shall
be effective as delivery of a manually executed counterpart hereof.  A set of the copies of this Agreement signed
by all the parties shall be lodged with the Borrower and the Administrative
Agent.

 

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

 

10.10       Integration.  This Agreement and the other Loan Documents
represent the entire agreement of the Borrower, the Administrative Agent and
the Lenders with respect to the subject matter hereof and thereof, and there
are no promises, undertakings, representations or warranties by the
Administrative Agent or any Lender relative to the subject matter hereof not
expressly set forth or referred to herein or in the other Loan Documents.

 

 

10.11       GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

10.12       Submission To Jurisdiction; Waivers.  The Borrower hereby irrevocably and unconditionally:

 

(a)  submits
for itself and its property in any legal action or proceeding relating to this
Agreement and the other Loan Documents to which it is a party, or for
recognition and enforcement of any judgment in respect thereof, to the non-exclusive
general jurisdiction of the courts of the State of New York, the courts of the
United States for the Southern District of New York, and appellate courts
from any thereof;

 

(b)  consents that any such action or proceeding
may be brought in such courts and waives any objection that it may now or
hereafter have to the venue of any such action or proceeding in any such court
or that such action or proceeding was brought in an inconvenient court and
agrees not to plead or claim the same;

 

(c)  agrees that service of process in any such
action or proceeding may be effected by mailing a copy thereof by registered or
certified mail (or any substantially similar form of mail), postage prepaid, to
the Borrower, as the case may be at its address set forth in Section 10.2
or at such other address of which the Administrative Agent shall have been
notified pursuant thereto;

 

(d)  agrees that nothing herein shall affect the
right to effect service of process in any other manner permitted by law or
shall limit the right to sue in any other jurisdiction; and

 

(e)  waives, to the maximum extent not prohibited
by law, any right it may have to claim or recover in any legal action or
proceeding referred to in this Section any special, exemplary, punitive or
consequential damages.

 

10.13       Acknowledgements.  The Borrower hereby acknowledges that:

 

(a)  it has been advised by counsel in the
negotiation, execution and delivery of this Agreement and the other Loan
Documents;

 

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

 

(c)  no
joint venture is created hereby or by the other Loan Documents or otherwise
exists by virtue of the transactions contemplated hereby among the Lenders or
among the Borrower and the Lenders.

 

10.14       Confidentiality.  Each of the Administrative Agent and each
Lender agrees to keep confidential all information provided to it by or on
behalf of the Borrower, the Administrative Agent or any Lender pursuant to or
in connection with this Agreement and to use such information solely in
connection with evaluating, administering, structuring and/or approving the
credit facility contemplated hereby; provided that nothing herein shall
prevent the Administrative Agent or any Lender from

 

 

disclosing any such information
(a) to the Administrative Agent, any other Lender or any affiliate
thereof, solely for the purpose of evaluating, administering, structuring
and/or approving the credit facility contemplated hereby, (b) subject to
an agreement to comply with the provisions of this Section, to any actual or
prospective Transferee or any direct or indirect counterparty to any Swap
Agreement (or any professional advisor to such counterparty), (c) to its
employees, directors, agents, attorneys, accountants and other professional
advisors or those of any of its affiliates, solely for the purpose of
evaluating, administering, structuring and/or approving the credit facility
contemplated hereby, (d) upon the request or demand of any Governmental
Authority, (e) in response to any order of any court or other Governmental
Authority or as may otherwise be required pursuant to any Requirement of Law, (f) if
requested or required to do so in connection with any litigation or similar
proceeding, (g) that has been publicly disclosed, (h) to the National
Association of Insurance Commissioners or any similar organization or any
nationally recognized rating agency that requires access to information about a
Lender’s investment portfolio in connection with ratings issued with respect to
such Lender, or (i) in connection with the exercise of any remedy
hereunder or under any other Loan Document.

 

10.15       WAIVERS OF JURY TRIAL.  THE BORROWER, THE ADMINISTRATIVE AGENT AND
THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY
LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

10.16       Delivery of Addenda.  Each initial Lender shall become a party to
this Agreement by delivering to the Administrative Agent an Addendum duly
executed by such Lender.

 

10.17       USA Patriot Act Notice.  Each
Lender hereby notifies the Borrower that pursuant to the requirements of the
USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Act”), it is required to obtain, verify and record
information that identifies the Borrower, which information includes the name
and address of the Borrower and other information that will allow such Lender
to identify the Borrower in accordance with the Act.

 

10.18       Existing Credit Agreement.  The Borrower, Bank One, N.A., as agent, and
the Banks (as defined in the Existing Credit Agreement) party to the Existing
Credit Agreement comprising the “Required Banks” as defined therein, hereby
agree that (i) the commitments and all other obligations of the Banks
under the Existing Credit Agreement shall terminate in their entirety
immediately and automatically upon the effectiveness of this Agreement, without
further action by any party to the Existing Credit Agreement, (ii) all
accrued fees under the Existing Credit Agreement shall be due and payable at
such time and (iii) subject to the funding loss indemnities in the
Existing Credit Agreement, the Borrower may prepay any and all loans
outstanding thereunder on the date of effectiveness of this Agreement.

 

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed and delivered by
their proper and duly authorized officers as of the day and year first above
written.

 

	
   

  	
  SOUTHWESTERN PUBLIC SERVICE COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George E. Tyson II

  	
   

  
	
   

  	
   

  	
  Name:

  	
  George E.
  Tyson II

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK, N.A. as Administrative

  Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Casey

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Thomas Casey

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF
  NEW YORK, as Syndication Agent

  and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Cynthia D. Howells

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Cynthia D.
  Howells

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO
  BANK, NATIONAL ASSOCIATION,

  as Syndication Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott Bjelde

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Scott Bjelde

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jennifer Barrett

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jennifer
  Barrett

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President and Loan Team Manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BARCLAYS
  BANK PLC, as Documentation Agent and

  as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sydney G. Dennis

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Sydney G.
  Dennis

  
	
   

  	
   

  	
  Title:

  	
  Director

  
					

 

 

	
   

  	
  BANK OF MONTREAL
  DBA HARRIS NESBITT, as

  Documentation Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Cahal Carmody

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Cahal B.
  Carmody

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  HARRIS
  NESBITT FINANCING, INC., as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Cahal Carmody

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Cahal B.
  Carmody

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
					

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Southwestern Public Service Company
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SUMITOMO MITSUI BANKING

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ David A. Buck

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David A. Buck

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
						

 

 

Dated as of April 19,
2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Southwestern Public Service Company
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Bank of Nova Scotia

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Thane Rattew

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Thane Rattew

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
							

 

 

Dated as of April 19,
2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Southwestern Public Service Company
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Citibank, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Richard Evans

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Richard Evans

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
							

 

 

Dated as of April 19,
2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21, 2005
(the “Credit Agreement”), among Southwestern Public Service Company (the
“Borrower”), the Lenders party thereto, the Documentation Agents and
Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Michelle A.
  Schoenfeld

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michelle A. Schoenfeld

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
							

 

 

Dated as of April 21,
2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Southwestern Public Service Company
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as provided
in the Credit Agreement.    Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MERRILL LYNCH BANK USA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Louis Alder

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Louis Alder

  
	
   

  	
   

  	
  Title:

  	
  Director

  
							

 

 

Dated as of April 21,
2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Southwestern Public Service Company
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Amarillo National Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Craig L. Sanders

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Craig L. Sanders

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President

  
							

 

 

Dated as of April 21,
2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Southwestern Public Service Company
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WILLIAM STREET COMMITMENT

  CORPORATION (Recourse only to assets of

  William Street Commitment Corporation)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Manda D’Agata

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Manda D’Agata

  
	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

  
					

 

 

Dated as of April 19,
2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Southwestern Public Service Company
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as Administrative
Agent, and (ii) becomes a party thereto, as a Lender, with obligations
applicable to such Lender thereunder, including, without limitation, the
obligation to make extensions of credit to the Borrower in an aggregate
principal amount not to exceed the amount of its Revolving Commitment as set
forth opposite the undersigned Lender’s name in Schedule 1.1A to the
Credit Agreement, as such amount may be changed from time to time as provided
in the Credit Agreement.    Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  KEYBANK NATIONAL
  ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Keven D. Smith

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Keven D. Smith

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
						

 

 

Dated as of April 21,
2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Southwestern Public Service Company
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Royal Bank of Scotland
  plc

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Emily Freedman

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Emily Freedman

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

 

Dated as of April 20,
2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Southwestern Public Service Company
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  KBC BANK N.V.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eric Raskin

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Eric Raskin

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Snauffer

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert Snauffer

  
	
   

  	
   

  	
  Title:

  	
  First Vice President

  
						

 

 

Dated as of April 19,
2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Southwestern Public Service Company
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  UBS LOAN FINANCE LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Edward Cripps

  	
   

  
	
   

  	
  Name:

  	
  Edward Cripps

  
	
   

  	
  Title:

  	
  Director, Banking Products
  Services, US

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/
  Marie Haddad

  	
   

  
	
   

  	
  Name:

  	
  Marie A. Haddad

  
	
   

  	
  Title:

  	
   Associate Director, Banking Products

  
	
   

  	
   

  	
   

  	
   Services, US

  
					

 

 

Dated as of April 21 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Southwestern Public Service Company
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Mizuho Corporate Bank Ltd.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark Gronich

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Mark Gronich

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
					

 

 

Dated as of April 20,
2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Southwestern Public Service Company
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BNP Paribas

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Francis J.
  DeLaney

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Francis J. DeLaney

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Ralph Scholtz

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Ralph Scholtz

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
					

 

 

Dated
as of April 21, 2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Southwestern Public Service Company
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HSBC Bank USA, National
  Association

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Jose Aldeanueva

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jose Aldeanueva

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

 

Dated as of April 19,
2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Southwestern Public Service Company
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LEHMAN BROTHERS BANK, FSB

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Gary T. Taylor

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Gary T. Taylor

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
							

 

 

Dated as of April 21,
2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Southwestern Public Service Company
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.    Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Commerzbank AG, New York
  and Grand Cayman

  Branches

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew Campbell

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Andrew Campbell

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew Kjoller

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Andrew Kjoller

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

 

Dated as of April 20,
2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Southwestern Public Service Company
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CREDIT SUISSE FIRST
  BOSTON, ACTING

  THROUGH ITS CAYMAN ISLANDS BRANCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sarah Wu

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Sarah Wu

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Denise Alvarez

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Denise Alvarez

  
	
   

  	
   

  	
  Title:

  	
  Associate

  
					

 

 

Dated as of April 20,
2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Southwestern Public Service Company
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Morgan Stanley Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Daniel Twenge

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Daniel Twenge

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
						

 

 

Dated as of April 20,
2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Southwestern Public Service Company
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as Administrative
Agent, and (ii) becomes a party thereto, as a Lender, with obligations
applicable to such Lender thereunder, including, without limitation, the
obligation to make extensions of credit to the Borrower in an aggregate
principal amount not to exceed the amount of its Revolving Commitment as set
forth opposite the undersigned Lender’s name in Schedule 1.1A to the
Credit Agreement, as such amount may be changed from time to time as provided
in the Credit Agreement.    Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  U.S. Bank National
  Association

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Christine Geer

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Christine Geer

  
	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

  
						

 

 

Dated as of April 20,
2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Southwestern Public Service Company
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without limitation,
the obligation to make extensions of credit to the Borrower in an aggregate
principal amount not to exceed the amount of its Revolving Commitment as set
forth opposite the undersigned Lender’s name in Schedule 1.1A to the
Credit Agreement, as such amount may be changed from time to time as provided
in the Credit Agreement.    Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Bank of Tokyo-Mitsubishi,
  Ltd

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Douglas M.
  Barnell

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Douglas M. Barnell

  
	
   

  	
   

  	
  Title:

  	
  VP & Manager

  
						

 

 

Dated as of April 20,
2005

 

 

ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April 21,
2005 (the “Credit Agreement”), among Southwestern Public Service Company
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  J.P. Morgan Securities
  Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Thomas Casey

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Thomas Casey

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
						

 

 

Dated as of April 19,
2005

 

 

SCHEDULE 1.1A

SOUTHWESTERN PUBLIC SERVICE COMPANY

REVOLVING COMMITMENTS

 

	
  Lender

  	
   

  	
  Revolving Commitment

  	
   

  
	
  JPMorgan Chase Bank, N.A.

  	
   

  	
  $

  	
  13,333,333.33

  	
   

  
	
  The Bank of New York

  	
   

  	
  $

  	
  13,333,333.33

  	
   

  
	
  Wells Fargo Bank, National Association

  	
   

  	
  $

  	
  13,333,333.33

  	
   

  
	
  KeyBank National Association

  	
   

  	
  $

  	
  11,111,111.11

  	
   

  
	
  UBS Loan Finance LLC

  	
   

  	
  $

  	
  11,111,111.11

  	
   

  
	
  The Bank of Tokyo-Mitsubishi, Ltd., Chicago
  Branch

  	
   

  	
  $

  	
  11,111,111.11

  	
   

  
	
  Citicorp USA, Inc.

  	
   

  	
  $

  	
  11,111,111.11

  	
   

  
	
  Harris Nesbitt Financing, Inc.

  	
   

  	
  $

  	
  11,111,111.11

  	
   

  
	
  Barclays Bank PLC

  	
   

  	
  $

  	
  11,111,111.11

  	
   

  
	
  Credit Suisse First Boston

  	
   

  	
  $

  	
  11,111,111.11

  	
   

  
	
  Bank of America

  	
   

  	
  $

  	
  11,111,111.11

  	
   

  
	
  Royal Bank of Scotland

  	
   

  	
  $

  	
  11,111,111.11

  	
   

  
	
  BNP Paribas

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  
	
  Commerzbank AB, New York Branch

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  
	
  William Street Commitment Corporation

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  
	
  HSBC

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  
	
  Lehman Brothers

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  
	
  Merrill Lynch

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  
	
  Morgan Stanley Bank

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  
	
  Mizuho Corporate Bank, Ltd.

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  
	
  KBC Bank

  	
   

  	
  $

  	
  6,666,666.67

  	
   

  
	
  Bank of Nova Scotia

  	
   

  	
  $

  	
  6,666,666.67

  	
   

  
	
  Sumitomo Mitsui Banking Corporation

  	
   

  	
  $

  	
  6,666,666.67

  	
   

  
	
  U.S. Bank National Association

  	
   

  	
  $

  	
  6,666,666.67

  	
   

  
	
  Amarillo National Bank

  	
   

  	
  $

  	
  3,333,333.33

  	
   

  
	
  TOTAL

  	
   

  	
  $

  	
  250,000,000.00

  	
   

  

 

 

EXHIBIT
A

 

FORM OF

CLOSING CERTIFICATE

 

Pursuant to Section 5.1(g) of the Credit
Agreement, dated as of April    , 2005 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”;
terms defined therein being used herein as therein defined), among Southwestern
Public Service Company (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as administrative agent (in such capacity, the “Administrative
Agent”), the undersigned [INSERT TITLE OF OFFICER] of the Borrower hereby
certifies as follows:

 

1.             The representations and warranties of the Borrower set
forth in each of the Loan Documents to which it is a party or which are
contained in any certificate furnished by or on behalf of the Borrower pursuant
to any of the Loan Documents to which it is a party are true and correct in all
material respects on and as of the date hereof with the same effect as if made
on the date hereof, except for representations and warranties expressly stated
to relate to a specific earlier date, in which case such representations and
warranties were true and correct in all material respects as of such earlier
date.

 

2.                                           is
the duly elected and qualified [Corporate Secretary] of the Borrower and the
signature set forth for such officer below is such officer’s true and genuine
signature.

 

3.             No Default or Event of Default has occurred and is
continuing as of the date hereof or after giving effect to the Revolving Loans
to be made on the date hereof and the use of proceeds thereof.

 

4.             The conditions precedent set forth in Section 5.1
of the Credit Agreement were satisfied as of the Closing Date.

 

5.             There are no liquidation or dissolution proceedings
pending or to my knowledge threatened against the Borrower, nor has any other
event occurred adversely affecting or threatening the continued corporate
existence of the Borrower.

 

The undersigned [Corporate Secretary] of the
Borrower certifies as follows:

 

6.             The Borrower is a corporation duly incorporated, validly
existing and in good standing under the laws of the jurisdiction of its
organization.

 

7.             Attached hereto as Annex 1 is a true and complete
copy of resolutions duly adopted by the Board of Directors of the Borrower on                             ,
2005; such resolutions have not in any way been amended, modified, revoked or
rescinded, have been in full force and effect since their adoption to and
including the date hereof and are now in full force and effect and are the only
corporate proceedings of the Borrower now in force relating to or affecting the
matters referred to therein.

 

8.             Attached hereto as Annex 2 is a true and complete
copy of the By-Laws of the Borrower as in effect on the date hereof.

 

9.             Attached hereto as Annex 3 is a true and complete
copy of the Articles of Incorporation of the Borrower as in effect on the date
hereof.

 

 

10.           The following persons are now duly elected and qualified
officers of the Borrower holding the offices indicated next to their respective
names below, and the signatures appearing opposite their respective names below
are the true and genuine signatures of such officers, and each of such officers
is duly authorized to execute and deliver on behalf of the Borrower each of the
Loan Documents to which it is a party and any certificate or other document to
be delivered by the Borrower pursuant to the Loan Documents to which it is a
party:

 

	
  Name

  	
   

  	
  Office

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

IN WITNESS WHEREOF, the
undersigned have hereunto set our names as of the date set forth below.

 

	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Name:

  
	
  Title:

  	
  Title: [Corporate
  Secretary]

  
	
   

  	
   

  
	
  Date: April    , 2005

  	
   

  
				

 

 

EXHIBIT B

 

FORM OF

ASSIGNMENT AND ASSUMPTION

 

Reference is made to the Credit Agreement, dated as
of April    , 2005 (as amended, supplemented or otherwise modified
from time to time, the “Credit Agreement”), among Southwestern Public
Service Company (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative
Agent”).  Unless otherwise defined
herein, terms defined in the Credit Agreement and used herein shall have the
meanings given to them in the Credit Agreement.

 

The Assignor identified on Schedule l hereto
(the “Assignor”) and the Assignee identified on Schedule l hereto
(the “Assignee”) agree as follows:

 

1.             The Assignor hereby irrevocably sells and assigns to the
Assignee without recourse to the Assignor, and the Assignee hereby irrevocably
purchases and assumes from the Assignor without recourse to the Assignor, as of
the Effective Date (as defined below), the interest described in Schedule 1
hereto (the “Assigned Interest”) in and to the Assignor’s rights and
obligations under the Credit Agreement with respect to the credit facility
contained in the Credit Agreement in a principal amount as set forth on Schedule 1
hereto.

 

2.             The Assignor (a) makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Credit
Agreement or with respect to the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Credit Agreement, any other Loan
Document or any other instrument or document furnished pursuant thereto, other
than that the Assignor has not created any adverse claim upon the interest
being assigned by it hereunder and that such interest is free and clear of any
such adverse claim and (b) makes no representation or warranty and assumes
no responsibility with respect to the financial condition of the Borrower, any
of its Affiliates or any other obligor or the performance or observance by the
Borrower, any of its Affiliates or any other obligor of any of their respective
obligations under the Credit Agreement or any other Loan Document or any other
instrument or document furnished pursuant hereto or thereto.

 

3.             The Assignee (a) represents and warrants that it is
legally authorized to enter into this Assignment and Assumption; (b) confirms
that it has received a copy of the Credit Agreement, together with copies of
the financial statements delivered pursuant to Section 4.1 thereof 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; (c) agrees
that it will, independently and without reliance upon the Assignor, any Agent
or any 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 Credit Agreement, the other Loan Documents or any
other instrument or document furnished pursuant hereto or thereto; (d) appoints
and authorizes the Administrative Agent to take such action as agent on its
behalf and to exercise such powers and discretion under the Credit Agreement,
the other Loan Documents or any other instrument or document furnished pursuant
hereto or thereto as are delegated to the Administrative Agent by the terms
thereof, together with such powers as are incidental thereto; and (e) agrees
that it will be bound by the provisions of the Credit Agreement and will
perform in accordance with its terms all the obligations which by the terms of
the Credit Agreement are required to be performed

 

 

by it as a Lender including,
if it is organized under the laws of a jurisdiction outside the United States,
its obligation pursuant to Section 2.13(d) of the Credit Agreement.

 

4.             Subject to obtaining all necessary consents on or prior
to such date, the effective date of this Assignment and Assumption shall be the
Effective Date of Assignment described in Schedule 1 hereto (the “Effective
Date”).  Following the execution of
this Assignment and Assumption and receipt of all necessary consents, it will
be delivered to the Administrative Agent for acceptance by it and recording by
the Administrative Agent pursuant to the Credit Agreement, effective as of the
Effective Date (which shall not, unless otherwise agreed to by the Administrative
Agent, be earlier than five Business Days after the date of such acceptance and
recording by the Administrative Agent).

 

5.             Upon such acceptance and recording, from and after the
Effective Date, the Administrative Agent shall make all payments in respect of
the Assigned Interest (including payments of principal, interest, fees and
other amounts) to the Assignor for amounts that have accrued to the Effective
Date and to the Assignee for amounts, which have accrued subsequent to the
Effective Date.

 

6.             From and after the Effective Date, (a) the Assignee
shall be a party to the Credit Agreement and, to the extent provided in this
Assignment and Assumption, have the rights and obligations of a Lender
thereunder and under the other Loan Documents and shall be bound by the
provisions thereof and (b) the Assignor shall, to the extent provided in
this Assignment and Assumption, relinquish its rights and be released from its
obligations under the Credit Agreement.

 

7.             This Assignment and Assumption shall be governed by and
construed in accordance with the laws of the State of New York.

 

IN WITNESS WHEREOF, the parties hereto have caused
this Assignment and Assumption to be executed as of the date first above
written by their respective duly authorized officers on Schedule 1 hereto.

 

 

Schedule 1 to
Assignment and Assumption

with respect to the Credit Agreement, dated as of April   ,
2005,

among Southwestern Public Service Company (the “Borrower”), the Lenders
party thereto

the Documentation Agents and Syndication Agents named therein

and JPMorgan Chase Bank, N.A., as Administrative Agent

 

Name of Assignor:

 

Name of Assignee:

 

Effective Date of
Assignment:

 

Principal Amount Assigned: $

 

 

	
  [Name of Assignee]

  	
  [Name of Assignor]

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Title:

  	
  Title:

  
						

 

	
  JPMorgan Chase Bank, N.A., as Administrative

  Agent(1)

  	
  Southwestern Public Service Company(2)

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Title:

  	
  Title:

  
						

 

 

	
                                   ,
  as an Issuing Lender(3)

  

 

 

	
  By:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  

 

(1)                                  Consent
of Administrative Agent required for each assignment.

 

(2)                                  Consent
of Borrower required for each assignment unless (x) assignment is to a Lender
or (y) an Event of Default has occurred and is continuing.

 

(3)                                  Consent
of each Issuing Lender required for each assignment.

 

 

EXHIBIT
C

 

FORM OF
EXEMPTION CERTIFICATE

 

Reference is made to the Credit Agreement, dated as
of April    , 2005 (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among Southwestern Public
Service Company (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as administrative agent (in such capacity, the “Administrative
Agent”).  Unless otherwise defined
herein, terms defined in the Credit Agreement and used herein shall have the
meanings given to them in the Credit Agreement.

 

                                 (the
“Non-U.S. Lender”) is providing this certificate pursuant to Section 2.13(d) of
the Credit Agreement.  The Non-U.S.
Lender hereby represents and warrants that:

 

1.  The
Non-U.S. Lender is the sole record and beneficial owner of the Revolving Loans
in respect of which it is providing this certificate.

 

2.  The
Non-U.S. Lender is not a “bank” for purposes of Section 881(c)(3)(A) of
the Internal Revenue Code of 1986, as amended (the “Code”).  In this regard, the Non-U.S. Lender further
represents and warrants that:

 

(a) the Non-U.S. Lender
is not subject to regulatory or other legal requirements as a bank in any
jurisdiction; and

 

(b) the Non-U.S. Lender
has not been treated as a bank for purposes of any tax, securities law or other
filing or submission made to any Governmental Authority, any application made
to a rating agency or qualification for any exemption from tax, securities law
or other legal requirements.

 

3.  The
Non-U.S. Lender is not a 10-percent shareholder of the Borrower within
the meaning of Section 881(c)(3)(B) of the Code.

 

4.  The
Non-U.S. Lender is not a controlled foreign corporation receiving interest from
a related person within the meaning of Section 881(c)(3)(C) of the
Code.

 

IN WITNESS WHEREOF, the undersigned has duly
executed this certificate.

 

	
   

  	
  [NAME OF NON-U.S. LENDER]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
						

 

 

EXHIBIT
D

 

FORM OF
ADDENDUM

 

The undersigned Lender (i) agrees
to all of the provisions of the Credit Agreement, dated as of April     ,
2005 (the “Credit Agreement”), among Southwestern Public Service Company
(the “Borrower”), the Lenders party thereto, the Documentation Agents
and Syndication Agents named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent, and (ii) becomes a party thereto, as a Lender, with
obligations applicable to such Lender thereunder, including, without
limitation, the obligation to make extensions of credit to the Borrower in an
aggregate principal amount not to exceed the amount of its Revolving Commitment
as set forth opposite the undersigned Lender’s name in Schedule 1.1A to
the Credit Agreement, as such amount may be changed from time to time as
provided in the Credit Agreement.   
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Name of Lender)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
						

 

 

Dated as of April    ,
2005

 

 

EXHIBIT
E-1

 

FORM OF
NEW LENDER SUPPLEMENT

 

NEW LENDER SUPPLEMENT,
dated                           ,
to the Credit Agreement, dated as of April     , 2005
(as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among Southwestern Public Service Company (the “Borrower”),
the Lenders party thereto, the Documentation Agents and Syndication Agents
named therein and JPMorgan Chase Bank, N.A., as administrative agent for the
Lenders (in such capacity, the “Administrative Agent”).  Unless otherwise defined herein, terms
defined in the Credit Agreement and used herein shall have the meanings given
to them in the Credit Agreement.

 

W I T N E S S
E T H :

 

WHEREAS, the Credit Agreement provides in Section 2.1(c) thereof
that any bank, financial institution or other entity may become a party to the
Credit Agreement with the consent of the Borrower and the Administrative Agent
(which consent shall not be unreasonably withheld) by executing and delivering
to the Borrower and the Administrative Agent a supplement to the Credit
Agreement in substantially the form of this New Lender Supplement; and

 

WHEREAS, the undersigned now desires to become a
party to the Credit Agreement;

 

NOW, THEREFORE, the undersigned hereby agrees as
follows:

 

1.  The undersigned agrees to be
bound by the provisions of the Credit Agreement, and agrees that it shall, on
the date this New Lender Supplement is accepted by the Borrower and the
Administrative Agent, become a Lender for all purposes of the Credit Agreement
to the same extent as if originally a party thereto, with a Revolving
Commitment of $                                .

 

2.  The undersigned (a) represents
and warrants that it is legally authorized to enter into this New Lender
Supplement; (b) confirms that it has received a copy of the Credit
Agreement, together with copies of the financial statements referred to in Section 4.1
thereof and such other documents and information as it has deemed appropriate
to make its own credit analysis and decision to enter into this New Lender
Supplement; (c) agrees that it has made and will, independently and
without reliance upon any Agent or any other Lender and based on such documents
and information as it shall deem appropriate at the time, continue to make its
own credit decisions in taking or not taking action under the Credit Agreement
or any instrument or document furnished pursuant hereto or thereto; (d) appoints
and authorizes the Administrative Agent to take such action as agent on its
behalf and to exercise such powers and discretion under the Credit Agreement or
any instrument or document furnished pursuant hereto or thereto as are
delegated to the Administrative Agent by the terms thereof, together with such
powers as

 

 

are incidental thereto; and (e) agrees that it will be bound by
the provisions of the Credit Agreement and will perform in accordance with its
terms all the obligations which by the terms of the Credit Agreement are
required to be performed by it as a Lender including, without limitation, if it
is organized under the laws of a jurisdiction outside the United States, its
obligation pursuant to Section 2.13(d) of the Credit Agreement.

 

3.  The undersigned’s address for
notices for the purposes of the Credit Agreement is as follows:

 

[insert notice address]

 

IN WITNESS WHEREOF, the undersigned has caused this
New Lender Supplement to be executed and delivered by a duly authorized officer
on the date first above written.

 

 

	
   

  	
  [INSERT NAME OF LENDER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Accepted this           day
of

                            ,        .

 

 

	
  SOUTHWESTERN PUBLIC
  SERVICE COMPANY

  
	
   

  
	
  By

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

Accepted this        day
of

                       ,
        .

 

 

	
  JPMORGAN CHASE BANK, N.A.,
  as Administrative Agent

  
	
   

  
	
   

  
	
  By

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

EXHIBIT
E-2

 

FORM OF INCREASED
REVOLVING COMMITMENT ACTIVATION NOTICE

 

To:          JPMORGAN CHASE BANK, N.A., as Administrative Agent

 

Reference is hereby made to the Credit Agreement,
dated as of April     , 2005 (as amended, supplemented
or otherwise modified from time to time, the “Credit Agreement”), among
Southwestern Public Service Company (the “Borrower”), the Lenders party
thereto, the Documentation Agents and Syndication Agents named therein and
JPMorgan Chase Bank, N.A., as administrative agent for the Lenders (in such
capacity, the “Administrative Agent”). 
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

This notice is the Increased Revolving Commitment
Activation Notice referred to in the Credit Agreement, and the Borrower and
each of the Lenders party hereto hereby notify you that:

 

1.                                       Each Lender
party hereto agrees to make or increase the amount of its Revolving Commitment
to the amount set forth opposite such Lender’s name below under the caption “Increased
Revolving Commitment Amount”.

 

2.                                       The Increased
Revolving Commitment Closing Date is
           .(4)

 

3.                                       The Borrower
hereby represents and warrants that no Default or Event of Default has occurred
and is continuing as of the date hereof and no Default or Event of Default will
exist after giving effect to the increase specified herein.

 

 

	
   

  	
  SOUTHWESTERN PUBLIC
  SERVICE

  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

(4)           No later than the fourth anniversary of the Closing Date.

 

 

	
  Increased Revolving
  Commitment Amount

  	
  [NAME OF LENDER]

  
	
   

  	
   

  
	
  $

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

EXHIBIT
F-1

 

FORM OF EXTENSION
REQUEST(5)

 

                    ,
200   

 

JPMorgan Chase Bank, N.A.,
as Administrative Agent

 

Reference is made to the Credit Agreement, dated as
of April    , 2005 (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among Southwestern
Public Service Company (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative
Agent”).  Unless otherwise defined
herein, terms defined in the Credit Agreement and used herein shall have the
meanings given to them in the Credit Agreement.

 

Pursuant to Section 2.17(a) of the Credit
Agreement, the Borrower hereby requests that the Lenders extend the Revolving
Termination Date now in effect by a period of one year, to April    ,
2011.

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  SOUTHWESTERN PUBLIC
  SERVICE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

(5)                                  Extension
Request may be given no earlier than the first anniversary of the Closing Date
and no later than 45 days prior to the Revolving Termination Date then in
effect.

 

 

EXHIBIT
F-2

 

FORM OF CONTINUATION
NOTICE(6)

 

                      ,
200   

 

JPMorgan Chase Bank, N.A.,
as Administrative Agent

 

Reference is made to the Credit Agreement, dated as
of April    , 2005 (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among Southwestern
Public Service Company (the “Borrower”), the Lenders party thereto, the
Documentation Agents and Syndication Agents named therein and JPMorgan Chase
Bank, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative
Agent”).  Unless otherwise defined
herein, terms defined in the Credit Agreement and used herein shall have the
meanings given to them in the Credit Agreement.

 

The undersigned Lender is delivering this
Continuation Notice in response to the Extension Request dated                    ,
200   .  Pursuant to Section 2.17(a) of
the Credit Agreement, the undersigned Lender hereby consents, in its sole
discretion, to the extension of the Revolving Termination Date to April     ,
2011, as requested by the Borrower in the Extension Request.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [NAME OF LENDER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

(6)                                  Continuation
Notice must be received by the Administrative Agent no later than 20 days prior
to the then applicable Revolving Termination Date.  Any Lender that fails to submit a
Continuation Notice by such date shall be deemed not to have consented to the
requested extension and shall constitute a Non-Extending Lender.Exhibit 10.01

 

SOAH DOCKET NO. 473-04-6558

PUC DOCKET NO. 29801

 

	
  APPLICATION OF SOUTHWESTERN

  PUBLIC SERVICE COMPANY FOR:

  (1) RECONCILIATION OF ITS FUEL

  AND PURCHASED POWER COSTS

  FOR 2002 AND 2003; (2) A SPECIAL

  CIRCUMSTANCES FINDING; AND (3) RELATED RELIEF

  	
  §

  	
   

  
	
  §

  	
  BEFORE THE STATE OFFICE

  
	
  §

  	
   

  
	
  §

  	
  OF

  
	
  §

  	
   

  
	
  §

  	
  ADMINISTRATIVE HEARINGS

  
	
  §

  	
   

  

 

NON-UNANIMOUS STIPULATION

(Filename:
7E9.doc; Total Pages: 11)

 

Table of Contents

 

	
  NON-UNANIMOUS STIPULATION

  	
   

  
	
  Section 1.

  	
  Black
  Box Resolution of Reconciliation Period Issues

  	
   

  
	
  Section 2.

  	
  Obligation
  to File Base Rate Case

  	
   

  
	
  Section 3.

  	
  Treatment
  of TUCO Inc. Costs in Future Proceedings

  	
   

  
	
  Section 4.

  	
  Delay
  in Retail Competition

  	
   

  
	
  Section 5.

  	
  Timing
  of Next Fuel Reconciliation

  	
   

  
	
  Section 6.

  	
  Wholesale
  Capacity and Interruptible Sales

  	
   

  
	
  Section 7.

  	
  Electric
  Commodity Trading Margins

  	
   

  
	
  Section 8.

  	
  Purchases
  and Sales with PSCo and NSP

  	
   

  
	
  Section 9.

  	
  Value
  to be Imputed to Renewable Energy Credits

  	
   

  
	
  Section 10.

  	
  Withdrawal
  of Request to Increase Coal Inventory Levels

  	
   

  
	
  Section 11.

  	
  Withdrawal
  of Requested Special Circumstances Finding

  	
   

  
	
  Section 12.

  	
  Withdrawal
  of Request to Share in Margins from Wholesale Non-Firm Sales

  	
   

  
	
  Section 13.

  	
  Agreement
  Regarding Property Tax Refund

  	
   

  
	
  Section 14.

  	
  Purchases
  of Natural Gas from SPS’s Affiliate, e prime, Inc.

  	
   

  
	
  Section 15.

  	
  SO2
  Credits

  	
   

  
	
  Section 16.

  	
  Reimbursement
  of City’s Rate Case Expense

  	
   

  
	
  Section 17.

  	
  Obligation
  to Actively Support this Stipulation

  	
   

  
	
  Section 18.

  	
  Effect
  of modification of stipulation

  	
   

  
	
  Section 19.

  	
  Multiple
  counterparts

  	
   

  
	
  Certificate of Service

  	
   

  

 

 

SOAH DOCKET NO. 473-04-6558

PUC DOCKET NO. 29801

 

	
  APPLICATION OF SOUTHWESTERN

  PUBLIC SERVICE COMPANY FOR:

  (1) RECONCILIATION OF ITS FUEL

  AND PURCHASED POWER COSTS

  FOR 2002 AND 2003; (2) A SPECIAL

  CIRCUMSTANCES FINDING; AND (3) RELATED RELIEF

  	
  §

  	
   

  
	
  §

  	
  BEFORE THE STATE OFFICE

  
	
  §

  	
   

  
	
  §

  	
  OF

  
	
  §

  	
   

  
	
  §

  	
  ADMINISTRATIVE HEARINGS

  
	
  §

  	
   

  

 

NON-UNANIMOUS STIPULATION

 

The parties to this non-unanimous stipulation, which is dated as of April 25,
2005, are the Staff (Staff) of the Public Utility Commission of Texas (Commission),
Southwestern Public Service Company (SPS), the City of Amarillo (City),
Canadian River Municipal Water Authority (CRMWA), and West Texas Municipal
Power Agency (WTMPA).  The foregoing
shall be referred to individually either as a Signatory or by the acronym
assigned above, and collectively as the Signatories.  The Office of Public Utility Counsel (OPC)
and Texas Industrial Energy Consumers (TIEC), the only other parties to this
docket, do not join in this stipulation and will file separate position
statements.  The Signatories submit this
stipulation to the Commission as representing a just and reasonable disposition
of the issues related to this docket consistent with the public interest; the
Signatories request approval of this stipulation and entry of the findings of
fact and conclusions of law consistent with that approval.

 

On May 28, 2004, pursuant to Sections 36.203 and 36.205 of
the Public Utility Regulatory Act, TEX. UTIL. CODE ANN. §11.001 et seq. (Vernon 1998 & Supp.
2005) (PURA), SPS filed its application with the Commission seeking authority
to: (1) reconcile its fuel and purchased power costs for 2002 and 2003; (2) a
special circumstances finding; and (3) related relief.

 

By this agreement, the Signatories resolve all issues between them
related to SPS’s fuel and purchased power costs, and stipulate and agree as
follows:

 

Section 1.      Black Box Resolution of
Reconciliation Period Issues

 

The Signatories agree to a black box settlement dollar amount of an
$18 million reduction in eligible fuel expense for the reconciliation
period, which would resolve all issues raised in this proceeding.

 

 

Section 2.      Obligation to File Base Rate Case

 

SPS agrees to file a base rate case no later than May 31, 2006,
using a test year ending September 30, 2005, and it agrees to extend the
150 day deadline imposed by Section 36.108 of the PURA to
180 days.  Until SPS files a rate
case as contemplated in this settlement, the Signatories, other than the
Commission and the City, agree that they will not make any filing or take any
other action to encourage any regulatory authority to institute a SPS base rate
case.  Without waiving their obligation
to insure just and reasonable rates, the Commission Staff and City agree that the
timing for SPS to file a rate case agreed to in the settlement is appropriate.

 

Section 3.      Treatment of TUCO Inc. Costs in Future
Proceedings

 

In the base rate case described in Section 2, SPS will treat TUCO
Inc. coal costs consistent with P.U.C. SUBST. R. 25.236(a)(1) by
placing traditionally non-eligible fuel expenses in base rates.

 

Section 4.      Delay in Retail Competition

 

The Signatories (other than Staff) agree to affirmatively support (or
not oppose) a further legislative postponement of the date for retail
competition in the SPS service area of up to ten years.

 

Section 5.      Timing of Next Fuel Reconciliation

 

SPS will file a fuel reconciliation as a part of the base rate case
described in Section 2.

 

Section 6.      Wholesale Capacity and Interruptible Sales

 

The agreements reflected in this Section 6 will remain in effect
up to the effective date of rates resulting from the base rate case described
in Section 2.  The Signatories
acknowledge that SPS has been making wholesale firm and interruptible sales to
Golden Spread Electric Cooperative, Inc. (Golden Spread); Lyntegar
Electric Cooperative, Inc.; Farmers’ Electric Cooperative, Inc.;
Central Valley Electric Cooperative, Inc.; Lea County Electric Cooperative, Inc.;
Roosevelt County Electric Cooperative, Inc.; Cap Rock Energy; and WTMPA
(Lubbock Power & Light; City of Brownfield; City of Floydada; City of
Tulia) since the 1940s, and Public Service Company of New Mexico (PNM) since
1991, all of which are allocated system average fuel cost, and those sales were
not challenged in this proceeding.  The
Signatories further acknowledge that SPS has been making sales priced at system
average fuel cost to El Paso Electric Company (EPE) and Texas-New Mexico Power
Company (now being acquired by

 

 

PNM) through the Eddy County DC
tie since the mid-1980s.  SPS has
represented that sales to these wholesale customers totaled 1,713 MW in
2004.

 

The Signatories agree that, for the limited purposes of this
settlement, SPS shall be entitled to continue allocating system average fuel
cost to a cap based on peak usage of 1,713 MW (base year 2004) of firm or
interruptible wholesale load to the customers described above, which will be
adjusted annually for any increases in load growth which SPS is currently
contractually obligated to serve for Golden Spread, the full requirements
customers, and WTMPA.  SPS currently
projects that load growth will increase this cap to 1,738 MW in 2005.  During on-peak or off-peak periods, SPS may
not sell available capacity to parties other than the customers described above
at wholesale and assign system average fuel cost to those sales.  When the contracts described above expire,
SPS may replace the contracts serving such customers with cost-based contracts,
with fuel priced at system average fuel cost. 
All other wholesale capacity sales and wholesale interruptible sales
over this cap would be allocated incremental fuel cost.  SPS will not enter into new market-based
wholesale arrangements using a system average wholesale fuel clause until this
issue is addressed and such treatment is approved by the Commission in the
upcoming base rate case.

 

The Signatories further agree that to resolve this issue for the period
from January 1, 2004, through December 31, 2004, Texas retail fuel
expense for this period shall be reduced by $6.9 million.  This amount is in addition to the $18 million
black box settlement amount described in Section 1.  Moreover, the parties agree that from January 1,
2005, through the end of the next reconciliation period, the method recommended
by Scott Norwood in this proceeding shall be used for calculating the
incremental fuel costs for any firm wholesale sales to parties other than the
customers described above or that otherwise do not conform to the cap and
principles agreed to herein regarding this issue.  SPS will continue to calculate incremental
costs and margins of coordination sales in the manner which it has historically
used.   The parties have the right in the
next base rate case to raise issues with wholesale service cost allocation and
cost assignment for prospective application beginning with the effective date
of new retail base rates.

 

Section 7.      Electric Commodity Trading Margins

 

SPS agrees to share with ratepayers its portion of the net monthly
margins from electric commodity trading activities conducted by SPS, Public
Service Company of Colorado (PSCo),

 

 

and Northern States Power
Company (NSP) in the same manner as electric commodity trading margins are
treated in Colorado, with SPS retaining the first $400,000 (Texas
jurisdictional basis) annually to reimburse it for the administrative costs
associated with such sales, with the remaining being split with 40 percent
being given to customers, and SPS retaining 60 percent of SPS’s share
of the margins.  The reduction in
eligible fuel expenses during the Reconciliation Period attributable to this
issue is included in the black box settlement amount shown in Section 1.  In SPS’s next base rate case, SPS would
propose its prospective treatment for margins from electric commodity trading
activities, and all parties would be free to advocate different crediting
mechanisms.

 

Section 8.      Purchases and Sales with PSCo and NSP

 

The Signatories agree that SPS’s purchases of economic energy from PSCo
and NSP will be eligible fuel expense, as long as the total purchase cost over
a projected transaction period is below SPS’s forecasted avoided cost for such
period and meet other requirements of this agreement.  The Signatories agree that purchases made on
this basis will be deemed to have satisfied the requirements of Section 36.058
of PURA and the Commission’s substantive rules. 
Sales of coordination energy by SPS to affiliates will be made under a
similar pricing arrangement (total purchase cost over a transaction period will
be above SPS’s forecasted incremental cost for such period), with all amounts
realized above SPS’s incremental cost being credited to ratepayers in the same
manner as wholesale non-firm sales.  SPS
will not purchase from PSCo over the Lamar DC tie if, at the time of the
proposed purchase, PSCo was planning on selling day-ahead to others at the
Lamar DC tie, or into SPS’s region, at a price lower than it is willing to sell
to SPS.  Likewise, SPS will not purchase
from NSP if, at the time of the proposed purchase, NSP was planning on selling
day-ahead to others in SPS’s region, at a price lower than it is willing to
sell to SPS.

 

To further clarify the agreement on this aspect of the settlement, SPS
provides the following assurances:

 

a.                                       Consistent with
its agreement in Docket No. 14980, in deciding to make sales to PSCo or
NSP, SPS will look at its other sales opportunities and if the sale at market
price produces a higher margin than a sale to PSCo or NSP priced as set forth
above, SPS will make the market price sale in preference to the sale to PSCo or
NSP;

 

 

b.                                      Similarly, in
deciding to make purchases from PSCo or NSP, SPS will look at its other
purchase opportunities and if the purchase from another provider at market
price produces a lower price than the purchase from PSCo or NSP priced as set forth
above, SPS will make the purchase at market price in preference to the purchase
from PSCo or NSP;

 

c.                                       Purchases from
PSCo or NSP will include a profit for the selling party.  The Signatories agree that, to the extent
P.U.C. SUBST. R. 25.236(a)(1) applies to purchased power and that SPS
has shown that such transactions meet the requirements described in Section 8.b,
above, as a part of the approval of this settlement the Commission should grant
a good cause waiver of the fuel rule that prohibits such profits from
affiliate purchased power transactions from being passed through the fuel
clause since these economic energy transactions are reasonably expected to
result in lower fuel expenses than would otherwise be the case and will have
been shown to constitute the best available market alternative available to
SPS; and

 

d.                                      The parties may
challenge the reasonableness of SPS’s forecasted avoided cost calculation.

 

Section 9.      Value to be Imputed to Renewable Energy
Credits

 

The Signatories agree that the value of renewable energy credits (RECs)
should be removed from eligible fuel expense. 
They recognize that both RECs and the wind energy that creates the RECs
have value.  To achieve a fair and
reasonable balance of the two commodities, the Signatories agree to use the
market price of RECs (at some time interval to be agreed upon prior to
execution of the definitive stipulation) and the market price of generic
energy, which would be the avoided energy cost. 
The determination of the amount of the contract price allocated to each
commodity under this approach is explained below.  The Signatories believe that this approach,
which again compares market-to-market, uses readily available information that
is readily verifiable.  Under this
approach, assuming that the contract price of wind energy and associated RECs
is $22 per MWh (2.2 cents per kWh), the market price of RECs is $14.50, and if
the avoided cost of energy were $40, the determination of the amount allocated
to each commodity would be accomplished as follows:

 

	
  Percentage Attributable to RECS =

  	
   

  	
  RECs Market Price

  
	
  RECs Market Price + Avoided Energy Cost

  

 

	
  Percentage Attributable to Energy =

  	
   

  	
  Avoided Energy Cost

  
	
  RECs Market Price + Avoided Energy Cost

  

 

 

Using the estimated numbers assumed above would result in RECs having a
percentage value of 26.61 percent and energy having a percentage value of
73.39 percent.  This would result in
RECs having an assigned value of $5.85 and energy having an assigned value of
$16.15.  To recognize the direct relationship
and balance between the valuation of RECs and the valuation of energy used to
serve customers, the Signatories agree that the value imputed to RECs will be
the higher of the amount derived from the formula set forth above or $6.50 per
REC, escalated at the rate specified in the contract that created the RECs.

 

The imputed value of RECs during the Reconciliation Period is included
in the black box settlement amount shown in Section 1.  In all future fuel reconciliations and rate
cases, SPS will impute the value of RECs (calculated as described above) to
each REC it obtains in a situation where the energy cost and the REC cost are
bundled, and will remove the imputed value of all RECs it obtains during the
reconciliation period from eligible fuel expense.  Proceeds from the sale of excess RECs will be
dealt with in the base ratemaking process. 
In addition, the parties acknowledge that the value of RECs retired to
meet SPS’s obligations under Section 39.904 of PURA will be directly
assigned to the Texas retail jurisdiction in all future base rate proceedings.

 

Section 10.    Withdrawal of Request to Increase Coal
Inventory Levels

 

SPS withdraws its request (without prejudice) to raise the target coal
inventory levels established in Docket No. 19512.  The Signatories agree that if SPS finds that
it is necessary to go above those levels, then it may recover the additional
carrying cost in future fuel reconciliation proceedings after demonstrating
that such action was financially beneficial to customers or was prudent to
protect customers.

 

Section 11.    Withdrawal of Requested Special
Circumstances Finding

 

SPS withdraws (without prejudice) its request to recover the wheeling
expense for which it has requested a special circumstance finding, and the
reduction in eligible fuel expenses attributable to this issue is included in
the black box settlement amount shown in Section 1.

 

Section 12.    Withdrawal of Request to Share in Margins
from Wholesale Non-Firm Sales

 

SPS withdraws its request (without prejudice) to share in the margins
from wholesale non-firm sales pursuant to P.U.C. SUBST. R. 25.236(a)(8),
and the reduction in eligible fuel expenses attributable to this issue is
included in the black box settlement amount shown in Section 1.

 

 

Section 13.    Agreement Regarding Property Tax Refund

 

SPS agrees that the appropriate accounting process with respect to the
litigation expense incurred by TUCO Inc. to obtain a property tax refund and
with respect to the refund itself is to apply the entirety of the expenses
[including the 25 percent of the litigation expenses incurred in 2004] and the
entirety of the refund amount [including the amounts refunded in 2004] to the
fuel Reconciliation Period at issue in this case.  The change in eligible fuel expenses
attributable to this issue is included in the black box settlement amount shown
in Section 1.

 

Section 14.    Purchases of Natural Gas from SPS’s
Affiliate, e prime, Inc.

 

SPS agrees to credit (without prejudice) to eligible fuel expense
100 percent of the margins and operation and maintenance expenses included
in the purchase price of natural gas purchased from its affiliate, e prime
Inc (e prime).  The reduction in
eligible fuel expenses attributable to this issue is included in the black box
settlement amount shown in Section 1. 
Except for the profit and operation and maintenance expenses dealt with
above, all expenditures made by SPS for fuel purchased from e prime are
eligible fuel expenses.

 

Section 15.    SO2 Credits

 

SPS will credit to eligible fuel expense the Texas-jurisdictional
portion of proceeds from the sale of SO2 credits, and the reduction
in eligible fuel expenses during the Reconciliation Period attributable to this
issue is included in the black box settlement amount shown in Section 1.  In addition, the Signatories agree that in
the future SPS may recover as eligible fuel expense the cost of purchasing in
the open market any SO2 credits necessary for SPS’s compliance with
SO2 obligations.  Parties will
have the right to contest whether the SO2 credit purchases were
reasonable and necessary in future fuel reconciliations.

 

Section 16.    Reimbursement of City’s Rate Case Expense

 

SPS agrees that it will reimburse the City for its reasonable and
necessary expenses in this proceeding. 
The City estimates that its total rate case expense, including both
legal and consulting fees and expenses, will be $196,449.

 

Section 17.    Obligation to Actively Support this
Stipulation

 

The Signatories agree that they will actively support this stipulation
before the Commission and will take all reasonable steps to ensure that the
Commission enters an order consistent with this stipulation.  Towards this end, SPS, Staff, and the City
agree that they will

 

 

provide witnesses to offer
direct and (if necessary) rebuttal testimony in support of the stipulation.

 

Section 18.    Effect of modification of stipulation

 

There are no third party beneficiaries of this agreement.  Although this agreement represents a
settlement among the parties with respect to the issues presented in this
docket, this agreement is merely a settlement proposal submitted to the
Commission, which has the authority to enter an order resolving these issues.

 

This stipulation has been drafted by all the Signatories and is the
result of negotiation, compromise, settlement, and accommodation.  The Signatories agree that this settlement is
in the public interest.  The Signatories
agree that the terms and conditions herein are interdependent.  The various provisions of this stipulation
are not severable.  None of the
provisions of this stipulation shall become fully operative unless the
Commission shall have entered a final order approving this stipulation.  If the Commission issues a final order
inconsistent with the terms of this stipulation, each Signatory has the right
to withdraw from this stipulation, to submit testimony, and to obtain a hearing
and advocate any position it deems appropriate with respect to any issue in
this stipulation.

 

Section 19.    Multiple counterparts

 

Each copy of this stipulation may not bear the signatures of all the
Signatories but will be deemed fully executed if all copies together bear the
signatures of all Signatories.

 

Fully and duly authorized representatives of the Signatories have
signed this stipulation as of the date first set forth above.

 

	
   

  	
  STAFF OF THE
  PUBLIC UTILITY

  COMMISSION OF TEXAS

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ WILLIAM L. HUIE

  
	
   

  	
   

  	
  William L.
  Huie

  
	
   

  	
   

  	
  Attorney of
  Record

  
	
   

  	
   

  
	
   

  	
  SOUTHWESTERN
  PUBLIC SERVICE COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ STEVEN D. ARNOLD

  
	
   

  	
   

  	
  Steven D.
  Arnold

  
	
   

  	
   

  	
  Attorney of
  Record

  
				

 

 

	
   

  	
  CITY OF
  AMARILLO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ JIM BOYLE

  
	
   

  	
   

  	
  Jim Boyle

  
	
   

  	
   

  	
  Attorney of
  Record

  
	
   

  	
   

  
	
   

  	
  CANADIAN
  RIVER MUNICIPAL WATER

  
	
   

  	
  AUTHORITY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ JOE PRATT

  
	
   

  	
   

  	
  Joe Pratt

  
	
   

  	
   

  	
  Attorney of
  Record

  
	
   

  	
   

  
	
   

  	
  WEST TEXAS
  MUNICIPAL POWER AGENCY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ MARIA SANCHEZ

  
	
   

  	
   

  	
  Maria
  Sanchez

  
	
   

  	
   

  	
  Attorney of
  Record

  
				

 

 

Certificate of Service

 

I certify that on the 25th day of April 2004, a true
and correct copy of the foregoing instrument was served on all parties of
record by hand delivery, Federal Express, certified mail, or facsimile transmission.

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