Document:

Credit Agreement

 Exhibit 10.1 
  

  
 FIVE-YEAR CREDIT AGREEMENT 
  
 dated as of 
  
 April 21, 2005 
  
 Among 
  
 GENWORTH FINANCIAL, INC. 
  
 as Borrower, 
  
 the Lenders Party Hereto 
  
 and 
  
 BANK OF AMERICA, N.A. and
JPMORGAN CHASE BANK, N.A., 
  
 as Co-Administrative Agents

  
 $1,000,000,000 REVOLVING CREDIT FACILITY 
  

  
 BANC OF AMERICA SECURITIES LLC and J.P. MORGAN SECURITIES INC. 
  
 as Joint Bookrunners and Joint Lead Arrangers 

 TABLE OF CONTENTS 
  

			
	 	  	Page

	ARTICLE I Definitions	  	1
	 SECTION 1.01. Defined Terms
	  	1
	 SECTION 1.02. Classification of Loans and Borrowings.
	  	8
	 SECTION 1.03. Terms Generally
	  	8
	 SECTION 1.04. Accounting Terms; GAAP.
	  	9
		
	ARTICLE II The Credits	  	9
	 SECTION 2.01. Commitments.
	  	9
	 SECTION 2.02. Loans and Borrowings.
	  	9
	 SECTION 2.03. Requests for Borrowings.
	  	10
	 SECTION 2.04. Letters of Credit
	  	10
	 SECTION 2.05. Funding of Borrowings.
	  	14
	 SECTION 2.06. Interest Elections.
	  	14
	 SECTION 2.07. Termination and Reduction of Commitments.
	  	15
	 SECTION 2.08. Repayment of Loans; Evidence of Debt.
	  	16
	 SECTION 2.09. Prepayment of Loans.
	  	16
	 SECTION 2.10. Fees.
	  	17
	 SECTION 2.11. Interest.
	  	18
	 SECTION 2.12. Alternate Rate of Interest.
	  	18
	 SECTION 2.13. Increased Costs.
	  	18
	 SECTION 2.14. Taxes.
	  	19
	 SECTION 2.15. Payments Generally.
	  	20
	 SECTION 2.16. Mitigation Obligations; Replacement of Lenders.
	  	21
	 SECTION 2.17. Break Funding Payments.
	  	22
	 SECTION 2.18. Illegality.
	  	22
		
	ARTICLE III Representations of the Borrower	  	23
		
	ARTICLE IV Conditions	  	24
	 SECTION 4.01. Effective Date.
	  	24
	 SECTION 4.02. Each Credit Event.
	  	24
		
	ARTICLE V Affirmative Covenants	  	25
	 SECTION 5.01. Financial Statements and Other Information.
	  	25
	 SECTION 5.02. Use of Proceeds.
	  	26
	 SECTION 5.03. Books and Records; Inspection Rights.
	  	26
	 SECTION 5.04. Notices of Defaults.
	  	26
	 SECTION 5.05. Existence; Conduct of Business.
	  	26
	 SECTION 5.06. Compliance with Laws.
	  	26
		
	ARTICLE VI Negative Covenants	  	26
	 SECTION 6.01. Financial Condition Covenant.
	  	26
	 SECTION 6.02. Liens.
	  	26

  

 -ii- 

			
	 SECTION 6.03. Fundamental Changes.
	  	28
	 SECTION 6.04. Transactions with Affiliates.
	  	28
		
	ARTICLE VII Events of Default	  	28
		
	ARTICLE VIII The Agents	  	30
		
	ARTICLE IX Miscellaneous	  	31
	 SECTION 9.01. Notices.
	  	31
	 SECTION 9.02. Waivers; Amendments.
	  	32
	 SECTION 9.03. Expenses; Indemnity.
	  	32
	 SECTION 9.04. Successors and Assigns.
	  	33
	 SECTION 9.05. Counterparts; Integration; Effectiveness.
	  	35
	 SECTION 9.06. Governing Law; Jurisdiction.
	  	35
	 SECTION 9.07. Right of Setoff.
	  	36
	 SECTION 9.08. Headings
	  	36
	 SECTION 9.09. Confidentiality.
	  	36
	 SECTION 9.10. Severability.
	  	36
	 SECTION 9.11. WAIVER OF JURY TRIAL.
	  	37
	 SECTION 9.12. USA Patriot Act.
	  	37

  
 SCHEDULES: 
  
 Schedule 2.01 – Commitments 
  
 EXHIBITS: 
  
 Exhibit A – Form of Assignment and Acceptance 
  

Exhibit B – Form of Opinion of Borrower’s In-House Counsel 
  
 Exhibit C – Form of Revolving Note 
  

 -iii- 

 CREDIT AGREEMENT (this “Agreement”), dated as of April 21, 2005 among GENWORTH
FINANCIAL, INC. (“Genworth”), a Delaware corporation, as borrower (the “Borrower”), the several banks and other financial institutions from time to time parties hereto (the “Lenders”), BANK OF
AMERICA, N.A. (“Bank of America”) and JPMORGAN CHASE BANK, N.A. (“JPMorgan Chase Bank”), as co-administrative agents (in such capacity, the “Co-Administrative Agents”) and JPMORGAN CHASE BANK, N.A.,
as paying agent (in such capacity, the “Paying Agent”). 
  
 The parties hereto agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 SECTION 1.01. Defined Terms. As used in this Agreement, the following
terms have the meanings specified below: 
  
 “Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Paying Agent. 
  
 “Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries,
Controls or is Controlled by or is under common Control with the Person specified. 
  
 “Agents” means the Co-Administrative Agents and the Paying Agent. 
  
 “Applicable Facility Fee Percentage” means, for any day with respect to any Commitment and subject to the provisions of the definition of
“Applicable Margin” following the table therein, the rate per annum set forth below under the caption “Facility Fee Rate Spread” corresponding to the Level in effect from time to time, as set forth in the following table:

  

						
	 Level

	  	 Index Debt Ratings
 (Moody’s or S&P)

	  	 Facility Fee
 Rate Spread

	 
	 I
	  	>A+ or A1	  	0.06	%
	 II
	  	A or A2	  	0.07	%
	 III
	  	A- or A3	  	0.08	%
	 IV
	  	BBB+ or Baa1	  	0.10	%
	 V
	  	<BBB or Baa2	  	0.125	%

  
 “Applicable
Margin” means, for any day, with respect to any Eurodollar Loan, the applicable rate per annum set forth in the table below, under the caption “Applicable Margin”, corresponding to the Level in effect from time to time, as set
forth in the following table: 
  

						
	 Level

	  	 Index Debt Ratings
 (Moody’s or S&P)

	  	Applicable
Margin

	 
	 I
	  	>A+ or A1	  	0.19	%
	 II
	  	A or A2	  	0.23	%
	 III
	  	A- or A3	  	0.295	%
	 IV
	  	BBB+ or Baa1	  	0.40	%
	 V
	  	<BBB or Baa2	  	0.625	%

 For purposes of the foregoing and the definitions of “Applicable Facility Fee Percentage” and “Applicable
Utilization Fee Percentage”, (i) if the ratings established or deemed to have been established by Moody’s Investors Services, Inc. (“Moody’s”) or Standard & Poor’s Rating Group (“S&P”)
for such debt shall fall within different Levels, the Applicable Margin, Applicable Fee Percentage or Applicable Utilization Fee Percentage, as the case may be, shall be based on the higher of the two ratings (i.e., the higher Level) unless one of
the two ratings is two or more Levels lower than the other, in which case the Applicable Margin, Applicable Fee Percentage or Applicable Utilization Fee Percentage, as the case may be, shall be determined by reference to the Level next below the
higher of the two Levels (it being understood that Level I is the highest Level and Level V is the lowest Level); and (ii) if the ratings established or deemed to have been established by Moody’s and S&P for such debt shall be changed
(other than as a result of a change in the rating system of Moody’s or S&P), such change shall be effective as of the date on which it is first announced by the applicable rating agency. Each change in the Applicable Margin, Applicable Fee
Percentage or Applicable Utilization Fee Percentage, as the case may be, shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change. If the
rating system of Moody’s or S&P shall change, or if either such rating agency shall cease to be in the business of rating corporate debt obligations, the Borrower and the Paying Agent shall negotiate in good faith to reflect such changed
rating system or the unavailability of ratings from such rating agency and, pending the effectiveness of any such amendment, the Applicable Margin, Applicable Fee Percentage or Applicable Utilization Fee Percentage, as the case may be, shall be
determined by reference to the rating most recently in effect prior to such change or cessation. 
  
 “Applicable Percentage” means, with respect to any Lender, the percentage of the total Commitments represented by such Lender’s
Commitment. If the Commitments have terminated or expired, the Applicable Percentages shall be determined based upon the Commitments most recently in effect, giving effect to any assignments. 
  
 “Applicable Utilization Fee Percentage” means, for any day
with respect to any Loan and subject to the provisions of the definition of “Applicable Margin” following the table therein, the rate per annum set forth below under the caption “Utilization Fee Rate Spread” corresponding to the
Level in effect from time to time, as set forth in the following table: 
  

						
	 Level

	  	 Index Debt Ratings
 (Moody’s or S&P)

	  	 Utilization Fee
 Rate Spread

	 
	 I
	  	>A+ or A1	  	0.05	%
	 II
	  	A or A2	  	0.10	%
	 III
	  	A- or A3	  	0.125	%
	 IV
	  	BBB+ or Baa1	  	0.125	%
	 V
	  	<BBB or Baa2	  	0.125	%

  
 “Asset
Securitization” means a public or private transfer of installment receivables, credit card receivables, lease receivables, mortgage loan receivables, policyholder loan receivables, premiums, debt obligations or any other type of secured or
unsecured financial assets or rights to future payments of any kind, or interests therein, which transfer is recorded as a sale according to GAAP as of the date of such transfer. 
  

 2 

 “Assignment and Acceptance” means an assignment and acceptance entered into by a Lender
and an assignee (with the consent of any party whose consent is required by Section 9.04), and accepted by the Paying Agent, in the form of Exhibit A or any other form approved by the Paying Agent. 
  
 “Availability Period” means, with respect to the making of
Loans, the period from and including the Effective Date to but excluding the earlier of the Maturity Date and the date of termination of the relevant Commitments. 
  
 “Board” means the Board of Governors of the Federal Reserve System of the United States of America (or any
successor). 
  
 “Borrower” has the meaning given
to it in the preamble hereto. 
  
 “Borrowing”
means Loans of the same Type, made, converted or continued on the same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect. 
  
 “Borrowing Date” means any Business Day specified by the Borrower as a date on which the Borrower requests
the relevant Lenders to make Loans hereunder. 
  
 “Borrowing Request” means a request by the Borrower for a Borrowing in accordance with Section 2.03. 
  
 “Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or
required by law to remain closed; provided that the term “Business Day” shall also exclude (when used in connection with a Eurodollar Loan), any day on which banks are not open for dealings in Dollar deposits in the London and New
York interbank markets. 
  
 “Change in Control”
means (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in
effect on the date hereof) (other than General Electric Company and its subsidiaries) of shares representing more than 50% of the issued and outstanding shares of common stock of the Borrower; or (b) occupation of a majority of the seats (other than
vacant seats) on the board of directors of the Borrower by Persons who were neither (i) nominated by the board of directors of the Borrower or by General Electric Company and its subsidiaries nor (ii) appointed by directors so nominated. 

 
 “Co-Administrative Agents” has the meaning given to it in
the preamble hereto. 
  
 “Code” means the
Internal Revenue Code of 1986, as amended from time to time. 
  
 “Commitment” means, with respect to each Lender, the commitment of such Lender to make Loans hereunder, as such commitment may be (a) reduced from time to time pursuant to Section 2.07 and (b) reduced or increased from time
to time pursuant to assignments by or to such Lender pursuant to Section 9.04. The initial amount of each Lender’s Commitment is set forth on Schedule 2.01, or in the Assignment and Acceptance pursuant to which such Lender shall have assumed
its Commitment, as applicable. 
  
 “Conduit
Lender” means any special purpose corporation organized and administered by any Lender for the purpose of making Loans otherwise required to be made by such Lender and designated by such Lender in a written instrument; provided, that
the designation by any Lender of a Conduit Lender shall not relieve the designating Lender of any of its obligations to fund a Loan under this 

  

 3 

 
Agreement if, for any reason, its Conduit Lender fails to fund any such Loan, and the designating Lender (and not the Conduit Lender) shall have the sole
right and responsibility to deliver all consents and waivers required or requested under this Agreement with respect to its Conduit Lender, and provided, further, that no Conduit Lender shall (a) be entitled to receive any greater
amount pursuant to Section 2.13, 2.14, 2.17 or 9.03 than the designating Lender would have been entitled to receive in respect of the extensions of credit made by such Conduit Lender or (b) be deemed to have any Commitment. 
  
 “Consolidated Net Income” means, for any period, the
consolidated net income (or loss) (such loss being the “Consolidated Net Loss”) of the Borrower and its consolidated Subsidiaries for such period, determined in accordance with GAAP. 
  
 “Consolidated Net Worth” means, at any date, all amounts
that would, in conformity with GAAP, be included on a consolidated balance sheet of the Borrower and its Subsidiaries under stockholder’s interest at such date, excluding accumulated non-owner changes in stockholder’s interest. 

 
 “Control” means the possession, directly or indirectly,
of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled” have meanings
correlative thereto. 
  
 “Credit Exposure” means,
with respect to any Lender at any time, the outstanding principal amount of such Lender’s Loans and its LC Exposure at such time. 
  
 “Default” means any event or condition which upon notice, lapse of time or both would, unless cured or waived, become an Event of
Default. 
  
 “Dollars” or “$”
refers to lawful money of the United States of America. 
  
 “Effective Date” means the date on which the conditions specified in Section 4.01 are satisfied (or waived in accordance with Section 9.02). 
  
 “Eurodollar” means, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the
Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Eurodollar Rate. 
  
 “Eurodollar Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, the rate (rounded upwards, if necessary, to
the next 1/1000 of 1%) appearing on page 3750 of the Telerate Service (or on any successor or substitute page of the Telerate Service, or any successor to or substitute for the Telerate Service, providing rate quotations comparable to those
currently provided on such page of the Telerate Service, as determined by the Paying Agent from time to time for purposes of providing quotations of interest rates applicable to Dollar deposits in the London interbank market) at approximately 11:00
a.m., London time, two Business Days prior to the commencement of such Interest Period, as the rate for Dollar deposits with a maturity comparable to such Interest Period. 
  
 “Event of Default” has the meaning assigned to such term in Article VII. 
  
 “Excluded Taxes” means, with respect to the Agents, any
Lender, or any other recipient of any payment to be made by or on account of any obligation of the Borrower hereunder, (a) income or franchise taxes imposed on (or measured by) its net income by the United States of America, or by the jurisdiction
under the laws of which such recipient is organized or in which its principal office is located or, in the case of any Lender, in which its applicable lending office is located, (b) any branch profits taxes imposed by the United States of America or
any similar tax imposed by any other jurisdiction described 

  

 4 

 
in clause (a) above, and (c) in the case of any Lender, any withholding tax that is imposed on amounts payable to such Lender at the time such Lender becomes
a party to this Agreement or is attributable to such Lender’s failure or inability to comply with Section 2.14(e), except to the extent that such Lender’s assignor (if any) was entitled, at the time of assignment, to receive additional
amounts from the Borrower with respect to such withholding tax pursuant to Section 2.14(a). 
  
 “Existing 364-Day Credit Agreement” means the Credit Agreement dated as of May 28, 2004 among Genworth, the lenders from time to time parties thereto and the Co-Administrative Agents. 
  
 “Facility Fee” has the meaning given to it in Section
2.10(a) hereof. 
  
 “Federal Funds Effective
Rate” means, for any day, the weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) 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 (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations
for such day for such transactions received by the Paying Agent from three Federal funds brokers of recognized standing selected by it. 
  
 “GAAP” means generally accepted accounting principles in the United States of America. 
  
 “Genworth” has the meaning given to it in the preamble
hereto. 
  
 “Governmental Authority” means the
government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government. 
  
 “Indebtedness” of any Person means, without duplication, (a) all obligations of such Person for borrowed money, (b) all obligations of
such Person evidenced by bonds, debentures, notes or similar instruments and (c) all guarantees by such Person of Indebtedness of others (it being understood and agreed, for the avoidance of doubt, that (i) annuities, guaranteed investment
contracts, funding agreements and similar instruments and agreements and (ii) insurance products created or entered into in the normal course of business shall not constitute “Indebtedness”). 
  
 “Indemnified Taxes” means Taxes (other than Excluded Taxes)
that are required by applicable law to be withheld or deducted from a payment by, or on account of an obligation of, the Borrower hereunder. 
  
 “Indemnitee” has the meaning given to it in Section 9.03(b). 
  
 “Index Debt” means senior, unsecured, long-term indebtedness for borrowed money of the Borrower that is not
guaranteed by any other Person or subject to any other credit enhancement. 
  
 “Interest Election Request” means a request by the Borrower to convert or continue a Borrowing in accordance with Section 2.06. 
  
 “Interest Payment Date” means (a) with respect to any Prime Loan, the last day of each March, June,
September and December and (b) with respect to any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a Eurodollar 

  

 5 

 
Borrowing with an Interest Period of more than three months’ duration, each day prior to the last day of such Interest Period that occurs at intervals
of three months’ duration after the first day of such Interest Period. 
  
 “Interest Period” means, with respect to any Eurodollar Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that is
one, two, three or six months (or, to the extent available, nine or twelve months) thereafter, as the Borrower may elect; provided, that (i) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be
extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day and (ii) any Interest Period pertaining to a
Eurodollar Borrowing that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last
calendar month of such Interest Period. For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most recent conversion or continuation of such
Borrowing. 
  
 “Issuing Lender” means Bank of
America, in its capacity as issuer of any Letter of Credit. 
  
 “LC Disbursement” means a payment made by the Issuing Lender pursuant to a Letter of Credit. 
  
 “LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit at such time plus (b)
the aggregate amount of all LC Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such time. The LC Exposure of any Lender at any time shall be its Applicable Percentage of the total LC Exposure at such time.

  
 “Lead Arrangers” means Banc of America
Securities LLC and J.P. Morgan Securities Inc. 
  
 “Lenders” means the Persons listed on Schedule 2.01 and any other Person that shall have become a party hereto pursuant to an Assignment and Acceptance, other than any such Person that ceases to be a party hereto pursuant
to an Assignment and Acceptance; provided, that unless the context otherwise requires, each reference herein to the Lenders shall be deemed to include any Conduit Lender. 
  
 “Letter of Credit” means any letter of credit issued pursuant to this Agreement. 
  
 “Lien” means, with respect to any asset, any mortgage, lien,
pledge, charge, security interest or encumbrance of any kind in respect of such asset. 
  
 “Loan” has the meaning assigned to it in Section 2.01. 
  
 “Material Adverse Effect” means a material adverse effect on (a) the business, property, operations or financial condition of the
Borrower and its Subsidiaries taken as a whole or (b) the validity or enforceability of this Agreement or the rights or remedies of the Agents or the Lenders hereunder. 
  
 “Material Indebtedness” means any Indebtedness of the Borrower or any Material Subsidiary in a principal
amount of $100,000,000 or more outstanding under any single agreement or instrument (other than Indebtedness under this Agreement). 
  

 6 

 “Material Operating Segment” means the following three operating segments of the
Borrower and its Subsidiaries: (i) Protection, (ii) Retirement Income and Investments and (iii) Mortgage Insurance; provided, however, that if the pro forma segment net income of any of the preceding operating segments shall, for any
fiscal year of the Borrower, represent less than 10% of the Consolidated Net Income of the Borrower and its Subsidiaries for such fiscal year, such operating segment shall no longer constitute a “Material Operating Segment” hereunder.

  
 “Material Subsidiary” means, at any time, any
Subsidiary of the Borrower that (i) has assets at such time comprising 10% or more of the consolidated assets of the Borrower and its Subsidiaries, (ii) had net income in the then most recently ended fiscal year of the Borrower comprising 10% or
more of the consolidated revenue of the Borrower and its Subsidiaries for such fiscal year or (iii) for purposes of clauses (f), (g), (h) and (i) of Article VII only, has Indebtedness in a principal amount of $100,000,000 or more outstanding under
any single agreement or instrument. 
  
 “Maturity
Date” means the fifth anniversary of the Effective Date. 
  
 “Moody’s” means Moody’s Investors Service, Inc. or any successor. 
  
 “Other Taxes” means 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. 
  
 “Paying Agent” has the meaning given to it in the preamble hereto. 
  
 “PDF”, when used in reference to notices via email attachment, means portable document format or a similar
electronic file format. 
  
 “Person” means any
natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity. 
  
 “Prime”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are
bearing interest at a rate determined by reference to the Prime Rate. 
  
 “Prime Rate” means the rate of interest per annum publicly announced from time to time by JPMorgan Chase Bank as its prime rate in effect at its principal office in New York City; each change in the Prime Rate shall be
effective from and including the date such change is publicly announced as being effective. 
  
 “Register” has the meaning set forth in Section 9.04. 
  
 “Regulation U” means Regulation U of the Board as in effect from time to time. 
  
 “Related Parties” means, with respect to any specified
Person, such Person’s Affiliates and the respective directors, officers, employees, agents and advisors of such Person and such Person’s Affiliates. 
  

“Required Lenders” means, at any time, Lenders having Credit Exposures and unused Commitments representing more than 50% of the sum of
the total Credit Exposures and unused Commitments at such time. 
  

 7 

 “S&P” means Standard & Poor’s Ratings Services or any successor.

  
 “Sale and Leaseback Transaction” means any
arrangement whereby the Borrower or a Material Subsidiary shall sell or transfer any property, real or personal, used or useful in its business, whether now owned or hereinafter acquired, and thereafter rent or lease from the buyer or transferee
property that it intends to use for substantially the same purpose or purposes as the property sold or transferred. 
  
 “SAP” means the accounting procedures and practices prescribed or permitted by the applicable insurance regulatory authority or the
National Association of Insurance Commissioners and any successor thereto. 
  
 “Statutory Statement” means a statement of the condition and affairs of a Material Subsidiary that is an insurance company, prepared in accordance with SAP, and filed with the applicable insurance
regulatory authority. 
  
 “subsidiary” means,
with respect to any Person, any corporation or other entity of which the securities or other ownership interests having ordinary voting power to elect a majority of the board of directors or other person performing similar functions are at the time
directly or indirectly owned by such Person. 
  
 “Subsidiary” means any subsidiary of the Borrower. 
  
 “Taxes” means any and all present or future taxes, levies, imposts, duties, deductions, charges or withholdings imposed by any Governmental Authority. 
  
 “Transactions” means the execution, delivery and performance
by the Borrower of this Agreement, the borrowing of Loans and the use of the proceeds thereof. 
  
 “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Eurodollar
Rate or the Prime Rate. 
  
 “Utilization Fee” has
the meaning given to it in Section 2.10(d) hereof. 
  
 SECTION
1.02. Classification of Loans and Borrowings. For purposes of this Agreement, Loans may be classified and referred to by Type (e.g., “Eurodollar Loans”). Borrowings also may be classified and referred to by Type (e.g.,
a “Eurodollar Borrowing”). 
  
 SECTION 1.03. Terms
Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words
“include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word
“shall”. Unless the context requires otherwise (a) any reference herein to any Person shall be construed to include such Person’s successors and permitted assigns, (b) the words “herein”, “hereof” and
“hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof and (c) all references herein to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement. 
  

 8 

 SECTION 1.04. Accounting Terms; GAAP. Except as otherwise expressly provided herein, all terms of
an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that, if the Borrower notifies the Co-Administrative Agents that the Borrower requests an amendment to any provision hereof
to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Co-Administrative Agents notify the Borrower that the Required Lenders request an amendment to
any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied
immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith. 
  
 ARTICLE II 
  
 THE CREDITS 
  
 SECTION 2.01. Commitments. Subject to the terms and conditions set forth herein, each Lender agrees to make loans (each, a “Loan”) in Dollars to the Borrower from time to time during the Availability Period in an
aggregate principal amount that will not result in such Lender’s Credit Exposure exceeding such Lender’s Commitment. Within the foregoing limit and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and
reborrow Loans, except that no borrowing or reborrowing may occur after the Availability Period. The Loans shall in each case be Prime Loans or Eurodollar Loans, as the Borrower shall request. 
  
 SECTION 2.02. Loans and Borrowings. 
  
 (a) Each Loan shall be made as part of a Borrowing consisting of Loans made
by the Lenders ratably in accordance with their respective Commitments. Subject to Section 2.12, each Borrowing shall be comprised entirely of Prime Loans or Eurodollar Loans as the Borrower may request in accordance herewith. 
  
 (b) The failure of any Lender to make any Loan required to be made by it
shall not relieve any other Lender of its obligations hereunder; provided that, other than any Commitment made by a Lender through a Conduit Lender as described in the definition thereof, which Commitment shall be the joint obligation of such
Conduit Lender and its designating Lender, the Commitments of the Lenders are several and no Lender shall be responsible for any other Lender’s failure to make Loans as required. 
  
 (c) Each Lender at its option may make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such
Lender to make such Loan; provided that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement. 
  
 (d) At the commencement of each Interest Period for any Eurodollar Borrowing,
such Borrowing shall be in an aggregate amount that is an integral multiple of $5,000,000 and not less than $25,000,000. At the time that each Prime Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of
$1,000,000 and not less than $10,000,000; provided that a Prime Borrowing may be in an aggregate amount that is equal to the entire unused balance of the total Commitments. Borrowings of more than one Type may be outstanding at the same time;
provided that there shall not at any time be more than a total of twelve Eurodollar Borrowings outstanding. 
  

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 (e) Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled to request,
or to elect to convert or continue, any Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date. 
  
 SECTION 2.03. Requests for Borrowings. To request a Borrowing, the Borrower shall notify the Paying Agent of such request by telephone (a) in the
case of a Eurodollar Borrowing, not later than 11:00 a.m., New York City time, three Business Days before the date of the proposed Borrowing or (b) in the case of a Prime Borrowing, not later than 10:00 a.m., New York City time, on the date of the
proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable and shall be confirmed promptly by hand delivery, telecopy or email with PDF attachment to the Paying Agent of a written Borrowing Request in a form approved by the
Paying Agent and signed by the Borrower. Each such telephonic and written Borrowing Request shall specify the following information: 
  
 (i) the aggregate amount of the requested Borrowing; 
  
 (ii) the date of such Borrowing, which shall be a Business Day; 
  
 (iii) whether such Borrowing is to be a Prime Borrowing or a
Eurodollar Borrowing; 
  
 (iv) in the case of a
Eurodollar Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term “Interest Period”; and 
  
 (v) the location and number of the Borrower’s account to which funds are to be disbursed, which shall
comply with the requirements of Section 2.05. 
  
 If no election as to the Type of
Borrowing is specified, then the requested Borrowing shall be a Prime Borrowing. If no Interest Period is specified with respect to any requested Eurodollar Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one
month’s duration. Promptly following receipt of a Borrowing Request in accordance with this Section, the Paying Agent shall advise each relevant Lender of the details thereof and of the amount of such Lender’s Loan to be made as part of
the requested Borrowing. 
  
 SECTION 2.04. Letters of
Credit. 
  
 (a) General. Subject to the terms and
conditions set forth herein, the Borrower may request the issuance of Letters of Credit for its own account, in a form reasonably acceptable to the Paying Agent and the Issuing Lender, at any time and from time to time during the Availability
Period. In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of letter of credit application or other agreement submitted by the Borrower to, or entered into by the Borrower
with, the Issuing Lender relating to any Letter of Credit, the terms and conditions of this Agreement shall control. 
  
 (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request the issuance of a Letter of Credit (or the amendment, renewal
or extension of an outstanding Letter of Credit), the Borrower shall hand deliver or telecopy (or transmit by electronic communication, if arrangements for doing so have been approved by the Issuing Lender) to the Issuing Lender (no less than five
Business Days in advance of the requested date of issuance, amendment, renewal or extension) a notice requesting the issuance of a Letter of Credit, or identifying the Letter of Credit to be amended, renewed or extended, the date of issuance,
amendment, renewal or extension, the date on which such Letter of Credit is to expire (which shall comply with paragraph (c) of this Section), the amount of such Letter of Credit, the name and address of the beneficiary thereof and such other
information as shall be 
  

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 necessary to prepare, amend, renew or extend such Letter of Credit. If requested by the Issuing Lender, the Borrower also
shall submit a letter of credit application on the Issuing Lender’s standard form in connection with any request for a Letter of Credit. A Letter of Credit shall be issued, amended, renewed or extended only if (and upon issuance, amendment,
renewal or extension of each Letter of Credit the Borrower shall be deemed to represent and warrant that), after giving effect to such issuance, amendment, renewal or extension (i) the LC Exposure shall not exceed $300,000,000 and (ii) the sum of
the total Credit Exposures shall not exceed the total Commitments. 
  
 (c) Expiration Date. Each Letter of Credit shall expire at or prior to the close of business on the earlier of (i) the date one year after the date of the issuance of such Letter of Credit (or, in the case of any renewal or extension
thereof, one year after such renewal or extension) and (ii) the date that is five Business Days prior to the Maturity Date. 
  
 (d) Participations. By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof) and without any
further action on the part of the Issuing Lender or the Lenders, the Issuing Lender hereby grants to each Lender, and each Lender hereby acquires from the Issuing Lender, a participation in such Letter of Credit equal to such Lender’s
Applicable Percentage of the aggregate amount available to be drawn under such Letter of Credit. In consideration and in furtherance of the foregoing, each Lender hereby absolutely and unconditionally agrees to pay to the Paying Agent, for the
account of the Issuing Lender, such Lender’s Applicable Percentage of each LC Disbursement made by the Issuing Lender and not reimbursed by the Borrower on the date due as provided in paragraph (e) of this Section, or of any reimbursement
payment required to be refunded to the Borrower for any reason. Each Lender acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional and shall not
be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a Default or reduction or termination of the Commitments, and that each such payment shall be made
without any offset, abatement, withholding or reduction whatsoever. 
  
 (e) Reimbursement. If the Issuing Lender shall make any LC Disbursement in respect of a Letter of Credit, the Borrower shall reimburse such LC Disbursement by paying to the Paying Agent an amount equal to such LC Disbursement not
later than 4:00 p.m., New York City time, on the Business Day immediately following the day that the Issuing Lender gives notice to the Borrower of such LC Disbursement; provided that the Borrower may, subject to the conditions to borrowing
set forth herein, request in accordance with Section 2.03 or 2.06 that such payment be financed with a Borrowing in an equivalent amount and, to the extent so financed, the Borrower’s obligation to make such payment shall be due on the date of,
and be discharged and replaced by, the Borrowing. If the Borrower fails to make such payment when due, the Paying Agent shall notify each Lender of the applicable LC Disbursement, the payment then due from the Borrower in respect thereof and such
Lender’s Applicable Percentage thereof. Promptly following receipt of such notice, each Lender shall pay to the Paying Agent its Applicable Percentage of the payment then due from the Borrower, in the same manner as provided in Section 2.05
with respect to Loans made by such Lender (and Section 2.05 shall apply, mutatis mutandis, to the payment obligations of the Lenders), and the Paying Agent shall promptly pay to the Issuing Lender the amounts so received by it from the
Lenders. Promptly following receipt by the Paying Agent of any payment from the Borrower pursuant to this paragraph, the Paying Agent shall distribute such payment to the Issuing Lender or, to the extent that Lenders have made payments pursuant to
this paragraph to reimburse the Issuing Lender, then to such Lenders and the Issuing Lender as their interests may appear. Any payment made by a Lender pursuant to this paragraph to reimburse the Issuing Lender for any LC Disbursement (other than
the funding of Loans as contemplated above) shall not constitute a Loan and shall not relieve the Borrower of its obligation to reimburse such LC Disbursement. 
  

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 (f) Obligations Absolute. The Borrower’s obligation to reimburse LC Disbursements as provided
in paragraph (e) of this Section shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective of: 
  
 (i) any lack of validity or enforceability of any Letter of
Credit or this Agreement, or any term or provision therein; 
  
 (ii) any amendment or waiver of or any consent to departure from all or any of the provisions of any Letter of Credit or this Agreement; 
  
 (iii) the existence of any claim, setoff, defense or other right that the Borrower, any other party
guaranteeing, or otherwise obligated with, the Borrower, any Subsidiary or other Affiliate thereof or any other Person may at any time have against the beneficiary under any Letter of Credit, the Issuing Lender, the Paying Agent or any Lender or any
other Person, whether in connection with this Agreement or any other related or unrelated agreement or transaction; 
  
 (iv) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any
statement therein being untrue or inaccurate in any respect; 
  
 (v) payment by the Issuing Lender under a Letter of Credit against presentation of a draft or other document that does not comply with the terms of such Letter of Credit; and 
  
 (vi) any other act or omission to act or delay of any kind
of the Issuing Lender, the Lenders, the Paying Agent or any other Person or any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section, constitute a legal or
equitable discharge of the Borrower’s obligations hereunder. 
  
 Neither the
Paying Agent, the Lenders nor the Issuing Lender, nor any of their Related Parties, shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any
payment thereunder, including any of the circumstances specified in clauses (i) through (vi) above, as well as any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating
to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the control of the Issuing Lender; provided that the
foregoing shall not be construed to excuse the Issuing Lender from liability to the Borrower to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by the Borrower to the extent
permitted by applicable law) suffered by the Borrower that are caused by the Issuing Lender’s failure to exercise the agreed standard of care (as set forth below) in determining whether drafts and other documents presented under a Letter of
Credit comply with the terms thereof. The parties hereto expressly agree that the Issuing Lender shall have exercised the agreed standard of care in the absence of gross negligence or willful misconduct on the part of the Issuing Lender. Without
limiting the generality of the foregoing, it is understood that the Issuing Lender may accept documents that appear on their face to be in substantial compliance with the terms of a Letter of Credit, without responsibility for further investigation,
regardless of any notice or information to the contrary, and may make payment upon presentation of documents that appear on their face to be in substantial compliance with the terms of such Letter of Credit; provided that the Issuing Lender
shall have the right, in its sole discretion, to decline to accept such documents and to make such payment if such documents are not in strict compliance with the terms of such Letter of Credit. 
  

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 (g) Disbursement Procedures. The Issuing Lender shall, promptly following its receipt thereof,
examine all documents purporting to represent a demand for payment under a Letter of Credit. The Issuing Lender shall promptly notify the Paying Agent and the Borrower by telephone (confirmed by telecopy) of such demand for payment and whether the
Issuing Lender has made or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve the Borrower of its obligation to reimburse the Issuing Lender and the Lenders with respect
to any such LC Disbursement. 
  
 (h) Interim Interest. If
the Issuing Lender shall make any LC Disbursement, then, unless the Borrower shall reimburse such LC Disbursement in full on the date such LC Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and including the
date such LC Disbursement is made to but excluding the date that the Borrower reimburses such LC Disbursement, at the rate per annum then applicable to Prime Loans. Interest accrued pursuant to this paragraph shall be for the account of the Issuing
Lender, except that interest accrued on and after the date of payment by any Lender pursuant to paragraph (e) of this Section to reimburse the Issuing Lender shall be for the account of such Lender to the extent of such payment. 
  
 (i) Replacement of the Issuing Lender. The Issuing Lender may be
replaced at any time by written agreement among the Borrower, the replaced Issuing Lender and the successor Issuing Lender, with the consent of the Paying Agent (such consent not to be unreasonably withheld or delayed). The Paying Agent shall notify
the Lenders of any such replacement of the Issuing Lender. From and after the effective date of any such replacement, (i) the successor Issuing Lender shall have all the rights and obligations of the Issuing Lender under this Agreement with respect
to Letters of Credit to be issued thereafter and (ii) references herein to the term “Issuing Lender” shall be deemed to refer to such successor or to any previous Issuing Lender, or to such successor and all previous Issuing Lenders, as
the context shall require. After the replacement of an Issuing Lender hereunder, the replaced Issuing Lender shall remain a party hereto and shall continue to have all the rights and obligations of an Issuing Lender under this Agreement with respect
to Letters of Credit issued by it prior to such replacement, but shall not be required to issue additional Letters of Credit. 
  
 (j) Cash Collateralization. If any Event of Default shall occur and be continuing, on the Business Day that the Borrower receives notice from the
Paying Agent or the Required Lenders (or, if the maturity of the Loans has been accelerated, Lenders with LC Exposure representing greater than 50% of the total LC Exposure) demanding the deposit of cash collateral pursuant to this paragraph, the
Borrower shall deposit in an account with the Paying Agent, in the name of the Paying Agent and for the benefit of the Lenders, an amount in cash equal to the LC Exposure as of such date plus any accrued and unpaid interest thereon; provided that
the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and payable, without demand or other notice of any kind, upon the occurrence of any Event of Default with respect to the
Borrower described in clause (g) or (h) of Article VII. Such deposit shall be held by the Paying Agent as collateral for the payment and performance of the obligations of the Borrower under this Agreement and shall be invested by or on behalf of the
Paying Agent in a “money market fund” (or the private equivalent thereof), or in investments permitted to be held by a “money market fund”, as such term is used in Rule 2a-7 of the Securities and Exchange Commission under the
Investment Company Act of 1940, as amended. The Paying Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account. Other than any interest earned on the investment of such deposits, which
investments shall be made at the option and sole discretion of the Paying Agent and at the Borrower’s risk and expense, such deposits shall not bear interest. Interest or profits, if any, on such investments shall accumulate in such account.
Moneys in such account shall be applied by the Paying Agent to reimburse the Issuing Lender for LC Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be held for the satisfaction of the reimbursement
obligations of the Borrower for the LC 
  

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 Exposure at such time or, if the maturity of the Loans has been accelerated (but subject to the consent of Lenders with
LC Exposure representing greater than 50% of the total LC Exposure), be applied to satisfy other obligations of the Borrower under this Agreement. If the Borrower is required to provide an amount of cash collateral hereunder as a result of the
occurrence of an Event of Default, such amount (to the extent not applied as aforesaid) shall be returned to the Borrower within one Business Day after all Events of Default have been cured or waived. 
  
 SECTION 2.05. Funding of Borrowings. 
  
 (a) Each Lender shall make each Loan to be made by it hereunder on the
proposed date thereof by wire transfer of immediately available funds by 12:00 noon, New York City time, to the account of the Paying Agent most recently designated by it for such purpose by notice to the Lenders. The Paying Agent will make such
Loans available to the Borrower by promptly crediting the amounts so received, in like funds, to an account of the Borrower maintained with the Paying Agent and designated by the Borrower in the applicable Borrowing Request. 
  
 (b) Unless the Paying Agent shall have received notice from a Lender prior to
the proposed time of any Borrowing that such Lender will not make available to the Paying Agent such Lender’s share of such Borrowing, the Paying Agent may assume that such Lender has made such share available on such date in accordance with
paragraph (a) of this Section and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Paying Agent, then
the applicable Lender and the Borrower severally agree to pay to the Paying Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the date such amount is made available to the Borrower to but
excluding the date of payment to the Paying Agent, at (i) in the case of such Lender, the Federal Funds Effective Rate or (ii) in the case of the Borrower, a rate of interest of up to or equal to the rate applicable to Prime Loans, as the Paying
Agent shall determine in consultation with the Borrower. If such Lender pays such amount to the Paying Agent, then such amount shall constitute such Lender’s Loan included in such Borrowing. 
  
 SECTION 2.06. Interest Elections. 
  
 (a) Each Borrowing initially shall be of the Type specified in the
applicable Borrowing Request and, in the case of a Eurodollar Borrowing, shall have an initial Interest Period as specified in such Borrowing Request. Thereafter during or after the Availability Period, the Borrower may elect to convert such
Borrowing to a different Type or to continue such Borrowing and, in the case of a Eurodollar Borrowing, may elect Interest Periods therefor, all as provided in this Section. The Borrower may elect different options with respect to different portions
of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing. 
  
 (b) To make an election pursuant to this Section, the Borrower shall notify
the Paying Agent of such election by telephone by the time that a Borrowing Request would be required under Section 2.03 if the Borrower were requesting a Borrowing of the Type resulting from such election to be made on the effective date of such
election. Each such telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand delivery, telecopy or email with PDF attachment to the Paying Agent of a written Interest Election Request in a form approved by
the Paying Agent and signed by the Borrower. 
  

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 (c) Each telephonic and written Interest Election Request shall specify the following information:

  
 (i) the Borrowing to which such Interest
Election Request applies and, if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses
(iii) and (iv) below shall be specified for each resulting Borrowing); 
  
 (ii) the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day; 
  
 (iii) whether the resulting Borrowing is to be a Prime Borrowing or a Eurodollar Borrowing; and 
  
 (iv) if the resulting Borrowing is a Eurodollar Borrowing,
the Interest Period to be applicable thereto after giving effect to such election, which shall be a period contemplated by the definition of the term “Interest Period”. 
  
 If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an Interest Period, then the Borrower shall be
deemed to have selected an Interest Period of one month’s duration. 
  
 (d) Promptly following receipt of an Interest Election Request, the Paying Agent shall advise each relevant Lender of the details thereof and of such Lender’s portion of each resulting Borrowing. 
  
 (e) If the Borrower fails to deliver a timely Interest Election Request with
respect to a Eurodollar Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be converted to a Prime Borrowing.

  
 SECTION 2.07. Termination and Reduction of Commitments.

  
 (a) Unless previously terminated, the Commitments shall
terminate on the Maturity Date. 
  
 (b) The Borrower may at any
time terminate, or from time to time reduce, any of the Commitments; provided that (i) each reduction of the Commitments shall be in an amount that is an integral multiple of $10,000,000 and not less than $10,000,000 and (ii) the Borrower
shall not terminate or reduce the Commitments if, after giving effect to any concurrent prepayment of the Loans in accordance with Section 2.09, the total Credit Exposures would exceed the total Commitments. 
  
 (c) The Borrower shall notify the Paying Agent of any election to terminate
or reduce any of the Commitments under paragraph (b) of this Section at least three Business Days prior to the effective date of such termination or reduction, specifying such election and the effective date thereof. Promptly following receipt of
any notice, the Paying Agent shall advise the Lenders of the contents thereof. Each notice delivered by the Borrower pursuant to this Section shall be irrevocable; provided that a notice of termination of Commitments delivered by the Borrower
may state that such notice is conditioned upon the effectiveness of other credit facilities or the closing of a capital markets transaction, in which case such notice may be revoked by the Borrower (by notice to the Paying Agent on or prior to the
specified effective date) if such condition is not satisfied. Any termination or reduction of the Commitments shall be permanent. Each reduction of the Commitments shall be made ratably among the Lenders in accordance with their respective
Commitments. 
  

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 SECTION 2.08. Repayment of Loans; Evidence of Debt. 
  
 (a) The Borrower hereby unconditionally promises to pay to the Paying Agent
for the account of each relevant Lender the then unpaid principal amount of each Loan to the Borrower on the Maturity Date. 
  
 (b) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender
resulting from each Loan made by such Lender to the Borrower, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder. 
  
 (c) The Paying Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the Type
thereof and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Paying Agent
hereunder for the account of the Lenders and each Lender’s share thereof. 
  
 (d) The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this Section shall be prima facie evidence of the existence and amounts of the obligations recorded therein;
provided that the failure of any Lender or the Paying Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Loans to it in accordance with the terms of this Agreement.

  
 (e) Any Lender may reasonably request that Loans made by it to
the Borrower be evidenced by a promissory note. In such event, the Borrower shall prepare, execute and deliver to such Lender a promissory note payable to the order of such Lender (or, if requested by such Lender, to such Lender and its registered
assigns) and substantially in the form of Exhibit C. Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to Section 9.04) be represented by one or more promissory notes
in such form payable to the order of the payee named therein (or, if such promissory note is a registered note, to such payee and its registered assigns). 
  
 SECTION 2.09. Prepayment of Loans. 
  
 (a) Subject to prior notice in accordance with paragraph (b) of this Section, the Borrower may at its option, at any time, without premium or penalty of
any kind (other than any payments required under Section 2.17), prepay, in whole or in part, any Borrowings. 
  
 (b) The Borrower shall notify the Paying Agent by telephone (confirmed by telecopy or email with PDF attachment) of any prepayment hereunder (i) in the
case of prepayment of a Eurodollar Borrowing, not later than 11:00 a.m., New York City time, on the date three Business Days prior to the date of prepayment or (ii) in the case of prepayment of a Prime Borrowing, not later than 10:00 a.m., New York
City time, on the date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid; provided that, if a notice of prepayment is given
in connection with a conditional notice of termination of Commitments as contemplated by Section 2.07, then such notice of prepayment may be revoked if such notice of termination is revoked in accordance with Section 2.07. Promptly following receipt
of any such notice relating to a Borrowing, the Paying Agent shall advise the relevant Lenders of the contents thereof. Each partial prepayment of any Borrowing shall be in an amount that would be permitted in the case of an advance of a Borrowing
of the same Type as provided in Section 2.02. Each prepayment of a Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing. Prepayments shall be accompanied by accrued interest to the extent required by Section 2.11.

  

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 SECTION 2.10. Fees. 
  
 (a) The Borrower agrees to pay to the Paying Agent for the ratable account of each Lender a facility fee (the
“Facility Fee”), which shall accrue from (and including) the Effective Date to (but excluding) the Maturity Date on the daily amount of each Commitment of such Lender (whether used or unused) at the rate per annum equal to the
Applicable Facility Fee Percentage; provided that, if such Lender continues to have any Credit Exposure after its Commitment terminates, then such Facility Fee shall continue to accrue on the daily amount of such Lender’s Credit Exposure
from and including the date on which its Commitment terminates but excluding the date on which such Lender ceases to have any Credit Exposure. Accrued Facility Fees shall be payable in arrears on the third Business Day following the last day of
March, June, September and December of each year and on the date on which the Commitments terminate, commencing June 30, 2005; provided that any facility fees accruing after the date on which the relevant Commitments terminate shall be
payable on demand. All Facility Fees shall be computed on the basis of a year of 365 or 366 days (as the case may be) and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). 
  
 (b) The Borrower agrees to pay (i) to the Paying Agent for the ratable
account of each Lender a participation fee with respect to its participations in Letters of Credit, which shall accrue at a rate per annum equal to the Applicable Margin applicable to interest on Eurodollar Loans on the average daily amount of such
Lender’s LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date on which such Lender’s Commitment terminates
and the date on which such Lender ceases to have any LC Exposure, and (ii) to the Issuing Lender a fronting fee, which shall accrue at the rate of 0.125% per annum on the average daily amount of the LC Exposure (excluding any portion thereof
attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date of termination of the Commitments and the date on which there ceases to be any LC Exposure (excluding any
portion thereof attributable to unreimbursed LC Disbursements), as well as the Issuing Lender’s standard fees with respect to the issuance, amendment, negotiation, payment, renewal or extension of any Letter of Credit or processing of drawings
thereunder. Participation fees and fronting fees shall be payable on the third Business Day following the last day of March, June, September and December of each year and on the date that the Commitments terminate, commencing June 30, 2005;
provided that any such fees accruing after the date on which the Commitments terminate shall be payable on demand. Any other fees payable to the Issuing Lender pursuant to this paragraph shall be payable within 10 days after demand. All
participation fees and fronting fees shall be computed on the basis of a year of 365 or 366 days (as the case may be) and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). 
  
 (c) The Borrower agrees to pay to the Paying Agent, for its own account, fees
payable in the amounts and at the times separately agreed upon between the Borrower and the Paying Agent. 
  
 (d) If the average daily aggregate principal amount of the Loans and LC Exposure, outstanding for (i) the period beginning with the Effective Date and
ending on June 30, 2005, (ii) any calendar quarter commencing with the third calendar quarter of 2005 and ending on the last day of the calendar quarter immediately preceding the Maturity Date or (iii) the period beginning on and including the day
after the end of the calendar quarter immediately preceding the Maturity Date and ending on the Maturity Date is in excess of 50% of the average daily Commitments of the Lenders for such calendar quarter or period (disregarding for this purpose any
termination of any Commitments that occurred during or prior to such calendar quarter or period), the Company agrees to pay to the Paying Agent, for the ratable accounts of the Lenders, a utilization fee (the “Utilization Fee”) at a
rate per annum equal to the Applicable Utilization Fee Percentage on such average daily aggregate principal amount outstanding of 
  

 17 

 Loans and LC Exposure during such calendar quarter (or period), payable in arrears on the third Business Day after the
last day of such calendar quarter (or period). All Utilization Fees shall be computed on the basis of a year of 365 days or 366 days (as the case may be) and shall be payable for the actual number of days elapsed (including the first day but
excluding the last day). 
  
 (e) All fees payable hereunder shall
be paid on the dates due, in immediately available funds, to the Paying Agent. Fees paid shall not be refundable under any circumstances. 
  
 SECTION 2.11. Interest. 
  
 (a) The Loans comprising each Prime Borrowing shall bear interest at a rate per annum equal to the Prime Rate. 
  
 (b) The Loans comprising each Eurodollar Borrowing shall bear interest at a
rate per annum equal to the Eurodollar Rate for the Interest Period in effect for such Borrowing plus the Applicable Margin. 
  
 (c) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan; provided that (i) in the event of any
repayment or prepayment of any Loan (other than a prepayment of a Prime Loan prior to the end of the Availability Period), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment, (ii)
in the event of any conversion of any Eurodollar Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion and (iii) all accrued interest on a Loan shall be
payable upon termination of the Commitments applicable to such Loan and upon the Maturity Date. 
  
 (d) All interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by reference to the Prime Rate shall be
computed on the basis of a year of 365 days or 366 days (as the case may be) and in each case, shall be payable for the actual number of days elapsed (including the first day but excluding the last day). The applicable Prime Rate or Eurodollar Rate
shall be determined by the Paying Agent, and such determination shall be conclusive absent manifest error. 
  
 SECTION 2.12. Alternate Rate of Interest. If prior to the commencement of any Interest Period for a Eurodollar Borrowing, the Paying Agent
determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the Eurodollar Rate for such Interest Period, then the Paying Agent shall give notice thereof to the Borrower
and the Lenders by telephone or telecopy as promptly as practicable thereafter and, until the Paying Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest Election Request
that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective and (ii) if any Borrowing Request by the Borrower requests a Eurodollar Borrowing, such Borrowing shall be made as a
Prime Borrowing. 
  
 SECTION 2.13. Increased Costs. In the
event that by reason of any change after the date of this Agreement in applicable law or regulation or in the interpretation thereof by any Governmental Authority charged with the administration, application or interpretation thereof, or by reason
of the adoption or enactment after the date of this Agreement of any requirement or directive (whether or not having the force of law) of any Governmental Authority: 
  
 (a) any Lender shall, with respect to this Agreement, be subject to any tax, levy, impost, charge, fee, duty, deduction or
withholding of any kind whatsoever (other than Excluded Taxes); or 
  

 18 

 (b) any change shall occur in the taxation of any Lender with respect to the principal or interest
payable under this Agreement (other than the imposition of any Excluded Taxes or any change which affects solely the taxation of the total income of such Lender); or 
  
 (c) any reserve or similar requirements should be imposed on either the commitments to lend or the foreign claims of
deposits of any Lender; 
  
 and if any of the above-mentioned measures shall
result in a material increase in the cost to such Lender of making or maintaining its Loans or Commitments or participations in Letters of Credit or a material reduction in the amount of principal or interest received or receivable by such Lender in
respect thereof, then upon prompt written notification (which shall include the date of effectiveness of such change, adoption or enactment) and demand being made by such Lender for such additional cost or reduction, the Borrower shall pay to such
Lender, within 30 days of such demand being made by such Lender, such additional cost or reduction; provided, however, that the Borrower shall not be responsible for any such cost or reduction that may accrue to such Lender with
respect to the period between the occurrence of the event which gave rise to such cost or reduction and the date on which notification is given by such Lender to the Borrower; and provided, further, that the Borrower shall not be
obligated to pay such Lender any such additional cost or reduction unless such Lender certifies to the Borrower that at such time such Lender shall be generally assessing such amounts on a non-discriminatory basis against borrowers under agreements
having provisions similar to this Section; and provided, further, that any such additional cost or reduction allocated to any Loan or Commitment shall not exceed the Borrower’s pro rata share of all costs attributable to all loans
or advances or commitments to all borrowers by such Lender that collectively result in the consequences for which such Lender is to be compensated by the Borrower. Within 30 days of receipt of such notification, the Borrower will pay such additional
costs as may be applicable to the period subsequent to notification or prepay in full all Loans to it outstanding under this Agreement so affected by such additional costs, together with interest and fees accrued thereon to the date of prepayment in
full. Such Lender shall use reasonable efforts (consistent with its internal policy applied on a non-discriminatory basis and legal and regulatory restrictions) to designate a different applicable lending office for the Loans made by it and its
Commitments or to take other appropriate actions if such designation or actions, as the case may be, will avoid the need for, or reduce the amount of, any increased costs to the Borrower incurred under this Section, and will not, in the opinion of
such Lender, be otherwise disadvantageous to such Lender. 
  
 SECTION 2.14. Taxes. 
  
 (a) Any and all payments
by or on account of any obligation of the Borrower hereunder shall be made free and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided that if the Borrower shall be required to deduct any Indemnified Taxes or
Other Taxes from such payments, then (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section) the Paying Agent, the
Co-Administrative Agents or Lender (as the case may be) receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable law. 
  
 (b) In addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law. 
  

 19 

 (c) The Borrower shall indemnify the Paying Agent, Co-Administrative Agents and each Lender, within 10
days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) paid by the Paying Agent,
Co-Administrative Agents or such Lender, as the case may be, and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender, or by the Paying Agent or Co-Administrative Agents on their own behalf or on behalf of a Lender,
shall be conclusive absent manifest error. 
  
 (d) As soon as
practicable after any payment of Indemnified Taxes or Other Taxes by the Borrower to a Governmental Authority, the Borrower shall deliver to the Paying Agent the original or a certified copy of a receipt issued by such Governmental Authority
evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Paying Agent. 
  
 (e) Any Lender or Agent that is entitled to an exemption from or reduction of 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 Paying 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. 
  
 (f) Each Lender and Agent shall use reasonable efforts (consistent with its internal policy applied on a non-discriminatory
basis and legal and regulatory restrictions) to designate a different applicable lending office for the Loans made by it and its Commitments or to take other appropriate actions if such designation or actions, as the case may be, will avoid the need
for, or reduce the amount of, any payments the Borrower is required to make under this Section 2.14, and will not, in the opinion of such Lender or Agent, be otherwise disadvantageous to such Lender or Agent. 
  
 SECTION 2.15. Payments Generally. 
  
 (a) Unless otherwise specified herein, the Borrower shall make each payment
required to be made by it hereunder (including under Section 2.13, 2.14, 2.17, or otherwise) prior to 12:00 noon, New York City time, on the date when due and in immediately available funds, without set-off or counterclaim. Any amounts received
after such time on any date may, in the discretion of the Paying Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the Paying Agent at its
offices at 111 Fannin Street, 10th Floor, Houston, Texas 77002, Attention: Claudine Garcia, Loan and Agency Services
Group, or at such other office in the United States of America as directed by Paying Agent, except that payments pursuant to Sections 2.10(c), 2.13, 2.14, 2.17 and 9.03 shall be made directly to the Persons entitled thereto. The Paying Agent shall
distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be
extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension. 
  
 (b) If at any time insufficient funds are received by and available to the Paying Agent to pay fully all amounts of
principal, unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied (i) first, to pay interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest
and fees then due to such parties, 
  

 20 

 and (ii) second, to pay principal and unreimbursed LC Disbursements then due hereunder, ratably among the parties
entitled thereto in accordance with the amounts of principal and unreimbursed LC Disbursements then due to such parties. 
  
 (c) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any
of its Loans or participations in LC Disbursements resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Loans and participations in LC Disbursements and accrued interest thereon than the proportion
received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Loans and participations in LC Disbursements of other Lenders to the extent necessary so that the benefit
of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and participations in LC Disbursements; provided that (i) if any such
participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of
this paragraph shall not be construed to apply to any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a
participation in any of its Loans or participations in LC Disbursements to any assignee or participant, other than to the Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall apply). The Borrower
consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of set-off and counterclaim
with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation. 
  
 (d) Unless the Paying Agent shall have received notice from the Borrower prior to the time by which any payment from the Borrower is due to the Paying
Agent for the account of the relevant Lenders hereunder that the Borrower will not make such payment, the Paying Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption,
distribute to the relevant Lenders the amount due. In such event, if the Borrower has not in fact made such payment, then each of the relevant Lenders severally agrees to repay to the Paying Agent forthwith on demand the amount so distributed to
such Lender with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Paying Agent, at the Federal Funds Effective Rate. 
  
 (e) If any Lender shall fail to make any payment required to be made by it
pursuant to Section 2.05(b) or 2.15(d), then the Paying Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received by the Paying Agent for the account of such Lender to satisfy such
Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid. 
  
 SECTION 2.16. Mitigation Obligations; Replacement of Lenders. If any Lender requests compensation, or is entitled to payments, under Section 2.13
or Section 2.14 or is affected in the manner described in Section 2.18, or if any Lender defaults in its obligation to fund Loans hereunder, then the Borrower may, at its sole expense and effort (in the case of a claim for compensation under, or
payments pursuant to, Section 2.13 or Section 2.14 or in the case of illegality under Section 2.18) or at the expense and effort of any such defaulting Lender, upon notice to such Lender and the Paying Agent, require such Lender to assign and
delegate, without recourse (in accordance with and subject to the restrictions contained in Section 9.04), all its interests, rights and obligations under this Agreement to an assignee that shall assume such obligations (which assignee may be
another Lender, if a Lender accepts such assignment); provided that (i) the Borrower shall notify Bank of America (in its capacity as Co-Administrative 
  

 21 

 Agent), (ii) the Borrower shall have received the prior written consent of the Paying Agent, which consent shall not
unreasonably be withheld or delayed, (iii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee
(to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts) and (iv) in the case of any such assignment resulting from a claim for compensation under, or payments pursuant to,
Section 2.13 or Section 2.14 or from illegality under Section 2.18, such assignment will result in a reduction in such compensation or payments or eliminate the illegality, as the case may be. A Lender shall not be required to make any such
assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply. 
  
 SECTION 2.17. Break Funding Payments. In the event of (a) the payment
of any principal of any Eurodollar Loan other than on the last day of the Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan other than on the last day of the Interest Period
applicable thereto, (c) the failure to borrow, convert, continue or prepay any Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice is permitted to be revocable under Section 2.09(b) and is revoked in
accordance herewith), or (d) the assignment of any Eurodollar Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section 2.16, then, in any such event, the Borrower shall
compensate each Lender for the loss, cost and expense attributable to such event. In the case of a Eurodollar Loan, the loss to any Lender attributable to any such event shall be deemed to include an amount reasonably determined by such Lender to be
equal to the excess, if any, of (i) the amount of interest that such Lender would pay for a deposit equal to the principal amount of such Loan for the period from the date of such payment, conversion, failure or assignment to the last day of the
then current Interest Period for such Loan (or, in the case of a failure to borrow, convert or continue, the duration of the Interest Period that would have resulted from such borrowing, conversion or continuation) if the interest rate payable on
such deposit were equal to the Eurodollar Rate for such Interest Period, over (ii) the amount of interest (as reasonably determined by such Lender) that such Lender would earn on such principal amount for such period if such Lender were to invest
such principal amount for such period at the interest rate that would be bid by such Lender (or an affiliate of such Lender) for deposits from other banks in the relevant currency in the eurocurrency market at the commencement of such period. A
certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the
amount shown as due on any such certificate within 15 days after receipt thereof. 
  
 SECTION 2.18. Illegality. Notwithstanding any other provision herein, if the adoption of or any change in applicable law or regulation or in the interpretation or application thereof shall make it unlawful for
any Lender to make or maintain Eurodollar Loans as contemplated by this Agreement, (a) the commitment of such Lender hereunder to make Eurodollar Loans, continue Eurodollar Loans as such and convert Prime Loans into Eurodollar Loans shall forthwith
be canceled and (b) such Lender’s Loans then outstanding as Eurodollar Loans, if any, shall be converted automatically to Prime Loans on the respective last days of the then current Interest Periods with respect to such Loans or within such
earlier period as required by law. If any such conversion or repayment of a Eurodollar Loan occurs on a day which is not the last day of the then current Interest Period with respect thereto, the Borrower shall pay to such Lender such amounts, if
any, as may be required pursuant to Section 2.17. If circumstances subsequently change so that any affected Lender shall determine that it is no longer so affected, such Lender will promptly notify the Borrower and the Paying Agent, and upon receipt
of such notice, the obligations of such Lender to make or continue Eurodollar Loans or to convert Prime Loans into Eurodollar Loans shall be reinstated. 
  

 22 

 ARTICLE III 
  
 REPRESENTATIONS OF THE BORROWER 
  
 The Borrower represents for and as to itself as follows: 
  
 (a) The Borrower has been duly organized and is validly existing and in good standing under the laws of the jurisdiction of its organization, and the
Borrower has all requisite power and authority to conduct its business, to own its properties and to execute, deliver and perform its obligations under this Agreement. 
  
 (b) The execution, delivery and performance by the Borrower of this Agreement have been, or prior to the Effective Date will
be, duly authorized by all necessary corporate action and do not and will not as of the Effective Date and as of any Borrowing Date or the date of issuance, amendment, renewal or extension of any Letter of Credit, violate any provision of any law or
regulation, or contractual or corporate restrictions, binding on the Borrower and material to the Borrower and its Subsidiaries, taken as a whole. 
  
 (c) As of the Effective Date and any Borrowing Date or the date of issuance, amendment, renewal or extension of any Letter of Credit, this Agreement will
constitute a legal, valid and binding obligation of the Borrower, enforceable in accordance with its terms, subject however to (i) the exercise of judicial discretion in accordance with general principles of equity and (ii) bankruptcy, insolvency,
reorganization, moratorium and other similar laws affecting creditors’ rights heretofore or hereafter enacted. 
  
 (d) The proceeds of the Loans made to the Borrower shall not be used for a purpose which violates Regulation U. 
  
 (e) As of the date hereof, no litigation, investigation or proceeding of or
before any arbitrator or Governmental Authority is pending or, to the knowledge of the Borrower, threatened by or against the Borrower or any Subsidiary or against any of their respective properties or revenues (i) with respect to this Agreement or
any of the transactions contemplated hereby or (ii) that could reasonably be expected to have a Material Adverse Effect (other than those litigations, investigations or proceedings described in the Borrower’s Form 10-K filed with the Securities
and Exchange Commission on March 1, 2005 (for the fiscal year ended December 31, 2004)). 
  
 (f) (i) The combined statement of financial position of the Borrower and its combined statements of earnings, stockholder’s interest and cash flows as of and for the fiscal year ended December 31, 2004 reported
on by KPMG LLP, independent public accountants, present fairly, in all material respects, the financial position and results of operations and cash flows of the Borrower and its consolidated subsidiaries as of such date and for such period in
accordance with GAAP and (ii) since December 31, 2004 to the date hereof, there has been no development or event that has had or could reasonably be expected to have a Material Adverse Effect with respect to the Borrower and its Subsidiaries taken
as a whole. 
  
 (g) The Borrower and each of its Material
Subsidiaries is in compliance with all applicable laws, rules, regulations and orders of, and all applicable restrictions imposed by, any Governmental Authority applicable to it or its property, including, without limitation, statutory insurance
requirements, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect with respect to the Borrower and its Subsidiaries taken as a whole. 
  

 23 

 (h) The Borrower is not (a) an “investment company” as defined in the Investment Company Act of
1940 or (b) a “holding company” as defined in the Public Utility Holding Company Act of 1935. 
  
 ARTICLE IV 
  
 CONDITIONS 
  
 SECTION 4.01. Effective Date. The
obligations of the Lenders to make Loans hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 9.02): 
  
 (a) The Co-Administrative Agents (or their counsel) shall have received from
each party hereto either (i) a counterpart of this Agreement signed on behalf of such party or (ii) written evidence satisfactory to the Co-Administrative Agents (which may include telecopy transmission of a signed signature page of this Agreement)
that such party has signed a counterpart of this Agreement. 
  
 (b) The Co-Administrative Agents shall have received a favorable written opinion (addressed to the Co-Administrative Agents and the Lenders and dated the Effective Date) of in-house counsel for the Borrower, substantially in the form of
Exhibit B. The Borrower hereby requests such counsel to deliver such opinion. 
  
 (c) The Co-Administrative Agents shall have received such documents and certificates as the Co-Administrative Agents or their counsel may reasonably request relating to the organization, existence and, if applicable,
good standing of the Borrower, the authorization of the Transactions and any other legal matters relating to the Borrower, this Agreement or the Transactions, all in form and substance reasonably satisfactory to the Co-Administrative Agents and
their counsel. 
  
 (d) the Co-Administrative Agents shall have
received satisfactory evidence that all Indebtedness owing in respect of the Existing 364-Day Credit Agreement shall have been paid in full and the Existing 364-Day Credit Agreement shall have been terminated. 
  
 The Co-Administrative Agents shall notify the Borrower and the relevant Lenders of the
Effective Date, and such notices shall be conclusive and binding. 
  
 SECTION 4.02. Each Credit Event. The obligation of each Lender to make a Loan or the obligation of the Issuing Lender to issue a Letter of Credit on the occasion of any Borrowing or any such issuance of a Letter of Credit (as the
case may be) is subject to the satisfaction of the following conditions (or waiver thereof in accordance with Section 9.02): 
  
 (a) The representations of the Borrower set forth in this Agreement (except for the representations set forth in clauses (e) and (f)(ii) of Article III)
shall be true and correct in all material respects on and as of the date of such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable. 
  
 (b) At the time of and immediately after giving effect to such Borrowing no
Default or Event of Default shall have occurred and be continuing. 
  
 Each
Borrowing shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in paragraphs (a) and (b) of this Section. 
  

 24 

 ARTICLE V 
  

AFFIRMATIVE COVENANTS 
  
 Until the Commitments have expired or have been terminated and the principal of and interest on each Loan and all fees payable hereunder shall have been
paid in full, all LC Disbursements shall have been reimbursed and all Letters of Credit shall have expired or terminated, the Borrower covenants and agrees with the Lenders that: 
  
 SECTION 5.01. Financial Statements and Other Information. The Borrower will furnish to the Co-Administrative Agents
and each Lender: 
  
 (a) Annual Financial Statements. 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 statement of financial position of the Borrower and its consolidated subsidiaries, as at the end of such year and the related
audited statements of earnings, stockholder’s interest and cash flows for such year, reported on without a “going concern” or like qualification or exception, or qualification arising out of the scope of the audit, by KPMG LLP or
other independent certified public accountants of nationally recognized standing; 
  
 (b) Quarterly Financial Statements. 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; 
  
 (c) Officer’s Certificate. At
the time of delivery of the financial statements provided for in Sections 5.01(a) and 5.01(b) above, a certificate of the chief financial officer or treasurer of the Borrower, (i) demonstrating compliance with the financial covenant contained in
Section 6.01 by calculation thereof as of the end of each such fiscal period and (ii) stating that no Default or Event of Default by the Borrower exists, or if any such Default or Event of Default does exist, specifying the nature and extent thereof
and what action the Borrower proposes to take with respect thereto; 
  
 (d) Reports. Promptly upon transmission thereof, copies of any filings and registrations with, and reports to, the Securities and Exchange Commission, or any successor agency (other than registration statements on Form S-8 or its
equivalent), and copies of all financial statements, proxy statements, notices and reports as the Borrower shall send to its shareholders generally (excluding, in each case, exhibits, schedules or attachments to any of the foregoing); and

  
 (e) Other Information. With reasonable promptness upon
any such request, such other information regarding the business, operations, properties or financial condition of the Borrower or any Subsidiary (including, without limitation, the annual Statutory Statements of any Material Subsidiary that is an
insurance company), as the Co-Administrative Agents may reasonably request. 
  
 All financial statements delivered pursuant to this Section shall be complete and correct in all material respects and shall be prepared in accordance with GAAP. Timely filing of all documents referred to in Section 5.01(a), (b) and (d)
above with the Securities and Exchange Commission shall constitute compliance with this Section 5.01, without any requirement (except as provided in the next succeeding sentence) for the Borrower to furnish such documents to any Agent or any Lender.
The Borrower agrees to provide hard copies of any statements required to be delivered pursuant to this Section to any Lender upon the reasonable request of such Lender made to the Borrower in writing pursuant to Section 9.01. 
  

 25 

 SECTION 5.02. Use of Proceeds. The proceeds of the Loans made to the Borrower hereunder will be
used for general corporate purposes. 
  
 SECTION 5.03. Books
and Records; Inspection Rights. The Borrower will, and will cause each of its Subsidiaries, to (a) keep proper books of records and account in which full, true and correct entries, in all material respects, are made of all dealings and
transactions in relation to its business and activities and (b) permit any representatives designated by the Co-Administrative Agents or any Lender, upon any reasonable request with reasonable advance notice, to visit and inspect during normal
business hours its properties, operations and books of account. 
  
 SECTION 5.04. Notices of Defaults. Within five Business Days after the Chief Executive Officer, Chief Financial Officer, General Counsel, Treasurer or Secretary of the Borrower obtains knowledge of any Default, if such Default is
then continuing, the Borrower shall deliver to each Lender a certificate of any senior officer of the Borrower setting forth the details thereof and the action that the Borrower is taking or proposes to take with respect to such Default. 

 
 SECTION 5.05. Existence; Conduct of Business. The Borrower will,
and will cause each of its Material Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence and the rights, licenses, permits, privileges and franchises material to the
conduct of its business and the Borrower will continue, and will cause each Material Subsidiary to continue, to engage in business of the same general type as now conducted (or proposed to be conducted) by the Borrower and its Subsidiaries;
provided that the foregoing shall not prohibit (i) any merger, consolidation, liquidation or dissolution permitted under Section 6.03 or (ii) the termination of the legal existence of any Subsidiary if the Borrower in good faith determines
that such termination is in the best interest of the Borrower and is not materially disadvantageous to the Lenders. 
  
 SECTION 5.06. Compliance with Laws. The Borrower will, and will cause each of its Material Subsidiaries to, comply with all applicable laws, rules,
regulations, and orders of, and all applicable restrictions imposed by, any Governmental Authority applicable to it or its property, including, without limitation, statutory insurance requirements, except where the failure to do so could not
reasonably be expected to have a Material Adverse Effect with respect to the Borrower and its Subsidiaries taken as a whole. 
  
 ARTICLE VI 
  
 NEGATIVE COVENANTS 
  
 Until the Commitments have expired or terminated and the principal of and interest on each Loan and all fees payable hereunder have been paid in full and all Letters of Credit have expired or terminated and all LC Disbursements shall have
been reimbursed, the Borrower covenants and agrees with the Lenders that: 
  
 SECTION 6.01. Financial Condition Covenant. The Borrower will not permit Consolidated Net Worth at the end of any fiscal quarter of the Borrower to be less than the sum of (i) $6,900,000,000 and (ii) 40% of
Consolidated Net Income for each completed fiscal year of the Borrower ending on or after December 31, 2004 and on or prior to the end of such fiscal quarter (without any deduction for any fiscal year as to which there is a Consolidated Net Loss).

  
 SECTION 6.02. Liens. The Borrower will not, and will
not permit any Material Subsidiary to, create, incur, assume or permit to exist any Lien to secure any Indebtedness of the Borrower or any Material Subsidiary owed to any Person (other than the Borrower and its Subsidiaries) on any property or asset
now owned or hereafter acquired by it, except: 
  
 (a) any Lien
on any property or asset of the Borrower or any Subsidiary existing on the date hereof; 
  

 26 

 (b) any Lien existing on any property or asset prior to the acquisition thereof by the Borrower or any
Material Subsidiary or existing on any property or asset of any Person that becomes a Material Subsidiary after the date hereof prior to the time such Person becomes a Material Subsidiary; provided that such Lien is not created in
contemplation of or in connection with the acquisition or such Person becoming a Material Subsidiary, as the case may be; 
  
 (c) any Lien on margin stock within the meaning of Regulation U; 
  

(d) Liens on property or assets acquired, constructed or improved by the Borrower or any Material Subsidiary; provided that the Indebtedness
secured thereby does not exceed the cost of acquiring, constructing or improving such property or assets; 
  
 (e) Liens securing repayment of funds advanced to the Borrower and its Subsidiaries under custody agreements, securities lending arrangements, securities
clearing agreements and similar arrangements entered into in the ordinary course of business; 
  
 (f) Liens in connection with Asset Securitizations and Sale and Leaseback Transactions; 
  
 (g) Liens in connection with any repurchase agreement, buy/sell agreement or similar agreement or instrument on assets or property transferred by the
Borrower or any of its Subsidiaries thereunder, securing the obligation of the Borrower or such Subsidiary to repurchase or buy such assets or property as well as its other obligations under such repurchase agreement, buy/sell agreement or similar
agreement or instrument; 
  
 (h) Liens in favor of the Federal
Home Loan Bank Board (the “FHLBB”) to secure loans made by the FHLBB to the Borrower or any Material Subsidiary in the ordinary course of business; 
  
 (i) Liens on any real property securing Indebtedness of the Borrower or any Material Subsidiary in respect of which (i) the
recourse of the holder of such Indebtedness (whether direct or indirect and whether contingent or otherwise) under the instrument creating the Lien or providing for the Indebtedness secured by the Lien is limited to such real property directly
securing such Indebtedness and (ii) such holder may not under the instrument creating the Lien or providing for the Indebtedness secured by the Lien collect by levy of execution or otherwise against assets or property of the Borrower or such
Material Subsidiary (other than such real property directly securing such Indebtedness) if the Borrower or such Material Subsidiary fails to pay such Indebtedness when due and such holder obtains a judgment with respect thereto, except for recourse
obligations that are customary in “non-recourse” real estate transactions; 
  
 (j) Liens arising out of the refinancing, extension, renewal or refunding of any Indebtedness secured by any Liens permitted by any of the foregoing clauses of this Section; provided that such Indebtedness is
not increased and is not secured by any additional property or assets; and 
  

 27 

 (k) Liens not otherwise permitted by this Section so long as the aggregate outstanding principal amount
of Indebtedness secured thereby does not exceed at the time of the incurrence of any such Indebtedness, the greater of (x) $2,000,000,000 or (y) 15% of Consolidated Net Worth of the Borrower and its Subsidiaries, as reflected in the most recent
financial statements of the Borrower and its consolidated subsidiaries delivered pursuant to this Agreement. 
  
 SECTION 6.03. Fundamental Changes. The Borrower will not (i) consolidate or merge with or into any Person or (ii) sell, lease or otherwise
transfer, directly or indirectly, all or substantially all of the assets, of the Borrower and its Subsidiaries, taken as a whole, or any Material Operating Segment in its entirety, to any other Person; provided that the Borrower may
consolidate or merge with another Person if (A) the Borrower is the corporation surviving such consolidation or merger and (B) immediately after giving effect to such consolidation or merger, no Default shall have occurred and be continuing.

  
 SECTION 6.04. Transactions with Affiliates. The
Borrower will not, and will not permit any Material Subsidiary to, enter into any material transaction, including the purchase, sale, lease or exchange of property, the rendering of any service or the payment of any management, advisory or similar
fees, with any Affiliate (other than the Borrower or any of its Subsidiaries) unless such transaction either (a) is upon fair and reasonable terms no less favorable to the Borrower, or such Material Subsidiary, as the case may be, than would be
applicable to a comparable arm’s-length transaction with a Person that is not such an Affiliate or (b) in the Borrower’s good-faith judgment, could not reasonably be expected to have a Material Adverse Effect. 
  
 ARTICLE VII 
  
 EVENTS OF DEFAULT 
  
 If any of the following events (“Events of Default”) shall
occur: 
  
 (a) the Borrower shall fail to pay any principal of
any Loan or any reimbursement obligation in respect of any LC Disbursement when and as the same shall become due and payable; 
  
 (b) the Borrower shall fail to pay (i) any interest on any Loan or (ii) any fee payable under Section 2.10, and such failure shall not be cured within
five Business Days after receipt by the Borrower of notice of such failure from the Co-Administrative Agents; 
  
 (c) any representation or warranty made in writing or deemed made by the Borrower in this Agreement or any amendment hereof or waiver hereto, or in any
report, certificate, financial statement or other document delivered pursuant to this Agreement or any amendment hereof or waiver hereto, shall prove to have been incorrect in any material respect when made or deemed made; 
  
 (d) the Borrower shall fail to observe or perform any covenant or agreement
contained in Section 5.04 or 5.05 (with respect to the Borrower’s existence) or in Section 6.01, 6.02 or 6.03; 
  
 (e) the Borrower shall fail to observe or perform any covenant or agreement contained in this Agreement (other than those specified in clause (a), (b) or
(d) of this Article), and such failure shall continue unremedied for a period of 30 days after notice thereof from the Co-Administrative Agents or the Required Lenders to the Borrower; 
  

 28 

 (f) the Borrower or any Material Subsidiary shall fail to make any payment of principal or interest when
due (or within any applicable grace period) with respect to any Material Indebtedness, or a default shall have occurred in respect of any Material Indebtedness and such default causes acceleration thereof; 
  
 (g) an involuntary proceeding shall be commenced or an involuntary petition
shall be filed seeking (i) liquidation, reorganization or other relief in respect of the Borrower or any Material Subsidiary or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency,
receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Material Subsidiary or for a substantial part of its assets, and,
in any such case, such proceeding or petition shall continue undismissed for (i) 60 days with respect to any such proceeding or petition under any Federal or state law or (ii) 90 days with respect to any such proceeding or petition under any foreign
law, or an order or decree approving or ordering any of the foregoing shall be entered; 
  
 (h) the Borrower or any Material Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy,
insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of any proceeding or petition described in clause (g) of this Article, (iii) apply for or consent to the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for the Borrower or any Material Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such
proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any corporate action for the purpose of effecting any of the foregoing; 
  
 (i) one or more judgments for the payment of money in an aggregate amount in excess of $100,000,000 (to the extent not paid or covered by insurance) shall
be entered by a court of competent jurisdiction against the Borrower, any Material Subsidiary or any combination thereof and the same shall remain undischarged, unvacated, unbonded or unstayed for a period of (i) 60 consecutive days with respect to
any such judgment entered by any such court located in the United States of America or (ii) 90 consecutive days with respect to any such judgment entered by any such court located outside the United States of America; or 
  
 (j) there shall have occurred a Change in Control; 
  
 then, and in every such event (other than an event with respect to the Borrower described in
clause (g) or (h) of this Article), and at any time thereafter during the continuance of such event, the Co-Administrative Agents may, and at the request of the Required Lenders shall, by notice to the Borrower, take either or both of the following
actions, at the same or different times: (i) terminate the Commitments, and thereupon the Commitments shall terminate immediately, and (ii) declare the Loans then outstanding to be due and payable in whole (or in part, in which case any principal
not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other obligations of the
Borrower accrued hereunder, shall become due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower; and in case of any event with respect to the Borrower described
in clause (g) or (h) of this Article, the Commitments shall automatically terminate and the principal of the Loans of the Borrower then outstanding, together with accrued interest thereon and all fees and other obligations of the Borrower accrued
hereunder, shall automatically become due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower. 
  

 29 

 ARTICLE VIII 
  
 THE AGENTS 
  
 Each of the Lenders hereby irrevocably appoints each of the Co-Administrative Agents and the Paying Agent as its agents (each, an
“Agent”, and together, the “Agents”) and authorizes the Agents to take such actions on its behalf and to exercise such powers as are delegated to the Agents by the terms hereof, together with such actions and powers
as are reasonably incidental thereto. 
  
 Each of the banks
serving as an Agent hereunder shall have the same rights and powers in its respective capacity as a Lender as any other Lender and may exercise the same as though it were not an Agent, and such bank and its Affiliates may accept deposits from, lend
money to and generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate thereof as if it were not an Agent hereunder. 
  
 The Agents shall not have any duties or obligations except those expressly set forth herein. Without limiting the generality of the foregoing, (a) the
Agents shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing, (b) the Agents shall not have any duty to take any discretionary action or exercise any discretionary powers,
except discretionary rights and powers expressly contemplated hereby that the Agents are required to exercise in writing by the Required Lenders, and (c) except as expressly set forth herein, the Agents shall not 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 subsidiaries that is communicated to or obtained by the banks serving as Agents or any of their Affiliates in any capacity. The Agents shall not be
liable for any action taken or not taken by them with the consent or at the request of the Required Lenders or all the Lenders, as the case may be, or in the absence of its own gross negligence or willful misconduct. The Agents shall be deemed not
to have knowledge of any Default unless and until written notice thereof is given to the Agents by the Borrower or a Lender, and the Agents shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or
representation made in or in connection with this Agreement, (ii) the contents of any certificate, report or other document delivered hereunder or in connection herewith, (iii) the performance or observance of any of the covenants, agreements or
other terms or conditions set forth herein, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in Article IV or
elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the relevant Agent or Agents. 
  
 The Agents shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement,
instrument, document or other writing believed by them to be genuine and to have been signed or sent by the proper Person. The Agents may rely upon any statement made to them orally or by telephone and reasonably believed by them to be made by the
proper Person, and shall not incur any liability for relying thereon. The Agents may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by them, and shall not be liable for any action
taken or not taken by them in accordance with the advice of any such counsel, accountants or experts. 
  
 The Agents may perform any and all their duties and exercise their rights and powers by or through any one or more sub-agents appointed by the Agents. The
Agents or any such sub-agent may perform any and all its duties and exercise its rights and powers through their respective Related Parties. The exculpatory provisions of the preceding paragraphs shall apply to any such sub-agent and to the Related
Parties of the Agents and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as the Agents. 
  

 30 

 Subject to the appointment and acceptance of a successor Agent or Agents as provided in this paragraph,
each of the Agents may resign at any time by notifying the Lenders and the Borrower. Upon any such resignation, the Required Lenders shall have the right, with the written consent of the Borrower so long as no Event of Default exists, to appoint a
successor or successors. If no successor or successors shall have been so appointed by the Required Lenders with the written consent of the Borrower and shall have accepted such appointment within 30 days after the retiring Agent or Agents gives
notice of its resignation, then the retiring Agent or Agents may, on behalf of the Lenders, appoint a successor Agent or Agents, each of which shall be a bank with an office in New York, New York and having a combined capital and surplus of at least
$500,000,000, or an Affiliate of any such bank. Upon the acceptance of its appointment as an Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Agent,
and the retiring Agent shall be discharged from its respective duties and obligations hereunder. The fees payable by the Borrower to any successor Agent be the same as those payable to its predecessor unless otherwise agreed between the Borrower and
such successor. After the Agent’s or Agents’ resignation hereunder, the provisions of this Article and Section 9.03 shall continue in effect for their respective benefit in respect of any actions taken or omitted to be taken by it while it
was acting as an Agent. 
  
 Each Lender acknowledges that it has,
independently and without reliance upon an Agent or Agents or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon an Agent or Agents or any other Lender and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not
taking action under or based upon this Agreement, any related agreement or any document furnished hereunder or thereunder. 
  
 ARTICLE IX 
  
 MISCELLANEOUS 
  
 SECTION 9.01. Notices. Except in the case of notices and other communications expressly permitted to be given by telephone, all notices and other communications provided for herein shall be in writing
(including by electronic transmission) and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy or email with PDF attachment, as follows: 
  
 (a) if to the Borrower, to it at 6620 West Broad Street, Richmond, Virginia
23230, Attention: Treasurer (Telecopy No. (804) 662-7522), e-mail: gary.prizzia@genworth.com, with a copy to: Genworth Financial, Inc, 6620 West Broad Street, Richmond, Virginia 23230, Attention: General Counsel (Telecopy No. (804) 662-2414),
e-mail: leon.roday@genworth.com; 
  
 (b) if to the
Co-Administrative Agents, to (i) JPMorgan Chase Bank, N.A., 111 Fannin Street, 10th Floor, Houston, Texas 77002,
Attention: Claudine Garcia, Loan and Agency Services Group (Telecopy No. (713) 750-2223), email: claudine.y.garcia@jpmorgan.com, with a copy to : JPMorgan Chase Bank, N.A., 270 Park Avenue, 22nd Floor, New York, New York, 10017, Attention:
Heather Lindstrom (Telecopy No. (212) 270-1511), email: heather.lindstrom@jpmorgan.com and/or (ii) Bank of America, N.A., 231 S. LaSalle Street, Chicago, Illinois 60697, Attention: Timothy Cassidy (Telecopy No. (312) 828-3600), email:
timothy.cassidy@bankofamerica.com; 
  

 31 

 (c) if to the Paying Agent, to it at JPMorgan Chase Bank, N.A., 111 Fannin Street, 10th Floor, Houston, Texas 77002, Attention: Claudine Garcia, Loan and Agency Services Group (Telecopy No. (713) 750-2223), email:
claudine.y.garcia@jpmorgan.com; 
  
 (d) if to the Issuing Lender,
to it at Bank of America, N.A., 1 Fleet Way, Scranton, Pennsylvania 18507 Attention: Trade Services Department – Standby Unit; (Telecopy: (570)-330-4186/4187); or 
  
 (e) if to any other Lender, to it at its address (or telecopy number or email) set forth in its Administrative
Questionnaire. 
  
 Any party hereto may change its address or telecopy number for
notices and other communications hereunder by notice to the other parties hereto (or, in the case of any Lender, to the Borrower and the Paying Agent). All notices and other communications given to any party hereto in accordance with the provisions
of this Agreement shall be deemed to have been given on the date of receipt. 
  
 SECTION 9.02. Waivers; Amendments. Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Borrower and
the Required Lenders or by the Borrower and the Co-Administrative Agents with the consent of the Required Lenders; provided that no such agreement shall (i) increase the Commitment of any Lender without the written consent of such Lender,
(ii) reduce the principal amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce any fees payable hereunder, without the written consent of each Lender affected thereby, (iii) postpone the scheduled date of payment
of the principal amount of any Loan or LC Disbursement, or any interest thereon, or any fees payable hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date of expiration of any Commitment, without the
written consent of each Lender affected thereby or (iv) change any of the provisions of this Section or the definition of “Required Lenders” or any other provision hereof specifying the number or percentage of Lenders required to waive,
amend or modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender; provided, further that no such agreement shall amend, modify or otherwise affect the rights or
duties of any Agent hereunder without the prior written consent of such Agent. 
  
 SECTION 9.03. Expenses; Indemnity. 
  
 (a) The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the Lead Arrangers, the Agents and their respective Affiliates, including the reasonable fees, charges and disbursements of a single
counsel for the Lead Arrangers and the Agents in connection with the syndication of the credit facilities provided for herein, the preparation and administration of this Agreement and any amendments, modifications or waivers of the provisions hereof
and (ii) all reasonable out-of-pocket expenses incurred by the Agents or any Lender, including the reasonable fees, charges and disbursements of any counsel for the Agents or any Lender, in connection with the enforcement of its rights in connection
with this Agreement. 
  
 (b) The Borrower shall indemnify the Lead
Arrangers, the Agents, each Issuing Lender and each Lender, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses,
claims, damages, liabilities and related expenses, including the fees, charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the
execution or delivery of this Agreement or the performance by the parties hereto of their respective obligations hereunder, (ii) any Loan or the use of the proceeds therefrom or (iii) any 
  

 32 

 actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, regardless of
whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses have resulted from the gross negligence or
willful misconduct of such Indemnitee. It is understood and agreed that, to the extent not precluded by a conflict of interest, each Indemnitee shall endeavor to work cooperatively with the Borrower with a view toward minimizing the legal and other
expenses associated with any defense and any potential settlement or judgment. To the extent reasonably practicable and not disadvantageous to any Indemnitee, it is anticipated that a single counsel selected by the Borrower may be used. Settlement
of any claim or litigation involving any material indemnified amount will require the approvals of the Borrower (not to be unreasonably withheld) and the relevant Indemnitee (not to be unreasonably withheld or delayed). 
  
 SECTION 9.04. Successors and Assigns. 
  
 (a) The provisions of this Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender
(and any attempted assignment or transfer by the Borrower without such consent shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby, the Lead Arrangers and, to the extent expressly contemplated hereby, the Related Parties of each of the Lead Arrangers, the Co-Administrative Agents, the Paying Agent and the Lenders) any legal or equitable
right, remedy or claim under or by reason of this Agreement. 
  
 (b) Any Lender other than any Conduit Lender may assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it);
provided that (i) except in the case of an assignment to a Lender or an Affiliate of a Lender, each of the Borrower and the Paying Agent must give its prior written consent to such assignment (which consent shall not be unreasonably withheld)
(it being understood that it shall be reasonable for the Borrower to withhold consent if the assignee has long-term debt ratings below BBB- from S&P or Baa3 from Moody’s or has ratings at such levels but is on credit watch with negative
implications at either S&P or Moody’s), (ii) the Issuing Lender must give its prior consent (which consent shall not be unreasonably withheld or delayed), (iii) Bank of America (in its capacity as Co-Administrative Agent) is notified of
such Assignment; (iv) except in the case of an assignment to a Lender or an Affiliate of a Lender or an assignment of an entire remaining amount of the assigning Lender’s Commitment, the amount of the Commitment of the assigning Lender subject
to each such assignment (determined as of the date the Assignment and Acceptance with respect to such assignment is delivered to the Paying Agent) shall not be less than $5,000,000 unless each of the Borrower and the Paying Agent otherwise consents,
(v) each partial assignment of a Lender’s rights and obligations shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations, (vi) the parties to each assignment shall execute and deliver to
the Paying Agent an Assignment and Acceptance, together with a processing and recordation fee of $3,500 payable by the assignor or the assignee, (vii) the assignee, if it shall not be a Lender, shall deliver to the Paying Agent an Administrative
Questionnaire and (viii) the assignee, if applicable, shall, prior to the first date on which interest or fees are payable hereunder for its account, deliver to the Borrower and the Paying Agent the documentation described in Section 2.14(e);
provided, further that any consent of the Borrower otherwise required under this paragraph shall not be required if an Event of Default has occurred and is continuing. Upon acceptance and recording pursuant to paragraph (d) of this
Section, from and after the effective date specified in each Assignment and Acceptance, the assignee thereunder shall be a party hereto and, to the extent of the interest 
  

 33 

 assigned by such Assignment and Acceptance, 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 Acceptance, be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance 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 2.13, 2.14, 2.17, and 9.03). Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with this paragraph 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 (e) of this Section.
Notwithstanding the foregoing, any Conduit Lender may assign at any time to its designating Lender hereunder without the consent of the Borrower or the Paying Agent any or all of the Loans it may have funded hereunder and pursuant to its designation
agreement and without regard to the limitations set forth in the first sentence of this Section 9.04(b). 
  
 (c) The Paying Agent, acting for this purpose as an agent of the Borrower, shall maintain at one of its offices in The City of New York a copy of each
Assignment and Acceptance delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amount of the Loans owing to, each Lender pursuant to the terms hereof from time to time
(the “Register”). The entries in the Register shall be conclusive, and the Borrower, the Co-Administrative Agents and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

  
 (d) Upon its receipt of a duly completed Assignment and
Acceptance 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 Paying Agent shall accept such Assignment and Acceptance 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. 
  
 (e) Any Lender other than any Conduit Lender may, without the consent of the Borrower or the Co-Administrative Agents, sell participations to one or more
banks or other entities (each, a “Participant”) in all or a portion of such Lender’s rights and obligations under this Agreement (including all or a portion of its Commitments and the Loans owing to it); provided that
(i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrower, the Agents and the other
Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide
that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, modification or waiver described in the first proviso to Section 9.02 that affects such Participant. Subject to paragraph (f) of this Section, the Borrower agrees that each Participant
shall be entitled to the benefits of Sections 2.13, 2.14 and 2.17 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section. 
  
 (f) A Participant shall not be entitled to receive any greater payment under
Section 2.13 or 2.14 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior written
consent. A Participant shall not be entitled to the benefits of Section 2.14 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section 2.14 as
though it were a Lender. 
  

 34 

 (g) Any Lender other than any Conduit 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 of such Lender, including any such pledge or assignment to a Federal Reserve Bank, and this Section shall not apply to any such pledge or assignment of a security interest;
provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such assignee for such Lender as a party hereto. 
  
 (h) Each of the Borrower, each Lender and the Co-Administrative Agents hereby
confirms that it will not institute against a Conduit Lender or join any other Person in instituting against a Conduit Lender any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding under any state bankruptcy or similar
law, for one year and one day after the payment in full of the latest maturing commercial paper note issued by such Conduit Lender; provided, however, that each Lender designating any Conduit Lender hereby agrees to indemnify, save and hold
harmless each other party hereto for any loss, cost, damage or expense arising out of its inability to institute such a proceeding against such Conduit Lender during such period of forbearance. 
  
 SECTION 9.05. Counterparts; Integration; Effectiveness. This Agreement
may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement and any separate letter
agreements with respect to fees payable to the Lead Arrangers and the Agents (as the case may be) constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. Except as provided in Section 4.01, this Agreement shall become effective when it shall have been executed by the Co-Administrative Agents and when the Co-Administrative Agents
shall have received and delivered to the Borrower, counterparts hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns. Delivery of an executed counterpart of a signature page of this Agreement by telecopy or email with PDF attachment shall be effective as delivery of a manually executed counterpart of this Agreement. 
  
 SECTION 9.06. Governing Law; Jurisdiction. 
  
 (a) This Agreement shall be construed in accordance with and governed by the
law of the State of New York. 
  
 (b) Each party hereto hereby
irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New
York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees
that all claims in respect of any such action or proceeding may be heard and determined in such New York State or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that any party may otherwise have to bring any action or
proceeding relating to this Agreement against any other party or its properties in the courts of any jurisdiction. 
  

 35 

 SECTION 9.07. Right of Setoff. If any Loan or Letter of Credit shall have become due and payable,
whether due to maturity, acceleration or otherwise, each Lender (including for purposes of this Section each of its Affiliates which is a regulated commercial bank) is hereby authorized at any time and from time to time, to the fullest extent
permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by such Lender to or for the credit or the account of the Borrower
against any of and all the obligations of the Borrower now or hereafter existing under this Agreement held by such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement. The rights of each Lender under
this Section are in addition to other rights and remedies (including other rights of setoff) which such Lender may have. 
  
 SECTION 9.08. Headings. Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of
this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement. 
  
 SECTION 9.09. Confidentiality. Each of the Co-Administrative Agents and the Lenders agrees to maintain the confidentiality of the Information (as
defined below), except that Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority, (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (d) to any other party to this Agreement, (e) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement or the enforcement of
rights hereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this
Agreement, (g) with the consent of the Borrower or (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section or (ii) becomes available to the Co-Administrative Agents or any Lender on a
nonconfidential basis from a source other than the Borrower. For the purposes of this Section, “Information” means all information received from the Borrower relating to the Borrower or its business, other than any such information
that is available to the Co-Administrative Agents or any Lender on a nonconfidential basis prior to disclosure by the Borrower; provided that, in the case of information received from the Borrower after the date hereof, such information is
clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised
the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information. 
  
 SECTION 9.10. 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. 
  

 36 

 SECTION 9.11. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). 
  
 SECTION 9.12. USA Patriot Act. 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. 
  
 [Remainder of page intentionally left blank. Signature page to follow.]

  

 37 

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

			
	GENWORTH FINANCIAL, INC.
		
	By:	 	 /s/ Gary T Prizzia

	Name:	 	Gary T. Prizzia
	Title:	 	Vice President and Treasurer
	
	BANK OF AMERICA, N.A.,
	individually and as Co-Administrative Agent
		
	By:	 	 /s/ Timothy Cassidy

	Name:	 	Timothy Cassidy
	Title:	 	Vice President
	
	JPMORGAN CHASE BANK, N.A.,
	 individually and as Co-Administrative Agent
 and Paying Agent

		
	By:	 	 /s/ Heather Lindstrom

	Name:	 	Heather Lindstrom
	Title:	 	Vice President

  
 SIGNATURE PAGE TO
GENWORTH FIVE-YEAR CREDIT AGREEMENT 

			
	ABN AMRO BANK N.V.
		
	By:	 	 /s/ Neil R. Stein

	Name:	 	Neil R. Stein
	Title:	 	Director
		
	By:	 	 /s/ Micheal DeMarco

	Name:	 	Micheal DeMarco
	Title:	 	Assistant Vice President

  
 SIGNATURE PAGE TO
GENWORTH FIVE-YEAR CREDIT AGREEMENT 

			
	THE BANK OF NEW YORK
		
	By:	 	 /s/ Lizanne T. Eberle

	Name:	 	Lizanne T. Eberle
	Title:	 	Vice President

  
 SIGNATURE PAGE TO
GENWORTH FIVE-YEAR CREDIT AGREEMENT 

			
	BNP PARIBAS
		
	By:	 	 /s/ Laurent Vanderzyppe

	Name:	 	Laurent Vanderzyppe
	Title:	 	Director
		
	By:	 	 /s/ Phil Trusedale

	Name:	 	Phil Trusedale
	Title:	 	Director

  
 SIGNATURE PAGE TO
GENWORTH FIVE-YEAR CREDIT AGREEMENT 

			
	CITICORP NORTH AMERICA, INC.
		
	By:	 	 /s/ Maria G. Hackley

	Name:	 	Maria G. Hackley
	Title:	 	Managing Director

  
 SIGNATURE PAGE TO
GENWORTH FIVE-YEAR CREDIT AGREEMENT 

			
	CREDIT SUISSE FIRST BOSTON
	acting through its Cayman Islands Branch
		
	By:	 	 /s/ Jay Chall

	Name:	 	Jay Chall
	Title:	 	Director
		
	By:	 	 /s/ Karim Blasetti

	Name:	 	Karim Blasetti
	Title:	 	Associate

  
 SIGNATURE PAGE TO
GENWORTH FIVE-YEAR CREDIT AGREEMENT 

			
	DEUTSCHE BANK AG NEW YORK BRANCH
		
	By:	 	 /s/ Frederick W. Laird

	Name:	 	Frederick W. Laird
	Title:	 	Managing Director
		
	By:	 	 /s/ Ming K. Chu

	Name:	 	Ming K. Chu
	Title:	 	Vice President

  
 SIGNATURE PAGE TO
GENWORTH FIVE-YEAR CREDIT AGREEMENT 

			
	HSBC BANK USA
		
	By:	 	 /s/ Lawrence M. Karp

	Name:	 	Lawrence M. Karp
	Title:	 	Senior Vice President

  
 SIGNATURE PAGE TO
GENWORTH FIVE-YEAR CREDIT AGREEMENT 

			
	LEHMAN BROTHERS BANK, FSB
		
	By:	 	 /s/ Janine M. Shugan

	Name:	 	Janine M. Shugan
	Title:	 	Authorized Signatory

  
 SIGNATURE PAGE TO
GENWORTH FIVE-YEAR CREDIT AGREEMENT 

			
	 MERRILL LYNCH BANK USA

		
	By:	 	 /s/ Louis Adler

	Name:	 	Louis Adler
	Title:	 	Director

  
 SIGNATURE PAGE TO
GENWORTH FIVE-YEAR CREDIT AGREEMENT 

			
	MORGAN STANLEY BANK
		
	By:	 	 /s/ Daniel Twenge

	Name:	 	Daniel Twenge
	Title:	 	Vice President

  
 SIGNATURE PAGE TO
GENWORTH FIVE-YEAR CREDIT AGREEMENT 

			
	ROYAL BANK OF CANADA
		
	By:	 	 /s/ John E. Beckwith

	Name:	 	John E. Beckwith
	Title:	 	Authorized Signatory

  
 SIGNATURE PAGE TO
GENWORTH FIVE-YEAR CREDIT AGREEMENT 

			
	SUMITOMO MITSUI BANKING CORPORATION
		
	By:	 	 /s/ Yoshihiro Hyakutome

	Name:	 	Yoshihiro Hyakutome
	Title:	 	Deputy General Manager

  
 SIGNATURE PAGE TO
GENWORTH FIVE-YEAR CREDIT AGREEMENT 

			
	SUNTRUST BANK
		
	By:	 	 /s/ Mark A. Flatin

	Name:	 	Mark A. Flatin
	Title:	 	Managing Director

  
 SIGNATURE PAGE TO
GENWORTH FIVE-YEAR CREDIT AGREEMENT 

			
	UBS LOAN FINANCE LLC
		
	By:	 	 /s/ Edward Cripps

	Name:	 	Edward Cripps
	Title:	 	Director
		
	By:	 	 /s/ Marie A. Haddad

	Name:	 	Marrie A. Haddad
	Title:	 	Associate Director

  
 SIGNATURE PAGE TO
GENWORTH FIVE-YEAR 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

  
 SIGNATURE PAGE TO
GENWORTH FIVE-YEAR CREDIT AGREEMENT 

 Schedule 2.01: Commitments 
  

				
	 Lender

	  	Commitment

	 ABN AMBRO Bank N.V.
	  	$	35,000,000.00
	 Bank of America, N.A.
	  	$	100,000,000.00
	 BNP Paribas
	  	$	35,000,000.00
	 Citicorp North America, Inc.
	  	$	75,000,000.00
	 Credit Suisse First Boston, acting through its Cayman Islands Branch
	  	$	35,000,000.00
	 Deutsche Bank AG New York Branch
	  	$	75,000,000.00
	 HSBC Bank USA
	  	$	75,000,000.00
	 JPMorgan Chase Bank, N.A.
	  	$	100,000,000.00
	 Lehman Brothers Bank, FSB
	  	$	75,000,000.00
	 Merrill Lynch Bank USA
	  	$	35,000,000.00
	 Morgan Stanley Bank
	  	$	75,000,000.00
	 Royal Bank of Canada
	  	$	30,000,000.00
	 Sumitomo Mitsui Banking Corporation
	  	$	75,000,000.00
	 SunTrust Bank
	  	$	35,000,000.00
	 The Bank of New York
	  	$	35,000,000.00
	 UBS Loan Finance LLC
	  	$	35,000,000.00
	 William Street Commitment Corporation
	  	$	75,000,000.00
	 	  	
	

	 TOTAL
	  	$	1,000,000,000.00
	 	  	
	

 EXHIBIT A 
  
 FORM OF ASSIGNMENT AND ASSUMPTION 
  
 Reference is made to the five-year credit agreement, dated as of April 21, 2005 (as amended, supplemented or otherwise modified from time to time, the
“Five-Year Credit Agreement”), among Genworth Financial, Inc., a Delaware corporation (the “Borrower”), the several banks and other financial institutions or entities from time to time parties to the Five-Year
Credit Agreement, as lenders (the “Lenders”) and JPMorgan Chase Bank, N.A. and Bank of America, N.A., as co-administrative agents (the “Co-Administrative Agents”). Unless otherwise defined herein, terms defined in
the Five-Year Credit Agreement and used herein shall have the meanings given to them in the Five-Year 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 Five-Year Credit Agreement with respect to the credit facility contained in the Five-Year
Credit Agreement as is set forth on Schedule 1 hereto (the “Assigned Facility), in a principal amount for the Assigned Facility 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 Five-Year Credit Agreement or with respect to the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Five-Year Credit Agreement, 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 or any of its Affiliates or the performance or observance by the Borrower of any of its obligations under the Five-Year Credit Agreement
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 Five-Year Credit Agreement, together with copies
of the financial statements delivered pursuant to Section 5.01 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, the Agents 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 Five-Year Credit Agreement or any other instrument or document furnished pursuant hereto or thereto; (d) appoints and authorizes the Agents to take such action as agent on its behalf and to exercise such powers and discretion under the
Five-Year Credit Agreement or any other instrument or document furnished pursuant hereto or thereto as are delegated to the Agents 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 Five-Year Credit Agreement and will perform in accordance with its terms all the obligations which by the terms of the Five-Year 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 obligations pursuant to Section 2.14 of the Five-Year Credit Agreement. 

 4. 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, it will be delivered to the Paying Agent for acceptance by it and recording by the Paying Agent pursuant to the
Five-Year Credit Agreement, effective as of the Effective Date (which shall not, unless otherwise agreed to by the Paying Agent, be earlier than five Business Days after the date of such acceptance and recording by the Paying 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
that have accrued subsequent to the Effective Date. 
  
 6. From
and after the Effective Date, (a) the Assignee shall be a party to the Five-Year Credit Agreement and, to the extent provided in this Assignment and Assumption, have the rights and obligations of a Lender thereunder 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 Five-Year 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 Five-Year Credit Agreement, dated as of April 21, 
 2005,
among Genworth Financial, Inc. (the “Borrower”), the several banks and other financial institutions 
 or entities from time
to time parties to the Five-Year Credit Agreement, as lenders (the “Lenders”) 
 and JPMorgan Chase Bank, N.A. and Bank of
America, N.A., as co-administration agents 
 (in such capacity, the “Co-Administrative Agents”) 
  
 Name of Assignor: _______________________________ 
  
 Name of Assignee: _______________________________ 
  
 Effective Date of Assignment: _______________________ 
  

							
	 Credit Facility Assigned

	  	Principal
Amount Assigned

	  	Commitment Percentage Assigned

	 
	 Revolving Credit Facility
	  	$	             	  	    .            	%

  

			
	 [NAME OF ASSIGNOR]

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
	
	 [NAME OF ASSIGNEE]

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
	
	 [Assignee is an Affiliate of: [Name of Lender]]1

  

	1	Please include if appropriate. 

  

 Assignment 

 Consented to and Accepted for Recordation in the Register: 
  

			
	 JPMORGAN CHASE BANK, N.A.
 as Paying
Agent

		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	 Consented to:
  
 BANK OF AMERICA, N.A.
 as Issuing Lender

		
	By:	 	  

	Name:	 	 
	Title:	 	 

  
 Assignment 

 Consented to: 
  

			
	GENWORTH FINANCIAL, INC.
		
	By:	 	  

	Name:	 	 
	Title:	 	 

  
 Assignment 

 EXHIBIT B 
 FORM OF LEGAL OPINION 
  
 April 21, 2005

  
 JPMorgan Chase Bank, N.A., and Bank 
 of America, N.A., as co-administrative 
 agents under the Credit Agreement, as
defined below 
  
 and 
  
 The Lenders listed on Schedule I hereto 
 that are parties to the Credit Agreement on the date hereof 
  
 Ladies and Gentlemen: 
  
 I am the General Counsel of Genworth Financial, Inc. (the “Borrower”), and in such capacity I have acted for the Borrower in connection with the Five-Year Credit Agreement, dated as of April 21, 2005
(the “Credit Agreement”), among the Borrower, the several banks and other financial institutions party thereto (the “Lenders”), JPMorgan Chase Bank, N.A., and Bank of America, N.A., as co-administrative agents, and
Banc of America Securities LLC and J.P. Morgan Securities Inc., as joint bookrunners and joint lead arrangers. 
  
 I have examined the Credit Agreement and such other documents and certificates, and have made such investigations, as I have deemed necessary or appropriate for the purposes of this opinion. In rendering this opinion,
I have assumed that the Credit Agreement is a valid and binding obligation of the parties thereto other than the Borrower, enforceable against such parties in accordance with its terms. Based upon the foregoing, I am of the opinion that: 

 

	1.	The Borrower has been duly incorporated and is validly existing and in good standing under the laws of the State of Delaware. The Borrower has the corporate power and authority to
execute and deliver the Credit Agreement. 

  

	2.	The execution, delivery and performance of the Credit Agreement do not (i) violate the Delaware General Corporation Law or any New York or Federal statute, law, rule or regulation,
or contractual restriction, known to me (x) to which the Borrower is subject and (y) which is material to the Borrower and its Subsidiaries, taken as a whole; or (ii) breach the provisions of the certificate of incorporation or by-laws of the
Borrower. 

  

	3.	The Borrower has duly authorized, executed and delivered the Credit Agreement, and the Credit Agreement constitutes the valid and binding obligation of the Borrower, and is
enforceable against the Borrower in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other laws of general applicability relating to or affecting creditors’ rights and to general
equity principles. 

 The foregoing opinions are subject to the following qualifications: 
  
 (a) I express no opinion as to: 
  

	 	(i)	waivers of defenses, subrogation and related rights, rights to trial by jury, rights to object to venue or other rights or benefits bestowed by operation of law;

  

	 	(ii)	releases or waivers of unmatured claims or rights; 

  

	 	(iii)	indemnification, contribution or exculpation provisions, to the extent they purport to indemnify any party against, or release or limit any party’s liability for, its own
negligence, breach or failure to comply with statutory obligations, or to the extent such provisions are contrary to public policy; 

  

	 	(iv)	provisions purporting to supersede equitable principles, including without limitation provisions requiring amendments and waivers to be in writing; 

  

	 	(v)	provisions purporting to make a party’s determination conclusive; 

  

	 	(vi)	provisions imposing penalties or forfeitures; 

  

	 	(vii)	any right of setoff, netting, bankers lien or counterclaim or right to the application of property in the possession or control of any Lender or Agent; or 

 

	 	(viii)	any legal requirements or restrictions applicable to any Lender or Agent. 

  
 (b) My opinions are limited to the laws of the State of New York, the Delaware General Corporation Law and the Federal law of the United States of
America. 
  
 I have prepared this opinion solely for your benefit and this opinion
is not to be used, circulated, quoted or otherwise referred to for any purpose, or relied upon, or delivered to, any other person without my prior written approval in each instance. 
  
 Very truly yours, 
  

Leon E. Roday 
  

 2 

 Schedule I 
  
 ABN AMBRO Bank N.V. 
 Bank of America, N.A. 
 BNP Paribas 
 Citicorp North America, Inc. 
 Credit Suisse First Boston, acting through its Cayman Islands Branch

 Deutsche Bank AG New York Branch 
 HSBC Bank USA 
 JPMorgan Chase Bank, N.A. 
 Lehman Brothers Bank, FSB 
 Merrill Lynch Bank USA 
 Morgan Stanley Bank 
 Royal Bank of Canada 
 Sumitomo Mitsui Banking Corporation 
 SunTrust
Bank 
 The Bank of New York 
 UBS
Loan Finance LLC 
 William Street Commitment Corporation 

 EXHIBIT C 
  
 FORM OF REVOLVING NOTE 
  
 THIS NOTE AND THE OBLIGATIONS REPRESENTED HEREBY MAY NOT BE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE TERMS AND PROVISIONS OF THE FIVE-YEAR CREDIT AGREEMENT REFERRED TO
BELOW. TRANSFERS OF THIS NOTE AND THE OBLIGATIONS REPRESENTED HEREBY MUST BE RECORDED IN THE REGISTER MAINTAINED BY THE PAYING AGENT PURSUANT TO THE TERMS OF SUCH FIVE-YEAR CREDIT AGREEMENT. 
  

			
	 $                
	 	New York, New York
	 	 	April 21, 2004

  
 FOR VALUE RECEIVED,
the undersigned, GENWORTH FINANCIAL, INC., a Delaware corporation (the “Borrower”), hereby unconditionally promises to pay to [NAME OF LENDER] (the “Lender”) or its registered assigns at the office of JPMorgan Chase
Bank, N.A., located at 111 Fannin Street, 10th Floor, Houston, Texas 77002 (“Payment Office”) in
lawful money of the United States of America and in immediately available funds, on the Maturity Date the principal amount of (a) [AMOUNT OF LOAN ($            )], or, if less, (b)
the aggregate unpaid principal amount of all Loans made by the Lender to the Borrower pursuant to Section 2.01 of the Five-Year Credit Agreement. The Borrower further agrees to pay interest in like money at such Payment Office on the unpaid
principal amount hereof from time to time outstanding at the rates and on the dates specified in Section 2.11 of the Five-Year Credit Agreement. 
  
 The holder of this Note is authorized to endorse on the schedules annexed hereto and made a part hereof or on a continuation thereof which shall be
attached hereto and made a part hereof the date, Type and amount of each Loan made pursuant to the Five-Year Credit Agreement and the date and amount of each payment or prepayment of principal thereof, each continuation thereof, each conversion of
all or a portion thereof to another Type and, in the case of Eurodollar Loans, the length of each Interest Period with respect thereto. Each such endorsement shall constitute prima facie evidence of the accuracy of the information
endorsed; provided that the failure to make any such endorsement or any error in any such endorsement shall not affect the obligations of the Borrower in respect of any Loan. 
  
 This Note (a) is one of the Notes referred to in the five-year credit agreement dated as of April 21, 2005 (as amended,
supplemented or otherwise modified from time to time, the “Five-Year Credit Agreement”), among the Borrower, the Lenders from time to time parties thereto and JPMorgan Chase Bank, N.A. and Bank of America, N.A., as Co-Administrative
Agents, (b) is subject to the provisions of the Five-Year Credit Agreement and (c) is subject to prepayment, in whole or in part, as provided in the Five-Year Credit Agreement. 
  
 Upon the occurrence of any one or more of the Events of Default, all amounts then remaining unpaid on this Note shall
become, or may be declared to be, immediately due and payable, all as provided in the Five-Year Credit Agreement. 
  
 Unless otherwise defined herein, terms defined in the Five-Year Credit Agreement and used herein shall have the meanings given to them in the Five-Year
Credit Agreement. 
  
 NOTWITHSTANDING ANYTHING TO THE CONTRARY
CONTAINED HEREIN OR IN THE FIVE-YEAR CREDIT AGREEMENT, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AND IN ACCORDANCE WITH THE PROVISIONS OF SECTION 9.04 OF THE FIVE-YEAR CREDIT AGREEMENT. 

 THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK. 
  

			
	GENWORTH FINANCIAL, INC.
		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

 Schedule A 
 to Revolving Note 
  
 LOANS,
CONVERSIONS AND REPAYMENTS OF EURODOLLAR LOANS 
  

													
	 Date

	 	 Amount of
Eurodollar
 Loans

	 	 Interest Period and
Eurodollar Rate with
Respect Thereto

	 	 Amount of Principal
of
 Eurodollar Loans
Repaid

	 	 Amount of
Eurodollar
 Loans Converted to
Prime Rate Loans

	 	 Unpaid Principal
Balance of
Eurodollar
 Loans

	 	 Notation Made
 By

  
  

 Schedule B 
 to Revolving Note 
  
 LOANS,
CONVERSIONS AND REPAYMENTS OF PRIME LOANS 
  

													
	 Date

	 	 Amount of
 Prime Loans

	 	 Interest Period and
Prime Rate with
Respect Thereto

	  	 Amount of Principal
of
 Prime Loans Repaid

	  	Amount of Prime
Loans Converted to
Eurodollar Loans

	  	Unpaid Principal
Balance of Prime
Loans

	  	Notation Made
ByAgreement between PJM Interconnection

 Exhibit 10.1 
  
 AGREEMENT BETWEEN 
  
 PJM INTERCONNECTION, L.L.C., 
  
 AND 
  
 VIRGINIA ELECTRIC AND POWER COMPANY 
  
 (“PJM SOUTH TRANSMISSION OWNER AGREEMENT”) 
  
 The following sheets reflect all revisions approved by FERC in orders issued through March 30, 2005 and compliance filings through April 4, 2005. 

			
	PJM Interconnection, L.L.C.	 	Original Sheet No. 1
	Rate Schedule FERC No. 39	 	 

  
 PJM SOUTH
TRANSMISSION OWNER AGREEMENT 
  
 This SOUTH TRANSMISSION OWNER
AGREEMENT dated as of the 11th day of May, 2004, is made by and between Virginia Electric and Power Company (“Dominion Virginia Power”) and PJM Interconnection, L.L.C. (hereinafter, “PJM”) (hereinafter referred to collectively as
the “Parties” and individually as a “Party”). 
  
 WITNESSETH: 
  
 1. Under an order dated November
25, 1997, and subsequent orders, the FERC approved the PJM Open Access Transmission Tariff and various filings and agreements, and amendments thereto, under which, as an Independent System Operator (“ISO”), PJM provides transmission and
related services, including the administration of electricity markets and related financial instruments, consistent with the requirements of FERC Order No. 888, Promoting Wholesale Competition Through Open-Access Non-discriminatory Transmission
Services By Public Utilities, 1991-96 FERC Stats. & Regs., Regs. Preambles 31,036 (1996). Under the November 25, 1997 FERC order and other orders, the PJM Tariff, and various agreements and amendments thereto approved therein, PJM has served
as the ISO for the transmission systems owned by certain owners of transmission facilities subject to PJM’s functional control (all or parts of Pennsylvania, New Jersey, Maryland, Delaware, Virginia, West Virginia, Ohio, and Washington, D.C.).
On December 20, 2002, PJM received approval from FERC as the Regional Transmission Organization (“RTO”) within the meaning of Regional Transmission Organizations, III FERC Stats. & Regs., Regs. Preambles 31,089 (1999), on
reh’g, III FERC Stats. & Regs., Regs. Preambles 31,092 (2000) (hereinafter “Order 2000”) for the MAAC Control Zone and the PJM West Region. 
  
 2. Dominion Virginia Power, the South Transmission Owner, owns, controls or leases transmission facilities outside the MAAC
Control Zone which, as of the effective date of this Agreement are not subject to control by any ISO or RTO. Dominion Virginia Power has determined, under the terms and conditions of this Agreement and the Operating Agreement, as defined herein and
as amended to implement this Agreement to transfer functional control of its transmission facilities to PJM to enable PJM (a) to serve as the RTO of its transmission facilities (such facilities comprising “the PJM South Region” as defined
herein), (b) to administer the terms and conditions of the PJM Tariff, as amended to implement this Agreement, (c) to provide for the distribution of revenue received from charges thereunder in accordance with this Agreement and the PJM Tariff, and
(d) to develop and maintain the Regional Transmission Expansion Plan with respect to facilities in the PJM South Region. 
  

					
	 Issued By:
	  	Craig Glazer	  	Effective: May 1, 2005
	 	  	Vice President, Government Policy	  	 
	 Issued On:
	  	May 11, 2004	  	 

			
	PJM Interconnection, L.L.C.	 	First Revised Sheet No. 2
	Rate Schedule FERC No. 39	 	Superseding Original Sheet No. 2

  
 3. The Parties intend
to commence performance under this Agreement by November 1, 2004, subject to requisite regulatory approvals, vendor availability, and other factors outside the Parties’ control. 
  
 4. Dominion Virginia Power may establish an Independent Transmission Company within the meaning of Order 2000 or other FERC
order and, subject to FERC approval, may desire to transfer certain rights and obligations pertaining to its transmission facilities from PJM to the Independent Transmission Company, while PJM continues to perform certain functions, including
administration of markets. 
  
 NOW THEREFORE, in
consideration of the foregoing and the mutual covenants and promises made herein, the Parties agree as follows: 
  
 ARTICLE 1 – DEFINITIONS 
  
 Unless the context otherwise specifies or requires, capitalized terms used herein shall have the respective meanings assigned herein for all purposes of this Agreement (such definitions to be equally applicable to
both the singular and the plural forms of the terms defined). Unless otherwise specified, all references herein to Articles or Sections are to Articles or Sections of this Agreement. As used in this Agreement: 
  
 1.1 Administrative Committee shall consist of (a) the Administrative
Committee established under the East TOA, (b) the Administrative Committee established under the West TOA, and (c) Dominion Virginia Power. 
  
 1.1A Agreement shall mean this South Transmission Owner Agreement, as it may be amended from time to time. 
  
 1.2 Affiliate shall have the same meaning as in the Operating
Agreement. 
  
 1.3 Applicable Regional Reliability Council
shall mean the reliability council under § 202 of the Federal Power Act, the rules of procedures of which, pursuant to written agreement, a Member has agreed to be bound. 
  
 1.4 Control Area shall have the same meaning as in the Operating Agreement. 
  
 1.5 Control Zone shall have the same meaning as in the Operating
Agreement. 
  
 1.5A East Transmission Owners Agreement
shall have the meaning given in the Operating Agreement. 
  

					
	Issued By:	  	Craig Glazer	  	Effective: May 1, 2005
	 	  	Vice President, Government Policy	  	 
	Issued On:	  	November 4, 2004	  	 

 Filed to comply with order of the Federal Energy Regulatory Commission, Docket No. ER04-829, et al., issued
October 5, 2004, 109 FERC 61,012. 

			
	PJM Interconnection, L.L.C.	 	Original Sheet No. 2A
	Rate Schedule FERC No. 39	 	 

  
 1.6 FERC shall
mean the Federal Energy Regulatory Commission, or any successor agency, commission or department exercising jurisdiction over this Agreement. 
  
 1.7 Good Utility Practice shall mean any of the practices, methods, and acts engaged in or approved by a significant portion of the electric
utility industry during the relevant time period, or any of the practices, methods, and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the
desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum practice, method or act to the exclusion of all others, but rather is
intended to include acceptable practices, methods, and acts generally accepted in the region. 
  

					
	Issued By:	  	Craig Glazer	  	Effective: May 1, 2005
	 	  	Vice President, Government Policy	  	 
	Issued On:	  	November 4, 2004	  	 

 Filed to comply with order of the Federal Energy Regulatory Commission, Docket No. ER04-829, et al., issued
October 5, 2004, 109 FERC 61,012. 

			
	PJM Interconnection, L.L.C.	 	Original Sheet No. 3
	Rate Schedule FERC No. 39	 	 

  
 1.8 ITC or
Independent Transmission Company shall mean an entity that (i) either owns or exercises control over Transmission Facilities, and (ii) has been found by FERC to not be a market participant as defined in FERC’s regulations, 18 C.F.R. §
35.34(b)(2). 
  
 1.9 MAAC shall mean the Mid-Atlantic Area
Council, a reliability council under Section 202 of the Federal Power Act, established pursuant to the MAAC Agreement dated August 1, 1994, or any successor thereto. 
  
 1.10 MAAC Control Zone shall have the same meaning as in the Operating Agreement. 
  
 1.11 NERC shall mean the North American Electric Reliability Council
or any successor thereto. 
  
 1.12 Office of the
Interconnection shall mean the employees and agents of PJM Interconnection, L.L.C. subject to the supervision and oversight of the PJM Board, acting pursuant to the Operating Agreement. 
  
 1.13 Open Access Same-Time Information System (OASIS) shall mean the
information system and standards of conduct contained in Part 37 of the Commission’s regulations and all additional requirements implemented by subsequent Commission orders dealing with OASIS. 
  
 1.14 Operating Agreement shall mean that certain agreement, dated
April 1, 1997 and as amended and restated June 2, 1997 and as amended from time to time thereafter, among the members of the PJM Interconnection, L.L.C., including all schedules, exhibits, and attachments thereto. 
  
 1.15 Party or Parties shall have the meaning stated in the
preamble of this Agreement. 
  
 1.16 PJM shall mean PJM
Interconnection, L.L.C., and shall include the Board of Managers, Officers, employees and agents of PJM. 
  
 1.17 PJM Board shall mean the Board of Managers of PJM Interconnection, L.L.C. 
  
 1.18 PJM Manuals shall mean the instructions, rules, procedures and guidelines established by PJM for the operation,
planning and accounting requirements of the MAAC Control Zone, PJM West Region, and the PJM South Region. 
  
 1.19 PJM Open Access Transmission Tariff or PJM Tariff shall mean the tariff for transmission service within the PJM South Region, as in
effect from time to time, including any schedules, appendices, attachments, annexes or exhibits attached thereto. 
  

					
	Issued By:	  	Craig Glazer	  	Effective: May 1, 2005
	 	  	Vice President, Government Policy	  	 
	Issued On:	  	May 11, 2004	  	 

			
	PJM Interconnection, L.L.C.	 	First Revised Sheet No. 4
	Rate Schedule FERC No. 39	 	Superseding Original Sheet No. 4

  
 1.20 PJM Region
shall have the same meaning as in the Operating Agreement. 
  
 1.21 PJM South Region shall mean the Control Area of Dominion Virginia Power as recognized by NERC. 
  
 1.22 PJM Transmission Owners shall have the meaning of Transmission Owner under the PJM Tariff. 
  
 1.23 PJM West Region shall have the same meaning as in the Operating
Agreement. 
  
 1.24 Rate Design shall mean the design of
the transmission rates (i) to recover the embedded costs of Transmission Facilities and associated revenue requirements, and (ii) to conform to the Going-Forward Principles and Procedures accepted by FERC on March 19, 2004 in Midwest Independent
Transmission System Operator, Inc., et al., 106 FERC 61,260 (2004); but does not include recovery of congestion costs. 
  
 1.25 Regional Transmission Expansion Plan shall mean the plan for enhancement or expansion developed by PJM in accordance with the Regional
Transmission Expansion Planning Protocol. 
  
 1.26 Regional
Transmission Expansion Planning Protocol shall mean Schedule 6 to the Operating Agreement, as such schedule shall be in effect from time to time. 
  
 1.27 Responsible Party shall have the meaning specified in 18 C.F.R. Part 37. 
  
 1.28 SERC shall mean the reliability council under Section 202 of the Federal Power Act established pursuant to the
SERC Agreement dated January 14, 1970, or any successor thereto. 
  
 1.29 Transmission Facilities shall mean those facilities owned or currently operated by Dominion Virginia Power that (i) are within the PJM South Region, and (ii) meet the definition of transmission facilities pursuant to FERC’s
Uniform System of Accounts or have been classified as transmission facilities in a ruling by FERC addressing such facilities. 
  
 1.30 VACAR shall have the same meaning as in the Operating Agreement. 
  
 1.31 VACAR Control Zone shall have the same meaning as in the Operating Agreement. 
  
 1.31A West Transmission Owners Agreement shall have the meaning given
in the Operating Agreement. 
  

					
	Issued By:	  	Craig Glazer	  	Effective: May 1, 2005
	 	  	Vice President, Government Policy	  	 
	Issued On:	  	November 4, 2004	  	 

 Filed to comply with order of the Federal Energy Regulatory Commission, Docket No. ER04-829, et al., issued
October 5, 2004, 109 FERC 61,012. 

			
	PJM Interconnection, L.L.C.	 	First Revised Sheet No. 5
	Rate Schedule FERC No. 39	 	Superseding Original Sheet No. 5

  
 ARTICLE 2 - PURPOSES
AND OBJECTIVES OF THIS AGREEMENT 
  
 2.1 Purposes and
Objectives. The purpose of this Agreement is to (a) facilitate the planning and operation of the Transmission Facilities of Dominion Virginia Power as PJM South; (b) transfer certain planning and operating responsibilities to PJM; (c) provide
for regional transmission service pursuant to the PJM Tariff and subject to administration by PJM; and (d) establish certain rights and obligations that will apply to Dominion Virginia Power and PJM. 
  
 2.2 Retained Rights. Notwithstanding any other provision of this
Agreement, or any other agreement or amendment entered into by Dominion Virginia Power in connection with its membership in PJM, Dominion Virginia Power shall retain all of the rights set forth in this Section 2.2; provided, however, that such
rights shall be exercised in a manner consistent with its obligations under the Federal Power Act and the FERC’s rules and regulations thereunder. 
  
 2.2.1 Dominion Virginia Power shall have the right at any time unilaterally to file pursuant to Section 205 of the Federal Power Act to change
rates and charges for transmission and ancillary services (including, without limitation, incentive rates) for delivery to the Dominion Virginia Power zone, schedules for new services solely involving the transmission facilities of Dominion Virginia
Power, and the revenue requirement for Dominion Virginia Power for use in developing rates for other transmission services provided by PJM; provided that if the PJM rate design is modified to eliminate zonal rates, Dominion Virginia Power shall not
be deemed to have waived any of its rights under Section 205 with respect to any such modified rate design. Dominion Virginia Power, however, shall not unilaterally file rates that do not preserve the revenues or payments due to other PJM
Transmission Owners, and shall not implement rates that result in a customer paying PJM more than one transmission access charge. Dominion shall not have a unilateral right to file pursuant to Section 205 of the Federal Power Act for transmission or
ancillary service rate design changes that would affect the overall PJM rate design unless it shall have obtained the consent of PJM Transmission Owners to whom the altered rate design would apply. 
  
 2.2.2 Dominion Virginia Power shall have the right to adopt and
implement procedures it deems necessary to protect its electric facilities from physical damage or to prevent injury or damage to persons or property. 
  
 2.2.3 Dominion Virginia Power shall have the right to build, acquire, sell, dispose, retire, merge or otherwise transfer or convey all or any part
of its assets, including any Transmission Facilities, such right to include, but not be limited to, the right to terminate the relationship with PJM, subject to Article 3, in connection with the creation of a transmission company to own and/or
operate its Transmission Facilities. 
  

					
	Issued By:	  	Craig Glazer	  	Effective: May 1, 2005
	 	  	Vice President, Government Policy	  	 
	Issued On:	  	April 4, 2005	  	 

 Filed to comply with order of the Federal Energy Regulatory Commission, Docket No. ER04-829-002, issued March 4,
2005, 110 FERC 61,234 (2005). 

			
	PJM Interconnection, L.L.C.	 	Original Sheet No. 5A
	Rate Schedule FERC No. 39	 	 

  
 2.2.4 Dominion
Virginia Power shall have the right to take whatever actions it deems necessary to fulfill its obligations under local, state or federal law. 
  
 2.3 Commitments. Dominion Virginia Power agrees to the following commitments and undertakings: 
  

					
	Issued By:	  	Craig Glazer	  	Effective: May 1, 2005
	 	  	Vice President, Federal Government Policy	  	 
	Issued On:	  	April 4, 2005	  	 

			
	PJM Interconnection, L.L.C.	 	Original Sheet No. 6
	Rate Schedule FERC No. 39	 	 

  
 2.3.1 To
provide transmission service over its Transmission Facilities in the PJM South Region, under the PJM Tariff that includes rates and terms consistent with FERC’s policies and decisions regarding open access transmission service. 
  
 2.3.2 To operate its electric system within the PJM South Region, with
free-flowing transmission ties (notwithstanding the use of certain facilities or equipment designed to control flows, such as phase shifters, FACTS devices or DC lines, as approved in the planning process) between and among the other PJM Regions.

  
 2.3.3 To operate and maintain its Transmission
Facilities in accordance with reliability principles, guidelines and standards of the Applicable Regional Reliability Council and NERC, as they may be revised from time-to-time. 
  
 2.3.4 To transfer to PJM, in accordance with the Operating Agreement, the responsibility to direct the operation of
its Transmission Facilities; provided that such transfer is not intended to require any change in the physical control over Transmission Facilities by Dominion Virginia Power’s individual control centers subject to PJM’s direction as
provided for in Section 11.3 of the Operating Agreement. 
  
 2.3.5 To transfer to PJM, in accordance with the Operating Agreement, responsibility for providing transmission and other services related to Dominion Virginia Power’s Transmission Facilities under the PJM Tariff. 
  
 2.3.6 To coordinate maintenance on its Transmission Facilities with
PJM and the owners of generating facilities within the PJM South Region, in accordance with the Operating Agreement, so as to achieve reliability and operating efficiencies. 
  
 2.3.7 To transfer to PJM, in accordance with the Operating Agreement, the responsibility for preparing a Regional
Transmission Expansion Plan applicable to the PJM South Region in accordance with the Regional Transmission Expansion Planning Protocol. 
  
 2.3.8 To execute and remain a party to the Operating Agreement. 
  

					
	Issued By:	  	Craig Glazer	  	Effective: May 1, 2005
	 	  	Vice President, Government Policy	  	 
	Issued On:	  	May 11, 2004	  	 

			
	PJM Interconnection, L.L.C.	 	Original Sheet No. 7
	Rate Schedule FERC No. 39	 	 

  
 ARTICLE 3 -
PARTICIPATION IN THIS AGREEMENT 
  
 3.1 Withdrawal From and
Termination of This Agreement. Dominion Virginia Power may withdraw from and terminate this Agreement upon ninety (90) days advance written notice to PJM, provided that such withdrawal shall not be effective until Dominion Virginia Power (1) has
satisfied all applicable standards of NERC and the Applicable Regional Reliability Council for operating a Control Area or being included within an existing Control Area, (2) has put in place alternative arrangements for satisfaction of any
applicable FERC requirements with respect to operation of Dominion Virginia Power’s Transmission Facilities, and (3) has made a filing with the FERC under Section 205 of the Federal Power Act to withdraw from this Agreement, and such filing has
been approved, accepted without suspension, or, if suspended, the suspension period has expired before the FERC has issued an order on the merits of the filing. 
  

3.2 Transfers or Assignments. If Dominion Virginia Power transfers or assigns its ownership of, or its rights equivalent to ownership in, its
Transmission Facilities, it shall require the transferee or assignee to assume all rights and obligations under this Agreement and to become a Party to this Agreement. Such transferee or assignee may withdraw from this Agreement in accordance with
the provisions of Sections 3.2 and 3.4. 
  
 3.3 Obligations
After Withdrawal, Transfer, or Assignment. If Dominion Virginia Power withdraws from and terminates this Agreement in accordance with Sections 3.1 or 3.2 hereof, it shall remain liable for any and all obligations under this Agreement that
Dominion Virginia Power incurred, that were incurred on behalf of Dominion Virginia Power, or that arose hereunder prior to the date upon which such Dominion Virginia Power’s withdrawal and termination became effective. 
  
 3.4 Cessation of Effectiveness. Subject to provisions of this
Agreement providing for survival and Section 3.3, this Agreement shall cease to be effective with respect to any function PJM undertakes to provide under this Agreement in the event that PJM ceases to be approved by FERC to provide such function.

  
 ARTICLE 4 - PLANNING AND OPERATIONS 
  
 4.1 Planning Information. Dominion Virginia Power shall provide
information reasonably requested by PJM to prepare the Regional Transmission Expansion Plan with respect to the PJM South Region and shall otherwise cooperate with PJM in the preparation thereof. 
  
 4.2 Connection of Customers. Consistent with the provisions of Section
4.7 hereof and applicable FERC rule or precedent, Dominion Virginia Power shall be responsible for the installation and construction of any facilities required to connect the facilities of a customer or a proposed customer to Dominion Virginia
Power’s Transmission Facilities. 
  

					
	Issued By:	  	Craig Glazer	  	Effective: May 1, 2005
	 	  	Vice President, Government Policy	  	 
	Issued On:	  	May 11, 2004	  	 

			
	PJM Interconnection, L.L.C.	 	Original Sheet No. 8
	Rate Schedule FERC No. 39	 	 

  
 4.3 Permanently
Taking Facilities Out of Service. Prior to permanently taking out of service any of its Transmission Facilities within the PJM South Region, Dominion Virginia Power shall provide PJM and the parties to the Operating Agreement with reasonable
advance notice. 
  
 4.4 Operation of Transmission
Facilities. Dominion Virginia Power shall operate its Transmission Facilities in accordance with (i) the terms of this Agreement, (ii) applicable reliability principles, guidelines, and standards of the Applicable Regional Reliability Council
and NERC, (iii) the PJM Manuals, and (iv) the direction of PJM consistent with this Agreement. Consistent with the provisions of this Section 4.4, Dominion Virginia Power shall conform to PJM’s operating instructions as they apply to Dominion
Virginia Power’s Transmission Facilities. Nothing in this Agreement shall be construed to effect a change in the physical control of the Transmission Facilities. 
  
 4.4.1 Interconnection Facilities. Interconnections between Dominion Virginia Power’s electric systems and
neighboring systems shall be kept in place and shall be maintained in good operating condition in accordance with Good Utility Practice and principles, guidelines and standards of the Applicable Regional Reliability Council and NERC, unless the
interconnected parties determine, in accordance with Good Utility Practice and principles, guidelines and standards of the Applicable Regional Reliability Council and NERC, that any such interconnection should be modified or abandoned; provided,
however, that nothing herein shall prohibit Dominion Virginia Power from disconnecting its Transmission Facilities from the facilities of any other entity, if Dominion Virginia Power reasonably determines that disconnection is required for safety or
reliability reasons. 
  
 4.4.2 Actions in Emergency.
Dominion Virginia Power shall follow PJM’s operating instructions during an emergency to the extent required pursuant to the Operating Agreement; provided, however, that Dominion Virginia Power may take any action that it deems necessary to
prevent injury to persons or loss of human life or prevent damage to property. 
  
 4.5 Maintenance. Dominion Virginia Power shall maintain its Transmission Facilities in accordance with Good Utility Practice. 
  
 4.5.1 Maintenance Schedules. Dominion Virginia Power shall schedule the maintenance of its Transmission Facilities
and any outages (other than forced outages) of the Transmission Facilities taking into account transmission and generation outage schedules established by PJM and the PJM Manuals, and in accordance with the following planned outage scheduling
procedures: 
  

					
	Issued By:	  	Craig Glazer	  	Effective: May 1, 2005
	 	  	Vice President, Government Policy	  	 
	Issued On:	  	May 11, 2004	  	 

			
	PJM Interconnection, L.L.C.	 	Original Sheet No. 9
	Rate Schedule FERC No. 39	 	 

  

	 	(i)	No later than the first day of the month immediately preceding the month in which the transfers of responsibility to PJM specified in Section 2.3 become effective, Dominion Virginia
Power shall submit planned outage schedules for the twelve month period beginning on such effective date for all outages that are expected to exceed five working days duration or that are anticipated to result in significant system impacts, with
regular (at least monthly) updates as new information becomes available. 

  

	 	(ii)	Dominion Virginia Power shall submit planned outage schedules for periods subsequent to the twelve month period specified in Section 4.5.1(i) one year in advance for all outages
that are expected to exceed five working days duration or that are anticipated to result in significant system impacts, with regular (at least monthly) updates as new information becomes available. 

  

	 	(iii)	Dominion Virginia Power shall submit notice of all planned outages to PJM by the first day of the month preceding the month the outage will commence, with updates as new information
becomes available. 

  

	 	(iv)	If notice of a planned outage is not provided by the first day of the month preceding the month the outage will commence, and if such outage is determined by PJM to have the
potential to cause transmission system congestion, then PJM may require Dominion Virginia Power to implement an alternative outage schedule to reduce or avoid the congestion. PJM shall perform this analysis and notify Dominion Virginia Power in a
timely manner if it will require rescheduling of the outage. 

  

	 	(v)	PJM shall post notice of planned outages on OASIS upon receipt of such notice from Dominion Virginia Power; provided, however, that PJM shall not post on OASIS notice of any
component of a planned outage to the extent such component shall directly reveal a generator outage. In such cases, Dominion Virginia Power, in addition to providing notice to PJM as required above, concurrently shall inform the affected generation
owner of such outage, limiting such communication to that necessary to describe the outage and to coordinate with the generation owner on matters of safety to persons, facilities, and equipment. Dominion Virginia Power shall not notify any other
market participant of such outage and shall arrange any other necessary coordination through PJM. 

  

					
	Issued By:	  	Craig Glazer	  	Effective: May 1, 2005
	 	  	Vice President, Government Policy	  	 
	Issued On:	  	May 11, 2004	  	 

			
	PJM Interconnection, L.L.C.	 	Original Sheet No. 10
	Rate Schedule FERC No. 39	 	 

  
 In addition, if PJM
determines that transmission maintenance schedules proposed by Dominion Virginia Power would significantly affect the efficient and reliable operation of the PJM South Region or the MAAC Control Zone, PJM shall consult with Dominion Virginia Power
to establish alternative schedules, which alternative schedules shall minimize the economic impact on Dominion Virginia Power. Dominion Virginia Power shall comply with all maintenance schedules established by PJM. 
  
 4.5.2 Previously Approved Maintenance Schedules. Dominion Virginia
Power shall provide previously approved Transmission Facility maintenance schedules to PJM on the first day of the calendar month preceding the month in which PJM assumes functional control over Dominion Virginia Power’s Transmission Facilities
for which maintenance schedules have been already approved by Dominion Virginia Power prior to PJM’s assumption of functional control of such Transmission Facilities. PJM shall approve outage schedules for the Transmission Facilities for which
maintenance schedules have been already approved by Dominion Virginia Power prior to PJM’s assumption of functional control of such Transmission Facilities; provided, however, that if PJM determines that granting outage clearance to such
previously approved schedules would significantly affect the efficient and reliable operation of the PJM South Region or the MAAC Control Zone, PJM shall work with Dominion Virginia Power to develop alternative schedules. Such alternative schedules
shall minimize the economic impact on Dominion Virginia Power. 
  
 4.6 Data, Information and Metering. Dominion Virginia Power shall comply with the data, information and metering requirements established by PJM, as reflected in applicable PJM Manuals. 
  
 4.7 Connections with Non-Parties. Dominion Virginia Power shall not
permit its transmission or distribution facilities to be connected with the facilities of any entity which is not a Transmission Owner as defined in the Operating Agreement without first having in place an interconnection agreement that contains
provisions for the safe and reliable operation of each interconnection in accordance with Good Utility Practice, and principles, guidelines and standards of the Applicable Regional Reliability Council and NERC. Any dispute regarding the adequacy of
such agreements to provide for safe and reliable operations shall be resolved in accordance with the dispute resolution provisions of the Operating Agreement. 
  

4.8 VACAR Control Zone. PJM and Dominion Virginia Power recognize that: 
  
 4.8.1 The Control Area for Dominion Virginia Power shall become the VACAR Control Zone. 
  

					
	Issued By:	  	Craig Glazer	  	Effective: May 1, 2005
	 	  	Vice President, Government Policy	  	 
	Issued On:	  	May 11, 2004	  	 

			
	PJM Interconnection, L.L.C.	 	Original Sheet No. 11
	Rate Schedule FERC No. 39	 	 

  
 4.8.2 VACAR is
a subregion of SERC for the PJM South Region, and MAAC is the regional reliability council for the MAAC Control Zone. PJM will exercise NERC Security Coordinator functions for the PJM South Region within the rules of VACAR, and for the MAAC Control
Zone within the rules of MAAC. 
  
 4.9 Transmission Facility
Ratings. Dominion Virginia Power shall regularly update and verify facility ratings, subject to review and approval by PJM, in accordance with the following procedures and the procedures in the PJM Manuals: 
  
 (a) Dominion Virginia Power shall verify to the Operations Planning
Department (or successor Department) of PJM all of its transmission facility ratings two months prior to the beginning of the summer season (i.e., on April 1) and two months prior to the beginning of the winter season (i.e., on October 1) each
calendar year, and shall provide detailed data justifying such transmission facility ratings when directed by PJM. 
  
 (b) In addition to the seasonal verification of all ratings, Dominion Virginia Power shall submit to the Operations Planning Department (or successor
Department) of PJM updates to its transmission facility ratings as soon as Dominion Virginia Power is aware of any changes. Dominion Virginia Power shall provide PJM with detailed data justifying all such transmission facility ratings changes.

  
 (c) Dominion Virginia Power shall submit to the Operations
Planning Department (or successor Department) of PJM formal documentation of any procedure for changing facility ratings under specific conditions, including: the detailed conditions under which such procedures will apply, detailed explanations of
such procedures, and detailed calculations justifying such pre-established changes to facility ratings. Such procedures must be updated twice each year consistent with the provisions of this section. 
  
 (d) PJM shall maintain an historical database of all facility ratings, and
shall review, and may modify or reject, any submitted change or any submitted procedure for pre-established changes. Any dispute between Dominion Virginia Power and PJM concerning facility ratings shall be resolved in accordance with Section 8.14 of
this Agreement; provided, however, that the rating level determined by PJM shall govern and be effective during the pendency of any such dispute. 
  

					
	Issued By:	  	Craig Glazer	  	Effective: May 1, 2005
	 	  	Vice President, Government Policy	  	 
	Issued On:	  	May 11, 2004	  	 

			
	PJM Interconnection, L.L.C.	 	Second Revised Sheet No. 12
	 Rate Schedule FERC No. 39
	 	Superseding First Revised Sheet No. 12

  
 ARTICLE 5 - CHANGES
TO RATE DESIGN AND TARIFF TERMS AND CONDITIONS 
  
 5.1 Rate
Design. Effective December 1, 2004, the PJM transmission rates shall be calculated in accordance with the Going-Forward Principles and Procedures accepted by FERC on March 19, 2004 in Midwest Independent Transmission System Operator, Inc., et
al., 106 FERC 61,260 (2004) applicable to the long term transmission pricing structure; provided, however, that nothing in this Article 5 is intended (a) to limit or change the right of Dominion Virginia Power under Section 2.2.1 of this
Agreement to file pursuant to Section 205 of the Federal Power Act to change rates and charges for transmission and ancillary services (including, without limitation, incentive rates) for delivery to the Dominion Virginia Power zone, schedules for
new services solely involving the transmission facilities of Dominion Virginia Power, and the revenue requirement for Dominion Virginia Power for use in developing rates for other transmission services provided by PJM; or (b) to authorize the PJM
Transmission Owners to file pursuant to Section 205 of the Federal Power Act, either as part of a proposal to change the overall PJM rate design or otherwise, to change rates and charges for transmission and ancillary services (including, without
limitation, incentive rates) for delivery to the Dominion Virginia Power zone, schedules for new services solely involving the transmission facilities of Dominion Virginia Power, and the revenue requirement for Dominion Virginia Power for use in
developing rates for other transmission services provided by PJM without the express consent of Dominion Virginia Power. 
  
 5.1.1 Filing of Revised Rates Under Section 205. The procedures and filing rights set forth in this Section 5.1.1 apply only to changes in the
transmission rate design under the PJM Tariff for joint rates or, subject to the limitations set forth in Sections 5.1 and 5.1.1(c), changes affecting the overall PJM rate design. 
  
 (a) The PJM Transmission Owners shall have the exclusive and unilateral rights to file pursuant to Section 205 of the
Federal Power Act and the FERC’s rules and regulations thereunder for any changes in or relating to the establishment and recovery of the PJM Transmission Owners’ transmission revenue requirements or the transmission rate design under the
PJM Tariff, and such filing rights shall also encompass any provisions of the PJM Tariff governing the recovery of transmission related costs incurred by the PJM Transmission Owners. Nothing herein is intended to limit or change the right of
individual PJM Transmission Owners under Section 2.2.1 of the PJM Tariff to make their own Section 205 filings to change the transmission revenue requirement within their own zones, including the right of individual Transmission Owners to file for
zonal transmission revenue requirements based on incentive or performance factors. The PJM Transmission Owners may only file under Section 205 to change the transmission rate design for the PJM region pursuant to a filing approved in accordance with
this Agreement, Section 6.5.1 of the East Transmission Owners Agreement and Section 6.5.1 of the West Transmission Owners Agreement. 
  

					
	Issued By:	  	Craig Glazer	  	Effective: May 1, 2005
	 	  	Vice President, Federal Government Policy	  	 
	Issued On:	  	April 4, 2005	  	 

 Filed to comply with order of the Federal Energy Regulatory Commission, Docket No. ER04-829-002, issued March 4,
2005, 110 FERC 61,234 (2005). 

			
	PJM Interconnection, L.L.C.	 	Original Sheet No. 12.01
	Rate Schedule FERC No. 39	 	 

  
 (b) If the PJM
Transmission Owners agree upon a change in accordance with Section 5.1.1(a), the PJM Transmission Owners shall make such filing jointly pursuant to Section 205 of the Federal Power Act. For purposes of administrative convenience, at the request of
the PJM Transmission Owners, PJM may, but shall not be required to, make the Section 205 filing with the FERC on behalf of the PJM Transmission Owners; provided that any such filing by PJM shall be deemed for all purposes under the Federal Power Act
to be a filing of the PJM Transmission Owners. The PJM Transmission Owners shall consult with PJM and the PJM Members Committee beginning no less than thirty (30) days prior to any Section 205 filing hereunder, but neither PJM (except as provided
for in Section 5.3) nor the PJM Members Committee shall have any rights to veto or delay the PJM Transmission Owners’ Section 205 filing hereunder; provided that the PJM Transmission Owners may file with less than a full 30 day advance
consultation in circumstances where imminent harm to system reliability or imminent severe economic harm to electric consumers requires a prompt Section 205 filing; provided further that the PJM Transmission Owners shall provide as much advance
notice and consultation with PJM and the PJM Members Committee as is practicable in such circumstances and no such filing shall be made with less than 24 hours’ advance notice. 
  

					
	Issued By:	  	Craig Glazer	  	Effective: May 1, 2005
	 	  	Vice President, Federal Government Policy	  	 
	Issued On:	  	April 4, 2005	  	 

			
	PJM Interconnection, L.L.C.	 	First Revised Sheet No. 12A
	Rate Schedule FERC No. 39	 	Superseding Original Sheet No. 12A

  
 (c) Nothing in this
Section 5.1.1 is intended to limit the rights of Dominion Virginia Power or any other person to oppose such a Section 205 filing pursuant to Section 206 or any other applicable provision of the Federal Power Act, or to limit the right of Dominion
Virginia Power or any other person to make filings under Section 206 of the Federal Power Act. Nor is this Section 5.1.1 intended (i) to limit or change the right of Dominion Virginia Power under Section 2.2.1 of this Agreement to file pursuant to
Section 205 of the Federal Power Act to change rates and charges for transmission and ancillary services (including, without limitation, incentive rates) for delivery to the Dominion Virginia Power zone, schedules for new services solely involving
the transmission facilities of Dominion Virginia Power, and the revenue requirement for Dominion Virginia Power for use in developing rates for other transmission services provided by PJM; or (ii) to authorize the PJM Transmission Owners to file
pursuant to Section 205 of the Federal Power Act, either as part of a proposal to change the overall PJM rate design or otherwise, to change rates and charges for transmission and ancillary services (including, without limitation, incentive rates)
for delivery to the Dominion Virginia Power zone, schedules for new services solely involving the transmission facilities of Dominion Virginia Power, and the revenue requirement for Dominion Virginia Power for use in developing rates for other
transmission services provided by PJM without the express consent of Dominion Virginia Power. 
  
 (d) In accordance with Section 5.1.1(a), the following provisions of the PJM Tariff and any successors thereto shall be within the PJM Transmission Owners’ exclusive and unilateral rights to make Section 205
filings: Section 34; Schedule 1A; Schedule 7 (except as to transmission congestion charges under Attachment K to the PJM Tariff or any successor thereto); Schedule 8 (except as to transmission congestion charges under Attachment K to the PJM Tariff
or any successor thereto); Schedule 11; Schedule 12; Attachment H-A; Attachment J; and Attachment R, provided, however, that if a filing pursuant to Section 205 is required to effect a change in any of the foregoing provisions of the PJM Tariff,
solely by reason of a filing by an individual PJM Transmission Owner pursuant to Section 5.1.1(e), PJM may make such a filing if, (i) five business days prior to making such filing, PJM provides the PJM Transmission Owners with each proposed change
including an explanation thereof and (ii) no PJM Transmission Owner notifies PJM that it objects to PJM making such filing. 
  
 (e) In accordance with Section 5.1.1(a), the following provisions of the PJM Tariff and any successors thereto shall be within the exclusive and
unilateral rights to make Section 205 filings of the individual PJM Transmission Owner to which the provisions apply: Attachment H (except as to transmission congestion charges under Attachment K to the PJM Tariff or any successor thereto and other
than Attachment H-A); Attachment M (First Energy); Attachment N (First Energy); Procedures for Load Determination (PSE&G); Procedures for Determination of Peak Load Contributions and Hourly Load Obligations for Retail Customers (Atlantic City);
and Procedures for Determination of Peak Load Contributions and Hourly Load Obligations for Retail Customers (Delmarva). 
  

					
	Issued By:	  	Craig Glazer	  	Effective: May 1, 2005
	 	  	Vice President, Federal Government Policy	  	 
	Issued On:	  	April 4, 2005	  	 

 Filed to comply with order of the Federal Energy Regulatory Commission, Docket No. ER04-829-002, issued March 4,
2005, 110 FERC 61,234 (2005). 

			
	PJM Interconnection, L.L.C.	 	Original Sheet No. 12A.01
	Rate Schedule FERC No. 39	 	 

  
 (f) The listing of
provisions in Sections (d) and (e) above is not exclusive, and failure to specify a provision of the PJM Tariff in this Section 5.1.1 shall not be deemed to be an admission or agreement by the PJM Transmission Owners that such provision or any
change thereto does not relate to the establishment and recovery of the PJM Transmission Owners’ transmission revenue requirements or the transmission rate design under the PJM Tariff, or encompass any provisions of the PJM Tariff governing the
recovery of transmission-related costs incurred by the PJM Transmission Owners. The PJM Transmission Owners reserve their rights to assert that other provisions of the PJM Tariff should be included within their Section 205 rights, and PJM reserves
its rights to contest such assertions. 
  

					
	Issued By:	  	Craig Glazer	  	Effective: May 1, 2005
	 	  	Vice President, Federal Government Policy	  	 
	Issued On:	  	April 4, 2005	  	 

			
	PJM Interconnection, L.L.C.	 	Original Sheet No. 12B
	Rate Schedule FERC No. 39	 	 

  
 (g)
The PJM Transmission Owners’ Section 205 rights shall include the unilateral right to file for incentive and performance based rates that affect or relate to transmission revenue requirements, transmission rate design, or any performance or
incentive rates in which the incentives to the PJM Transmission Owners may be measured by savings or efficiencies in the power or ancillary services markets resulting from the construction, operation or maintenance of Transmission Facilities.
Nothing in this Agreement is intended to limit PJM’s right to make Section 205 filings to establish incentive or performance based rates applicable to market participants, provided that PJM must obtain the prior approval of the PJM Transmission
Owners (pursuant to this Agreement, Section 6.5.1 of the East Transmission Owners Agreement, and Section 6.5.1 of the West Transmission Owners Agreement) for any portion of such a filing that reasonably could be expected to affect the establishment
and recovery of the PJM Transmission Owners’ transmission revenue requirements, transmission rate design or the recovery of transmission-related costs by the PJM Transmission Owners. 
  
 5.1.2 Retention of Rate Structure. Notwithstanding the provisions of this Section 5.1, Dominion Virginia Power may
propose to the FERC that the existing Rate Design is just and reasonable and should remain in effect beyond the date that it would otherwise terminate, provided such proposal conforms with the Going-Forward Principles and Procedures accepted by FERC
on March 19, 2004 in Midwest Independent Transmission System Operator, Inc., et al., 106 FERC 61,204 (2004). Nothing herein is intended to limit the rights of Dominion Virginia Power or any other person to oppose a proposal to retain the
existing Rate Design. 
  
 5.1. 3 Transmission Rate Zone Size.
For purposes of developing rates for service under the PJM Tariff, transmission rate zones smaller than those shown in Attachment J to the PJM Tariff that are within the PJM South Region, or subzones of those zones, shall not be permitted within
the boundaries of the PJM South Region; provided, however, that additional zones may be established if the boundaries of the PJM South Region are expanded to accommodate new parties to this Agreement. 
  
 5.1.4 Reservation of Rights. Nothing in this Article 5 is intended to
modify in any way Dominion Virginia Power’s rights under Section 2.2.1 of this Agreement. Dominion Virginia Power shall have the right at any time to file, pursuant to Section 205 of the Federal Power Act, to establish the payments to Dominion
Virginia Power by PJM in connection with PJM’s use of Dominion Virginia Power’s Transmission Facilities in the provision of services under the PJM Tariff. 
  
 5.2 Changes in Terms and Conditions. Dominion Virginia Power may propose to revise any of the non-rate terms and
conditions of the PJM Tariff in a manner consistent with requirements of FERC. Any such proposal shall be submitted to PJM for action pursuant to the Operating Agreement. 
  

					
	Issued By:	  	Craig Glazer	  	Effective: May 1, 2005
	 	  	Vice President, Government Policy	  	 
	Issued On:	  	November 4, 2004	  	 

 Filed to comply with order of the Federal Energy Regulatory Commission, Docket No. ER04-829, et al., issued
October 5, 2004, 109 FERC 61,012. 

			
	PJM Interconnection, L.L.C.	 	Original Sheet No. 12C
	Rate Schedule FERC No. 39	 	 

  
 5.2.1 Filing of
Changes in Terms and Conditions Under Section 205. 
  
 (a)
PJM shall have the exclusive and unilateral rights to file pursuant to Section 205 of the Federal Power Act and the FERC’s rules and regulations thereunder to make changes in or relating to the terms and conditions of the PJM Tariff (including
but not limited to provisions relating to creditworthiness, billing, and defaults) as well as all charges for recovery of PJM costs. PJM shall not have any Section 205 filing rights with respect to the subject matters described in the first sentence
of Section 5.1.1(a) of this Agreement. PJM shall not have any Section 205 filing rights with respect to the provisions of the PJM Tariff listed in Section 5.1.1(d) or (e) of this Agreement. 
  
 (b) PJM shall consult with the PJM Transmission Owners and the PJM Members
Committee beginning not less than seven (7) days in advance of any such Section 205 filing, but neither the PJM Transmission Owners (except as provided for in Section 5.3) nor the PJM Members Committee shall have any right to veto or delay any such
Section 205 filing. PJM may file with less than a full seven (7) day advance consultation in circumstances where imminent harm to system reliability or imminent severe economic harm to electric consumers requires a prompt Section 205 filing;
provided that PJM shall provide as much advance notice and consultation with the PJM Transmission Owners and the PJM Members Committee as is practicable in such circumstances, and no such emergency filing shall be made with less than 24 hours
advance notice. 
  
 (c) Nothing herein is intended to limit the
rights of Dominion Virginia Power or any other person to oppose such a Section 205 filing pursuant to Section 206 or any other applicable provision of the Federal Power Act or to limit the right of any Party or other person to make filings under
Section 206 of the Federal Power Act. 
  
 (d) To the extent that
PJM desires to add a provision to the PJM Tariff, or to change an existing provision thereof, in accordance with its rights under Section 5.2.1(a), the PJM Transmission Owners shall have unilateral and exclusive rights to make Section 205 filings
with respect to any matters covered by such new or changed provisions relating to the establishment and recovery of the PJM Transmission Owners’ transmission revenue requirements, the transmission rate design under the PJM Tariff, or any
provisions governing the recovery of transmission-related costs incurred by the PJM Transmission Owners. Prior to making any Section 205 filing covered by Section 5.2.1(a) that also relates to or affects the establishment and recovery of the PJM
Transmission Owners’ transmission revenue requirements and the transmission rate design under the PJM Tariff, or any provisions governing the recovery of transmission related costs incurred by the PJM Transmission Owners, PJM shall provide no
less than 45 days notice to the PJM Transmission Owners of the intended filing in sufficient detail to provide them a reasonable opportunity to include appropriate provisions in the PJM Tariff governing these subjects, either through a Section 205
filing by the PJM 
  

					
	Issued By:	  	Craig Glazer	  	Effective: May 1, 2005
	 	  	Vice President, Government Policy	  	 
	Issued On:	  	November 4, 2004	  	 

 Filed to comply with order of the Federal Energy Regulatory Commission, Docket No. ER04-829, et al., issued
October 5, 2004, 109 FERC 61,012. 

			
	PJM Interconnection, L.L.C.	 	Original Sheet No. 12D
	Rate Schedule FERC No. 39	 	 

  
 Transmission Owners pursuant to
Section 5.1.1(a) or approval by the PJM Transmission Owners of the PJM proposal pursuant to this Agreement, Section 6.5.1 of the East Transmission Owners Agreement, and Section 6.5.1 of the West Transmission Owners Agreement. 
  
 5.2.2 Filing of Changes in Rate Design, Terms and Conditions Under Section
206. Dominion Virginia Power shall have the right to submit a proposal to the FERC to change the rate design and the non-rate terms and conditions of the PJM Tariff pursuant to Section 206 of the Federal Power Act. Nothing herein is intended to
limit the rights of Dominion Virginia Power or any other person to oppose proposed changes to the terms and conditions filed by Dominion Virginia Power. 
  
 5.3 Disputes Regarding Exclusive Filing Rights. If at the time that a proposal to change or amend any part of the PJM Tariff, or to add any new
provision, is submitted to PJM or the PJM Transmission Owners for consultation pursuant to Section 5.1.1(b) or 5.2.1(b), a dispute arises as to which party has Section 205 rights to make such filing, the following procedures shall apply: 

 
 (i) The Administrative Committee and PJM shall meet promptly prior to the
filing in order to resolve the dispute. Such resolution shall include a joint Section 205 filing by the PJM Transmission Owners and PJM. 
  
 (ii) If the PJM Transmission Owners propose to make the Section 205 filing, they shall defer such filing beyond the 30 day notice and consultation period
provided for in Section 5.1.1(b) for up to 10 additional days at the request of PJM to allow the dispute to be resolved. 
  
 (iii) If PJM proposes to make the Section 205 filing, it shall defer any filing beyond the 7 day notice and consultation period provided for in Section
5.2.1(b) for up to 10 additional days to allow the dispute to be resolved. 
  
 (iv) In order to resolve a dispute, the agreement of the PJM Transmission Owners must be obtained by a vote in accordance with this Agreement, Section 6.5.1 of the East Transmission Owners Agreement, and Section 6.5.1
of the West Transmission Owners Agreement. 
  
 (v) If the Parties
are unable to reach agreement among themselves, the matter shall be presented to and resolved by a neutral party chosen by the Administrative Committee and PJM. Except as provided in this Section 5.3(v), such resolution shall be binding on the
Parties. PJM and the PJM Transmission Owners shall share in the cost of any neutral party on an equal basis. The Administrative Committee and PJM may replace the neutral party at any time they mutually deem such action to be appropriate or
necessary. The decision of the neutral party as to which Parties have Section 205 rights hereunder shall be made within the period provided 
  

					
	Issued By:	  	Craig Glazer	  	Effective: May 1, 2005
	 	  	Vice President, Government Policy	  	 
	Issued On:	  	November 4, 2004	  	 

 Filed to comply with order of the Federal Energy Regulatory Commission, Docket No. ER04-829, et al., issued
October 5, 2004, 109 FERC 61,012. 

			
	PJM Interconnection, L.L.C.	 	Original Sheet No. 12E
	Rate Schedule FERC No. 39	 	 

  
 for consultation between the PJM
Transmission Owners and PJM as set forth in Sections 5.3(ii) or 5.3(iii), as applicable. Interested parties (include the Parties) may file a complaint seeking review by the FERC of the neutral party’s decision, and the FERC’s authority to
interpret which parties have Section 205 rights shall not be limited by the neutral party’s decision as it relates to these disputes. 
  
 (vi) Nothing in this Section 5.3 is intended to limit Dominion Virginia Power’s rights to make filings subject to this dispute resolution provision
pursuant to Section 206 of the Federal Power Act prior to resolution of such dispute. 
  
 5.4 Distribution of Revenues. Transmission revenues received from network or firm point-to-point transmission service to load within the PJM South Region will be distributed to Dominion Virginia Power
consistent with the Rate Design and Section 7.1.8 of this Agreement. 
  

					
	Issued By:	  	Craig Glazer	  	Effective: May 1, 2005
	 	  	Vice President, Government Policy	  	 
	Issued On:	  	November 4, 2004	  	 

 Filed to comply with order of the Federal Energy Regulatory Commission, Docket No. ER04-829, et al., issued
October 5, 2004, 109 FERC 61,012. 

			
	PJM Interconnection, L.L.C.	 	Original Sheet No. 13
	Rate Schedule FERC No. 39	 	 

  
 ARTICLE 6 -
ENHANCEMENTS AND EXPANSIONS 
  
 6.1 Dominion Virginia
Power commits to construct and own or finance transmission enhancements or expansions applicable to the PJM South Region specified in the Regional Transmission Expansion Plan or pursuant to Articles III or IV of the PJM Tariff, subject to (i) the
requirements of applicable law, (ii) government regulations and approvals, including, without limitation, requirements to obtain any necessary state or local siting, construction and operating permits, (iii) the availability of required financing,
(iv) the ability to acquire necessary rights-of-way, and (v) the right to recover, pursuant to appropriate financial arrangements and tariffs or contracts, all reasonably incurred cost, and a reasonable return on investment. 
  
 6.2 Initiation of Building. Dominion Virginia Power shall commence
fulfilling the commitment set forth in Section 6.1, subject to the limitations therein, within ninety (90) days of receiving notification from PJM that the specified enhancements or expansions are acceptable under Section 1.6 of the Regional
Transmission Expansion Planning Protocol. 
  
 6.3 Relationship
to the Regional Transmission Expansion Planning Protocol. Nothing in this Article 6 shall limit the rights or obligations of the Parties or other entities under the Regional Transmission Expansion Planning Protocol. 
  
 ARTICLE 7 - RIGHTS AND OBLIGATIONS OF PJM 
  
 7.1 Obligations of PJM under this Agreement. PJM shall: 
  
 7.1.1 Direct the operation and coordinate the maintenance of the
Transmission Facilities of Dominion Virginia Power in accordance with: (i) the Operating Agreement; (ii) the PJM Tariff; and (iii) Good Utility Practice; 
  
 7.1.2 Administer the PJM Tariff and provide service thereunder in the PJM South Region; 
  
 7.1.3 Act as the Responsible Party pursuant to 18 C.F.R. § 37.5
with respect to operation of an OASIS on behalf of Dominion Virginia Power; 
  
 7.1.4 Administer the Regional Transmission Expansion Planning Protocol; 
  
 7.1.5 Maintain its status as an RTO under the terms of FERC Order 2000; 
  
 7.1.6 Comply with the requirements of any final rule issued by FERC in Docket No. RM01-12-000, subject to resolution
of any petition by PJM or others for review, stay, or other judicial relief as to such final rule; 
  

					
	Issued By:	  	Craig Glazer	  	Effective: May 1, 2005
	 	  	Vice President, Government Policy	  	 
	Issued On:	  	May 11, 2004	  	 

			
	PJM Interconnection, L.L.C.	 	First Revised Sheet No. 14
	Rate Schedule FERC No. 39	 	Superseding Original Sheet No. 14

  
 7.1.7 Upon
request of Dominion Virginia Power, promptly make such filings as may be required, pursuant to Section 205 of the Federal Power Act to establish the payments to Dominion Virginia Power by PJM in connection with PJM’s use of Dominion Virginia
Power’s Transmission Facilities in the provision of services under the PJM Tariff, provided that nothing in this Agreement shall require PJM to support such filings; and 
  
 7.1.8 Pay to Dominion Virginia Power the amounts generated by the unit charges set forth in Schedules 1A, 7 and 8,
and Attachments H of the PJM Tariff applicable to Dominion Virginia Power in accordance with Section 5.4 of this Agreement and Dominion Virginia Power’s entitlements as specified in the PJM Tariff of any other revenue generated by charges
pursuant to the PJM Tariff. 
  
 ARTICLE 8 - OTHER MATTERS

  
 8.1 Relationship of the Parties. This Agreement
shall not be interpreted or construed to create any association, joint venture, or partnership between the Parties or to impose any partnership obligation liability upon either party. Neither PJM nor Dominion Virginia Power shall have the right,
power or authority under this Agreement to enter into any agreement or undertaking for, or act on behalf of, or to act as or be an agent or representative of, or to otherwise bind, the other. 
  
 8.2 No Third-party Beneficiaries. This Agreement is intended to be
solely for the benefit of the Parties and their respective successors and permitted assigns and is not intended to and shall not confer any rights or benefits on any third party (other than successors and permitted assigns) not a signatory hereto.

  
 8.3 Winding Up. Any provision of this Agreement that,
expressly or by implication, comes into or remains in force following termination or expiration of this Agreement shall survive such termination or expiration. Such surviving provisions shall include, but not be limited to: (i) those provisions
necessary to permit the orderly conclusion or continuation, pursuant to another agreement, of transactions entered into prior to the decision to terminate this Agreement; (ii) those provisions necessary to conduct final billing, collection, and
accounting with respect to all matters arising hereunder, and (iii) the indemnification provisions as applicable to periods prior to such termination or expiration. 
  
 8.4 Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the Parties hereto,
their respective successors and assigns permitted herein, but shall not be assignable by either Party without the approval of the other, except as to, in the case of Dominion Virginia Power, a successor in the operation of Dominion Virginia
Power’s Transmission Facilities by reason of a merger, consolidation, reorganization, sale, spinoff, or foreclosure, as a result of which substantially all such Transmission Facilities are acquired by such a successor, and such successor
becomes a party to this Agreement or, in the case of PJM, a successor to PJM as the sole authorized and approved RTO for the operation of the PJM South Region, including ownership and operation of substantially all of PJM’s assets used in

  

					
	Issued By:	  	Craig Glazer	  	Effective: May 1, 2005
	 	  	Vice President, Government Policy	  	 
	Issued On:	  	May 11, 2004	  	 

			
	PJM Interconnection, L.L.C.	 	Original Sheet No. 15
	Rate Schedule FERC No. 39	 	 

  

 connection therewith, and substantially all of PJM’s obligations and responsibilities under the PJM Tariff and
the Operating Agreement, and such successor becomes a Party to this Agreement on the same terms and conditions as PJM. 
  
 8.5 Force Majeure. Neither Party shall be liable to the other Party for damages or otherwise be in breach of this Agreement to the extent and
during the period such Party’s performance is prevented by any cause or causes beyond such Party’s control and without such Party’s fault or negligence, including but not limited to any act, omission, or circumstance occasioned by or
in consequence of any act of God, labor disturbance, act of the public enemy, war, insurrection, riot, fire, storm or flood, explosion, breakage or accident to machinery or equipment, or curtailment, order, regulation or restriction imposed by
governmental, military or lawfully established civilian authorities; provided, however, that any such foregoing event shall not excuse any payment obligation. Upon the occurrence of an event considered by a Party to constitute a force majeure event,
such Party shall use due diligence to endeavor to continue to perform its obligations as far as reasonably practicable and to remedy the event, provided that no Party shall be required by this provision to settle any strike or labor dispute.

  
 8.6 No Implied Waivers. The failure of a Party to
insist upon or enforce strict performance of any of the provisions of this Agreement shall not be construed as a waiver or relinquishment to any extent of such entity’s right to assert or rely upon any such provisions, rights and remedies in
that or any other instance; rather, the same shall be and remain in full force and effect. 
  
 8.7 Governing Law. This Agreement shall be interpreted, construed and governed by the laws of the state of Delaware. 
  
 8.8 Notice. Except as otherwise expressly provided herein, notices
required hereunder shall be in writing and shall be sent to Dominion Virginia Power by overnight courier, hand delivery, telecopier or other reliable electronic means to: 
  
 President – Transmission 
 Dominion Transmission, Inc. 
 120 Tredegar Street 
 Richmond, VA 23219 
  
 General Counsel 
 Dominion Resources, Inc. 
 P.O. Box 26532 
 Richmond, VA 23261 
  
 Any such notice so sent shall be deemed to have been given (i) upon delivery
if given by overnight couriers or hand delivery, or (ii) upon confirmation if given by telecopier or other reliable electronic means. Notices to PJM shall be made in accordance with the Operating Agreement. 
  

					
	Issued By:	 	Craig Glazer	 	Effective: May 1, 2005
	 	 	Vice President, Government Policy	 	 
	Issued On:	 	May 11, 2004	 	 

			
	PJM Interconnection, L.L.C.	 	Original Sheet No. 16
	Rate Schedule FERC No. 39	 	 

  

 8.9 Counterparts. This Agreement may be executed in any number of counterparts, each of which
shall be an original but all of which together will constitute one instrument, binding upon all Parties hereto. 
  
 8.10 Representations and Warranties. Each Party represents and warrants to the other Party that, as of the date it becomes a Party: 
  
 (a) the Party is duly organized, validly existing and in good standing under
the laws of the jurisdiction where organized; 
  
 (b) the
execution and delivery by the Party of this Agreement and the performance of its obligations hereunder have been duly and validly authorized by all requisite action on the part of the Party and do not conflict with any applicable law or with any
other agreement binding upon the Party. The Agreement has been duly executed and delivered by the Party, and this Agreement constitutes the legal, valid and binding obligation of the Party enforceable against it in accordance with its terms except
insofar as the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other similar laws affecting the enforcement of creditor’s rights generally and by general
principles of equity regardless of whether such principles are considered in a proceeding at law or in equity; and 
  
 (c) there are no actions at law, suits in equity, proceedings or claims pending or, to the knowledge of the Party, threatened against the Party before or
by any federal, state, foreign or local court, tribunal or governmental agency or authority that might materially delay, prevent or hinder the performance by the Party of its obligations hereunder. 
  
 8.11 Confidentiality. Disclosure by PJM of information provided to it
by Dominion Virginia Power shall be governed by the Operating Agreement. 
  
 8.12 Severability and Renegotiation 
  
 8.12.1 Severability. Each provision of this Agreement shall be considered severable and if for any reason any provision is determined by a court or regulatory authority of competent jurisdiction to be invalid,
void or unenforceable, the remaining provisions of this Agreement shall continue in full force and effect and shall in no way be affected, impaired or invalidated, and such invalid, void or unenforceable provision shall be replaced with valid and
enforceable provision or provisions which otherwise give effect to the original intent of the invalid, void or unenforceable provision. 
  
 8.12.2 Renegotiation. If any provision of this Agreement is held by a court or regulatory authority of competent jurisdiction to be invalid, void
or unenforceable, or if the Agreement is modified or conditioned by a regulatory authority exercising jurisdiction over this Agreement, the Parties shall endeavor in good faith to negotiate such amendment or amendments 
  

					
	Issued By:	 	Craig Glazer	 	Effective: May 1, 2005
	 	 	Vice President, Government Policy	 	 
	Issued On:	 	May 11, 2004	 	 

			
	PJM Interconnection, L.L.C.	 	First Revised Sheet No. 18
	Rate Schedule FERC No. 39	 	Superseding Original Sheet No. 18

  
 to this Agreement as will restore the
relative benefits and obligations of the Parties under this Agreement immediately prior to such holding, modification or condition. If after sixty (60) days such negotiations are unsuccessful the Parties may exercise their withdrawal or termination
rights under this Agreement. 
  
 8.13 Headings. The article
and section headings used in this Agreement are for convenience only and shall not affect the construction or interpretation of any of the provisions of this Agreement. 
  
 8.14 Disputes. To the extent any dispute arises between Dominion Virginia Power and PJM regarding any issue covered
by this Agreement, Dominion Virginia Power and PJM shall follow the dispute resolution procedures set forth in the dispute resolution procedures provided as Schedule 5 to the Operating Agreement. 
  
 8.15 Operating Agreement. Sections 2.3.3, 2.3.6, 2.3.7, 4.1, 4.5,
4.5.1, 4.6, 4.7, 6.1 and 6.2 of this Agreement are not intended to create any additional obligations to those imposed on Dominion Virginia Power pursuant to the Operating Agreement but are intended to clarify that such obligations are applicable to
Dominion Virginia Power not only as a member of PJM, but also as a transmission owner that is transferring to PJM the responsibilities identified in Section 2.3. 
  
 8.16 Construction. In the event of any conflict between the terms of this Agreement and other agreements entered into
by Dominion Virginia Power in connection with its membership in PJM, this Agreement shall control, except as provided in Section 8.15 or unless such other agreement explicitly specifies how any such conflict is to be resolved. 
  
 ARTICLE 9 - NECESSARY PREREQUISITES 
  
 Prior to this Agreement becoming effective as to a Party, each of the
following events shall have occurred: 
  

	 	(i)	The Operating Agreement is in full force and effect; 

  

	 	(ii)	The Operating Agreement shall have been executed by the Party; 

  

	 	(iii)	FERC shall have accepted for filing the PJM South Reliability Assurance Agreement, this South Transmission Owner Agreement and the changes to the PJM Tariff and Operating Agreement
by PJM and Dominion Virginia Power, 

  

					
	Issued By:	  	Craig Glazer	  	Effective: May 1, 2005
	 	  	Vice President, Government Policy	  	 
	Issued On:	  	November 4, 2004	  	 

 Filed to comply with order of the Federal Energy Regulatory Commission, Docket No. ER04-829, et al., issued
October 5, 2004, 109 FERC 61,012. 

			
	PJM Interconnection, L.L.C.	 	Original Sheet No. 16
	Rate Schedule FERC No. 39	 	 

  

 including the PJM Tariff changes, including the Rate Design, to implement transitional charges
designed to maintain revenue neutrality for Dominion Virginia Power, if applicable, all without change or condition; 
  

	(iv)	Dominion Virginia Power has obtained any other required regulatory approvals. In the event that the FERC fails to accept for filing, as required by this Article, all of the above
agreements and Tariff changes without change or condition, the Parties hereto agree to negotiate in good faith to seek to accommodate such changes as the FERC indicates are required before acceptance. In the event of failure to so agree, neither
Party shall be bound by the terms of this Agreement and this Agreement shall have no further force and effect. 

  

					
	Issued By:	 	Craig Glazer	 	Effective: May 1, 2005
	 	 	Vice President, Government Policy	 	 
	Issued On:	 	May 11, 2004	 	 

			
	PJM Interconnection, L.L.C.	 	Original Sheet No. 19
	Rate Schedule FERC No. 39	 	 

  

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly
authorized representatives. 
  

			
	PJM Interconnection, L.L.C.
	By:	 	 /s/ Phillip G. Harris

	Name:	 	 Phillip G. Harris

	Title:	 	 President & CEO

	Date:	 	 4/21/05

  

			
	Virginia Electric and Power Company
	By:	 	 /s/ Gary L. Sypolt

	Name:	 	 Gary L. Sypolt

	Title:	 	 President, Dominion Transmission, Inc.

	Date:	 	 4/20/05

  

					
	Issued By:	 	Craig Glazer	 	Effective: May 1, 2005
	 	 	Vice President, Government Policy	 	 
	Issued On:	 	May 11, 2004

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