Document:

ex10_10.htm

EXHIBIT 10.10

     

    

    AMENDMENT
NO. 10 TO

    LOAN
AND SECURITY AGREEMENT

    

    

    This
Amendment No. 10 to Loan and Security Agreement (“Amendment”)
is made and entered into as of March 5, 2009 by and between Electroglas,
Inc., a Delaware corporation (“Borrower”)
and  Comerica
Bank (“Bank”).

    

    Recitals

     

    A.           Borrower
and Bank have entered into that certain Loan and Security Agreement dated as of
July 16, 2004, as amended by Amendment No. 1 to Loan and Security Agreement
dated as of January 24, 2005, Amendment No. 2 to Loan and Security Agreement
dated as of July 13, 2005, Amendment No. 3 to Loan and Security Agreement dated
as of April 25, 2006, Amendment No. 4 to Loan and Security Agreement dated as of
September 6, 2006, Amendment No. 5 to Loan and Security Agreement dated as of
January 22, 2007, Amendment No. 6 to Loan and Security Agreement dated as of
March 26, 2007, a Seventh Amendment to Loan and Security Agreement dated as of
April 24, 2007, an Amendment No. 8 to Loan and Security Agreement dated as of
June 27, 2008, and an Amendment No. 9 to Loan and Security Agreement dated as of
December 8, 2008 (collectively, the “Loan
Agreement”) pursuant to which Bank has agreed to extend and make
available to Borrower certain credit facilities.

     

    B.           Borrower
desires that Bank amend the Loan Agreement upon the terms and conditions more
fully set forth herein.

     

    C.           Subject
to the representations and warranties of Borrower herein and upon the terms and
conditions set forth in this Amendment, Bank is willing to so amend the Loan
Agreement.

     

    D.           This
Amendment, the Loan Agreement and the other Loan Documents (as defined in the
Loan Agreement), together with all other documents entered into or delivered
pursuant to any of the foregoing, in each case as originally executed or as the
same may from time to time be modified, amended, supplemented, restated or
superseded, are hereinafter collectively referred to as the “Loan
Documents.”

     

    Agreement

     

    Now,
Therefore, in consideration of the foregoing recitals and the mutual
covenants herein set forth and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, and intending to be
legally bound, Borrower and Bank hereby agree to amend the Loan Agreement as
follows:

     

    1. Definitions.  Unless
otherwise defined herein, all terms defined in the Loan Agreement have the same
meaning when used herein.

     

    2. Amendment.  The
definition of “Obligations” contained in Exhibit A to the Loan Agreement is
hereby amended and restated in its entirety to read as follows:

     

    “Obligations”
means all debt, principal, interest, Bank Expenses and other amounts owed to
Bank by Borrower pursuant to this Agreement or any other Loan Document, and all
amounts owed to Bank by Borrower in connection with automatic clearing house
transactions, Letters of Credit, or corporate credit cards, in each case whether
absolute or contingent, due or to become due, now existing or hereafter arising,
including any interest that accrues after the commencement of an Insolvency
Proceeding and including any debt, liability, or obligation owing from Borrower
to others that Bank may have obtained by assignment or otherwise.

    3. Availability to Borrow Under the
Revolving Line and Corporate Credit Cards.  Notwithstanding
anything to the contrary contained in the Loan Agreement and other Loan
Documents, Borrower may not request (i) any Advances under the Revolving Line,
(ii) any new Letters of Credit to be issued, or (iii) any new corporate credit
cards from Bank or advances under such credit cards, provided that Borrower may
request advances under any existing corporate credit cards up to $25,000 in the
aggregate (the “Corporate Credit
Card Advances”).  Bank’s commitment to make Advances, issue
Letters of Credit or make advances under any corporate credit cards (except as
set forth in the previous sentence) is hereby terminated.

     

    4. Extension of Maturity of Existing
Letters of Credit.  The maturity date of the following Letters
of Credit is hereby extended to the dates set forth below:

     

    Letter of Credit #
638864                                                                November
10, 2010

    Letter of Credit #
599018                                                                July
15, 2010

    

    5. Cash Collateralization of
Obligations.  Borrower shall at all times maintain a money
market account (Account Number 1892-62865-0) with Bank with a balance (the
“Required Balance”) equal to or greater than the aggregate amount of the
Obligations. Such money market account and all amounts held therein,
together with all proceeds thereof, interest paid thereon, and substitutions
therefor, and all accounts, securities, instruments, securities entitlements and
financial assets arising out of any of the foregoing, are the “Cash
Collateral”.  Without in any way limiting the grant of a security
interest in the Collateral pursuant to the Loan Agreement, Borrower hereby
grants and pledges to Bank a continuing security interest in all presently
existing and hereafter acquired or arising Cash Collateral, to secure prompt
repayment of any and all Obligations and to secure prompt performance by
Borrower of each of its covenants and duties under the Loan
Documents.  Bank shall retain control over the Cash Collateral up to
the Required Balance to secure the Obligations until such Obligations have been
satisfied in full.  Borrower hereby authorizes Bank to place
restrictions on Borrower’s ability to withdraw amounts from accounts holding the
Cash Collateral in order to ensure that such Required Balance is
maintained.  Borrower authorizes Bank to execute and/or file such
documents, and take such actions, as Bank determines reasonable to perfect its
security interest in the Cash Collateral.  Such security interest
constitutes a valid, first priority security interest in the Cash Collateral,
and will constitute a valid, first priority security interest in Cash Collateral
acquired after the date hereof.  Borrower will execute and deliver
such documents, and take or cause to be taken such actions, as Bank may
reasonably request to perfect or continue the perfection of Bank’s security
interest in the Cash Collateral.    Notwithstanding
termination of the Loan Agreement, Bank’s Lien on the Cash Collateral shall
remain in effect for so long as any Obligations are outstanding. Failure to
comply with this Section 5 shall constitute an immediate Event of
Default.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

        EXHIBIT
10.10

      

    

     

     

    6. Termination of Loan
Agreement.  Subject to Section 13.7 of the Loan Agreement, upon
payment in full of all outstanding Obligations (other than (i) contingent
indemnification obligations and (ii) Obligations related to Letter of Credit #
638864, Letter of Credit # 599018, Corporate Credit Card Advances, and automatic
clearing house transactions) under the Loan Agreement and under the other Loan
Documents, the Loan Agreement and the other Loan Documents (other than Loan
Documents relating specifically to such Letters of Credit, the Corporate Credit
Card Advances, and automatic clearing house transactions, including without
limitation, Sections 2, 3, 4, and 5 hereof) shall terminate without further act
and Bank will, at Borrower’s expense, execute and deliver such documents and
take such other action as Borrower may reasonably request to evidence such
termination and to release the Collateral (other than the Cash Collateral) from
the Lien of the Loan Agreement and to release the Collateral (as defined in the
Third Party Security Agreement) from the Lien of the Third Party Security
Agreement dated as of March 26, 2007 (the “Third Party
Security Agreement”) between Electroglas International, Inc. and
Bank.

     

    7. Ratification and Reaffirmation of
Liens.  Borrower hereby ratifies and reaffirms the validity and
enforceability of all of the liens and security interests heretofore granted
pursuant to the Loan Documents, as collateral security for the Obligations, and
acknowledges that all of such liens and security interests, and all Collateral
heretofore pledged as security for the Obligations, continues to be and remains
Collateral for the Obligations from and after the date hereof, subject to
Section 6 above.

     

    8. Representations And
Warranties.  Except as set forth on the Amendment to Schedule
attached hereto, Borrower represents and warrants that its representations and
warranties in the Loan Documents (as amended hereby) continue to be true and
complete in all material respects as of the date hereof after giving effect to
this Amendment (except to the extent such specifically relate to another date)
and that the execution, delivery and performance of this Amendment are duly
authorized, do not require the consent or approval of any governmental body or
regulatory authority and are not in contravention of or in conflict with any law
or regulation or any term or provision of any other agreement entered into by
Borrower.  Borrower further represents and warrants that, as of the
date hereof after giving effect to this Amendment, no Event of Default has
occurred and is continuing.

     

    9. Full Force And Effect; Entire
Agreement.  Except to the extent expressly provided in this
Amendment, the terms and conditions of the Loan Agreement and the other Loan
Documents shall remain in full force and effect.  This Amendment and
the other Loan Documents constitute and contain the entire agreement of the
parties hereto and supersede any and all prior agreements, negotiations,
correspondence, understandings and communications between the parties, whether
written or oral, respecting the subject matter hereof.  The parties
hereto further agree that the Loan Documents comprise the entire agreement of
the parties thereto and supersede any and all prior agreements, negotiations,
correspondence, understandings and other communications between the parties
thereto, whether written or oral respecting the extension of credit by Bank to
Borrower and/or its affiliates.  Except as expressly set forth herein,
the execution, delivery and performance of this Amendment shall not operate as a
waiver of, or as an amendment of, any right, power or remedy of Bank under the
Loan Agreement or any other Loan Document as in effect prior to the date
hereof.

     

    10. Counterparts;
Effectiveness.  This Amendment may be executed in any number of
counterparts, each of which when so delivered shall be deemed an original, but
all such counterparts taken together shall constitute but one and the same
instrument.  This Amendment is effective as of the date first above
written; provided that, as a condition precedent to the effectiveness of this
Amendment, (i) there shall have been no material adverse change in the business
operations or condition (financial or otherwise) of Borrower and its
Subsidiaries taken as a whole, no material impairment of the prospect of
repayment of any portion of the Obligations owing to Bank, and no material
impairment of the value or priority of the security interest in the Collateral
and (ii) Bank shall have received, in form and substance satisfactory to Bank,
the following:

     

    (a)           this
Amendment, duly executed by Borrower;

     

    (b)           the
Acknowledgment of Amendment and Reaffirmation of Guaranty, executed by
Electroglas International, Inc., a Delaware corporation
(“Guarantor”);

     

    (c)           payment
of the fees and Bank Expenses then due specified in Section 2.5 of the Loan
Agreement, as amended hereby; and

     

    (d)           such
other documents, and completion of such other matters, as Bank may reasonably
deem necessary or appropriate.

     

    
      
         

      

      
        2

        
          

        

      

      
         

        EXHIBIT
10.10

      

    

    In Witness
Whereof, each of the parties hereto has caused this Amendment to be
executed and delivered by its duly authorized officer as of the date first
written above.

     

    

     

    Borrower:

     

    Electroglas,
Inc.

    By:/s/ Thomas
Brunton

    Title:
CFO

    

    

    Bank:

     

    Comerica Bank

     

    By: /s/Robert
Shutt

    Title:
SVP

    
      
         

      

      
        3

        
          

        

      

      
         

        EXHIBIT
10.10

      

    

    ACKNOWLEDGMENT
OF AMENDMENT

     

    AND
REAFFIRMATION OF

     

    GUARANTY

     

     

    SECTION
1.                                The
undersigned (“Guarantor”)
hereby acknowledges and confirms that it has reviewed and approved the terms and
conditions of that certain Amendment No. 10 to Loan and Security Agreement dated
as of March 5, 2009 (the “Amendment”),
between Electroglas, Inc., a Delaware corporation, as borrower (“Borrower”),
and Comerica Bank, as lender (“Bank”).

     

     

    SECTION
2.                                Guarantor
hereby consents to the Amendment and reaffirms that its guaranty obligations
under that certain Unconditional Guaranty dated as of March 26, 2007 executed by
Guarantor in favor of Bank (the “Guaranty”))
shall continue in full force and effect, shall be valid and enforceable and
shall not be impaired or otherwise affected by the execution of the Amendment or
any other document or instrument delivered in connection herewith or
therewith.  Guarantor further hereby ratifies and reaffirms the
validity and enforceability of all of the liens and security interests
heretofore granted pursuant to the Third Party Security Agreement dated as of
March 26, 2007 between Guarantor and Bank (the “Third Party
Security Agreement”), as collateral security for the Guarantor
Obligations (as defined in the Third Party Security Agreement), and acknowledges
that all of such liens and security interests, and all Collateral (as defined in
the Third Party Security Agreement) heretofore pledged as security for the
Guarantor Obligations, continues to be and remains Collateral for the Guarantor
Obligations from and after the date hereof, subject to Section 6 of the
Amendment.

     

     

    SECTION
3.                                Guarantor
represents and warrants that, after giving effect to the Amendment, all
representations and warranties of Guarantor contained in the Guaranty and the
Third Party Security Agreement are true, accurate and complete as if made on the
date hereof.

     

     

    Dated as
of March 5, 2009.

     

     

    Guarantor                                                                           Electroglas
International, Inc.

     

    By: /s/ Thomas
Brunton

    Its: CFO

    
      
         

      

      
        4vc_8k0407ex45.htm

    Exhibit
4.5

    
 

    

    Execution
Copy

    

    
      

    

    
      
        

      

    

    

    Vectren
Utility Holdings, Inc.

    

    

    

    

    $100,000,000
6.28% Senior Guaranteed Notes due April 7, 2020

    

    

     

    Unconditionally
Guaranteed by:

     

    Indiana
Gas Company, Inc.,

     

    Southern
Indiana Gas and Electric Company,

     

    and

     

    Vectren
Energy Delivery of Ohio, Inc.

    

    ______________

    

    Note
Purchase Agreement

    

    ______________

    

    

    Dated
April 7, 2009

    

    

    

    
      
         

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Table
of Contents

     

     

    
      
        
          
            
              	
                      Section

                    	
                      Heading

                    	
                      Page

                    
	 
      	 
      	 
      	 
      
	
                      Section
      1.  Authorization Of Notes

                    	
                      1

                    
	 
      	 
      	 
      	 
      
	
                      Section
      2.  Sale And Purchase Of Notes

                    	
                      1

                    
	 
      	 
      	 
      	 
      
	
                      Section
      3.  Closing

                    	
                      2

                    
	 
      	 
      	 
      	 
      
	
                      Section
      4.  Conditions To Closing

                    	
                      2

                    
	 
      	 
      	 
      	 
      
	 
      	
                      Section
      4.1.

                    	
                      Representations
      and Warranties

                    	
                      2

                    
	 
      	
                      Section
      4.2.

                    	
                      Performance;
      No Default

                    	
                      2

                    
	 
      	
                      Section
      4.3.

                    	
                      Compliance
      Certificates

                    	
                      2

                    
	 
      	
                      Section
      4.4.

                    	
                      Opinions
      of Counsel

                    	
                      3

                    
	 
      	
                      Section
      4.5.

                    	
                      Purchase
      Permitted By Applicable Law, Etc

                    	
                      3

                    
	 
      	
                      Section
      4.6.

                    	
                      Sale
      of Other Notes

                    	
                      3

                    
	 
      	
                      Section
      4.7.

                    	
                      Payment
      of Special Counsel Fees

                    	
                      3

                    
	 
      	
                      Section
      4.8.

                    	
                      Private
      Placement Number

                    	
                      3

                    
	 
      	
                      Section
      4.9.

                    	
                      Changes
      in Corporate Structure

                    	
                      3

                    
	 
      	
                      Section
      4.10.

                    	
                      Funding
      Instructions

                    	
                      4

                    
	 
      	
                      Section
      4.11.

                    	
                      Proceedings
      and Documents

                    	
                      4

                    
	 
      	 
      	 
      	 
      
	
                      Section
      5.  Representations And Warranties Of The Obligors

                    	
                      4

                    
	 
      	 
      	 
      	 
      
	 
      	
                      Section
      5.1.

                    	
                      Organization;
      Power and Authority

                    	
                      4

                    
	 
      	
                      Section
      5.2.

                    	
                      Authorization,
      Etc

                    	
                      4

                    
	 
      	
                      Section
      5.3.

                    	
                      Disclosure

                    	
                      4

                    
	 
      	
                      Section
      5.4.

                    	
                      Organization
      and Ownership of Shares of Subsidiaries; Affiliates

                    	
                      5

                    
	 
      	
                      Section
      5.5.

                    	
                      Financial
      Statements; Material Liabilities

                    	
                      5

                    
	 
      	
                      Section
      5.6.

                    	
                      Compliance
      with Laws, Other Instruments, Etc

                    	
                      6

                    
	 
      	
                      Section
      5.7.

                    	
                      Governmental
      Authorizations, Etc

                    	
                      6

                    
	 
      	
                      Section
      5.8.

                    	
                      Litigation;
      Observance of Agreements, Statutes and Orders

                    	
                      6

                    
	 
      	
                      Section
      5.9.

                    	
                       Taxes

                    	
                      6

                    
	 
      	
                      Section
      5.10.

                    	
                      Title
      to Property; Leases

                    	
                      7

                    
	 
      	
                      Section
      5.11.

                    	
                      Licenses,
      Permits, Etc

                    	
                      7

                    
	 
      	
                      Section
      5.12.

                    	
                      Compliance
      with ERISA

                    	
                      7

                    
	 
      	
                      Section
      5.13.

                    	
                      Private
      Offering by the Company

                    	
                      8

                    
	 
      	
                      Section
      5.14.

                    	
                      Use
      of Proceeds; Margin Regulations

                    	
                      8

                    
	 
      	
                      Section
      5.15.

                    	
                      Existing
      Indebtedness; Future Liens

                    	
                      9

                    
	 
      	
                      Section
      5.16.

                    	
                      Foreign
      Assets Control Regulations, Etc

                    	
                      9

                    
	 
      	
                      Section
      5.17.

                    	
                      Status
      under Certain Statutes

                    	
                      10

                    
	 
      	
                      Section
      5.18.

                    	
                      Environmental
      Matters

                    	
                      10

                    

               

               

              
                
                  
                  

                

                
                  
                  

                  
                    

                  

                

                
                  
                  

                

              

               

              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            
                                                                                              
                                                                                                
                                                                                                  
                                                                                                    
                                                                                                      
                                                                                                        
                                                                                                          
                                                                                                            
                                                                                                              
                                                                                                                
                                                                                                                  
                                                                                                                    
                                                                                                                      
                                                                                                                        
                                                                                                                          
                                                                                                                            
                                                                                                                              
                                                                                                                                	 
      	
                                                                                                                                        Section
      5.19.

                                                                                                                                      	
                                                                                                                                        Pari
      Passu Obligations

                                                                                                                                      	
                                                                                                                                        10

                                                                                                                                      
	 
      	 
      	 
      	 
      
	
                                                                                                                                        Section
      6.  Representations Of The Purchasers

                                                                                                                                      	
                                                                                                                                        10

                                                                                                                                      
	 
      	 
      	 
      	 
      
	 
      	
                                                                                                                                        Section
      6.1.

                                                                                                                                      	
                                                                                                                                        Purchase
      for Investment

                                                                                                                                      	
                                                                                                                                        10

                                                                                                                                      
	 
      	
                                                                                                                                        Section
      6.2.

                                                                                                                                      	
                                                                                                                                        Source
      of Funds

                                                                                                                                      	
                                                                                                                                        11

                                                                                                                                      
	 
      	 
      	 
      	 
      
	
                                                                                                                                        Section
      7.  Information As To Company

                                                                                                                                      	
                                                                                                                                        12

                                                                                                                                      
	 
      	 
      	 
      	 
      
	 
      	
                                                                                                                                        Section
      7.1.

                                                                                                                                      	
                                                                                                                                        Financial
      and Business Information

                                                                                                                                      	
                                                                                                                                        12

                                                                                                                                      
	 
      	
                                                                                                                                        Section
      7.2.

                                                                                                                                      	
                                                                                                                                        Officer’s
      Certificate

                                                                                                                                      	
                                                                                                                                        15

                                                                                                                                      
	 
      	
                                                                                                                                        Section
      7.3.

                                                                                                                                      	
                                                                                                                                        Visitation

                                                                                                                                      	
                                                                                                                                        16

                                                                                                                                      
	 
      	 
      	 
      	 
      
	
                                                                                                                                        Section
      8.  Payment And Prepayment Of The Notes

                                                                                                                                      	
                                                                                                                                        16

                                                                                                                                      
	 
      	 
      	 
      	 
      
	 
      	
                                                                                                                                        Section
      8.1.

                                                                                                                                      	
                                                                                                                                        Maturity

                                                                                                                                      	
                                                                                                                                        16

                                                                                                                                      
	 
      	
                                                                                                                                        Section
      8.2.

                                                                                                                                      	
                                                                                                                                        Optional
      Prepayments with Make-Whole Amount

                                                                                                                                      	
                                                                                                                                        16

                                                                                                                                      
	 
      	
                                                                                                                                        Section
      8.3.

                                                                                                                                      	
                                                                                                                                        Allocation
      of Partial Prepayments

                                                                                                                                      	
                                                                                                                                        17

                                                                                                                                      
	 
      	
                                                                                                                                        Section
      8.4.

                                                                                                                                      	
                                                                                                                                        Maturity;
      Surrender, Etc.

                                                                                                                                      	
                                                                                                                                        17

                                                                                                                                      
	 
      	
                                                                                                                                        Section
      8.5.

                                                                                                                                      	
                                                                                                                                        Purchase
      of Notes

                                                                                                                                      	
                                                                                                                                        17

                                                                                                                                      
	 
      	
                                                                                                                                        Section
      8.6.

                                                                                                                                      	
                                                                                                                                        Make-Whole
      Amount

                                                                                                                                      	
                                                                                                                                        17

                                                                                                                                      
	 
      	
                                                                                                                                        Section
      8.7.

                                                                                                                                      	
                                                                                                                                        Change
      in Control

                                                                                                                                      	
                                                                                                                                        19

                                                                                                                                      
	 
      	 
      	 
      	 
      
	
                                                                                                                                        Section
      9.  Affirmative Covenants.

                                                                                                                                      	
                                                                                                                                        21

                                                                                                                                      
	 
      	 
      	 
      	 
      
	 
      	
                                                                                                                                        Section
      9.1.

                                                                                                                                      	
                                                                                                                                        Compliance
      with Law

                                                                                                                                      	
                                                                                                                                        21

                                                                                                                                      
	 
      	
                                                                                                                                        Section
      9.2.

                                                                                                                                      	
                                                                                                                                        Insurance

                                                                                                                                      	
                                                                                                                                        21

                                                                                                                                      
	 
      	
                                                                                                                                        Section
      9.3.

                                                                                                                                      	
                                                                                                                                        Maintenance
      of Properties

                                                                                                                                      	
                                                                                                                                        21

                                                                                                                                      
	 
      	
                                                                                                                                        Section
      9.4.

                                                                                                                                      	
                                                                                                                                        Payment
      of Taxes and Claims

                                                                                                                                      	
                                                                                                                                        21

                                                                                                                                      
	 
      	
                                                                                                                                        Section
      9.5.

                                                                                                                                      	
                                                                                                                                        Corporate
      Existence, Etc

                                                                                                                                      	
                                                                                                                                        22

                                                                                                                                      
	 
      	
                                                                                                                                        Section
      9.6.

                                                                                                                                      	
                                                                                                                                        Books
      and Records

                                                                                                                                      	
                                                                                                                                        22

                                                                                                                                      
	 
      	
                                                                                                                                        Section
      9.7.

                                                                                                                                      	
                                                                                                                                        Ranking

                                                                                                                                      	
                                                                                                                                        22

                                                                                                                                      
	 
      	
                                                                                                                                        Section
      9.8.

                                                                                                                                      	
                                                                                                                                        Conduct
      of Business

                                                                                                                                      	
                                                                                                                                        22

                                                                                                                                      
	 
      	
                                                                                                                                        Section
      9.9.

                                                                                                                                      	
                                                                                                                                        Guarantors

                                                                                                                                      	
                                                                                                                                        22

                                                                                                                                      
	 
      	 
      	 
      	 
      
	
                                                                                                                                        Section
      10.  Negative Covenants.

                                                                                                                                      	
                                                                                                                                        23

                                                                                                                                      
	 
      	 
      	 
      	 
      
	 
      	
                                                                                                                                        Section
      10.1.

                                                                                                                                      	
                                                                                                                                        Transactions
      with Affiliates

                                                                                                                                      	
                                                                                                                                        23

                                                                                                                                      
	 
      	
                                                                                                                                        Section
      10.2.

                                                                                                                                      	
                                                                                                                                        Merger,
      Consolidation, Etc

                                                                                                                                      	
                                                                                                                                        23

                                                                                                                                      
	 
      	
                                                                                                                                        Section
      10.4.

                                                                                                                                      	
                                                                                                                                        Terrorism
      Sanctions Regulations

                                                                                                                                      	
                                                                                                                                        24

                                                                                                                                      
	 
      	
                                                                                                                                        Section
      10.5.

                                                                                                                                      	
                                                                                                                                        Liens

                                                                                                                                      	
                                                                                                                                        24

                                                                                                                                      
	 
      	
                                                                                                                                        Section
      10.6.

                                                                                                                                      	
                                                                                                                                        Leverage
      Ratio

                                                                                                                                      	
                                                                                                                                        26

                                                                                                                                      
	 
      	
                                                                                                                                        Section
      10.7.

                                                                                                                                      	
                                                                                                                                        Sale
      of Assets

                                                                                                                                      	
                                                                                                                                        26

                                                                                                                                      
	 
      	 
      	 
      	 
      
	
                                                                                                                                        Section
      11.  Events Of Default

                                                                                                                                      	
                                                                                                                                        26

                                                                                                                                      
	 
      	 
      	 
      	 
      
	
                                                                                                                                        Section
      12.  Remedies On Default, Etc

                                                                                                                                      	
                                                                                                                                        29

                                                                                                                                      
	 
      	 
      	 
      	 
      
	 
      	
                                                                                                                                        Section
      12.1.

                                                                                                                                      	
                                                                                                                                        Acceleration

                                                                                                                                      	
                                                                                                                                        29

                                                                                                                                      

                                                                                                                              

                                                                                                                            

                                                                                                                          

                                                                                                                        

                                                                                                                      

                                                                                                                    

                                                                                                                  

                                                                                                                

                                                                                                              

                                                                                                            

                                                                                                          

                                                                                                        

                                                                                                      

                                                                                                    

                                                                                                  

                                                                                                

                                                                                              

                                                                                            

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

       

      

      
        
          
             

          

          
            -ii-

            
              

            

          

          
             

          

        

      

      
 

      
        
          
            	 
      	
                    Section
      12.2.

                  	
                    Other
      Remedies

                  	
                    29

                  
	 
      	
                    Section
      12.3.

                  	
                    Rescission

                  	
                    29

                  
	 
      	
                    Section
      12.4.

                  	
                    No
      Waivers or Election of Remedies, Expenses, Etc

                  	
                    30

                  
	 
      	 
      	 
      	 
      
	
                    Section
      13.  Registration; Exchange; Substitution Of Notes

                  	
                    30

                  
	 
      	 
      	 
      	 
      
	 
      	
                    Section
      13.1.

                  	
                    Registration
      of Notes

                  	
                    30

                  
	 
      	
                    Section
      13.2.

                  	
                    Transfer
      and Exchange of Notes

                  	
                    30

                  
	 
      	
                    Section
      13.3.

                  	
                    Replacement
      of Notes

                  	
                    31

                  
	 
      	
                    Section
      13.4.

                  	
                    Legend

                  	
                    31

                  
	 
      	 
      	 
      	 
      
	
                    Section
      14.  Payments On Notes

                  	
                    31

                  
	 
      	 
      	 
      	 
      
	 
      	
                    Section
      14.1.

                  	
                    Place
      of Payment

                  	
                    31

                  
	 
      	
                    Section
      14.2.

                  	
                    Home
      Office Payment

                  	
                    32

                  
	 
      	 
      	 
      	 
      
	
                    Section
      15.  Expenses, Etc

                  	
                    32

                  
	 
      	 
      	 
      	 
      
	 
      	
                    Section
      15.1.

                  	
                    Transaction
      Expenses

                  	
                    32

                  
	 
      	
                    Section
      15.2.

                  	
                    Survival

                  	
                    32

                  
	 
      	 
      	 
      	 
      
	
                    Section
      16.  Survival Of Representations And Warranties; Entire
      Agreement

                  	
                    33

                  
	 
      	 
      	 
      	 
      
	
                    Section
      17.  Amendment And Waiver

                  	
                    33

                  
	 
      	 
      	 
      	 
      
	 
      	
                    Section
      17.1.

                  	
                    Requirements

                  	
                    33

                  
	 
      	
                    Section
      17.2.

                  	
                    Solicitation
      of Holders of Notes

                  	
                    33

                  
	 
      	
                    Section
      17.3.

                  	
                    Binding
      Effect, etc

                  	
                    34

                  
	 
      	
                    Section
      17.4.

                  	
                    Notes
      Held by Company, etc

                  	
                    34

                  
	 
      	 
      	 
      	 
      
	
                    Section
      18.  Subsidiary Guaranty

                  	
                    34

                  
	 
      	 
      	 
      	 
      
	 
      	
                    Section
      18.1.

                  	
                    Guaranty

                  	
                    34

                  
	 
      	
                    Section
      18.2.

                  	
                    Waivers

                  	
                    35

                  
	 
      	
                    Section
      18.3.

                  	
                    Guaranty
      Absolute

                  	
                    35

                  
	 
      	
                    Section
      18.4.

                  	
                    Acceleration

                  	
                    36

                  
	 
      	
                    Section
      18.5.

                  	
                    Marshaling;
      Reinstatement

                  	
                    36

                  
	 
      	
                    Section
      18.6.

                  	
                    Delay
      of Subrogation

                  	
                    36

                  
	 
      	 
      	 
      	 
      
	
                    Section
      19.  Notices

                  	
                    37

                  
	 
      	 
      	 
      	 
      
	
                    Section
      20.  Reproduction Of Documents

                  	
                    37

                  
	 
      	 
      	 
      	 
      
	
                    Section
      21.  Confidential Information

                  	
                    37

                  
	 
      	 
      	 
      	 
      
	
                    Section
      22.  Substitution Of Purchaser

                  	
                    38

                  
	 
      	 
      	 
      	 
      

          

        

        

        

        
          
            
            

          

          
            -iii-

            
              

            

          

          
            
            

          

        

        

        

        
          
            	
                    Section
      23.  Miscellaneous

                  	
                    39

                  
	 
      	 
      	 
      	 
      
	 
      	
                    Section
      23.1.

                  	
                    Successors
      and Assigns

                  	
                    39

                  
	 
      	
                    Section
      23.2.

                  	
                    Payments
      Due on Non-Business Days

                  	
                    39

                  
	 
      	
                    Section
      23.3.

                  	
                    Accounting
      Terms

                  	
                    39

                  
	 
      	
                    Section
      23.4.

                  	
                    Severability

                  	
                    39

                  
	 
      	
                    Section
      23.5.

                  	
                    Construction,
      etc

                  	
                    39

                  
	 
      	
                    Section
      23.6.

                  	
                    Counterparts

                  	
                    40

                  
	 
      	
                    Section
      23.7.

                  	
                    Governing
      Law

                  	
                    40

                  
	 
      	
                    Section
      23.8.

                  	
                    Waiver
      of Jury Trial

                  	
                    40

                  
	 
      	 
      	 
      	 
      
	
                    Signature

                  	
                    41

                  

          

        

        
          
             

          

          
            -iv-

            
              

            

          

          
             

          

        

       

      
        
          	
                  Schedule
      A

                	
                  —

                	
                  Information
      Relating to Purchasers

                
	 
      	 
      	 
      
	
                  Schedule
      B

                	
                  —

                	
                  Defined
      Terms

                
	 
      	 
      	 
      
	
                  Schedule
      5.3

                	
                  —

                	
                  Disclosure
      Materials

                
	 
      	 
      	 
      
	
                  Schedule
      5.4

                	
                  —

                	
                  Subsidiaries
      of the Company and Ownership of Subsidiary Stock

                
	 
      	 
      	 
      
	
                  Schedule
      5.5

                	
                  —

                	
                  Financial
      Statements

                
	 
      	 
      	 
      
	
                  Schedule
      5.15

                	
                  —

                	
                  Existing
      Indebtedness

                
	 
      	 
      	 
      
	
                  Exhibit
      1

                	
                  —

                	
                  Form
      of 6.28% Senior Note due April 7, 2020

                
	 
      	 
      	 
      
	
                  Exhibit
      4.4(a)

                	
                  —

                	
                  Form
      of Opinions of Special Counsel for the Company

                
	 
      	 
      	 
      
	
                  Exhibit
      4.4(b)

                	
                  —

                	
                  Form
      of Opinion of Special Counsel for the
Purchasers

                

        

      

      

      
        
          
          

        

        
          -v-

          
            

          

        

        
          
          

        

      

    

    

     

    Vectren
Utility Holdings, Inc.

    One
Vectren Square

    Evansville,
Indiana  47708

    

    $100,000,000
6.28% Senior Guaranteed Notes due April 7, 2020

    

    

    

    April 7,
2009

    

    

    To
Each of the Purchasers Listed in

    Schedule A
Hereto:

     

    Ladies
and Gentlemen:

     

    Vectren
Utility Holdings, Inc., an Indiana corporation (the “Company”), and Indiana Gas
Company, Inc., an Indiana and Ohio corporation (“Indiana Gas”), Southern
Indiana Gas and Electric Company, an Indiana corporation (“SIGECO”) and Vectren Energy
Delivery of Ohio, Inc., an Ohio corporation (“VEDO” and, together with the
Indiana Gas and SIGECO and any guarantors added to this Agreement from time to
time are individually a “Guarantor” and collectively, the “Guarantors” and together
with the Company are individually an “Obligor” and collectively, the “Obligors”), jointly and
severally agree with each of the purchasers whose names appear at the end hereof
(each, a “Purchaser”
and, collectively, the “Purchasers”) as
follows:

     

    
      	
              Section 1. 
      

            	
              Authorization
      of Notes.

            

    

     

    The
Company will authorize the issue and sale of $100,000,000 aggregate principal
amount of its 6.28% Senior Guaranteed Notes due April 7, 2020 (the “Notes”, such term to include
any such notes issued in substitution therefor pursuant to
Section 13).  The Notes shall be substantially in the form set
out in Exhibit 1.  Due and punctual payment of the Guaranteed
Obligations (as defined herein) will be unconditionally guaranteed by the
Guarantors (the “ Subsidiary Guaranty”) as set forth in
this Agreement. Certain capitalized and other terms used in this Agreement are
defined in Schedule B; and references to a “Schedule” or an “Exhibit” are,
unless otherwise specified, to a Schedule or an Exhibit attached to this
Agreement.

     

    
      	
              Section 2. 
      

            	
              Sale
      and Purchase of Notes.

            

    

     

    Subject
to the terms and conditions of this Agreement, the Company will issue and sell
to each Purchaser and each Purchaser will purchase from the Company, at the
Closing provided for in Section 3, Notes in the principal amount specified
opposite such Purchaser’s name in Schedule A at the purchase price of 100%
of the principal amount thereof.  The Purchasers’ 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    obligations
hereunder are several and not joint obligations and no Purchaser shall have any
liability to any Person for the performance or non-performance of any obligation
by any other Purchaser hereunder.

     

    
      	
              Section 3. 
      

            	
              Closing.

            

    

     

    The sale
and purchase of the Notes to be purchased by each Purchaser shall occur at the
offices of Chapman and Cutler LLP, 111 W. Monroe Street, Chicago,
Illinois  60603, at 10:00 a.m., Chicago time, at a closing (the
“Closing”) on
April 7, 2009 or on such other Business Day there­after on or prior to
April 8, 2009 as may be agreed upon by the Company and the
Purchasers.  At the Closing the Company will deliver to each Purchaser
the Notes to be purchased by such Purchaser in the form of a single Note (or
such greater number of Notes in denominations of at least $1,000,000, or any
amount in excess thereof which is an integral multiple of $250,000, as such
Purchaser may request) dated the date of the Closing and registered in such
Purchaser’s name (or in the name of its nominee), against delivery by such
Purchaser to the Company or its order of immediately available funds in the
amount of the purchase price therefor by wire transfer of immediately available
funds for the account of the Company to account number 698309595 at National
City Bank, Indianapolis, Indiana, ABA number 074000065.  If at the
Closing the Company shall fail to tender such Notes to any Purchaser as provided
above in this Section 3, or any of the conditions specified in
Section 4 shall not have been fulfilled to such Purchaser’s satisfaction,
such Purchaser shall, at its election, be relieved of all further
obliga­tions under this Agreement, without thereby waiving any rights such
Purchaser may have by reason of such failure or such
nonfulfillment.

     

    
      	
              Section 4. 
      

            	
              Conditions
      to Closing.

            

    

     

    Each
Purchaser’s obligation to purchase and pay for the Notes to be sold to such
Purchaser at the Closing is subject to the fulfillment to such Purchaser’s
satisfaction, prior to or at the Closing, of the following
conditions:

     

    Section 4.1.  Representations and
Warranties.  The representations and warranties of the Obligors
in this Agreement shall be correct when made and at the time of the
Closing.

     

    Section 4.2.  Performance; No Default. Each Obligor shall have
performed and complied with all agreements and conditions contained in this
Agreement required to be performed or complied with by it prior to or at the
Closing and after giving effect to the issue and sale of the Notes (and the
application of the proceeds thereof as contemplated by Section 5.14) no Default
or Event of Default shall have occurred and be continuing.  No Obligor
nor any Subsidiary shall have entered into any transaction since the date of the
Memorandum that would have been prohibited by Section 10 had such Section
applied since such date.

     

    Section 4.3.  Compliance
Certificates.

     

    (a) 
Officer’s
Certificate.  Each Obligor shall have delivered to such
Purchaser an Officer’s Certificate, dated the date of the Closing, certifying
that the conditions specified in Sections 4.1, 4.2 and 4.9 have been
fulfilled.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

    (b) 
Secretary’s
Certificate.  Each Obligor shall have delivered to such
Purchaser a certificate of its Secretary or Assistant Secretary, dated the date
of Closing, certifying as to the resolutions attached thereto and other
corporate proceedings relating to the authorization, execution and delivery of
the Financing Agreements to which it is a party.

     

    Section 4.4.  Opinions of
Counsel.  Such Purchaser shall have received opinions in form
and substance satisfactory to such Purchaser, dated the date of the Closing
(a) from (i) Barnes & Thornburg LLP, Indiana counsel for the Obligors,
(ii) Kegler, Brown, Hill and Ritter LPA, Ohio counsel for the Obligors and
(iii)McNees Wallace & Nurick LLC, covering the matters set forth in
Exhibits 4.4(a)(i), (ii) and (iii), respectively, and covering such other
matters incident to the transactions contemplated hereby as such Purchaser or
its counsel may reasonably request (and the Obligors hereby instruct their
counsel to deliver such opinions to the Purchasers) and (b) from Chapman
and Cutler LLP, the Purchasers’ special counsel in connection with such
transactions, substantially in the form set forth in Exhibit 4.4(b) and covering
such other matters incident to such transactions as such Purchaser may
reasonably request.

     

    Section 4.5.  Purchase Permitted By Applicable
Law, Etc.  On the date of the Closing such Purchaser’s purchase
of Notes shall (a) be permitted by the laws and regulations of each
jurisdiction to which such Purchaser is subject, without recourse to provisions
(such as section 1405(a)(8) of the New York Insurance Law) permitting
limited investments by insurance companies without restriction as to the
character of the particular investment, (b) not violate any applicable law
or regulation (including, without limitation, Regulation T, U or X of the Board
of Governors of the Federal Reserve System) and (c) not subject such
Purchaser to any tax, penalty or liability under or pursuant to any applicable
law or regulation, which law or regulation was not in effect on the date
hereof.  If requested by such Purchaser, such Purchaser shall have
received an Officer’s Certificate certifying as to such matters of fact as such
Purchaser may reasonably specify to enable such Purchaser to determine whether
such purchase is so permitted.

     

    Section 4.6.  Sale of Other
Notes.  Contemporaneously with the Closing the Company shall
sell to each other Purchaser and each other Purchaser shall purchase the Notes
to be purchased by it at the Closing as specified in
Schedule A.

     

    Section 4.7.  Payment of Special Counsel
Fees.  Without limiting the provisions of Section 15.1,
the Company shall have paid on or before the Closing the fees, charges and
disbursements of the Purchasers’ special counsel referred to in Section 4.4 to
the extent reflected in a statement of such counsel rendered to the Company at
least one Business Day prior to the Closing.

     

    Section 4.8.  Private Placement
Number.  A Private Placement Number issued by Standard &
Poor’s CUSIP Service Bureau (in cooperation with the SVO) shall have been
obtained for the Notes.

     

    Section 4.9.  Changes in Corporate
Structure.  No Obligor shall have changed its jurisdiction of
incorporation or organization, as applicable, or been a party to any merger or
consolidation or succeeded to all or any substantial part of the liabilities of
any other entity, at any time following the date of the most recent financial
statements referred to in Schedule 5.5.  

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    Section 4.10. 
Funding
Instructions.  At least three Business Days prior to the date
of the Closing, each Purchaser shall have received written instructions signed
by a Responsible Officer on letterhead of the Company confirming the information
specified in Section 3 including (i) the name and address of the
transferee bank, (ii) such transferee bank’s ABA number and (iii) the
account name and number into which the purchase price for the Notes is to be
deposited.

     

    Section 4.11.  Proceedings and
Documents.  All corporate and other proceedings in connection
with the transactions contemplated by this Agreement and all documents and
instruments incident to such transactions shall be satisfactory to such
Purchaser and its special counsel, and such Purchaser and its special counsel
shall have received all such counterpart originals or certified or other copies
of such documents as such Purchaser or such special counsel may reasonably
request.

     

    
      	
              Section
      5.  

            	
              Representations
      and Warranties of the Obligors.

            

    

     

    Each
Obligor represents and warrants to each Purchaser (only to the extent applicable
to itself and, if specified, its Subsidiaries) as follows as of the date hereof
or, if the representation or warranty speaks as of a different date, as of such
date:

     

    Section 5.1.  Organization; Power and
Authority.  Each Obligor is a corporation duly organized,
validly existing and in good standing (where applicable) under the laws of its
jurisdiction of incorporation, and is duly qualified as a foreign corporation
and is in good standing in each jurisdiction in which such qualification is
required by law, other than those jurisdictions as to which the failure to be so
qualified or in good standing could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.  Each
Obligor has the corporate power and authority to own or hold under lease the
properties it purports to own or hold under lease, to transact the business it
transacts and proposes to transact, to execute and deliver the Financing
Agreements to which it is a party and to perform the provisions hereof and
thereof.

     

    Section 5.2.  Authorization,
Etc.  This Agreement and the Notes have been duly authorized by
all necessary corporate action on the part of the Company, and this Agreement
constitutes, and upon execution and delivery thereof each Note will constitute,
a legal, valid and binding obligation of the Company enforceable against the
Company in accordance with its terms, and this Agreement and the Subsidiary
Guaranty have been duly authorized by all necessary corporate action on the part
of the Guarantors and constitute legal, valid and binding obligations of the
Guarantors   enforceable against the Guarantors in accordance
with their respective terms, except, in each case, as such enforceability may be
limited by (i) applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting the enforcement of creditors’ rights
generally and (ii) general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).

     

    Section 5.3.  Disclosure.  This
Agreement and the documents, certificates or other writings delivered to the
Purchasers by or on behalf of the Company in connection with the transactions
contemplated hereby on or prior to March 11, 2009 and identified in
Schedule 5.3, and the financial statements listed in Schedule 5.5
(together, the “Offering
Materials”), taken as 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    a whole,
do not contain any untrue statement of a material fact or omit to state any
material fact necessary to make the statements therein not misleading in light
of the circumstances under which they were made.  Except as disclosed
in the Offering Materials, since December 31, 2008, there has been no
change in the financial condition, operations, business, properties or prospects
of the Obligors or any Subsidiary except changes that individually or in the
aggregate could not reasonably be expected to have a Material Adverse
Effect.  There is no fact known to any Obligor that could reasonably
be expected to have a Material Adverse Effect that has not been set forth herein
or in the Offering Materials.

     

    Section 5.4.  Organization and Ownership of Shares
of Subsidiaries; Affiliates.  (a) Schedule 5.4
contains (except as noted therein) complete and correct lists (i) of the
Obligors’ Subsidiaries, showing, as to each Subsidiary, the correct name
thereof, the jurisdiction of its organization, and the percentage of shares of
each class of its capital stock or similar equity interests outstanding owned by
the Obligors and each other Subsidiary, (ii) of the Obligors’ Affiliates,
other than Subsidiaries, and (iii) of the Obligors’ directors and senior
officers.

     

    (b) 
All of the outstanding shares of capital stock or similar equity interests of
each Subsidiary shown in Schedule 5.4 as being owned by an Obligor and its
Subsidiaries have been validly issued, are fully paid and nonassessable and are
owned by the Company or another Subsidiary free and clear of any Lien (except as
otherwise disclosed in Schedule 5.4).

     

    (c) 
Each Subsidiary identified in Schedule 5.4 is a corporation or other legal
entity duly organized, validly existing and in good standing (to the extent
applicable) under the laws of its jurisdiction of organization, and is duly
qualified as a foreign corporation or other legal entity and is in good standing
in each jurisdiction in which such qualification is required by law, other than
those jurisdictions as to which the failure to be so qualified or in good
standing could not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect.  Each such Subsidiary has the
corporate or other power and authority to own or hold under lease the properties
it purports to own or hold under lease and to transact the business it transacts
and proposes to transact.

     

    (d) 
No Subsidiary is a party to, or otherwise subject to any legal, regulatory,
contractual, or other restriction (other than the agreements listed on Schedule
5.4 and customary limitations imposed by corporate law and fraudulent conveyance
statutes or similar statutes and applicable restrictions contained in section
305(a) of the Federal Power Act, as amended), restricting the ability of such
Subsidiary to pay dividends out of profits or make any other similar
distributions of profits to an Obligor or any of its Subsidiaries that owns
outstanding shares of capital stock or similar equity interests of such
Subsidiary.

     

    Section 5.5.  Financial Statements; Material
Liabilities.  The Obligors have delivered to each Purchaser
copies of the financial statements of the Obligors and their Subsidiaries listed
on Schedule 5.5.  All of said financial statements (including in each
case the related schedules and notes) fairly present in all material respects
the consolidated financial position of the Obligors and their Subsidiaries as of
the respective dates specified in such Schedule and the consolidated results of
their operations and cash flows for the respective periods so specified and have
been prepared in accordance with GAAP consistently applied throughout the
periods involved except 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    as set
forth in the notes thereto (subject, in the case of any interim financial
statements, to normal year-end adjustments).   The Obligors and
their Subsidiaries do not have any Material liabilities that are not disclosed
on such financial statements or otherwise disclosed in the Offering
Materials.

     

    Section 5.6.  Compliance with Laws, Other
Instruments, Etc.  The execution, delivery and performance by
the Company of this Agreement and the Notes and by the Guarantors of this
Agreement and the Subsidiary Guaranty will not (i) contravene, result in
any breach of, or constitute a default under, or result in the creation of any
Lien in respect of any property of any Obligor, or any Subsidiary, under any
indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease,
corporate charter or by-laws, or any other agreement or instrument to which any
Obligor or any Subsidiary is bound or by which any Obligor or any Subsidiary or
any of their respective properties may be bound or affected, (ii) conflict
with or result in a breach of any of the terms, conditions or provisions of any
order, judgment, decree, or ruling of any court, arbitrator or Governmental
Authority applicable to any Obligor or any Subsidiary or (iii) violate any
provision of any statute or other rule or regulation of any Governmental
Authority applicable to any Obligor or any Subsidiary (including, without
limitation, PUHCA or the Federal Power Act, as amended).

     

    Section 5.7.  Governmental Authorizations,
Etc.  No consent, approval or authorization of, or
registration, filing or declaration with, any Governmental Authority is required
in connection with the execution, delivery or performance by any Obligor of the
Financing Agreements to which they are party (including, without limitation, any
thereof under PUHCA, the Natural Gas Act or the Federal Power Act, each as
amended).

     

    Section 5.8.  Litigation; Observance of
Agreements, Statutes and Orders.  (a) There are no
actions, suits, investigations or proceedings pending or, to the knowledge of
the Obligors, threatened against or affecting any Obligor or any Subsidiary or
any property of any Obligor or any Subsidiary in any court or before any
arbitrator of any kind or before or by any Governmental Authority that,
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.

     

    (b) 
No Obligor nor any Subsidiary is in default under any term of any agreement or
instrument to which it is a party or by which it is bound, or any order,
judgment, decree or ruling of any court, arbitrator or Governmental Authority or
is in violation of any applicable law, ordinance, rule or regulation (including
without limitation Environmental Laws or the USA Patriot Act) of any
Governmental Authority, which default or violation, individually or in the
aggregate, could reasonably be expected to have a Material Adverse
Effect.

     

    Section 5.9.  Taxes.  Each of the
Obligors and their Subsidiaries have filed all tax returns that are required to
have been filed in any jurisdiction, and have paid all taxes shown to be due and
payable on such returns and all other taxes and assessments levied upon them or
their properties, assets, income or franchises, to the extent such taxes and
assessments have become due and payable and before they have become delinquent,
except for any taxes and assessments (i) the amount of which is not
individually or in the aggregate Material or (ii) the amount, applicability
or validity of which is currently being contested in good faith by appropriate

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    proceedings
and with respect to which such Obligor or such Subsidiary, as the case may be,
has established adequate reserves in accordance with GAAP.  No Obligor
knows of any basis for any other tax or assessment that could reasonably be
expected to have a Material Adverse Effect.  The charges, accruals and
reserves on the books of the Obligors and their Subsidiaries in respect of
Federal, state or other taxes for all fiscal periods are
adequate.  The Federal income tax liabilities of the Obligors and
their Subsidiaries have been finally determined (whether by reason of completed
audits or the statute of limitations having run) for all fiscal years up to and
including the fiscal year ended December 31, 2002.

     

    Section 5.10. 
Title to Property;
Leases.  The Obligors and their Subsidiaries have good and
sufficient title to their respective properties that individually or in the
aggregate are Material, including all such properties reflected in the most
recent audited balance sheet referred to in Section 5.5 or purported to have
been acquired by the Obligors or any Subsidiary after said date (except as sold
or otherwise disposed of in the ordinary course of business), in each case free
and clear of Liens prohibited by this Agreement.  All leases that
individually or in the aggregate are Material are valid and subsisting and are
in full force and effect in all material respects. 

     

    Section 5.11. 
Licenses, Permits,
Etc.  (a) The Obligors and their Subsidiaries own or
possess all licenses, permits, franchises, authorizations, patents, copyrights,
proprietary software, service marks, trademarks and trade names, or rights
thereto, that individually or in the aggregate are Material, without known
conflict with the rights of others.

     

    (b) 
To the best knowledge of each Obligor, no product or service of the Obligors or
any of their Subsidiaries infringes in any material respect any license, permit,
franchise, authorization, patent, copyright, proprietary software, service mark,
trademark, trade name or other right owned by any other Person.

     

    (c) 
To the best knowledge of each Obligor, there is no Material violation by any
Person of any right of the Obligors or any of their Subsidiaries with respect to
any patent, copyright, proprietary software, service mark, trademark, trade name
or other right owned or used by the Obligors or any of their
Subsidiaries.

     

    Section 5.12.  Compliance with
ERISA.  (a) Each Obligor and each ERISA Affiliate have
operated and administered each Plan in compliance with all applicable laws
except for such instances of noncom­pliance as have not resulted in and
could not reasonably be expected to result in a Material Adverse
Effect.  No Obligor nor any ERISA Affiliate has incurred any liability
pursuant to Title I or IV of ERISA or the penalty or excise tax provisions
of the Code relating to employee benefit plans (as defined in section 3 of
ERISA), and no event, transaction or condition has occurred or exists that could
reasonably be expected to result in the incurrence of any such liability by any
Obligor or any ERISA Affiliate, or in the imposition of any Lien on any of the
rights, properties or assets of any Obligor or any ERISA Affiliate, in either
case pursuant to Title I or IV of ERISA or to such penalty or excise tax
provisions or to section 401(a)(29) or 412 of the Code or section 4068 of ERISA,
other than such liabilities or Liens as would not be individually or in the
aggregate Material.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (b) 
The present value of the aggregate benefit liabilities under each of the Plans
(other than Multiemployer Plans), determined as of the end of such Plan’s most
recently ended plan year on the basis of the actuarial assumptions specified for
funding purposes in such Plan’s most recent actuarial valuation report, did not
exceed the aggregate current value of the assets of such Plan allocable to such
benefit liabilities by more than $100,000,000.  The term “benefit liabilities” has the
meaning specified in section 4001 of ERISA and the terms “current value” and “present value” have the
meaning specified in section 3 of ERISA.

     

    (c) 
No Obligor nor any of their ERISA Affiliates have incurred withdrawal
liabilities (and are not subject to contingent withdrawal liabilities) under
section 4201 or 4204 of ERISA in respect of Multiemployer Plans that
individually or in the aggregate are Material.

     

    (d) 
The expected postretirement benefit obligation (determined as of the last day of
each Obligor’s most recently ended fiscal year in accordance with Financial
Accounting Standards Board Statement No. 106, without regard to liabilities
attributable to continuation coverage mandated by section 4980B of the Code) of
each Obligor and its Subsidiaries is not Material.

     

    (e) 
The execution and delivery of this Agreement and the issuance and sale of the
Notes hereunder will not involve any transaction that is subject to the
prohibitions of section 406 of ERISA or in connection with which a tax
could be imposed pursuant to section 4975(c)(1)(A)-(D) of the
Code.  The representation by each Obligor to each Purchaser in the
first sentence of this Section 5.12(e) is made in reliance upon and subject to
the accuracy of such Purchaser’s representation in Section 6.2 as to the sources
of the funds used to pay the purchase price of the Notes to be purchased by such
Purchaser.

     

    Section 5.13.  Private Offering by the
Company.  Neither the Obligors nor anyone acting on their
behalf has offered the Notes, the Subsidiary Guaranty or any similar securities
for sale to, or solicited any offer to buy any of the same from, or otherwise
approached or negotiated in respect thereof with, any person other than the
Purchasers, each of which has been offered the Notes and the Subsidiary Guaranty
at a private sale for investment.  Neither the Obligors nor anyone
acting on their behalf has taken, or will take, any action that would subject
the issuance or sale of the Notes to the registration requirements of Section 5
of the Securities Act or to the registration requirements of any securities or
blue sky laws of any applicable jurisdiction.

     

    Section 5.14. 
Use of Proceeds; Margin
Regulations.  The Company will apply the proceeds of the sale
of the Notes to repay certain existing Indebtedness of the Company and for
general corporate purposes.  No part of the proceeds from the sale of
the Notes hereunder will be used, directly or indirectly, for the purpose of
buying or carrying any margin stock within the meaning of Regulation U of
the Board of Governors of the Federal Reserve System (12 CFR 221), or for the
purpose of buying or carrying or trading in any securities under such
circumstances as to involve the Company in a violation of Regulation X of said
Board (12 CFR 224) or to involve any broker or dealer in a violation of
Regulation T of said Board (12 CFR 220).  Margin stock does not
constitute more than 10% of the value of the consolidated assets of the Obligors
and their Subsidiaries and the Obligors do not have any present intention that
margin stock will constitute more than 10% of the value of such
assets.  As used in this Section, 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    the terms
“margin stock” and “purpose of buying or carrying” shall have the meanings
assigned to them in said Regulation U.

     

    Section 5.15.  Existing Indebtedness; Future
Liens.  (a) Except as described therein, Schedule 5.15
sets forth a complete and correct list of all outstanding Indebtedness of the
Obligors and their Subsidiaries as of March 31, 2009 (including a
description of the obligors and obligees, principal amount outstanding and
collateral therefor, if any, and Contingent Obligations in respect thereof, if
any), since which date there has been no Material change in the amounts,
interest rates, sinking funds, installment payments or maturities of the
Indebtedness of the Obligors or their Subsidiaries except as disclosed in
Schedule 5.15.  Neither the Obligors nor any Subsidiary is in default
and no waiver of default is currently in effect, in the payment of any principal
or interest on any Indebtedness of any Obligor or such Subsidiary and no event
or condition exists with respect to any Indebtedness of any Obligor or any
Subsidiary that would permit (or that with notice or the lapse of time, or both,
would permit) one or more Persons to cause such Indebtedness to become due and
payable before its stated maturity or before its regularly scheduled dates of
payment.

     

    (b) 
Except as disclosed in Schedule 5.15, neither the Obligors nor any Subsidiary
has agreed or consented to cause or permit in the future (upon the happening of
a contingency or otherwise) any of its property, whether now owned or hereafter
acquired, to be subject to a Lien not permitted by Section 10.5.

     

    (c) 
Neither the Obligors nor any Subsidiary is a party to, or otherwise subject to
any provision contained in, any instrument evidencing Indebtedness of the
Obligors or such Subsidiary, any agreement relating thereto or any other
agreement (including, but not limited to, its charter or other organizational
document) which limits the amount of, or otherwise imposes restrictions on the
incurring of, Indebtedness of the Obligors, except as specifically indicated in
Schedule 5.15.

     

    Section 5.16.  Foreign Assets Control Regulations,
Etc.  (a) Neither the sale of the Notes by the Company
hereunder nor its use of the proceeds thereof nor the issuance of the Guarantors
of the Subsidiary Guaranty will violate the Trading with the Enemy Act, as
amended, or any of the foreign assets control regulations of the United States
Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any
enabling legislation or executive order relating
thereto.  

     

    (b) 
No Obligor nor any Subsidiary (i) is a Person described or designated in
the Specially Designated Nationals and Blocked Persons List of the Office of
Foreign Assets Control or in Section 1 of the Anti-Terrorism Order or
(ii) engages in any dealings or transactions with any such
Person.  The Obligors and their Subsidiaries are in compliance, in all
material respects, with the USA Patriot Act.

     

    (c) 
No part of the proceeds from the sale of the Notes hereunder will be used,
directly or indirectly, for any payments to any governmental official or
employee, political party, official of a political party, candidate for
political office, or anyone else acting in an official capacity, in order to
obtain, retain or direct business or obtain any improper advantage, in violation
of the 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    United
States Foreign Corrupt Practices Act of 1977, as amended, assuming in all cases
that such Act applies to the Obligors and their Subsidiaries.

     

    Section 5.17. 
Status under Certain
Statutes.  No Obligor nor any Subsidiary is subject to
regulation under the Investment Company Act of 1940, as amended, or is subject
to regulation under PUHCA, the ICC Termination Act of 1995, as amended, or the
Federal Power Act, as amended, other than SIGECO, which is subject to regulation
under the Federal Power Act.

     

    Section 5.18.  Environmental
Matters.  (a) Neither the Obligors nor any Subsidiary has
knowledge of any claim or has received any notice of any claim, and no
proceeding has been instituted raising any claim against any Obligor or any of
their Subsidiaries or any of their respective real properties now or formerly
owned, leased or operated by any of them or other assets, alleging any damage to
the environment or violation of any Environmental Laws, except, in each case,
such as could not reasonably be expected to result in a Material Adverse Effect.

     

    (b) 
Neither the Obligors nor any Subsidiary has knowledge of any facts which would
give rise to any claim, public or private, of violation of Environmental Laws or
damage to the environment emanating from, occurring on or in any way related to
real properties now or formerly owned, leased or operated by any of them or to
other assets or their use, except, in each case, such as could not reasonably be
expected to result in a Material Adverse Effect.

     

    (c) 
Neither the Obligors nor any Subsidiary has stored any Hazardous Materials on
real properties now or formerly owned, leased or operated by any of them and has
not disposed of any Hazardous Materials in a manner contrary to any
Environmental Laws in each case in any manner that could reasonably be expected
to result in a Material Adverse Effect; and

     

    (d) 
All buildings on all real properties now owned, leased or operated by the
Obligors or any Subsidiary are in compliance with applicable Environmental Laws,
except where failure to comply could not reasonably be expected to result in a
Material Adverse Effect.

     

    Section 5.19. 
Pari Passu
Obligations.  All liabilities of the Company under the Notes
constitute direct, unconditional and general obligations of the Company and rank
in right of payment either pari passu with or senior to all
other unsecured Indebtedness of the Company.  All liabilities of the
Guarantors under the Subsidiary Guaranty constitute direct, unconditional and
general obligations of the Guarantors and rank in right of payment either pari passu with or senior to all
other unsecured Indebtedness of the Guarantors.

     

    
      	
              Section
      6.  

            	
              Representations
      of the Purchasers.

            

    

     

    Section 6.1.  Purchase for
Investment.  Each Purchaser severally represents that it is
purchasing the Notes for its own account or for one or more separate accounts
maintained by such Purchaser or for the account of one or more pension or trust
funds and not with a view to the distribution thereof, provided that the disposition
of such Purchaser’s or their property shall at all times be within such
Purchaser’s or their control.  Each Purchaser understands that the
Notes have not been registered under the Securities Act and may be resold only
if registered pursuant to the provisions of the Securities Act or if an
exemption from registration is available, 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    except
under circumstances where neither such registration nor such an exemption is
required by law, and that no Obligor is required to register the
Notes.

     

    Section 6.2.  Source of
Funds.  Each Purchaser severally represents that at least one
of the following statements is an accurate representation as to each source of
funds (a “Source”) to
be used by such Purchaser to pay the purchase price of the Notes to be purchased
by such Purchaser hereunder:

     

    (a) 
the Source is an “insurance company general account” (as the term is defined in
the United States Department of Labor’s Prohibited Transaction Exemption (“PTE”) 95-60 (issued July 12,
1995)) in respect of which the reserves and liabilities (as defined by the
annual statement for life insurance companies approved by the National
Association of Insurance Commissioners (the “NAIC Annual Statement”)) for
the general account contract(s) held by or on behalf of any employee benefit
plan together with the amount of the reserves and liabilities for the general
account contract(s) held by or on behalf of any other employee benefit plans
maintained by the same employer (or affiliate thereof as defined in PTE 95-60)
or by the same employee organization in the general account do not exceed 10% of
the total reserves and liabilities of the general account (exclusive of separate
account liabilities) plus surplus as set forth in the NAIC Annual Statement
filed with such Purchaser’s state of domicile; or

     

    (b) 
the Source is a separate account that is maintained solely in connection with
such Purchaser’s fixed contractual obligations under which the amounts payable,
or credited, to any employee benefit plan (or its related trust) that has any
interest in such separate account (or to any participant or beneficiary of such
plan (including any annuitant)) are not affected in any manner by the investment
performance of the separate account; or

     

    (c) 
the Source is either (i) an insurance company pooled separate account, within
the meaning of PTE 90-1 or (ii) a bank collective investment fund, within the
meaning of the PTE 91-38 and, except as disclosed by such Purchaser to the
Company in writing pursuant to this clause (c), no employee benefit plan or
group of plans maintained by the same employer or employee organization
beneficially owns more than 10% of all assets allocated to such pooled separate
account or collective investment fund; or

     

    (d) 
the Source constitutes assets of an “investment fund” (within the meaning of
Part V of PTE 84-14 (the “QPAM
Exemption”)) managed by a “qualified professional asset manager” or
“QPAM” (within the meaning of Part V of the QPAM Exemption), no employee benefit
plan’s assets that are included in such investment fund, when combined with the
assets of all other employee benefit plans established or maintained by the same
employer or by an affiliate (within the meaning of Section V(c)(1) of the
QPAM Exemption) of such employer or by the same employee organization and
managed by such QPAM, exceed 20% of the total client assets managed by such
QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are satisfied,
as of the last day
of its most recent calendar quarter, the QPAM does not own a
10% or more interest in the Company and no person controlling or controlled by
the QPAM (applying the definition 

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    of “control” in
Section V(e) of the QPAM
Exemption) owns a 20% or more interest in the Company (or less than 20% but
greater than 10%, if such person exercises control over the management or
policies of the Company by reason of its ownership interest) and (i) the
identity of such QPAM and (ii) the names of all employee benefit plans
whose assets are included in such investment fund have been disclosed to the
Company in writing pursuant to this clause (d); or

     

    (e) 
the Source constitutes assets of a “plan(s)” (within the meaning of
Section IV of PTE 96-23 (the “INHAM Exemption”)) managed
by an “in-house asset manager” or “INHAM” (within the meaning of Part IV of the
INHAM Exemption), the conditions of Part I(a), (g) and (h) of the INHAM
Exemption are satisfied, neither the INHAM nor a person controlling or
controlled by the INHAM (applying the definition of “control” in Section IV(d)
of the INHAM Exemption) owns a 5% or more interest in the Company and (i) the
identity of such INHAM and (ii) the name(s) of the employee benefit plan(s)
whose assets constitute the Source have been disclosed to the Company in writing
pursuant to this clause (e); or

     

    (f) 
the Source is a governmental plan; or

     

    (g) 
the Source is one or more employee benefit plans, or a separate account or trust
fund comprised of one or more employee benefit plans, each of which has been
identified to the Company in writing pursuant to this clause (g);
or

     

    (h) 
the Source does not include assets of any employee benefit plan, other than a
plan exempt from the coverage of ERISA.

     

    As used
in this Section 6.2, the terms “employee benefit plan”,
“governmental plan”, “party in interest” and “separate account” shall have
the respective meanings assigned to such terms in section 3 of
ERISA.

     

    
      	
              Section
      7.  

            	
              Information
      as to Company.

            

    

     

    Section 7.1.  Financial and Business
Information.  Each of the Obligors, as applicable, shall
deliver to each holder of Notes that is an Institutional
Investor:

     

    (a) 
Quarterly Statements
—  within 60 days (or such shorter period as is 15 days greater than
the period applicable to the filing of the Company’s Quarterly Report on
Form 10-Q (the “Form 10-Q”) with the
SEC regardless of whether the Company is subject to the filing requirements
thereof) after the end of each quarterly fiscal period in each fiscal year of
the Company (other than the last quarterly fiscal period of each such fiscal
year), duplicate copies of,

     

    (i) 
a consolidated unaudited balance sheet of the Company and its Subsidiaries as at
the end of such quarter, and

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (ii) 
consolidated statements of income and retained earnings and a statement of cash
flows of the Company and its Subsidiaries, for such quarter and (in the case of
the second and third quarters) for the portion of the fiscal year ending with
such quarter,

     

    setting
forth in each case in comparative form the figures for the corresponding periods
in the previous fiscal year, all in reasonable detail, prepared in accordance
with GAAP applicable to quarterly financial statements generally, and certified
by a Senior Financial Officer as fairly presenting, in all material respects,
the financial position of the companies being reported on and their results of
operations and cash flows, subject to changes resulting from year-end
adjustments, provided
that delivery within the time period specified above of copies of the Company’s
Form 10-Q prepared in compliance with the requirements therefor and filed
with the SEC shall be deemed to satisfy the requirements of this
Section 7.1(a). The documents required pursuant to this Section 7.1(a)
may be delivered electronically and, if so delivered, shall be deemed to have
been delivered on the date on which the Company posts such documents, or
provides a link thereto, on EDGAR or a similar service or on its Website at
http://www.vectren.com; provided that (x) upon
request of any holder, the Company shall deliver paper copies of such documents
to the holder (until a written request to cease delivering paper copies is given
by the holder) and (y) the Company shall notify (which may be by facsimile
or electronic mail) each holder of the posting of any documents;

     

    (b) 
Annual Statements —
within 105 days (or such shorter period as is 15 days greater than the period
applicable to the filing of the Company’s Annual Report on Form 10-K (the
“Form 10-K”) with
the SEC regardless of whether the Company is subject to the filing requirements
thereof) after the end of each fiscal year of the Company, duplicate copies
of

     

    (i) 
a consolidated balance sheet of the Company and its Subsidiaries as at the end
of such year, and

     

    (ii) 
consolidated statements of income, and retained earnings and a statement of cash
flows of the Company and its Subsidiaries for such year,

     

    setting
forth in each case in comparative form the figures for the previous fiscal year,
all in reasonable detail, prepared in accordance with GAAP, and accompanied
by

     

    (A) 
an opinion thereon of independent registered public accountants of recognized
national standing, which opinion shall state that such financial statements
present fairly, in all material respects, the financial position of the
companies being reported upon and their results of operations and cash flows and
have been prepared in conformity with GAAP, and that the examination of such
accountants in connection with such financial statements has been made in
accordance with generally accepted auditing standards, and that such audit
provides a reasonable basis for such opinion in the
circumstances.  The delivery within the time period specified above of
the Company’s Annual Report on Form 

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    10-K for
such fiscal year (together with the Company’s annual report to shareholders, if
any, prepared pursuant to Rule 14a-3 under the Exchange Act) prepared in
accordance with the requirements therefor and filed with the Securities and
Exchange Commission shall be deemed to satisfy the requirements of this
Section 7.1(b).  The documents required pursuant to this
Section 7.1(b) may be delivered electronically and, if so delivered, shall
be deemed to have been delivered on the date on which the Company posts such
documents, or provides a link thereto, on EDGAR or a similar service or on its
Website at http://www.vectren.com; provided that (x) upon
request of any holder, the Company shall deliver paper copies of such documents
to the holder (until a written request to cease delivering paper copies is given
by the holder) and (y) the Company shall notify (which may be by facsimile
or electronic mail) each holder of the posting of any documents;

     

    (c) 
SEC and Other Reports
— promptly upon
their becoming available, one copy of (i) each financial statement, report,
notice or proxy statement sent by any Obligor or any Subsidiary to its principal
lending banks as a whole (excluding information sent to such banks in the
ordinary course of administration of a bank facility, such as information
relating to pricing and borrowing availability) and including a list of any new
obligors under the Credit Agreement or to its public securities holders
generally, and (ii) each regular or periodic report, each registration
statement (without exhibits except as expressly requested by such holder)(except
for registration statements relating to employee benefit plans or dividend
reinvestment plans) and each prospectus and all amendments thereto filed by any
Obligor or any Subsidiary with the SEC; The documents required pursuant to this
Section 7.1(c) may be delivered electronically and, if so delivered, shall be
deemed to have been delivered on the date on which the Company posts such
documents, or provides a link thereto, on EDGAR or a similar service or on its
Website at http://www.vectren.com; provided that (x) upon
request of any holder, the Company shall deliver paper copies of such documents
to the holder (until a written request to cease delivering paper copies is given
by the holder) and (y) the Company shall notify (which may be by facsimile
or electronic mail) each holder of the posting of any documents; 

     

    (d) 
Notice of Default or Event of
Default -- promptly, and in any
event within five days after a Responsible Officer becoming aware of the
existence of any Default or Event of Default or that any Person has given any
notice or taken any action with respect to a claimed default hereunder or that
any Person has given any notice or taken any action with respect to a claimed
default of the type referred to in Section 11(f), a written notice specifying
the nature and period of existence thereof and what action the Obligors are
taking or propose to take with respect thereto;

     

    (e) 
ERISA Matters —
promptly, and in any event within five days after a Responsible Officer becoming
aware of any of the following, a written notice setting forth the nature thereof
and the action, if any, that an Obligor or an ERISA Affiliate proposes to take
with respect thereto:

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (i) 
with respect to any Plan, any reportable event, as defined in
section 4043(c) of ERISA and the regulations thereunder, for which notice
thereof has not been waived pursuant to such regulations as in effect on the
date hereof; or

     

    (ii)  the
taking by the PBGC of steps to institute, or the threatening by the PBGC of the
institution of, proceedings under section 4042 of ERISA for the termination
of, or the appointment of a trustee to administer, any Plan, or the receipt by
an Obligor or any ERISA Affiliate of a notice from a Multi-employer Plan that
such action has been taken by the PBGC with respect to such Multi-employer Plan;
or

     

    (iii) 
any event, transaction or condition that could result in the incurrence of any
liability by an Obligor or any ERISA Affili­ate pursuant to Title I or IV of
ERISA or the penalty or excise tax provisions of the Code relating to employee
benefit plans, or in the imposition of any Lien on any of the rights, properties
or assets of an Obligor or any ERISA Affiliate pursuant to Title I or IV of
ERISA or such penalty or excise tax provisions, if such liability or Lien, taken
together with any other such liabilities or Liens then existing, could
reasonably be expected to have a Material Adverse Effect;

     

    (f) 
Notices from Governmental
Authority — promptly, and in any event within 30 days of receipt thereof,
copies of any notice to any Obligor or any Subsidiary from any Federal or state
Governmental Authority relating to any order, ruling, statute or other law or
regulation that could reasonably be expected to have a Material Adverse Effect;
and

     

    (g) 
Requested Information —
with reasonable promptness, such other data and information relating to the
business, operations, affairs, financial condition, assets or properties of any
Obligor or any Subsidiary (including, but without limitation, actual copies of
the Company’s Form 10-Q and Form 10-K) or relating to the ability of
the Obligors to perform their respective obligations under the Financing
Agreements to which they are a party as from time to time may be reasonably
requested by any such holder of Notes.

     

    Section 7.2.  Officer’s
Certificate.  Each set of financial statements delivered to a
holder of Notes pursuant to Section 7.1(a) or Section 7.1(b) shall be
accompanied by a certificate of a Senior Financial Officer setting forth (which,
in the case of electronic delivery of any such financial statements, shall be by
separate concurrent delivery of such certificate to each holder of
Notes):

     

    (a) 
Covenant Compliance —
the information (including detailed calculations) required in order to establish
whether the Company was in compliance with the requirements of Section 10.5
through Section 10.7, inclusive, during the quarterly or annual period covered
by the statements then being furnished (including with respect to each such
Section, where applicable, the calculations of the maximum or minimum

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    amount,
ratio or percentage, as the case may be, permissible under the terms of such
Sections, and the calculation of the amount, ratio or percentage then in
existence); and

     

    (b) 
Event of Default — a
statement that such Senior Financial Officer has reviewed the relevant terms
hereof and has made, or caused to be made, under his or her supervision, a
review of the transactions and conditions of the Obligors and their Subsidiaries
from the beginning of the quarterly or annual period covered by the statements
then being furnished to the date of the certificate and that such review shall
not have disclosed the existence during such period of any condition or event
that constitutes a Default or an Event of Default or, if any such condition or
event existed or exists (including, without limitation, any such event or
condition resulting from the failure of the Obligors or any Subsidiary to comply
with any Environmental Law), specifying the nature and period of existence
thereof and what action the Obligors shall have taken or proposes to take with
respect thereto.

     

    Section 7.3.  Visitation.  Each
Obligor shall permit the representatives of each holder of Notes that is an
Institutional Investor:

     

    (a) 
No Default — if no
Default or Event of Default then exists, at the expense of such holder and upon
reasonable prior notice to the Obligors, to visit the principal executive office
of the Obligors, to discuss the affairs, finances and accounts of the Obligors
and their Subsidiaries with the Obligors’ officers and (with the consent of the
Obligors, which consent will not be unreasonably withheld) its independent
public accountants, and (with the consent of the Obligors, which consent will
not be unreasonably withheld), to visit the other offices and properties of the
Obligors and their Subsidiaries, all at such reasonable times and as often as
may be reasonably requested in writing; and

     

    (b) 
Default — if a Default
or Event of Default then exists, at the expense of the Obligors to visit and
inspect any of the offices or properties of the Obligors or any Subsidiary, to
examine all their respective books of account, records, reports and other
papers, to make copies and extracts therefrom, and to discuss their respective
affairs, finances and accounts with their respective officers and independent
public accountants (and by this provision the Obligors authorize said
accountants to discuss the affairs, finances and accounts of the Obligors and
their Subsidiaries), all at such times and as often as may be
requested.

     

    
      	
              Section
      8.  

            	
              Payment
      and Prepayment of the Notes.

            

    

     

    Section 8.1.  Maturity.  As
provided therein, the entire unpaid principal balance of the Notes shall be due
and payable on the stated maturity date thereof.

     

    Section 8.2.  Optional Prepayments with Make-Whole
Amount.  The Company may, at its option, upon notice as
provided below, prepay at any time all, or from time to time any part of, the
Notes, in an amount not less than 5% of the aggregate principal amount of the
Notes then outstanding in the case of a partial prepayment at 100% of the
principal amount so prepaid, and 

     

    
      
        
        

      

      
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    the
Make-Whole Amount determined for the prepayment date with respect to such
principal amount.  The Company will give each holder of Notes written
notice of each optional prepayment under this Section 8.2 not less than 30
days and not more than 60 days prior to the date fixed for such
prepayment.  Each such notice shall specify such date (which shall be
a Business Day), the aggregate principal amount of the Notes to be prepaid on
such date, the principal amount of each Note held by such holder to be prepaid
(determined in accordance with Section 8.3), and the interest to be paid on the
prepayment date with respect to such principal amount being prepaid, and shall
be accompanied by a certificate of a Senior Financial Officer as to the
estimated Make-Whole Amount due in connection with such prepayment (calculated
as if the date of such notice were the date of the prepayment), setting forth
the details of such computation.  Two Business Days prior to such
prepayment, the Company shall deliver to each holder of Notes a certificate of a
Senior Financial Officer specifying the calculation of such Make-Whole Amount as
of the specified prepayment date.

     

    Section 8.3.  Allocation of Partial
Prepayments.  In the case of each partial prepayment of the
Notes, the principal amount of the Notes to be prepaid shall be allocated among
all of the Notes at the time outstanding in proportion, as nearly as
practicable, to the respective unpaid principal amounts thereof not theretofore
called for prepayment.

     

    Section 8.4.  Maturity; Surrender,
Etc.  In the case of each prepayment of Notes pursuant to this
Section 8, the principal amount of each Note to be prepaid shall mature and
become due and payable on the date fixed for such prepayment (which shall be a
Business Day), together with interest on such principal amount accrued to such
date and the applicable Make-Whole Amount, if any.  From and after
such date, unless the Company shall fail to pay such principal amount when so
due and payable, together with the interest and Make-Whole Amount, if any, as
aforesaid, interest on such principal amount shall cease to
accrue.  Any Note paid or prepaid in full shall be surrendered to the
Company and cancelled and shall not be reissued, and no Note shall be issued in
lieu of any prepaid principal amount of any Note.

     

    Section 8.5.  Purchase of
Notes.  No Obligor will not and will not permit any Affiliate
to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of
the outstanding Notes except upon the payment or prepayment of the Notes in
accordance with the terms of this Agreement and the Notes.  The
Company will promptly cancel all Notes acquired by any Obligor or any Affiliate
pursuant to any payment or prepayment of Notes pursuant to any provision of this
Agreement and no Notes may be issued in substitution or exchange for any such
Notes.

     

    Section 8.6.  Make-Whole
Amount.  

     

    “Make-Whole Amount” means,
with respect to any Note, an amount equal to the excess, if any, of the
Discounted Value of the Remaining Scheduled Payments with respect to the Called
Principal of such Note over the amount of such Called Principal, provided that the Make-Whole
Amount may in no event be less than zero.  For the purposes of
determining the Make-Whole Amount, the following terms have the following
meanings:

     

    
      
        
        

      

      
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    “Called Principal” means,
with respect to any Note, the principal of such Note that is to be prepaid
pursuant to Section 8.2 or has become or is declared to be immediately due
and payable pursuant to Section 12.1, as the context requires.

     

    “Discounted Value” means,
with respect to the Called Principal of any Note, the amount obtained by
discounting all Remaining Scheduled Payments with respect to such Called
Principal from their respective scheduled due dates to the Settlement Date with
respect to such Called Principal, in accordance with accepted financial practice
and at a discount factor (applied on the same periodic basis as that on which
interest on the Notes is payable) equal to the Reinvestment Yield with respect
to such Called Principal.

     

    “Reinvestment Yield” means,
with respect to the Called Principal of any Note, 0.50% plus the yield to
maturity calculated by using (i) the yields reported, as of 10:00 A.M.
(New York City time) on the second Business Day preceding the Settlement
Date with respect to Called Principal on screen “PX-1” on the Bloomberg
Financial Market Service (or such other display as may replace Page PX1) on
Bloomberg for the most recently issued actively traded on the run U.S. Treasury
securities having a maturity equal to the Remaining Average Life of such Called
Principal as of such Settlement Date, or (ii) if such yields are not
reported as of such time or the yields reported as of such time are not
ascertainable (including by way of interpolation), the Treasury Constant
Maturity Series Yields reported, for the latest day for which such yields have
been so reported as of the second Business Day preceding the Settlement Date,
with respect to such Called Principal, in Federal Reserve Statistical Release
H.15 (519) (or any comparable successor publication) for actively traded
U.S. Treasury securities having a constant maturity equal to the Remaining
Average Life of such Called Principal as of such Settlement Date.

     

    In the
case of each determination under clause (i) or clause (ii), as the
case may be, of the preceding paragraph, such implied yield will be determined,
if necessary, by (a) converting U.S. Treasury bill quotations to bond
equivalent yields in accordance with accepted financial practice and
(b) interpolating linearly between (1) the applicable U.S. Treasury
security with the maturity closest to and greater than such Remaining Average
Life and (2) the applicable U.S. Treasury security with the maturity
closest to and less than such Remaining Average Life.  The
Reinvestment Yield shall be rounded to the number of decimal places as appears
in the interest rate of the applicable Note.

     

    “Remaining Average Life”
means, with respect to any Called Principal, the number of years
(calculated to the nearest one-twelfth year) obtained by dividing (i) such
Called Principal into (ii) the sum of the products obtained by multiplying
(a) the principal component of each Remaining Scheduled Payment with
respect to such Called Principal by (b) the number of years (calculated to
the nearest one-twelfth year) that will elapse between the Settlement Date with
respect to such Called Principal and the scheduled due date of such Remaining
Scheduled Payment.

     

    “Remaining Scheduled Payments”
means, with respect to the Called Principal of any Note, all payments of
such Called Principal and interest thereon that would be due after the
Settlement Date with respect to such Called Principal if no payment of such
Called Principal were made prior to its scheduled due date, provided that if such
Settlement Date is not a date on 

     

    
      
        
        

      

      
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    which
interest payments are due to be made under the terms of the Notes, then the
amount of the next succeeding scheduled interest payment will be reduced by the
amount of interest accrued to such Settlement Date and required to be paid on
such Settlement Date pursuant to Section 8.2 or
Section 12.1.

     

    “Settlement Date” means, with
respect to the Called Principal of any Note, the date on which such Called
Principal is to be prepaid pursuant to Section 8.2 or has become or is
declared to be immediately due and payable pursuant to Section 12.1, as the
context requires.

     

    Section 8.7.  Change in
Control.   

     

    (a) 
Notice of Change in Control or
Control Event. The Company will, within 15 Business Days after any
Responsible Officer has knowledge of the occurrence of any Change in Control or
Control Event, give written notice of such Change in Control or Control Event to
each holder of Notes unless notice in respect of
such Change in Control (or the Change in Control contemplated by such Control
Event) shall have been given pursuant to subparagraph (b) of this
Section 8.7.  If a Change in Control has occurred, such notice
shall contain and constitute an offer to prepay Notes as described in
subparagraph (c) of this Section 8.7 and shall be accompanied by the
certificate described in subparagraph (g) of this Section 8.7.

     

    (b) 
Condition to Company
Action.  The Company will not take any action that consummates
or finalizes a Change in Control unless (i) at least 15 Business Days
prior to such action it shall have given to each holder of Notes written notice
containing and constituting an offer to prepay Notes as described in
subparagraph (c) of this Section 8.7, accompanied by the certificate
described in subparagraph (g) of this Section 8.7, and
(ii) contemporaneously with such action, it prepays all Notes required to
be prepaid in accordance with this Section 8.7.

     

    (c)  Offer to Prepay
Notes.  The offer to prepay Notes contemplated by subparagraphs
(a) and (b) of this Section 8.7 shall be an offer to prepay, in accordance
with and subject to this Section 8.7, all, but not less than all, the Notes
held by each holder (in this case only, “holder” in respect of any
Note registered in the name of a nominee for a disclosed beneficial owner shall
mean such beneficial owner) on a date specified in such offer (the “Proposed Prepayment
Date”).  If such Proposed Prepayment Date is in connection with
an offer contemplated by subparagraph (a) of this Section 8.7, such
date shall be not less than 20 days and not more than 30 days after
the date of such offer (if the Proposed Prepayment Date shall not be specified
in such offer, the Proposed Prepayment Date shall be the 20th day after the date
of such offer).

     

    (d) 
Acceptance;
Rejection.  A holder of Notes may accept or reject the offer to
prepay made pursuant to this Section 8.7 by causing a notice of such
acceptance or rejection to be delivered to the Company at least 5 Business Days
prior to the Proposed Prepayment Date.  A failure by a holder of Notes to
respond to an offer to prepay made pursuant to this Section 8.7 shall be
deemed to constitute a rejection of such offer by such holder.

     

    (e) 
Prepayment.  Prepayment
of the Notes to be prepaid pursuant to this Section 8.7 shall be at 100% of
the principal amount of such Notes, but without the payment of the Make-Whole
Amount, together with interest on such Notes accrued to the date of
prepayment.  The 

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    prepayment
shall be made on the Proposed Prepayment Date except as provided in
subparagraph (f) of this Section 8.7.

     

    (f) 
Deferral Pending Change in
Control.  The obligation of the Company to prepay Notes
pursuant to the offers required by subparagraph (b) and accepted in
accordance with subparagraph (d) of this Section 8.7 is subject to the
occurrence of the Change in Control in respect of which such offers and
acceptances shall have been made.  In the event that such Change in
Control does not occur on the Proposed Prepayment Date in respect thereof, the
prepayment shall be deferred until and shall be made on the date on which such
Change in Control occurs.  The Company shall keep each holder of Notes
reasonably and timely informed of (i) any such deferral of the date of
prepayment, (ii) the date on which such Change in Control and the
prepayment are expected to occur, and (iii) any determination by the
Company that efforts to effect such Change in Control have ceased or been
abandoned (in which case the offers and acceptances made pursuant to this
Section 8.7 in respect of such Change in Control shall be deemed
rescinded).

     

    (g) 
Officer’s Certificate.
Each offer to prepay the Notes pursuant to this Section 8.7 shall be
accompanied by a certificate, executed by a Senior Financial Officer of the
Company and dated the date of such offer, specifying: (i) the Proposed
Prepayment Date; (ii) that such offer is made pursuant to this
Section 8.7; (iii) the principal amount of each Note offered to be
prepaid; (iv) the interest that would be due on each Note offered to be
prepaid, accrued to the Proposed Prepayment Date; (v) that the conditions
of this Section 8.7 have been fulfilled; and (vi) in reasonable
detail, the nature and date or proposed date of the Change in
Control.

     

    (h) 
“Change in Control”
Defined.  “Change in Control” means (i)
the acquisition by any Person, or two or more Persons acting in concert, of
beneficial ownership (within the meaning of Rule 13d-3 of the Securities and
Exchange Commission under the Exchange Act) of 30% or more of the outstanding
shares of voting stock of the Parent, (ii) the occurrence during any period of
twelve (12) consecutive months, commencing before or after the date of this
Agreement, pursuant to which individuals who on the first day of such period
were directors of the Parent (together with any replacement or additional
directors who were nominated or elected by a majority of directors then in
office) cease to constitute a majority of the Board of Directors of the Parent
or (iii) the Parent shall cease to own, free and clear of any Lien, 100% of the
issued and outstanding capital stock of the Company.  

     

    (i) 
“Control Event”
Defined.  “Control Event”
means:

     

    (i) 
the execution of any written agreement which, when fully performed by the
parties thereto, would result in a Change in Control, or

     

    (ii) 
the making of any written offer by any Person, or two or more Persons acting in
concert, to the holders of the common stock of the Parent, which offer, if
accepted by the requisite number of holders, would result in a Change in
Control.

     

    
      
        
        

      

      
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              Section
      9.  

            	
              Affirmative
      Covenants.

            

    

     

    Each of
the Obligors covenants (only to the extent applicable to itself and, if
specified, its Subsidiaries) that from and after the Closing and for so long as
any of the Notes are outstanding:

     

    Section 9.1.  Compliance with
Law.  Without limiting Section 10.4, the Obligors will,
and will cause each of their Subsidiaries to, comply with all laws, ordinances
or governmental rules or regulations to which each of them is subject,
including, without limitation, ERISA, the USA Patriot Act and Environmental
Laws, and will obtain and maintain in effect all licenses, certificates,
permits, franchises and other governmental authorizations necessary to the
ownership of their respective properties or to the conduct of their respective
businesses, in each case to the extent necessary to ensure that non-compliance
with such laws, ordinances or governmental rules or regulations or failures to
obtain or maintain in effect such licenses, certificates, permits, franchises
and other governmental authorizations could not individually or in the
aggregate, reasonably be expected to have a Material Adverse
Effect.

     

    Section 9.2.  Insurance.  The
Obligors will, and will cause each of their Subsidiaries to, maintain, with
financially sound and reputable insurers, insurance with respect to their
respective properties and businesses against such casualties and contingencies,
of such types, on such terms and in such amounts (including deductibles,
co-insurance and self-insurance, if adequate reserves are maintained with
respect thereto) as is customary in the case of entities of established
reputations engaged in the same or a similar business and similarly
situated.

     

    Section 9.3.  Maintenance of
Properties.  The Obligors will, and will cause each of their
Subsidiaries to, maintain and keep, or cause to be maintained and kept, their
respective properties in good repair, working order and condition (other than
ordinary wear and tear), so that the business carried on in connection therewith
may be properly conducted at all times, provided that this Section
shall not prevent the Obligors or any Subsidiary from discontinuing the
operation and the maintenance of any of its properties if such discontinuance is
desirable in the conduct of its business and the Obligors have concluded that
such discontinuance could not individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

     

    Section 9.4.  Payment of Taxes and
Claims.  The Obligors will, and will cause each of their
Subsidiaries to, file all tax returns required to be filed in any jurisdiction
and to pay and discharge all taxes shown to be due and payable on such returns
and all other taxes, assessments, governmental charges, or levies imposed on
them or any of their properties, assets, income or franchises, to the extent the
same have become due and payable and before they have become delinquent and all
claims for which sums have become due and payable that have or might become a
Lien on properties or assets of the Obligors or any Subsidiary, provided that no Obligors nor
any Subsidiary need pay any such tax, assessment, charge, levy or claim if
(i) the amount, applicability or validity thereof is contested by the
Obligors or such Subsidiary on a timely basis in good faith and in appropriate
proceedings, and the Obligors or a Subsidiary has established adequate reserves
therefor in accordance with GAAP on the books of the Obligors or such Subsidiary
or (ii) the nonpayment of all such taxes, assessments, charges, levies and
claims in the aggregate could not reasonably be expected to have a Material
Adverse Effect. 

     

    
      
        
        

      

      
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    Section 9.5.  Corporate Existence,
Etc.  Subject to Section 10.2, the Obligors will at all
times preserve and keep in full force and effect their corporate or limited
liability company existence.  Subject to Sections 10.2 and 10.7,
the Obligors will at all times preserve and keep in full force and effect the
corporate existence of each of their Subsidiaries (unless merged into the
Obligors or a Wholly-Owned Subsidiary) and all rights and franchises of the
Obligors and their Subsidiaries unless, in the good faith judgment of the
Obligors, the termination of or failure to preserve and keep in full force and
effect such corporate or limited liability company existence, right or franchise
could not, individually or in the aggregate, have a Material Adverse Effect.

     

    Section 9.6.  Books and
Records.  The Obligors will, and will cause each of their
Subsidiaries to, maintain proper books of record and account in conformity with
GAAP and all applicable requirements of any Governmental Authority having legal
or regulatory jurisdiction over the Obligors or such Subsidiary, as the case may
be.

     

    Section 9.7.  Ranking.  The
Company will ensure that, at all times, all liabilities of the Company under the
Notes will rank in right of payment either pari passu with or senior to
the obligations under the Credit Agreement and with all other unsecured
Indebtedness of the Company.  The Guarantors will ensure that, at all
times, all liabilities of the Guarantors under the Subsidiary Guaranty will rank
in right of payment either pari passu with or senior to
all other unsecured Indebtedness of the Guarantors.

     

    Section 9.8.  Conduct of
Business.  The Company and each Guarantor will, and will cause
each of their respective Subsidiaries to, carry on and conduct its business in
substantially the same manner and in substantially the same or reasonably
related fields of enterprise as it is presently conducted and do all things
necessary to remain duly incorporated or organized, validly existing and (to the
extent such concept applies to such entity) in good standing as a domestic
corporation, partnership or limited liability company in its jurisdiction of
incorporation or organization, as the case may be, and maintain all requisite
authority to conduct its business in each jurisdiction in which its business is
conducted.

     

    Section 9.9.  Guarantors.  (a) The Company will
cause any Subsidiary which becomes obligated for, or otherwise guarantees,
Indebtedness in respect of the Credit Agreement, to deliver to each of the
holders of the Notes (concurrently with the incurrence of any such obligation)
the following items:

     

    (i) 
a duly executed Joinder to the Subsidiary Guaranty in the form attached as
Exhibit 9.9;

     

    (ii) 
a certificate signed by an authorized Responsible Officer of such Subsidiary
making representations and warranties to the effect of those contained in
Section 5 which the Guarantors provided at Closing with respect to such
Subsidiary and the Subsidiary Guaranty, as applicable; and

     

    (iii) 
an opinion of counsel (who may be in-house counsel for the Company) addressed to
each of the holders of the Notes satisfactory to the Required Holders, to the
effect that the Subsidiary Guaranty by such Person has been duly authorized,
executed 

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    and
delivered and that the Subsidiary Guaranty constitutes the legal, valid and
binding contract and agreement of such Person enforceable in accordance with its
terms, except as an enforcement of such terms may be limited by bankruptcy,
insolvency, fraudulent conveyance and similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles.

     

    (b) 
The holders of the Notes agree to discharge and release any Guarantor from the
Subsidiary Guaranty upon the written request of the Company, provided that (i) such
Guarantor has been released and discharged (or will be released and discharged
concurrently with the release of such Guarantor under the Subsidiary Guaranty)
as an obligor and guarantor under and in respect of the Credit Agreement and the
Company so certifies to the holders of the Notes in a certificate of a
Responsible Officer, (ii) at the time of such release and discharge, the
Company shall deliver a certificate of a Responsible Officer to the holders of
the Notes stating that no Default or Event of Default exists, and (iii) if
any fee or other form of consideration (including but not limited to the
granting of a security interest in collateral) is given to any holder of
Indebtedness of the Company for the purpose of such release, holders of the
Notes shall receive equivalent consideration.  

     

    
      	
              Section
      10.  

            	
              Negative
      Covenants.

            

    

     

    Each of
the Obligors covenants (only to the extent applicable to itself and, if
specified, its Subsidiaries) that from and after the Closing and for so long as
any of the Notes are outstanding:

     

    Section 10.1. 
Transactions with
Affiliates.  The Obligors will not and will not permit any
Subsidiary to enter into directly or indirectly any transaction or group of
related transactions (including without limitation the purchase, lease, sale or
exchange of properties of any kind or the rendering of any service) with any
Affiliate (other than the Company or another Subsidiary), except in the ordinary
course and pursuant to the reasonable requirements of an Obligor’s or such
Subsidiary’s business and upon fair and reasonable terms no less favorable to an
Obligor or such Subsidiary than would be obtainable in a comparable arm’s-length
transaction with a Person not an Affiliate; provided that nothing in this
Section 10.1 shall limit (i) the Company, in the ordinary course of its
business, advancing funds to other Subsidiaries of the Parent or (ii) the
payment of dividends, in the ordinary course, by the Company to the
Parent.

     

    Section 10.2. 
Merger, Consolidation,
Etc.  No Obligor will consolidate with or merge with any other
Person or convey, transfer or lease all or substantially all of its assets in a
single transaction or series of transactions to any Person unless:

     

    (a) 
the successor formed by such consolidation or the survivor of such merger or the
Person that acquires by conveyance, transfer or lease all or substantially all
of the assets of such Obligor as an entirety, as the case may be (the “Successor Corporation”),
shall be a solvent corporation or limited liability company organized and
existing under the laws of the United States or any State thereof (including the
District of Columbia), and, if such Obligor is not the Successor Corporation,
(i) such Successor Corporation shall have executed and delivered to each holder
of any Notes its assumption of the due and punctual performance and observance
of each covenant and condition of this 

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    Agreement
and the Subsidiary Guaranty in the case of a Guarantor and this Agreement and
the Notes in the case of the Company, in an agreement or instrument that is
satisfactory in form and substance to the Required Holders, (ii) such Successor
Corporation shall have caused to be delivered to each holder of any Notes an
opinion of nationally recognized independent counsel, or other independent
counsel reasonably satisfactory to the Required Holders, to the effect that all
agreements or instruments effecting such assumption are enforceable in
accordance with their terms and comply with the terms hereof and (iii) such
Successor Corporation shall obtain a current Moody’s Rating and current S&P
Rating of the Successor Corporation in effect immediately after giving effect to
such merger, consolidation or conveyance, transfer or lease of assets which
ratings shall not be less than “Baa3” (in the case of the Moody’s Rating) and
“BBB-“ (in the case of the S&P Rating); provided that if Moody’s or S&P
is no longer in existence, the Successor Corporation shall receive a comparable
rating from another national rating agency which is reasonably satisfactory to
the Required Holders; and

     

    (b) 
immediately before and immediately after giving effect to such transaction, no
Default or Event of Default shall have occurred and be continuing.

     

    Notwithstanding
the foregoing, if an Obligor consolidates with or merges with or conveys,
transfers or leases all or substantially all of its assets to another Obligor,
the provisions of Section 10.2(a)(iii) shall not apply.  No such
conveyance, transfer or lease of all or substantially all of the assets of an
Obligor shall have the effect of releasing such Obligor or Successor Corporation
that shall theretofore have become such in the manner prescribed in this
Section 10.2 from its liability under the Financing
Agreements.

     

    The
provisions of this Section 10.2 shall not limit the rights of the holders of
Notes under Section 8.7.

     

    Section 10.3. 
Intentionally
Omitted. 

     

    Section 10.4. 
Terrorism Sanctions
Regulations.  The Company will not and will not permit any
Subsidiary to (a) become a Person described or designated in the Specially
Designated Nationals and Blocked Persons List of the Office of Foreign Assets
Control or in Section 1 of the Anti-Terrorism Order or (b) engage in
any dealings or transactions with any such Person.

     

    Section 10.5. 
Liens.No Obligor
will, nor will it permit any Subsidiary to, create, assume, incur or suffer to
exist any Lien upon or with respect to any Property of any Obligor or any of
their Subsidiaries except:

     

    (a) 
Liens for taxes, assessments or governmental charges or levies on its Property
if the same shall not at the time be delinquent or thereafter can be paid
without penalty, or are being contested in good faith and by appropriate
proceedings and for which adequate reserves in accordance with GAAP shall have
been set aside on its books;

     

    
      
        
        

      

      
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    (b) 
Liens imposed by law, such as carriers’, warehousemen’s and mechanics’ liens and
other similar liens arising in the ordinary course of business which secure
payment of obligations not more than 60 days past due, and such other carriers’,
warehousemen’s, mechanics’ or other similar liens that are being contested in
good faith and by appropriate proceedings and for which adequate reserves in
accordance with GAAP shall have been set aside on its books;

     

    (c) 
Liens arising out of pledges or deposits under worker’s compensation laws,
unemployment insurance, old age pensions, or other social security or retirement
benefits, or similar legislation;

     

    (d) 
utility easements, building restrictions and such other encumbrances or charges
against real Property as are of a nature generally existing with respect to
properties of a similar character and which do not in any material way affect
the marketability of the same or interfere with the use thereof in the business
of the Company or its Subsidiaries;

     

    (e) 
Liens under the Mortgage Indenture on the Property of SIGECO that is subject to
the Mortgage Indenture (without giving effect to any amendments thereto after
the date hereof that would expand the description of the collateral subject to
the lien thereof);

     

    (f) 
Liens securing Indebtedness of a Person on the date the Person becomes a
Subsidiary of the Company or Liens on assets securing Indebtedness assumed by
the Company or any Subsidiary when such assets are acquired by the Company or a
Subsidiary, including extensions, renewals or replacements of any such Liens
(without any increase in the amount thereof but including the full amount of any
existing commitments to provide credit that were undrawn at such time of such
extension, renewal or replacement), provided, however, that (i) such Liens
were not created in contemplation of such Person becoming a Subsidiary or the
acquisition of such assets and (ii) such Liens may not extend to any other
Property owned by the Company or any of its Subsidiaries,

     

    (g) 
Liens incurred after the date of Closing given to secure the payment of the
purchase price incurred in connection with the acquisition, construction or
improvement of Property (other than accounts receivable or inventory) useful and
intended to be used in carrying on the business of the Company and its
Subsidiaries, including Liens existing on such Property at the time of
acquisition or construction thereof or Liens incurred within 360 days of such
acquisition or completion of such construction or improvement, provided that (i) the
Lien shall attach solely to the Property acquired, purchased, constructed or
improved; (ii) at the time of acquisition, construction or improvement of
such Property (or, in the case of any Lien incurred within three hundred sixty
(360) days of such acquisition or completion of such construction or
improvement, at the time of the incurrence of the Indebtedness secured by such
Lien), the aggregate amount remaining unpaid on all Indebtedness secured by
Liens on such Property, whether or not assumed by the Company or a Subsidiary,
shall not exceed the lesser of (y) the cost of such acquisition,
construction or improvement or (z) the Fair Market Value of such Property

     

    
      
        
        

      

      
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    (as
determined in good faith by one or more officers of the Company to whom
authority to enter into the transaction has been delegated by the board of
directors of the Company); and (iii) at the time of such incurrence and
after giving effect thereto, no Default or Event of Default would exist;
or

     

    (h) 
in addition to Liens covered by (a)–(g) above, Liens securing Indebtedness not
exceeding 15% of Consolidated Net Worth in the aggregate outstanding at any
time;

     

    provided that no such Liens
may secure Indebtedness under the Credit Agreement unless the Indebtedness is
secured on an equal and ratable basis with the Notes pursuant to a written
agreement that is in scope, form and substance satisfactory to the Required
Holders.

     

    Section 10.6.  Leverage
Ratio.  The Company will not permit, determined as of the end
of each of its fiscal quarters, the ratio of Consolidated Indebtedness to Total
Capitalization to exceed the Maximum Ratio. 

     

    Section 10.7.  Sale of
Assets.  Other than in connection with a conveyance, transfer
or lease of all or substantially all of the assets of the Company made in
compliance with the provisions of Section 10.2, the Company will not, nor will
it permit any Subsidiary to, lease, sell or otherwise dispose of its Property to
any other Person, except:

     

    (i) 
Sales of inventory in the ordinary course of business.

     

    (ii) 
Leases, sales or other dispositions of its Property that, together with all
other Property of the Company and its Subsidiaries previously leased, sold or
disposed of (other than inventory in the ordinary course of business) as
permitted by this Section during the twelve-month period ending with the month
in which any such lease, sale or other disposition occurs, do not constitute all
or substantially all of the Property of the Company and its
Subsidiaries.

     

    
      	
              Section
      11.  

            	
              Events
      of Default.

            

    

     

    An “Event of Default” shall
exist if any of the following conditions or events shall occur and be
continu­ing:

     

    (a) 
any Obligor defaults in the payment of any principal or Make-Whole Amount, if
any, on any Note or under the Subsidiary Guaranty when the same becomes due and
payable, whether at maturity or at a date fixed for prepayment or by declaration
or otherwise; or

     

    (b) 
any Obligor defaults in the payment of any interest on any Note or under the
Subsidiary Guaranty for more than five Business Days after the same becomes due
and payable; or

     

    
      
        
        

      

      
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    (c) 
any Obligor defaults in the performance of or compliance with any term contained
in Section 7.1(d) or Sections 10.2, 10.5, 10.6 or 10.7 or by any Guarantor
in the performance of the Subsidiary Guaranty; or

     

    (d) 
any Obligor defaults in the performance of or compliance with any term
contained herein (other than those referred to in Sections 11(a), (b) and
(c)) and such default is not remedied within 30 days after the earlier of
(i) a Responsible Officer obtaining actual knowledge of such default and
(ii) any Obligor receiving written notice of such default from any holder
of a Note (any such written notice to be identified as a “notice of default” and
to refer specifically to this Section 11(d)); or

     

    (e) 
any representation or warranty made in writing by or on behalf of any Obligor or
by any officer of any Obligor in this Agreement or in any writing furnished in
connection with the transactions contemplated hereby proves to have been false
or incorrect in any material respect on the date as of which made;
or

     

    (f) 
failure of any Obligor or any of its Subsidiaries to pay when due (whether at
stated maturity, on the date fixed for prepayment, by acceleration or otherwise)
any Indebtedness (other than Non-Recourse Indebtedness) aggregating in excess of
$75,000,000 (“Material
Indebtedness”); or the default by any Obligor or any of its Subsidiaries
in the performance (beyond the applicable grace period with respect thereto, if
any) of any term, provision or condition contained in any agreement under which
any such Material Indebtedness (other than Non-Recourse Indebtedness) was
created or is governed, or any other event shall occur or condition exist, the
effect of which default or event is to cause, or to permit the holder or holders
of such Material Indebtedness (other than Non-Recourse Indebtedness) to cause,
such Material Indebtedness to become due prior to its stated maturity (other
than pursuant to customary “due-on-sale” or similar clauses, or as a result of
the occurrence of a change in control which would also grant the holders of
Notes the right to require prepayment under Section 8.7 hereof); or any
Material Indebtedness (other than Non-Recourse Indebtedness) of any Obligor or
any of its Subsidiaries shall be declared to be due and payable or required to
be prepaid or repurchased (other than by a regularly scheduled payment or
pursuant to customary “due-on-sale” or similar clauses, or as a result of the
occurrence of a change in control which would also grant the holders of Notes
the right to require prepayment under Section 8.7 hereof), prior to the
stated maturity thereof; or any Obligor or any of its Subsidiaries shall not
pay, or admit in writing its inability to pay, its debts generally as they
become due; or

     

    (g) 
any Obligor or any Subsidiary (i) is generally not paying, or admits in
writing its inability to pay, its debts as they become due, (ii) files, or
consents by answer or otherwise to the filing against it of, a petition for
relief or reorganization or arrangement or any other petition in bankruptcy, for
liquidation or to take advantage of any bankruptcy, insolvency, reorganization,
moratorium or other similar law of any jurisdiction, (iii) makes an
assignment for the benefit of its creditors, (iv) consents to the
appointment of a custodian, receiver, trustee or other officer with similar
powers with respect to it or with respect to any substantial part of its
Property, (v) is adjudicated as 

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    insolvent
or to be liquidated, or (vi) takes corporate action for the purpose of any
of the foregoing; or

     

    (h) 
a court or Governmental Authority of competent jurisdiction enters an order
appointing, without consent by any Obligor or any of its Subsidiaries, a
custodian, receiver, trustee or other officer with similar powers with respect
to it or with respect to any substantial part of its Property, or constituting
an order for relief or approving a petition for relief or reorganization or any
other petition in bankruptcy or for liquidation or to take advantage of any
bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution,
winding-up or liquidation of any Obligor or any of its Subsidiaries, or any such
petition shall be filed against any Obligor or any of its Subsidiaries and such
petition shall not be dismissed within 60 days; or

     

    (i) 
a final judgment or judgments for the payment of money aggregating in excess of
$75,000,000 are rendered against one or more of any Obligor or its Subsidiaries
and which judgments are not, within 60 days after entry thereof, bonded,
discharged or stayed pending appeal, or are not discharged within 60 days after
the expiration of such stay; or

     

    (j) 
if (i) any Plan shall fail to satisfy the minimum funding standards of
ERISA or the Code for any plan year or part thereof or a waiver of such
standards or extension of any amortization period is sought or granted under
section 412 of the Code, (ii) a notice of intent to terminate any Plan
shall have been or is reasonably expected to be filed with the PBGC or the PBGC
shall have instituted proceedings under ERISA section 4042 to terminate or
appoint a trustee to administer any Plan or the PBGC shall have notified any
Obligor or any ERISA Affiliate that a Plan may become a subject of any such
proceedings, (iii) the aggregate “amount of unfunded benefit liabilities”
(within the meaning of section 4001(a)(18) of ERISA) under all Plans, determined
in accordance with Title IV of ERISA, shall not be in an amount which could
reasonably be expected to have a Material Adverse Effect, (iv) any Obligor
or any ERISA Affiliate shall have incurred or is reasonably expected to incur
any liability pursuant to Title I or IV of ERISA or the penalty or excise tax
provisions of the Code relating to employee benefit plans, (v) any Obligor
or any ERISA Affiliate withdraws from any Multiemployer Plan, or (vi) any
Obligor or any Subsidiary establishes or amends any employee welfare benefit
plan that provides post-employment welfare benefits in a manner that would
increase the liability of any Obligor or any Subsidiary thereunder; and any such
event or events described in clauses (i) through (vi) above, either individually
or together with any other such event or events, could reasonably be expected to
have a Material Adverse Effect.; or

     

    (k) 
the obligations of any Guarantor under the Subsidiary Guaranty shall fail to
remain in full force or effect or any action shall be taken to discontinue or to
assert the invalidity or unenforceability of any such obligations or any
Guarantor shall deny it has any further liability under the Subsidiary Guaranty
or give notice to that effect.

     

    As used
in Section 11(j), the terms “employee benefit plan” and
“employee welfare benefit
plan” shall have the respec­tive meanings as­signed to such terms
in section 3 of ERISA.

     

    
      
        
        

      

      
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              Section
      12.  

            	
              Remedies
      on Default, Etc.

            

    

     

    Section 12.1. 
Acceleration.  (a)  If
an Event of Default with respect to an Obligor described in Section 11(g)
or (h) (other than an Event of Default described in clause (i) of
Section 11(g) or described in clause (vi) of Section 11(g) by virtue
of the fact that such clause encompasses clause (i) of Section 11(g)) has
occurred, all the Notes then outstanding shall automatically become immediately
due and payable.

     

    (b) 
If any other Event of Default has occurred and is continuing, any holder or
holders of more than 51% in principal amount of the Notes at the time
outstanding may at any time at its or their option, by notice or notices to the
Company, declare all the Notes then outstanding to be immediately due and
payable.

     

    (c) 
If any Event of Default described in Section 11(a) or (b) has occurred and
is continuing, any holder or holders of Notes at the time outstanding affected
by such Event of Default may at any time, at its or their option, by notice or
notices to the Company, declare all the Notes held by it or them to be
immediately due and payable.

     

    Upon any
Notes becoming due and payable under this Section 12.1, whether
automatically or by declaration, such Notes will forthwith mature and the entire
unpaid principal amount of such Notes, plus (x) all accrued and unpaid interest
thereon (including, but not limited to, interest accrued thereon at the Default
Rate) and (y) the Make-Whole Amount determined in respect of such principal
amount (to the full extent permitted by applicable law), shall all be
immediately due and payable, in each and every case without presentment, demand,
protest or further notice, all of which are hereby waived.  The
Company acknowledges, and the parties hereto agree, that each holder of a Note
has the right to maintain its investment in the Notes free from repayment by the
Company (except as herein specifically provided for) and that the provision for
payment of a Make-Whole Amount by the Company in the event that the Notes are
prepaid or are accelerated as a result of an Event of Default, is intended to
provide compensation for the deprivation of such right under such
circumstances.

     

    Section 12.2. 
Other
Remedies.  If any Default or Event of Default has occurred and
is continuing, and irrespective of whether any Notes have become or have been
declared immediately due and payable under Section 12.1, the holder of any Note
at the time outstanding may proceed to protect and enforce the rights of such
holder by an action at law, suit in equity or other appropriate proceeding,
whether for the specific performance of any agreement contained in any Financing
Agreement, or for an injunction against a violation of any of the terms hereof
or thereof, or in aid of the exercise of any power granted hereby or thereby or
by law or otherwise.

     

    Section 12.3. 
Rescission.  At any
time after any Notes have been declared due and payable pursuant to Section
12.1(b) or (c), the holders of not less than 51% in principal amount of the
Notes then outstanding, by written notice to the Company, may rescind and annul
any such declaration and its consequences if (a) the Company has paid all
overdue interest on the Notes, all principal of and Make-Whole Amount, if any,
on any Notes that are due and payable and are unpaid other than by reason of
such declaration, and all interest on such overdue principal and Make-Whole
Amount, if any, and (to the extent permitted by applicable law) any overdue

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    interest
in respect of the Notes, at the Default Rate, (b) no Obligor nor any other
Person shall have paid any amounts which have become due solely by reason of
such declaration, (c) all Events of Default and Defaults, other than
non-payment of amounts that have become due solely by reason of such
declaration, have been cured or have been waived pursuant to Section 17,
and (d) no judgment or decree has been entered for the payment of any
monies due pursuant to any Financing Agreement.  No rescission and
annulment under this Section 12.3 will extend to or affect any subsequent Event
of Default or Default or impair any right consequent thereon.

     

    Section 12.4.  No Waivers or Election of Remedies,
Expenses, Etc.  No course of dealing and no delay on the part
of any holder of any Note in exercising any right, power or remedy shall operate
as a waiver thereof or otherwise prejudice such holder’s rights, powers or
remedies.  No right, power or remedy conferred by any Financing
Agreement upon any holder thereof shall be exclusive of any other right, power
or remedy referred to herein or therein or now or hereafter available at law, in
equity, by statute or otherwise.  Without limiting the obligations of
the Company under Section 15, the Company will pay to the holder of each Note on
demand such further amount as shall be sufficient to cover all costs and
expenses of such holder incurred in any enforcement or collection under this
Section 12, including, without limitation, reasonable attorneys’ fees, expenses
and disbursements.

     

    
      	
              Section
      13.  

            	
              Registration;
      Exchange; Substitution of Notes.

            

    

     

    Section 13.1.  Registration of
Notes.  The Company shall keep at its principal executive
office a register for the registration and registration of transfers of
Notes.  The name and address of each holder of one or more Notes, each
transfer thereof and the name and address of each transferee of one or more
Notes shall be registered in such register.  Prior to due presentment
for registration of transfer, the Person in whose name any Note shall be
registered shall be deemed and treated as the owner and holder thereof for all
purposes hereof, and the Company shall not be affected by any notice or
knowledge to the contrary.  The Company shall give to any holder of a
Note that is an Institutional Investor promptly upon request therefor, a
complete and correct copy of the names and addresses of all registered holders
of Notes.

     

    Section 13.2.  Transfer and Exchange of
Notes.  Upon surrender of any Note to the Company at the
address and to the attention of the designated officer (all as specified in
Section 19(iii)), for registration of transfer or exchange (and in the case
of a surrender for registration of transfer accompanied by a written instrument
of transfer duly executed by the registered holder of such Note or such holder’s
attorney duly authorized in writing and accompanied by the relevant name,
address and other information for notices of each transferee of such Note or
part thereof), within ten Business Days thereafter, the Company shall execute
and deliver, at the Company’s expense (except as provided below), one or more
new Notes (as requested by the holder thereof) in exchange therefor, in an
aggregate principal amount equal to the unpaid principal amount of the
surrendered Note.  Each such new Note shall be payable to such Person
as such holder may request and shall be substantially in the form of Exhibit
1.  Each such new Note shall be dated and bear interest from the date
to which interest shall have been paid on the surrendered Note or dated the date
of the surrendered Note if no interest shall have been paid
thereon.  The Company may require payment of a sum sufficient to cover
any stamp tax or governmental charge imposed in respect of any such transfer of
Notes.  Notes shall not be 

     

    
      
        
        

      

      
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    transferred
in denominations of less than $1,000,000 or in any amount in excess thereof
which is not an integral multiple of $250,000, provided that if necessary to
enable the registration of transfer by a holder of its entire holding of Notes,
one Note may be in a denomination of less than $1,000,000 and in an amount which
is not an integral of $250,000.  Any transferee, by its acceptance of
a Note registered in its name (or the name of its nominee), shall be deemed to
have made the representation set forth in Section 6.2.

     

    Section 13.3. 
Replacement of
Notes.  Upon receipt by the Company at the address and to the
attention of the designated officer (all as specified in Section 19(iii))
of evidence reasonably satisfactory to it of the ownership of and the loss,
theft, destruction or mutilation of any Note (which evidence shall be, in the
case of an Institutional Investor, notice from such Institutional Investor of
such ownership and such loss, theft, destruction or mutilation),
and

     

    (a) 
in the case of loss, theft or destruction, of indemnity reasonably satisfactory
to it (provided that if the holder of such Note is, or is a nominee for, an
original Purchaser or another holder of a Note with a minimum net worth of at
least $50,000,000 in excess of the outstanding principal amount of such Note or
a Qualified Institutional Buyer, such Person’s own unsecured agreement of
indemnity shall be deemed to be satisfactory), or

     

    (b) 
in the case of mutilation, upon surrender and cancellation thereof,

     

    within
ten Business Days thereafter, the Company at its own expense shall execute and
deliver, in lieu thereof, a new Note, dated and bearing interest from the date
to which interest shall have been paid on such lost, stolen, destroyed or
mutilated Note or dated the date of such lost, stolen, destroyed or mutilated
Note if no interest shall have been paid thereon.

     

    Section 13.4. 
Legend.  Each Note
issued on the date of the Closing and each Note issued pursuant to this Section
13 shall bear a legend substantially as follows (until such time as the Company
shall reasonably agree that such legend is no longer necessary or
advisable):

     

    “This
Note has not been registered under the United States Securities Act of 1933, as
amended, or any other applicable securities laws and, accordingly, may not be
sold or otherwise transferred unless registered or exempt from registration
under said act or such other laws.”

     

    
      	
              Section
      14.  

            	
              Payments
      on Notes.

            

    

     

    Section 14.1.  Place of
Payment.  Subject to Section 14.2, payments of principal,
Make-Whole Amount, if any, and interest becoming due and payable on the Notes
shall be made in New York, New York at the principal office of Bank of America,
N.A. in such jurisdiction.  The Company may at any time, by notice to
each holder of a Note, change the place of payment of the Notes so long as such
place of payment shall be either the principal office of the Company in such
jurisdiction or the principal office of a bank or trust company in such
jurisdiction.

     

    
      
        
        

      

      
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    Section 14.2.  Home Office
Payment.  So long as any Purchaser or its nominee shall be the
holder of any Note, and notwithstanding anything contained in Section 14.1
or in such Note to the contrary, the Company will pay all sums becoming due on
such Note for principal, Make-Whole Amount, if any, and interest by the method
and at the address specified for such purpose below such Purchaser’s name in
Schedule A, or by such other method or at such other address as such Purchaser
shall have from time to time specified to the Company in writing for such
purpose, without the presentation or surrender of such Note or the making of any
notation thereon, except that upon written request of the Company made
concurrently with or reasonably promptly after payment or prepayment in full of
any Note, such Purchaser shall surrender such Note for cancellation, reasonably
promptly after any such request, to the Company at its principal executive
office or at the place of payment most recently designated by the Company
pursuant to Section 14.1.  Prior to any sale or other disposition of
any Note held by a Purchaser or its nominee, such Purchaser will, at its
election, either endorse thereon the amount of principal paid thereon and the
last date to which interest has been paid thereon or surrender such Note to the
Company in exchange for a new Note or Notes pursuant to Section
13.2.  The Company will afford the benefits of this Section 14.2 to
any Institutional Investor that is the direct or indirect transferee of any Note
purchased by a Purchaser under this Agreement and that has made the same
agreement relating to such Note as the Purchasers have made in this Section
14.2.

     

    
      	
              Section
      15.  

            	
              Expenses,
      Etc.

            

    

     

    Section 15.1.  Transaction
Expenses.  Whether or not the transactions contemplated hereby
are consummated, the Company will pay all costs and expenses (including
reasonable attorneys’ fees of a special counsel and, if reasonably required by
the Required Holders, local or other counsel) incurred by the Purchasers and
each other holder of a Note in connection with such transactions and in
connection with any amendments, waivers or consents under or in respect of this
Agreement or the Notes (whether or not such amendment, waiver or consent becomes
effective), including, without limitation: (a) the costs and expenses incurred
in enforcing or defending (or determining whether or how to enforce or defend)
any rights under this Agreement or the Notes or in responding to any subpoena or
other legal process or informal investigative demand issued in connection with
this Agreement or the Notes, or by reason of being a holder of any Note, (b) the
costs and expenses, including financial advisors’ fees, incurred in connection
with the insolvency or bankruptcy of the Company or any Subsidiary or in
connection with any work-out or restructuring of the transactions contemplated
hereby and by the Notes and (c) the costs and expenses incurred in connection
with the initial filing of this Agreement and all related documents and
financial information with the SVO provided, that such costs and
expenses under this clause (c) shall not exceed $5,000.  The
Company will pay, and will save each Purchaser and each other holder of a Note
harmless from, all claims in respect of any fees, costs or expenses, if any, of
brokers and finders (other than those, if any, retained by a Purchaser or other
holder in connection with its purchase of the Notes).

     

    Section 15.2.  Survival.  The
obligations of the Obligors under this Section 15 will survive the payment or
transfer of any Note, the enforcement, amendment or waiver of any provision of
any Financing Agreement, and the termination of any Financing
Agreement.

     

    
      
        
        

      

      
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              Section
      16.  

            	
              Survival
      of Representations and Warranties; Entire
  Agreement.

            

    

     

    All
representations and warranties contained herein shall survive the execution and
delivery of the Financing Agreements, the purchase or transfer by any Purchaser
of any Note or portion thereof or interest therein and the payment of any Note,
and may be relied upon by any subsequent holder of a Note, regardless of any
investigation made at any time by or on behalf of such Purchaser or any other
holder of a Note.  All statements contained in any certificate or
other instrument delivered by or on behalf of any Obligor pursuant to any
Financing Agreement  shall be deemed representations and warranties of
such Obligor under this Agreement.  Subject to the preceding sentence,
the Financing Agreements embody the entire agreement and understanding between
each Purchaser and the Obligors and supersede all prior agreements and
understandings relating to the subject matter hereof.

     

    
      	
              Section 17. 
      

            	
              Amendment
      and Waiver.

            

    

     

    Section 17.1. 
Requirements.  This
Agreement and the Notes may be amended, and the observance of any term hereof or
of the Notes may be waived (either retroactively or prospectively), with (and
only with) the written consent of the Obligors and the Required Holders, except
that (a) no amendment or waiver of any of the provisions of Section 1, 2, 3, 4,
5, 6 or 21 hereof, or any defined term (as it is used therein), will be
effective as to any Purchaser unless consented to by such Purchaser in writing,
and (b) no such amendment or waiver may, without the written consent of the
holder of each Note at the time outstanding affected thereby, (i) subject to the
provisions of Section 12 relating to acceleration or rescission, change the
amount or time of any prepayment or payment of principal of, or reduce the rate
or change the time of payment or method of computation of interest or of the
Make-Whole Amount on, the Notes, (ii) change the percentage of the principal
amount of the Notes the holders of which are required to consent to any such
amendment or waiver, or (iii) amend any of Sections 8, 11(a), 11(b), 12, 17 or
21.

     

    Section 17.2. 
Solicitation of Holders
of Notes.

     

    (a) 
Solicitation. The
Obligors will provide each holder of the Notes (irrespective of the amount of
Notes then owned by it) with sufficient information, sufficiently far in advance
of the date a decision is required, to enable such holder to make an informed
and considered decision with respect to any proposed amendment, waiver or
consent in respect of any of the provisions hereof or of the
Notes.  The Obligors will deliver executed or true and correct copies
of each amendment, waiver or consent effected pursuant to the provisions of this
Section 17 to each holder of outstanding Notes promptly following the date on
which it is executed and delivered by, or receives the consent or approval of,
the requisite holders of Notes.

     

    (b) 
Payment. No Obligor
will directly or indirectly pay or cause to be paid any remuneration, whether by
way of supplemental or additional interest, fee or otherwise, or grant any
security or provide other credit support, to any holder of Notes as
consideration for or as an inducement to the entering into by any holder of
Notes of any waiver or amendment of any of the terms and provisions hereof
unless such remuneration is concurrently paid, or security is concurrently
granted or other credit support concurrently provided, on the same terms,
ratably to 

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    each
holder of Notes then outstanding even if such holder did not consent to such
waiver or amendment.

     

    (c) 
Consent in Contemplation of
Transfer.  Any consent made pursuant to this Section 17 by
the holder of any Note that has transferred or has agreed to transfer such Note
to any Obligor, any Subsidiary or any Affiliate of any Obligor and has provided
or has agreed to provide such written consent as a condition to such transfer
shall be void and of no force or effect except solely as to such holder, and any
amendments effected or waivers granted or to be effected or granted that would
not have been or would not be so effected or granted but for such consent (and
the consents of all other holders of Notes that were acquired under the same or
similar conditions) shall be void and of no force or effect except solely as to
such transferring holder.

     

    Section 17.3.  Binding Effect,
etc.  Any amendment or waiver consented to as provided in this
Section 17 applies equally to all holders of Notes and is binding upon them and
upon each future holder of any Note and upon the Obligors without regard to
whether such Note has been marked to indicate such amendment or
waiver.  No such amendment or waiver will extend to or affect any
obligation, covenant, agreement, Default or Event of Default not expressly
amended or waived or impair any right consequent thereon.  No course
of dealing between the Obligors and the holder of any Note nor any delay in
exercising any rights hereunder or under any Note shall operate as a waiver of
any rights of any holder of such Note.  As used herein, the term "this
Agreement" and references thereto shall mean this Agreement as it may from time
to time be amended or supplemented and includes the Subsidiary
Guaranty.

     

    Section 17.4. 
Notes Held by Company,
etc. Solely for the purpose of determining whether the holders of the
requisite percentage of the aggregate principal amount of Notes then outstanding
approved or consented to any amendment, waiver or consent to be given under this
Agreement or the Notes, or have directed the taking of any action provided
herein or in the Notes to be taken upon the direction of the holders of a
specified percentage of the aggregate principal amount of Notes then
outstanding, Notes directly or indirectly owned by any Obligor or any of its
Affiliates shall be deemed not to be outstanding.

     

    
      	
              Section
      18.  

            	
              Subsidiary
      Guaranty .

            

    

     

    Section 18.1. 
Guaranty.  For
valuable consideration, the receipt of which is hereby acknowledged, and to
induce the holder of Notes to purchase and hold the Notes of the Company under
this Agreement, each Guarantor hereby absolutely and unconditionally, and
jointly and severally, guarantees prompt payment when due, whether at stated
maturity, upon acceleration or otherwise, and at all times thereafter, of any
and all Obligations of the Company to each holder of a Note, under or with
respect to the Financing Agreements, whether for principal, interest, Make-Whole
Amount (if any), fees, expenses or otherwise, in each case howsoever created,
arising or evidenced, whether direct or indirect, absolute or contingent, now or
hereafter existing, or due or to become due (collectively, the “Guaranteed
Obligations”).  Any term or provision of this Section 18 to the
contrary notwithstanding, the aggregate maximum amount of the Guaranteed
Obligations for which each Guarantor shall be liable shall not exceed the
maximum amount for which such Guarantor can be liable without rendering this
Agreement or any other 

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    Financing
Agreement as it relates to such Guarantor, voidable under applicable law
relating to fraudulent conveyance or fraudulent transfer.

     

    Section 18.2. 
Waivers.  Each
Guarantor waives notice of the acceptance of this guaranty and of the extension
or continuation of the Guaranteed Obligations or any part
thereof.  Each Guarantor further waives presentment, protest, notice
or demand made on the Company or action or delinquency in respect of the
Guaranteed Obligations or any part thereof, including any right to require the
holders of Notes to sue the Company, any other guarantor or any other Person
obligated with respect to the Guaranteed Obligations or any part thereof, or
otherwise to enforce payment thereof against any collateral securing the
Guaranteed Obligations or any part thereof, provided that if at any time
any payment of any portion of the Guaranteed Obligations is rescinded or must
otherwise be restored or returned upon the insolvency, bankruptcy or
reorganization of the Company or otherwise, each Guarantor’s obligations
hereunder with respect to such payment shall be reinstated at such time as
though such payment had not been made and whether or not the holders of Notes
are in possession of this guaranty.  The holders of Notes shall have
no obligation to disclose or discuss with any Guarantor their assessments of the
financial condition of the Company.

     

    Section 18.3. 
Guaranty
Absolute.  This guaranty is a guaranty of payment and not of
collection, is a primary obligation of each Guarantor and not merely one of
surety, and the validity and enforceability of this guaranty shall be absolute
and unconditional irrespective of, and shall not be impaired or affected by any
of the following:  (a) any extension, modification or renewal of,
or indulgence with respect to, or substitutions for, the Guaranteed Obligations
or any part thereof or any agreement relating thereto at any time; (b) any
failure or omission to enforce any right, power or remedy with respect to the
Guaranteed Obligations or any part thereof or any agreement relating thereto, or
any collateral; (c) any waiver of any right, power or remedy with respect
to the Guaranteed Obligations or any part thereof or any agreement relating
thereto or with respect to any collateral; (d) any release, surrender,
compromise, settlement, waiver, subordination or modification, with or without
consideration, of any collateral, any other guaranties with respect to the
Guaranteed Obligations or any part thereof, or any other obligation of any
Person with respect to the Guaranteed Obligations or any part thereof;
(e) the enforceability or validity of the Guaranteed Obligations or any
part thereof or the genuineness, enforceability or validity of any agreement
relating thereto or with respect to any collateral; (f) the application of
payments received from any source to the payment of obligations other than the
Guaranteed Obligations, any part thereof or amounts which are not covered by
this guaranty even though the holders of Notes might lawfully have elected to
apply such payments to any part or all of the Guaranteed Obligations or to
amounts which are not covered by this guaranty; (g) any change in the
ownership of the Company or the insolvency, bankruptcy or any other change in
the legal status of the Company; (h) the change in or the imposition of any
law, decree, regulation or other governmental act which does or might impair,
delay or in any way affect the validity, enforceability or the payment when due
of the Guaranteed Obligations; (i) the failure of any Guarantor or the
Company to maintain in full force, validity or effect or to obtain or renew when
required all governmental and other approvals, licenses or consents required in
connection with the Guaranteed Obligations or this guaranty, or to take any
other action required in connection with the performance of all obligations
pursuant to the Guaranteed Obligations or this guaranty; (j) the existence
of any claim, setoff or other rights which any Guarantor may have at

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    any time
against the Company or any other Person in connection herewith or an unrelated
transaction; (k) without limiting the foregoing, all defenses based on
suretyship or impairment of collateral; or (l) any other circumstance,
whether or not similar to any of the foregoing, which could constitute a defense
to a guarantor, including all defenses based on suretyship or impairment of
collateral; all whether or not any Guarantor shall have had notice or knowledge
of any act or omission referred to in the foregoing clauses (a) through (l)
of this Section.  It is agreed that each Guarantor’s liability
hereunder is several and independent of any other guaranties or other
obligations not arising under this Section 18 at any time in effect with respect
to the Guaranteed Obligations or any part thereof and that each Guarantor’s
liability hereunder may be enforced regardless of the existence, validity,
enforcement or non-enforcement of any such other guaranties or other obligations
not arising under this Section 18 or any provision of any applicable law or
regulation purporting to prohibit payment by the Company of the Guaranteed
Obligations in the manner agreed upon by the Company and the holders of
Notes.

     

    Section 18.4. 
Acceleration.  Each
Guarantor agrees that, as between such Guarantor on the one hand, and the
holders of Notes, on the other hand, the obligations of the Company guaranteed
under this Section 18 may be declared to be forthwith due and payable, or may be
deemed automatically to have been accelerated, as provided in Section 12.1
hereof for purposes of this Section 18, notwithstanding any stay, injunction or
other prohibition (whether in a bankruptcy proceeding affecting the Company or
otherwise) preventing such declaration as against the Company and that, in the
event of such declaration or automatic acceleration, such obligations (whether
or not due and payable by the Company) shall forthwith become due and payable by
such Guarantor for purposes of this Section 18.

     

    Section 18.5. 
Marshaling;
Reinstatement.  None of the holders of Notes nor any Person
acting for or on behalf of the holders of Notes shall have any obligation to
marshal any assets in favor of any Guarantor or against or in payment of any or
all of the Guaranteed Obligations.  If any Guarantor, the Company or
any other guarantor of all or any part of the Guaranteed Obligations makes a
payment or payments to any holder of Notes or any holder of Notes receives any
proceeds of collateral, which payment or payments or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside
and/or required to be repaid to the Company, any Guarantor, such other guarantor
or any other Person, or their respective estates, trustees, receivers or any
other party, including, without limitation, the Guarantors, under any bankruptcy
law, state or federal law, common law or equitable cause, then, to the extent of
such payment or repayment, the part of the Guaranteed Obligations which has been
paid, reduced or satisfied by such amount shall be reinstated and continued in
full force and effect as of the time immediately preceding such initial payment,
reduction or satisfaction.

     

    Section 18.6. 
Delay of
Subrogation.  Notwithstanding any payment made by or for the
account of any Guarantor pursuant to this Section 18, no Guarantor shall be
subrogated to any right of any holder of Notes, or have any right to obtain
reimbursement from the Company, until such time as each holder of Notes shall
have received final payment in cash of the full amount of the Guaranteed
Obligations.

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    
      	
              Section
      19.  

            	
              Notices.

            

    

     

    All
notices and communications provided for hereunder shall be in writing and sent
(a) by telecopy if the sender on the same day sends a confirming copy of such
notice by a recognized overnight delivery service (charges prepaid), or (b) by
registered or certified mail with return receipt requested (postage prepaid), or
(c) by a recognized overnight delivery service (with charges
prepaid).  Any such notice must be sent:

     

    (i) 
if to any Purchaser or its nominee, to such Purchaser or nominee at the address
specified for such communications in Schedule A, or at such other address as
such Purchaser or nominee shall have specified to the Company in
writing,

     

    (ii) 
if to any other holder of any Note, to such holder at such address as such other
holder shall have specified to the Company in writing, or

     

    (iii) 
if to any Obligor, to the Company at its address set forth at the beginning
hereof to the attention of the Vice President and Treasurer, or at such other
address as the Obligors shall have specified to the holder of each Note in
writing.

     

    Notices
under this Section 19 will be deemed given only when actually
received.

     

    
      	
              Section
      20.  

            	
              Reproduction
      of Documents.

            

    

     

    This
Agreement and all documents relating thereto, including, without limitation, (a)
consents, waivers and modifications that may hereafter be executed, (b)
documents received by any Purchaser at the Closing (except the Notes
themselves), and (c) financial statements, certificates and other information
previously or hereafter furnished to any Purchaser, may be reproduced by such
Purchaser by any photographic, photostatic, electronic, digital, or other
similar process and such Purchaser may destroy any original document so
reproduced.  The Obligors agree and stipulate that, to the extent
permitted by applicable law, any such reproduction shall be admissible in
evidence as the original itself in any judicial or administrative proceeding
(whether or not the original is in existence and whether or not such
reproduction was made by such Purchaser in the regular course of business) and
any enlargement, facsimile or further reproduction of such reproduction shall
likewise be admissible in evidence.  This Section 20 shall not
prohibit an Obligor or any other holder of Notes from contesting any such
reproduction to the same extent that it could contest the original, or from
introducing evidence to demonstrate the inaccuracy of any such
reproduction.

     

    
      	
              Section
      21.  

            	
              Confidential
      Information.

            

    

     

    For the
purposes of this Section 21, “Confidential Information” means information
delivered to any Purchaser by or on behalf of any Obligor or any Subsidiary in
connection with the transactions contemplated by or otherwise pursuant to this
Agreement that is proprietary in nature and that was clearly marked or labeled
or otherwise adequately identified when received by such Purchaser as being
confidential information of the Company or such Subsidiary, provided that such
term does not include information that (a) was publicly known or otherwise

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

    known to
such Purchaser prior to the time of such disclosure, (b) subsequently becomes
publicly known through no act or omission by such Purchaser or any person acting
on such Purchaser’s behalf, (c) otherwise becomes known to such Purchaser other
than through disclosure by any Obligor or any Subsidiary or (d) constitutes
financial statements delivered to such Purchaser under Section 7.1 that are
otherwise publicly available.  Each Purchaser will maintain the
confidentiality of such Confidential Information in accordance with procedures
adopted by such Purchaser in good faith to protect confidential information of
third parties delivered to such Purchaser, provided that such Purchaser may
deliver or disclose Confidential Information to (i) its directors,
officers, employees, agents, attorneys, trustees and affiliates (to the extent
such disclosure reasonably relates to the administration of the investment
represented by its Notes), (ii) its financial advisors and other professional
advisors who agree to hold confidential the Confidential Information
substantially in accordance with the terms of this Section 21, (iii) any other
holder of any Note, (iv) any Institutional Investor to which it sells or offers
to sell such Note or any part thereof or any participation therein (if such
Person has agreed in writing prior to its receipt of such Confidential
Information to be bound by the provisions of this Section 21), (v) any
Person from which it offers to purchase any security of any Obligor (if such
Person has agreed in writing prior to its receipt of such Confidential
Information to be bound by the provisions of this Section 21), (vi) any federal
or state regulatory authority having jurisdiction over such Purchaser, (vii) the
NAIC or the SVO or, in each case, any similar organization, or any nationally
recognized rating agency that requires access to information about such
Purchaser’s investment portfolio, or (viii) any other Person to which such
delivery or disclosure may be necessary or appropriate (w) to effect compliance
with any law, rule, regulation or order applicable to such Purchaser, (x) in
response to any subpoena or other legal process, (y) in connection with any
litigation to which such Purchaser is a party or (z) if an Event of Default has
occurred and is continuing, to the extent such Purchaser may reasonably
determine such delivery and disclosure to be necessary or appropriate in the
enforcement or for the protection of the rights and remedies under such
Purchaser’s Notes and this Agreement.  Each holder of a Note, by its
acceptance of a Note, will be deemed to have agreed to be bound by and to be
entitled to the benefits of this Section 21 as though it were a party to this
Agreement.  On reasonable request by any Obligor in connection with
the delivery to any holder of a Note of information required to be delivered to
such holder under this Agreement or requested by such holder (other than a
holder that is a party to this Agreement or its nominee), such holder will enter
into an agreement with the Obligors embodying the provisions of this Section
21.

     

    
      	
              Section
      22.  

            	
              Substitution
      of Purchaser.

            

    

     

    Each
Purchaser shall have the right to substitute any one of its Affiliates as the
purchaser of the Notes that it has agreed to purchase hereunder, by written
notice to the Company, which notice shall be signed by both such Purchaser and
such Affiliate, shall contain such Affiliate’s agreement to be bound by this
Agreement and shall contain a confirmation by such Affiliate of the accuracy
with respect to it of the representations set forth in Section
6.  Upon receipt of such notice, any reference to such Purchaser in
this Agreement (other than in this Section 22), shall be deemed to refer to such
Affiliate in lieu of such original Purchaser.  In the event that such
Affiliate is so substituted as a Purchaser hereunder and such Affiliate
thereafter transfers to such original Purchaser all of the Notes then held by
such Affiliate, upon receipt by the Company of notice of such transfer, any
reference to such Affiliate as a “Purchaser” in this Agreement (other

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

    than in
this Section 22), shall no longer be deemed to refer to such Affiliate, but
shall refer to such original Purchaser, and such original Purchaser shall again
have all the rights of an original holder of the Notes under this
Agreement.

     

    
      	
              Section
      23.  

            	
              Miscellaneous.

            

    

     

    Section 23.1. 
Successors and
Assigns.  All covenants and other agreements contained in this
Agreement by or on behalf of any of the parties hereto bind and inure to the
benefit of their respective successors and assigns (including, without
limitation, any subsequent holder of a Note) whether so expressed or
not.

     

    Section 23.2.  Payments Due on Non-Business
Days.  Anything in this Agreement or the Notes to the contrary
notwithstanding (but without limiting the requirement in Section 8.4 that
the notice of any optional prepayment specify a Business Day as the date fixed
for such prepayment), any payment of principal of or Make-Whole Amount or
interest on any Note that is due on a date other than a Business Day shall be
made on the next succeeding Business Day without including the additional days
elapsed in the computation of the interest payable on such next succeeding
Business Day; provided that if the maturity date of any Note is a date other
than a Business Day, the payment otherwise due on such maturity date shall be
made on the next succeeding Business Day and shall include the additional days
elapsed in the computation of interest payable on such next succeeding Business
Day.

     

    Section 23.3. 
Accounting
Terms.  All accounting terms used herein which are not
expressly defined in this Agreement have the meanings respectively given to them
in accordance with GAAP.  Except as otherwise specifically provided
herein, (i) all computations made pursuant to this Agreement shall be made
in accordance with GAAP, and (ii) all financial statements shall be
prepared in accordance with GAAP.  For
purposes of determining compliance with the financial covenants contained in
this Agreement, any election by the Company to measure an item of Indebtedness
using fair value (as permitted by Statement of Financial Accounting Standards
No. 159 or any similar accounting standard) shall be disregarded and such
determination shall be made instead using the par value of such
Indebtedness.

     

    Section 23.4.  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 (to the full extent permitted by law) not invalidate or
render unenforceable such provision in any other jurisdiction.

     

    Section 23.5.  Construction,
etc.  Each covenant contained herein shall be construed (absent
express provision to the contrary) as being independent of each other covenant
contained herein, so that compliance with any one covenant shall not (absent
such an express contrary provision) be deemed to excuse compliance with any
other covenant.  Where any provision herein refers to action to be
taken by any Person, or which such Person is prohibited from taking, such
provision shall be applicable whether such action is taken directly or
indirectly by such Person.

     

    For the
avoidance of doubt, all Schedules and Exhibits attached to this Agreement shall
be deemed to be a part hereof.

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    Section 23.6. 
Counterparts.  This
Agreement may be executed in any number of counterparts, each of which shall be
an original but all of which together shall constitute one
instrument.  Each counterpart may consist of a number of copies
hereof, each signed by less than all, but together signed by all, of the parties
hereto.

     

    Section 23.7. 
Governing
Law.  This Agreement shall be construed and enforced in
accordance with, and the rights of the parties shall be governed by, the law of
the State of Indiana excluding choice-of-law principles of the law of such State
that would permit the application of the laws of a jurisdiction other than such
State. 

     

    Section 23.8. 
Waiver of Jury
Trial.  The
parties hereto hereby waive trial by jury in any action brought on or with
respect to this Agreement, the Notes or any other document executed in
connection herewith or therewith.

    

    *    *    *    *    *

    

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

    If you
are in agreement with the foregoing, please sign the form of agreement on a
counterpart of this Agreement and return it to the Company, whereupon this
Agreement shall become a binding agreement between you and the
Obligors.

    

      
        	 
      	 
      	
                Very
      truly yours,

              	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                Vectren
      Utility Holdings, Inc.

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                By

              	 
      
	 
      	 
      	 
      	
                Name:

              	
                Robert
      L. Goocher

              
	 
      	 
      	 
      	
                Title:

              	
                Vice
      President and Treasurer

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                Indiana
      Gas Company, Inc.

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                By

              	 
      
	 
      	 
      	 
      	
                Name:

              	
                Robert
      L. Goocher

              
	 
      	 
      	 
      	
                Title:

              	
                Vice
      President and Treasurer

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                Southern
      Indiana Gas and Electric Company

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                By

              	 
      
	 
      	 
      	 
      	
                Name:

              	
                Robert
      L. Goocher

              
	 
      	 
      	 
      	
                Title:

              	
                Vice
      President and Treasurer

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                Vectren
      Energy Delivery of Ohio, Inc.

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                By

              	 
      
	 
      	 
      	 
      	
                Name:

              	
                Robert
      L. Goocher

              
	 
      	 
      	 
      	
                Title:

              	
                Vice
      President and Treasurer

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

This
Agreement is hereby accepted and agreed to as  of the date
thereof.

     

    

      
        	 
      	 
      	
                Metropolitan
      Life Insurance Company

              
	 
      	 
      	 
      
	 
      	 
      	
                MetLife
      Investors USA Insurance Company

              
	 
      	 
      	
                By:

              	
                Metropolitan
      Life Insurance Company, its

                    Investment
      Manager

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
                By

              	 
      
	 
      	 
      	 
      	 
      	
                Name:

              	 
      
	 
      	 
      	 
      	 
      	
                Title:

              	 
      

      

      
        
          
             

          

           

        

        
          42

          
            

          

        

        
           

        

      

    

     

    Information
Relating to Purchasers

    

    
      	
               

               

              Name
      and Address of Purchaser

               

            	
              Principal
      Amount of

              2008
      Series F Notes

              to
      Be Purchased

            
	
              Metropolitan
      Life Insurance Company

              1095
      Avenue of the Americas

              New
      York, NY  10036

            	
              $72,000,000

            

    

     

    Payments

     

    All
scheduled payments of principal and interest by wire transfer of immediately
available funds to:

    

    Bank
Name:JP Morgan Chase Bank

    ABA
Routing #:#021-000-021

    Account
No.:002-2-410591

    Account
Name:Metropolitan Life Insurance Company

    Reference:Vectren
Utility Holdings, Inc., 6.28% Senior Guaranteed Notes

    due March 31, 2020,
PPN 92239M A*2

     

    With
sufficient information to identify the source and application of such funds,
including issuer, PPN#, interest rate, maturity and whether payment is of
principal, interest, make whole amount or otherwise.  For all payments
other than scheduled payments of principal and interest, the Company shall seek
instructions from the holder, and in the absence of instructions to the
contrary, will make such payments to the account and in the manner set forth
above.

     

    Notices

     

    All
notices and communications:

    

    Metropolitan
Life Insurance Company

    Investments,
Private Placements

    P. O. Box
1902

    10 Park
Avenue

    Morristown,
New Jersey 07962-1902

    Attention:
Director

    Fax
Number: (973) 355-4250

     

    
      
        
        

      

      
        
          Schedule
A

          (to Note
Purchase Agreement)

        

        
          

        

      

      
        
        

      

    

     

     

    With a
copy (OTHER than with respect to deliveries of financial statements)
to:

    

    Metropolitan
Life Insurance Company

    P. O. Box
1902

    10 Park
Avenue

    Morristown,
New Jersey  07962-1902

    Attention:  Chief
Counsel - Securities Investments (PRIV)

    Email:  sec_invest_law@metlife.com

     

    Name of
Nominee in which Notes are to be issued:  None

     

    Taxpayer
I.D. Number:  13-5581829

     

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

     

    
 

    
      	
               

               

              Name
      and Address of Purchaser

               

            	
              Principal
      Amount of

              2008
      Series F Notes

              to
      Be Purchased

            
	
              MetLife
      Investors USA Insurance Company

              c/o
      Metropolitan Life Insurance Company

              1095
      Avenue of the Americas

              New
      York, NY  10036

            	
              $28,000,000

            

    

     

    Payments

     

    All
scheduled payments of principal and interest by wire transfer of immediately
available funds to:

    

    Bank
Name:JP Morgan Chase Bank

    ABA
Routing #:#021-000-021

    Account
No.:002-2-431530

    Account
Name:MetLife Investors USA Insurance Company

    Reference:Vectren
Utility Holdings, Inc., 6.28% Senior Guaranteed Notes

    due March 31, 2020,
PPN 92239M A*2

     

    With
sufficient information to identify the source and application of such funds,
including issuer, PPN#, interest rate, maturity and whether payment is of
principal, interest, make whole amount or otherwise.  For all payments
other than scheduled payments of principal and interest, the Company shall seek
instructions from the holder, and in the absence of instructions to the
contrary, will make such payments to the account and in the manner set forth
above.

     

    Notices

     

    All
notices and communications:

    

    MetLife
Investors USA Insurance Company

    c/o
Metropolitan Life Insurance Company

    Investments,
Private Placements

    P. O. Box
1902

    10 Park
Avenue

    Morristown,
New Jersey 07962-1902

    Attention:
Director

    Fax
Number: (973) 355-4250

     

    
      
        A-3

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    With a
copy (OTHER than with respect to deliveries of financial statements)
to:

    

    MetLife
Investors USA Insurance Company

    c/o
Metropolitan Life Insurance Company

    P. O. Box
1902

    10 Park
Avenue

    Morristown,
New Jersey  07962-1902

    Attention:  Chief
Counsel - Securities Investments (PRIV)

    Email:  sec_invest_law@metlife.com

     

    Name of
Nominee in which Notes are to be issued:  None

     

    Taxpayer
I.D. Number:  54-0696644

     

    
      
        
        

      

      
        A-4

        
          

        

      

      
        
        

      

    

    

     

    Defined
Terms

     

    As used
herein, the following terms have the respective meanings set forth below or set
forth in the Section hereof following such term:

     

    “Affiliate” means, at any
time, and with respect to any Person, (a)any other Person that at such time
directly or indirectly through one or more intermediaries Controls, or is
Controlled by, or is under common Control with, such first Person, and (b)any
Person beneficially owning or holding, directly or indirectly, 10% or more of
any class of voting or equity interests of any Obligor or any Subsidiary or any
corporation of which any Obligor and its Subsidiaries beneficially own or hold,
in the aggregate, directly or indirectly, 10% or more of any class of voting or
equity interests.  As used in this definition, “Control” means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise. Unless the context
otherwise clearly requires, any reference to an “Affiliate” is a reference to an
Affiliate of the Company.

     

    “Anti-Terrorism Order” means
Executive Order No. 13,224 of September 24, 2001, Blocking Property
and Prohibiting Transactions with Persons Who Commit, Threaten to Commit or
Support Terrorism, 66 U.S. Fed. Reg. 49, 079 (2001), as amended.

     

    “Business Day” means (a) for
the purposes of Section 8.6 only, any day other than a Saturday, a Sunday or a
day on which commercial banks in New York City are required or authorized to be
closed, and (b) for the purposes of any other provision of this Agreement, any
day other than a Saturday, a Sunday or a day on which commercial banks in New
York, New York or Evansville, Indiana are required or authorized to be
closed.

     

    “Capitalized Lease” of a
Person means any lease of Property by such Person as lessee which would be
capitalized on a balance sheet of such Person prepared in accordance with
GAAP.

     

    “Change in Control” is
defined in Section 8.7(h).

     

    “Closing” is defined in
Section 3.

     

    “Code” means the Internal
Revenue Code of 1986, as amended from time to time, and the rules and
regulations promulgated thereunder from time to time.

     

    “Company” means Vectren
Utility Holdings, Inc., an Indiana corporation or any successor that becomes
such in the manner prescribed in Section 10.2.

     

    “Confidential
Information” is defined in
Section 21.

     

    
      
        
          Schedule
B

          (to Note
Purchase Agreement)

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Consolidated Indebtedness”
means at any time the Indebtedness of the Company and its Subsidiaries
calculated on a consolidated basis as of such time in accordance with
GAAP.

     

    “Consolidated Net Worth”
means at any time the consolidated stockholders’ equity of the Company and its
Subsidiaries calculated on a consolidated basis as of such time in accordance
with GAAP.

     

    “Contingent Obligation” of a
Person means any agreement, undertaking or arrangement by which such Person
assumes, guarantees, endorses, contingently agrees to purchase or provide funds
for the payment of, or otherwise becomes or is contingently liable upon, the
obligation or liability of any other Person (other than accounts payable of such
Person’s Subsidiary arising in the ordinary course of such Subsidiary’s business
payable on terms customary in the trade), or agrees to maintain the net worth or
working capital or other financial condition of any other Person, or otherwise
assures any creditor of such other Person against loss, including, without
limitation, any comfort letter, operating agreement or take-or-pay
contract.

     

    “Control Event” is defined in
Section 8.7(i).

     

    “Credit Agreement” means the
Credit Agreement among the Company, the Guarantors, the lenders signatory hereto
and JPMorgan Chase Bank, N.A. as administrative agent among others dated as of
November 10, 2005, as such agreement may be hereafter amended, modified,
restated, supplemented, refinanced, increased or reduced from time to time, and
any successor credit agreement or similar facilities.

     

    “Default” means an event or
condition the occurrence or existence of which would, with the lapse of time or
the giving of notice or both, become an Event of Default.

     

    “Default Rate” means that
rate of interest that is the greater of (i) 2% per annum above the rate of
interest stated in clause (a) of the first paragraph of the Notes or
(ii) 2% over the rate of interest publicly announced by Bank of America,
N.A. in New York, New York (and its successors) as its “base” or “prime”
rate.

     

    “Environmental Laws” means
any and all Federal, state, local, and foreign statutes, laws, regulations,
ordinances, rules, judgments, orders, decrees, permits, concessions, grants,
franchises, licenses, agreements or governmental restrictions relating to
pollution and the protection of the environment or the release of any materials
into the environment, including but not limited to those related to Hazardous
Materials.

     

    “ERISA” means the Employee
Retirement Income Security Act of 1974, as amended from time to time, and the
rules and regulations promulgated thereunder from time to time in
effect.

     

    “ERISA Affiliate” means any
trade or business  (whether or not incorporated) that is treated as a
single employer together with the Company under section 414 of the
Code.

     

    “Event of Default” is defined
in Section 11.

     

    
      
        
        

      

      
        B-2

        
          

        

      

      
        
        

      

    

     

    “Fair Market Value” means, at
any time and with respect to any Property, the sale value of such Property that
would be realized in an arm’s-length sale at such time between an informed and
willing buyer and an informed and willing seller (neither being under a
compulsion to buy or sell), as reasonably determined in the good faith opinion
of the Company’s board of directors.

     

    “Financing Agreement” mean
this Agreement, the Notes and the Subsidiary Guaranty, in each case, as amended
or modified from time to time.

     

    “Form 10-K” is defined in
Section 7.1(b).

     

    “Form 10-Q” is defined in
Section 7.1(a).

     

    “GAAP” means generally
accepted accounting principles as in effect from time to time in the United
States of America.

     

    “Governmental Authority”
means

     

    (a)the
government of

     

    (i)the
United States of America or any State or other political subdivision thereof,
or

     

    (ii)any
other jurisdiction in which any Obligor or any Subsidiary conducts all or any
part of its business, or which asserts jurisdiction over any properties of any
Obligor or any Subsidiary, or

     

    (b)any
entity exercising executive, legislative, judicial, regulatory or administrative
functions of, or pertaining to, any such government.

     

    “Guarantors” means each
Person who is a signatory to the Subsidiary Guaranty and any other Person who,
pursuant to Section 9.9, executes a joinder agreement and becomes a party
to the Subsidiary Guaranty.

     

    “Guaranteed Obligations” is
defined in Section 18.1.

     

    “Hazardous Material” means
any and all pollutants, toxic or hazardous wastes or other substances that might
pose a hazard to health and safety, the removal of which may be required or the
generation, manufacture, refining, production, processing, treatment, storage,
handling, transportation, transfer, use, disposal, release, discharge, spillage,
seepage or filtration of which is or shall be restricted, prohibited or
penalized by any applicable law including, but not limited to, asbestos, urea
formaldehyde foam insulation, polychlorinated biphenyls, petroleum, petroleum
products, lead based paint, radon gas or similar restricted, prohibited or
penalized substances.

     

    “holder” means, with respect
to any Note the Person in whose name such Note is registered in the register
maintained by the Company pursuant to Section 13.1.

     

    
      
        
        

      

      
        B-3

        
          

        

      

      
        
        

      

    

     

    “Indebtedness” of a Person
means such Person’s (i) obligations for borrowed money,
(ii) obligations representing the deferred purchase price of Property or
services (other than accounts payable arising in the ordinary course of such
Person’s business payable on terms customary in the trade),
(iii) obligations, whether or not assumed, secured by Liens or payable out
of the proceeds or production from Property now or hereafter owned or acquired
by such Person, (iv) obligations which are evidenced by notes, acceptances
or other instruments, (v) obligations of such Person to purchase securities
or other Property arising out of or in connection with the sale of the same or
substantially similar securities or Property, (vi) Capitalized Lease
Obligations, (vii) Contingent Obligations, (viii) reimbursement and
other obligations in connection with letters of credit, (ix) Net
Mark-to-Market Exposure of Rate Hedging Agreements and other Financial
Contracts, (x) Synthetic Lease Obligations and (xi) any other
obligation for borrowed money or other financial accommodation which in
accordance with GAAP would be shown as a liability on the consolidated balance
sheet of such Person.

     

    “Institutional Investor”
means (a) any Purchaser of a Note, (b) any holder of a Note holding
(together with one or more of its affiliates) more than 3% of the aggregate
principal amount of the Notes then outstanding, (c) any bank, trust
company, savings and loan association or other financial institution, any
pension plan, any investment company, any insurance company, any broker or
dealer, or any other similar financial institution or entity, regardless of
legal form, and (d) any Related Fund of any holder of any
Note.

     

    “Lien” means any lien
(statutory or other), security interest, mortgage, pledge, hypothecation,
assignment, deposit arrangement, encumbrance or preference, priority or other
security agreement or preferential arrangement of any kind or nature whatsoever
(including, without limitation, the interest of a vendor or lessor under any
conditional sale, Capitalized Lease or other title retention
agreement).

     

    “Make-Whole Amount” is
defined in Section 8.6.

     

    “Material” means material in
relation to the business, operations, affairs, financial condition, assets,
properties, or prospects of the Company and its Subsidiaries taken as a
whole.

     

    “Material Adverse Effect”
means a material adverse effect on (a) the business, operations, affairs,
financial condition, assets or properties of the Company and its Subsidiaries
taken as a whole, or (b) the ability of an Obligor to perform its respective
obligations under the Financing Agreements, or (c) the validity or
enforceability of any Financing Agreement.

     

    “Material Indebtedness” is
defined in Section 11(f).

     

    “Maximum Ratio” means 65%,
provided that if (i)
the maximum ratio of the Consolidated Indebtedness to the sum of
Consolidated Indebtedness plus Consolidated Net Worth permitted to exist under
the Credit Agreement (currently §6.15 of the Credit Agreement) shall be changed
or (ii) if the related definitions used in this provision in the Credit
Agreement are modified to be more restrictive than the definitions in the Credit
Agreement as of the date of Closing, then the Maximum Ratio and/or definitions
shall be so changed to the same percentage 

     

    
      
        
        

      

      
        B-4

        
          

        

      

      
        
        

      

    

     

    and same
definitions automatically without any consent required by the holders of Notes,
provided further that
the Maximum Ratio shall not be lower than 65% or higher than
70%.  

     

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

     

    “Moody’s Rating” means, at
any time, the credit rating issued by Moody’s and then in effect with respect to
the Company’s senior unsecured long-term debt securities without third-party
credit enhancement.

     

    “Mortgage Indenture” means
the Mortgage and Deed of Trust, dated as of April 1, 1932, between SIGECO and
Bankers Trust Company (as supplemented from time to time before or after the
date hereof by various supplemental indentures thereto).

     

    “Multiemployer Plan” means
any Plan that is a “multiemployer plan” (as such term is defined in section
4001(a)(3) of ERISA.

     

    “NAIC” means the National
Association of Insurance Commissioners or any successor thereto.

     

    “NAIC Annual Statement” is
defined in Section 6.2(a).

     

    “Net Mark-to-Market Exposure”
of a Person means, as of any date of determination, the excess (if any) of all
unrealized losses over all unrealized profits of such Person arising from Rate
Hedging Agreements or other Financial Contracts.  “Unrealized losses” means the
fair market value of the cost to such Person of replacing such Rate Hedging
Agreement or other Financial Contract as of the date of determination (assuming
the Rate Hedging Agreement or other Financial Contract were to be terminated as
of that date), and “unrealized profits” means the fair market value of the gain
to such Person of replacing such Rate Hedging Agreement or other Financial
Contract as of the date of determination (assuming such Rate Hedging Agreement
or other Financial Contract were to be terminated as of that date).

     

    “Notes” is defined in
Section 1.

     

    “Non-Recourse Indebtedness”
means, except as expressly provided to the contrary herein, (i) Indebtedness of
any Person that in accordance with GAAP would not be included as a liability on
a balance sheet of such Person and (ii) Indebtedness of any Subsidiary of a
Person which in accordance with GAAP would not be included as a liability on the
consolidated balance sheet of such Person.

     

    “Officer’s Certificate” means
a certificate of a Senior Financial Officer or of any other officer of the
Company whose responsibilities extend to the subject matter of such
certificate.

     

    “Parent” means Vectren
Corporation, an Indiana corporation.

     

    “PBGC” means the Pension
Benefit Guaranty Corporation referred to and defined in ERISA or any successor
thereto.

     

    
      
        
        

      

      
        B-5

        
          

        

      

      
        
        

      

    

     

    “Person” means an individual,
partnership, corporation, limited liability company, association, trust,
unincorporated organization, business entity or Governmental
Authority.

     

    “Plan” means an “employee
benefit plan” (as defined in section 3(3) of ERISA) subject to Title I of ERISA
that is or, within the preceding five years, has been established or maintained,
or to which contributions are or, within the preceding five years, have been
made or required to be made, by the Company or any ERISA Affiliate or with
respect to which the Company or any ERISA Affiliate may have any
liability.

     

    “Property”or “property” of a Person means
any and all property, whether real, personal, tangible, intangible, or mixed, of
such Person, or other assets owned, leased or operated by such
Person.

     

    “PUHCA” means the Public
Utility Holding Company Act of 2005, as amended.

     

    “Purchaser” is defined in the
first paragraph of this Agreement.

     

    “Qualified Institutional
Buyer” means any Person who is a “qualified institutional buyer” within
the meaning of such term as set forth in Rule 144A(a)(1) under the Securities
Act.

     

    “Rate Hedging Agreement”
means an agreement, device or arrangement providing for payments which are
related to fluctuations of interest rates, exchange rates or forward rates,
including, but not limited to, dollar-denominated or cross-currency interest
rate exchange agreements, forward currency exchange agreements, interest rate
cap or collar protection agreements, forward rate currency or interest rate
options, puts and warrants.

     

    “Rate Hedging Obligations” of
a Person means any and all obligations of such Person, whether absolute or
contingent and howsoever and whensoever created, arising, evidenced or acquired
(including all renewals, extensions and modifications thereof and substitutions
therefor), under (i) any and all Rate Hedging Agreements, and (ii) any and all
cancellations, buy backs, reversals, terminations or assignments of any Rate
Hedging Agreement.

     

    “Related Fund” means, with
respect to any holder of any Note, any fund or entity that (i) invests in
Securities or bank loans, and (ii) is advised or managed by such holder,
the same investment advisor as such holder or by an affiliate of such holder or
such investment advisor.

     

    “Required Holders” means, at
any time, the holders of at least 51% in principal amount of the Notes at the
time outstanding (exclusive of Notes then owned by the Company or any of its
Affiliates).

     

    “Responsible Officer” means
any Senior Financial Officer and any other officer of the Company with
responsibility for the administration of the relevant portion of this
Agreement.

     

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

     

    
      
        
        

      

      
        B-6

        
          

        

      

      
        
        

      

    

     

    “S&P Rating” means, at
any time, the credit rating issued by S&P and then in effect with respect to
the Company’s senior unsecured long-term debt securities without third-party
credit enhancement.

     

    “SEC” shall mean the
Securities and Exchange Commission of the United States, or any successor
thereto.

     

    “Securities” or “Security” shall have the
meaning specified in Section 2(1) of the Securities Act. 

     

    “Securities Act” means the
Securities Act of 1933, as amended from time to time, and the rules and
regulations promulgated thereunder from time to time in effect.

     

    “Senior Financial Officer”
means the Chief Financial Officer, Treasurer or Assistant Treasurer of the
Company.

     

    “Subsidiary” means, as to any
Person, any other Person in which such first Person or one or more of its
Subsidiaries or such first Person and one or more of its Subsidiaries owns
sufficient equity or voting interests to enable it or them (as a group)
ordinarily, in the absence of contingencies, to elect a majority of the
directors (or Persons performing similar functions) of such second Person, and
any partnership or joint venture if more than a 50% interest in the profits or
capital thereof is owned by such first Person or one or more of its Subsidiaries
or such first Person and one or more of its Subsidiaries (unless such
partnership or joint venture can and does ordinarily take major business actions
without the prior approval of such Person or one or more of its
Subsidiaries).  Unless the context otherwise clearly requires, any
reference to a “Subsidiary” is a reference to a Subsidiary of the
Company.

     

    “Subsidiary Guaranty” is
defined in Section 1.

     

    “SVO” means the Securities
Valuation Office of the NAIC or any successor to such Office.

     

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

     

    “Total Capitalization” means
the sum of Consolidated Indebtedness and Consolidated Net Worth.

     

    
      
        
        

      

      
        B-7

        
          

        

      

      
        
        

      

    

     

    “USA Patriot Act” means
United States Public Law 107-56, Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT)
Act of 2001, as amended from time to time, and the rules and regulations
promulgated thereunder from time to time in effect.

     

    “Wholly-Owned Subsidiary”
means, at any time, any Subsidiary one hundred percent of all of the
equity interests (except directors’ qualifying shares) and voting interests of
which are owned by any one or more of the Company and the Company’s other
Wholly-Owned Subsidiaries at such time.

     

    
      
        
        

      

      
        B-8

        
          

        

      

      
        
        

      

    

     

     

    Disclosure
Materials

    

     

    Vectren
Capital, Corp.  Private Placement Memorandum, dated February
2009

     

    Annual
Report of Vectren Utility Holdings, Inc. on Form 10-K for the fiscal year ended
December 31, 2008 ( the “2008 10-K”)

     

     

    
      
        
          Schedule
5.3

          (to Note
Purchase Agreement)

          

        

         

      

      
         

        
          

        

      

      
         

      

    

     

    
      

       

      Subsidiaries
of the Company and Ownership of Subsidiary Stock

      

       

      Organization
and Ownership of Shares of Subsidiaries; Affiliates

      

      
        
          	
                  Name
      of Entity

                	
                  State
      of Incorporation/Jurisdiction

                
	 
      	 
      
	
                  Wholly
      Owned Subsidiaries of the Company:

                	 
      
	
                  Indiana
      Gas Company, Inc.

                	
                  Indiana/Ohio

                
	
                  Southern
      Indiana Gas and Electric Company

                	
                  Indiana

                
	
                  Vectren
      Energy Delivery of Ohio, Inc.

                	
                  Ohio

                
	 
      	 
      
	
                  Affiliates
      of the Company (other than Subsidiaries of the
Company):

                
	
                  Cypress
      Creek Mine, Inc.

                	
                  Indiana

                
	
                  Cypress
      Creek Mine, LLC

                	
                  Indiana

                
	
                  Energy
      Realty, Inc.

                	
                  Indiana

                
	
                  Energy
      Systems Group, Inc.

                	
                  Indiana

                
	
                  Energy
      Systems Group, LLC

                	
                  Indiana

                
	
                  Energy
      Systems Group, SE, Inc.

                	
                  Indiana

                
	
                  ESG
      Biofuels (Blackfoot), LLC

                	
                  Indiana

                
	
                  ESG
      Biofuels (JC), LLC

                	
                  Indiana

                
	
                  ESG
      Biofuels (Live Oak), LLC

                	
                  Indiana

                
	
                  ESG
      Carolina Holdings, LLC

                	
                  North
      Carolina

                
	
                  ESG
      Clean Fuels, LLC

                	
                  Indiana

                
	
                  ESG
      Engineering Corp

                	
                  North
      Carolina

                
	
                  ESG
      Pipeline (JC), LLC

                	
                  Indiana

                
	
                  IEI
      Capital Corp. (dormant)

                	
                  Indiana

                
	
                  Indiana
      Energy Services, Inc. (dormant)

                	
                  Indiana

                
	
                  Joint
      Ventures Affiliated II, Inc.

                	
                  Indiana

                
	
                  MCN
      747 22nd
      Street, LLC

                	
                  Delaware

                
	
                  MCN
      Equities, Inc.

                	
                  Delaware

                
	
                  Miller
      Pipeline Corporation

                	
                  Indiana

                
	
                  Mountain
      Home Energy Center, LLC

                	
                  Indiana

                
	
                  MP
      Acquisition Corp.Inc.

                	
                  Indiana

                
	
                  Oaktown
      Fuels Mine No.1, LLC

                	
                  Indiana

                
	
                  Oaktown
      Fuels Mine No.2, LLC

                	
                  Indiana

                
	
                  Prosperity
      Mine, LLC

                	
                  Indiana

                
	
                  SIP-GT
      I, Inc.

                	
                  Indiana

                
	
                  SIRO
      Partners, LLP (to be dissolved)

                	
                  Indiana

                
	
                  Southern
      Indiana Joint Ventures, Inc.

                	
                  Indiana

                
	
                  Southern
      Indiana Properties, Inc.

                	
                  Indiana

                
	
                  Southwest
      Lease Capital, Inc.

                	
                  Indiana

                
	
                  Utility
      Debt Collectors, Inc. (dormant)

                	
                  Indiana

                
	
                  Vectren
      Aero, LLC

                	
                  Indiana

                

        

      

      
        
          
            Schedule
5.4

            (to Note
Purchase Agreement)  

          

        

        
           

          
            

          

        

        
           

        

      

      
        
          	
                  Vectren
      Broadband, Inc.

                	
                  Indiana

                
	
                  Vectren
      Capital Corp.

                	
                  Indiana

                
	
                  Vectren
      Communications Services, Inc.

                	
                  Indiana

                
	
                  Vectren
      Communications, Inc.

                	
                  Indiana

                
	
                  Vectren
      Corporation

                	
                  Indiana

                
	
                  Vectren
      Energy Marketing and Services, Inc.

                	
                  Indiana

                
	
                  Vectren
      Energy Retail, Inc.

                	
                  Indiana

                
	
                  Vectren
      Energy Services, Inc.

                	
                  Indiana

                
	
                  Vectren
      Enterprises, Inc.

                	
                  Indiana

                
	
                  Vectren
      Environmental Services, Inc.

                	
                  Indiana

                
	
                  Vectren
      Financial Group, Inc.

                	
                  Indiana

                
	
                  Vectren
      Fuels, Inc.

                	
                  Indiana

                
	
                  Vectren
      Generation Services, Inc.

                	
                  Indiana

                
	
                  Vectren
      Power Marketing, Inc.

                	
                  Indiana

                
	
                  Vectren
      Products and Services, LLC

                	
                  Indiana

                
	
                  Vectren
      Retail, LLC

                	
                  Indiana,
      Ohio

                
	
                  Vectren
      Synfuels, Inc.

                	
                  Indiana

                
	
                  Vectren
      Utility Services, Inc.

                	
                  Indiana

                
	
                  Vectren
      Ventures, Inc.

                	
                  Indiana

                

        

      

      
 

    

    Less than
Wholly Owned Entities in which Vectren has an interest:1

    
      
        	
                Name
      of Entity

                 

                 

              	
                State
      of Incorporation/Jurisdiction

                 

              	
                Percentages
      of Capital Stock/Share of Profit/Loss Owned by Vectren Corporation and its
      Subsidiaries

              
	
                C.H.
      Barnett, LLC

              	
                Indiana

              	
                45%

              
	
                Crawfordsville
      Community Housing, LP

              	
                Indiana

              	
                49.5%

              
	
                Deerfield
      Commons I, LP

              	
                Indiana

              	
                99%2

              
	
                Haddington
      Energy Partners II, LP

              	
                Delaware

              	
                29.7%

              
	
                Haddington
      Energy Partners, LP

              	
                Delaware

              	
                42.1%

              
	
                Heartland
      Gas Pipeline, LLC

              	
                Indiana

              	
                30.5%

              
	
                House
      Investments Martz TCF I, LP

              	
                Indiana

              	
                99%2

              
	
                House
      Investments Martz TCF II, LP

              	
                Indiana

              	
                82%2

              

      

    

    

      
        

      

    

      
      
        
          	
                  1 
      

                	
                  Since
      Vectren’s governance and voting rights in each of these entities are at
      50% or less, Vectren disclaims that these entities are Subsidiaries of
      Vectren or that Vectren controls these entities.

                   

                
	2 	Limited
      partnership interests. 

        

      

       

    

      
       

    

    
      
         

      

      
        5.4-2

        
          

        

      

      
         

      

    

    
      
        	
                Housing
      Investments Bradford Run, LP

              	
                Indiana

              	
                83.33%2

              
	
                Lebanon
      Housing Partnership, LP

              	
                Indiana

              	
                37.1%2

              
	
                Lee
      8 Storage Partnership

              	
                Michigan

              	
                31.11%

              
	
                Liberty
      Gas Storage, LLC

              	
                Delaware

              	
                15.25%

              
	
                Martin
      Lamplighter Investments, LP

              	
                Indiana

              	
                99%2

              
	
                Multi
      Housing Partners I, II, III, IV, LP

              	
                Indiana

              	
                50%2

              
	
                Northern
      Storage, LLC

              	
                Indiana

              	
                61%

              
	
                Ohio
      Valley Hub, LLC

              	
                Indiana

              	
                61%

              
	
                Pedcor
      Investments 1996-XXV, LP

              	
                Indiana

              	
                49.5%

              
	
                Proliance
      Capital, LLC

              	
                Indiana

              	
                61%

              
	
                ProLiance
      Energy, LLC

              	
                Indiana

              	
                61%

              
	
                Proliance
      Holdings, LLC

              	
                Indiana

              	
                61%1

              
	
                Proliance
      Transportation and Storage, LLC

              	
                Indiana

              	
                61%

              
	
                Proliance
      Transportation and Storage-Heartland, LLC

              	
                Indiana

              	
                61%

              
	
                Proliance
      Transportation and Storage-Liberty, LLC

              	
                Indiana

              	
                61%

              
	
                Reliant
      Services, LLC

              	
                Indiana

              	
                50%

              
	
                Relius
      Energy, LLC

              	
                Indiana

              	
                60.39%3

              
	
                SFI
      Coal Sales, LLC

              	
                Indiana

              	
                99%

              
	
                Sigcorp
      Energy Services, LLC

              	
                Indiana

              	
                61%

              
	
                Sigcorp
      Gas Marketing, LLC

              	
                Indiana

              	
                61%

              
	
                Signature
      Energy Management, LLC

              	
                Indiana

              	
                61%

              
	
                White
      River Storage, LLC

              	
                Indiana

              	
                61%

              

      

    

    

      Directors
and Executive Officers of Vectren Utility Holdings, Inc.:

      
        
          
            	
                    Directors

                  	
                    Executive
      Officers

                  
	 
      	 
      	 
      
	
                    Niel
      C. Ellerbrook

                  	 
      	
                    Niel
      C. Ellerbrook

                  	
                    Chairman
      and Chief Executive

                  

          

        

      

    

     

    
      
        

      
 

      3 
Since governance and voting rights are at 50% for each member, Vectren accounts
for this investment using the equity method of
accounting.

    

    
      
         

      

      
        5.4-3

        
          

        

      

      
         

      

    

    
      
        	
                Jerome
      A. Benkert, Jr.

              	 
      	 
      	 Officer
      
	
                Carl
      L. Chapman

                Ronald
      E. Christian

              	 
      	
                William
      S. Doty

              	
                President

              
	 
      	 
      	
                Jerome
      A. Benkert, Jr.

              	
                Executive
      Vice President and Chief Financial Officer

              
	 
      	 
      	
                Ronald
      E. Christian

              	
                Executive
      Vice President, Chief Administrative Officer and
  Secretary

              
	 
      	 
      	
                Daniel
      C. Bugher

              	
                Vice
      President – Information Technology

              
	 
      	 
      	
                Robert
      L. Goocher

              	
                Vice
      President and Treasurer

              
	 
      	 
      	
                M.
      Susan Hardwick

              	
                Vice
      President, Controller and Assistant Treasurer

              
	 
      	 
      	
                Robert
      E. Heidorn

              	
                Vice
      President, General Counsel and Assistant Secretary

              
	 
      	 
      	
                Ronald
      G. Jochum

              	
                Vice
      President – Power Supply

              
	 
      	 
      	
                L.
      Douglas Petitt

              	
                Vice
      President – Marketing and Conservation

              
	 
      	 
      	
                Ellis
      S. Redd

              	
                Vice
      President – Human Resources and Administration

              
	 
      	 
      	
                Eric
      J. Schach

              	
                Vice
      President – Energy Delivery

              
	 
      	 
      	
                Jerrold
      L. Ulrey

              	
                Vice
      President – Regulatory Affairs and Fuels

              
	 
      	 
      	
                Jeffrey
      W. Whiteside

              	
                Vice
      President – External Affairs and Chief Sustainability
    Officer

              

      

    

     

    

      Directors
and Executive Officers of Indiana Gas Company, Inc.:

      
        
          	
                  Directors

                	
                  Executive
      Officers

                
	 
      	 
      	 
      
	
                  Niel
      C. Ellerbrook

                  Carl
      L. Chapman

                	 
      	
                  Niel
      C. Ellerbrook

                	
                  Chairman
      and Chief Executive Officer

                
	
                  Jerome
      A. Benkert, Jr.

                  Ronald
      E. Christian

                	 
      	
                  William
      S. Doty

                	
                  President

                
	
                  M.
      Susan Hardwick

                	 
      	
                  Jerome
      A. Benkert, Jr.

                	
                  Executive
      Vice President and Chief Financial Officer

                
	 
      	 
      	
                  Ronald
      E. Christian

                	
                  Executive
      Vice President, Chief Administrative Officer and
  Secretary

                
	 
      	 
      	
                  Daniel
      C. Bugher

                	
                  Vice
      President – Information Technology

                
	 
      	 
      	
                  Robert
      L. Goocher

                	
                  Vice
      President and Treasurer

                
	 
      	 
      	
                  Robert
      E. Heidorn

                	
                  Vice
      President, General Counsel and Assistant Secretary

                
	 
      	 
      	
                  M.
      Susan Hardwick

                	
                  Vice
      President, Controller and Assistant
Treasurer

                

        

      

    

     

    
      
         

      

      
        5.4-4

        
          

        

      

      
         

      

    

    
      
        	 
      	 
      	
                L.
      Douglas Petitt

              	
                Vice
      President – Marketing and Conservation

              
	 
      	 
      	
                Ellis
      S. Redd

              	
                Vice
      President – Human Resources and Administration

              
	 
      	 
      	
                Eric
      J. Schach

              	
                Vice
      President – Energy Delivery

              
	 
      	 
      	
                Jerrold
      L. Ulrey

              	
                Vice
      President – Regulatory Affairs and
Fuels

              

      

    

    Directors
and Executive Officers of Southern Indiana Gas and Electric Co.:

    
      
        
          
            	
                    Directors

                  	
                    Executive
      Officers

                  
	 
      	 
      	 
      
	
                    Niel
      C. Ellerbrook

                    Robert
      L. Goocher

                  	 
      	
                    Niel
      C. Ellerbrook

                  	
                    Chairman
      and Chief Executive Officer

                  
	
                    Jerome
      A. Benkert, Jr.

                    Ronald
      E. Christian

                  	 
      	
                    William
      S. Doty

                  	
                    President

                  
	
                    Carl
      L. Chapman

                    M.
      Susan Hardwick

                  	 
      	
                    Jerome
      A. Benkert, Jr.

                  	
                    Executive
      Vice President and Chief Financial Officer

                  
	 
      	 
      	
                    Ronald
      E. Christian

                  	
                    Executive
      Vice President, Chief Administrative Officer and
  Secretary

                  
	 
      	 
      	
                    Daniel
      C. Bugher

                  	
                    Vice
      President – Information Technology

                  
	 
      	 
      	
                    Robert
      L. Goocher

                  	
                    Vice
      President and Treasurer

                  
	 
      	 
      	
                    M.
      Susan Hardwick

                  	
                    Vice
      President, Controller and Assistant Treasurer

                  
	 
      	 
      	
                    Robert
      E. Heidorn

                  	
                    Vice
      President, General Counsel and Assistant Secretary

                  
	 
      	 
      	
                    Ronald
      G. Jochum

                  	
                    Vice
      President – Power Supply

                  
	 
      	 
      	
                    L.
      Douglas Petitt

                  	
                    Vice
      President – Marketing and Conservation

                  
	 
      	 
      	
                    Ellis
      S. Redd

                  	
                    Vice
      President – Human Resources and Administration

                  
	 
      	 
      	
                    Eric
      J. Schach

                  	
                    Vice
      President – Energy Delivery

                  
	 
      	 
      	
                    Jerrold
      L. Ulrey

                  	
                    Vice
      President – Regulatory Affairs and
Fuels

                  

          

        

      

    

    

    Directors
and Executive Officers of Vectren Energy Delivery of Ohio, Inc.:

    
      
        	
                Directors

              	
                Executive
      Officers

              
	 
      	 
      	 
      
	
                Niel
      C. Ellerbrook

                Jerome
      A. Benkert, Jr.

              	 
      	
                Niel
      C. Ellerbrook

              	
                Chairman
      and Chief Executive Officer

              
	
                Carl
      L. Chapman

                Ronald
      E. Christian

              	 
      	
                Dan
      Berry

              	
                President

              
	 
      	 
      	
                Jerome
      A. Benkert, Jr.

              	
                Executive
      Vice President and Chief Financial
Officer

              

      

    

    
      
         

      

      
        5.4-5

        
          

        

      

      
         

      

    

    
      
        	 
      	 
      	
                Ronald
      E. Christian

              	
                Executive
      Vice President, Chief Administrative Officer and
  Secretary

              
	 
      	 
      	
                William
      S. Doty

              	
                Executive
      Vice President

              
	 
      	 
      	
                Daniel
      C. Bugher

              	
                Vice
      President – Information Technology

              
	 
      	 
      	
                Lawrence
      K. Friedeman

              	
                Senior
      Vice President and Deputy General Counsel

              
	 
      	 
      	
                Robert
      L. Goocher

              	
                Vice
      President and Treasurer

              
	 
      	 
      	
                M.
      Susan Hardwick

              	
                Vice
      President, Controller and Assistant Treasurer

              
	 
      	 
      	
                Robert
      E. Heidorn

              	
                Vice
      President, General Counsel and Assistant Secretary

              
	 
      	 
      	
                L.
      Douglas Petitt

              	
                Vice
      President – Marketing and Conservation

              
	 
      	 
      	
                Ellis
      S. Redd

              	
                Vice
      President – Human Resources and Administration

              
	 
      	 
      	
                Eric
      J. Schach

              	
                Vice
      President – Energy Delivery

              
	 
      	 
      	
                Jerrold
      L. Ulrey

              	
                Vice
      President – Regulatory Affairs and
Fuels

              

      

    

    

    Certain
Restrictions

    
      	
              1.

            	
              The
      payment of cash dividends on common stock of Southern Indiana Gas and
      Electric Company (“SIGECO”) to Vectren
      Utility Holdings, Inc. (“VUHI”) is, in effect,
      restricted by SIGECO’s First Mortgage Indenture (the “Mortgage”).  The
      Mortgage restricts dividends to accumulated surplus available for
      distribution to common stock earned subsequent to December 31, 1947 if
      amounts deducted from earnings for current repairs and maintenance and
      provisions for renewals, replacements and depreciation of all the property
      of SIGECO are less than amounts specified in the
      Mortgage.  (Section 1.02. of the Supplemental Indenture
      dated as of July 1, 1948, as supplemented.)  No amount was
      restricted against cash dividends on common stock as of December 31, 2008
      under this restriction.

            

    

    
      
        
          5.4-6

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    Financial
Statements

    

     

    The
financial statements included in the 2008 10-K.

     

     

     

     

    
 

    
      
        
          Schedule
5.5

          (to Note
Purchase Agreement)

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    Existing
Indebtedness

    

     

    (a) 
See Attachment 1 to this Schedule 5.15. for a description of outstanding
Indebtedness of the Obligors as of March 31, 2009.

     

    (b) 
None

     

    (c)(i) 
Section 6.11 of the Credit Agreement, dated September 11, 2008, among Vectren
Capital, Corp., Vectren Corporation and Various Financial Institutions imposes,
subject to certain exceptions, limits on the incurring of indebtedness by
Vectren Corporation, Vectren Capital, Corp. and Subsidiaries of Vectren
Corporation (other than Vectren Utility Holdings, Inc. and its Subsidiaries).
There is an exception for Indebtedness existing on September 11, 2008 and a
$300,000,000 basket for additional Indebtedness. Section 6.17 of the Credit
Agreement provides that Vectren will not permit the ratio of its Consolidated
Indebtedness to Consolidated Indebtedness plus Consolidated Net Worth to be
greater than .65 to 1.0.

     

    (c)(ii) 
Section 6.11 of the Credit Agreement, dated November 10, 2005, among Vectren
Capital, Corp., Vectren Corporation and Various Financial Institutions imposes,
subject to certain exceptions, limits on the incurring of indebtedness by
Vectren Corporation, Vectren Capital, Corp. and Subsidiaries of Vectren
Corporation (other than Vectren Utility Holdings, Inc. and its Subsidiaries).
There is an exception for Indebtedness existing on November 10, 2005 and a
$300,000,000 basket for additional Indebtedness. Section 6.17. of the Credit
Agreement provides that Vectren Corporation will not permit the ratio of its
Consolidated Indebtedness to Consolidated Indebtedness plus Consolidated Net
Worth to be greater than .65 to 1.0. Section 6.15 of the Credit Agreement dated
as of November 10, 2005 among Vectren Utility Holdings, Inc., Indiana Gas
Company, Inc., Southern Indiana Gas and Electric Company and Vectren Energy
Delivery of Ohio, Inc. and Various Financial Institutions also provides that the
Company will not permit the ratio of its Consolidated Indebtedness to
Consolidated Indebtedness plus Consolidated Net Worth to be greater than .65 to
1.0.

     

    (c)(iii) 
Section 10.7 of the Note Purchase Agreement, dated as of October 11, 2005, as
amended by the First Amendment thereto dated March 11, 2009 (the “2005 NPA”), among Vectren
Corporation, Vectren Capital Corp. and the noteholders party thereto, provides
that the ratio of Total Debt to Total Capitalization will not exceed 65%
provided that if the ratio permitted to exist until the bank credit agreement
shall be changed to a higher or lower percent, the ratio under the 2005 NPA
shall be automatically changed to that ratio but not above 70%.

     

    (c)(iv) 
Section 10.7 of the Note Purchase Agreement, dated as of December 21, 2000, as
amended by the First Amendment to Note Purchase Agreement, dated as of October
11, 2005, among Vectren Corporation, Vectren Capital Corp. and the noteholders
party thereto, contains a restriction on the incurrence of Indebtedness to the
effect that Indebtedness will not be incurred if the ratio of Total Debt to
Total Capitalization would exceed 75%.

     

    
      
        
          Schedule
5.15

          (to Note
Purchase Agreement)

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)(v) 
Section 10.6 of the Note Purchase Agreement, dated as of April 25, 1997, as
amended by the First Amendment to Note Purchase Agreement, dated as of October
11, 2005 and the Second Amendment thereto, dated as of March 11, 2009, among
Vectren Corporation (successor to Sigcorp, Inc.), Vectren Capital Corp. (f/k/a
Sigcorp Capital, Inc.) and the noteholders party thereto, contains a covenant
identical to that contained in Section 10.7 of the 2005 NPA.

     

    (c)(vi) 
The Mortgage described in Schedule 5.4 hereto is incorporated by this
reference.

     

    (c)(vii) 
Section 10.7 of the Note Purchase Agreement dated March 11, 2009, amongVectren
Corporation, Vectren Capital Corp. and the noteholders party thereto contains
acovenant identical to that contained in Section 10.7 of the 2005
NPA.

     

    

     

    

     

    

    
      
        
          
             
5.15-2

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    

    
      
        
          
            	
                    Attachment
      1

                  
	
                    Schedule
      5.15 - VUHI Private Placement Note Purchase Agreement

                  
	
                    Vectren
      Utility Holdings, Inc. Existing Indebtedness

                    as
      of March 31, 2009

                  
	 
      	
                    (000)

                  	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
                    Interest
      Rate

                  	 
      	 
      	 
      	
                    Due
      Date

                  	 
      	
                    Outstanding
      Amount

                  	 
      	 
      
	 
      	
                    Company

                  	 
      	 
      	
                    Debt
      Series

                  	 
      	 
      	 
      	
                    Type

                  
	
                    Indiana
      Gas Company

                  	 
      	
                    6.690%

                  	 
      	
                    Series
      E 5

                  	 
      	
                    06/10/13

                  	 
      	
                    5,000

                  	 
      	
                    SU

                  
	
                    Indiana
      Gas Company

                  	 
      	
                    7.150%

                  	 
      	
                    Series
      E 1

                  	 
      	
                    03/15/15

                  	 
      	
                    5,000

                  	 
      	
                    SU

                  
	
                    Indiana
      Gas Company

                  	 
      	
                    6.690%

                  	 
      	
                    Series
      E 4

                  	 
      	
                    12/21/15

                  	 
      	
                    5,000

                  	 
      	
                    SU

                  
	
                    Indiana
      Gas Company

                  	 
      	
                    6.690%

                  	 
      	
                    Series
      E 6

                  	 
      	
                    12/29/15

                  	 
      	
                    10,000

                  	 
      	
                    SU

                  
	
                    Indiana
      Gas Company

                  	 
      	
                    6.530%

                  	 
      	
                    Series
      E 3

                  	 
      	
                    06/27/25

                  	 
      	
                    10,000

                  	 
      	
                    SU

                  
	
                    Indiana
      Gas Company

                  	 
      	
                    6.420%

                  	 
      	
                    Series
      E 7

                  	 
      	
                    07/07/27

                  	 
      	
                    5,000

                  	 
      	
                    SU

                  
	
                    Indiana
      Gas Company

                  	 
      	
                    6.680%

                  	 
      	
                    Series
      E 8

                  	 
      	
                    07/07/27

                  	 
      	
                    1,000

                  	 
      	
                    SU

                  
	
                    Indiana
      Gas Company

                  	 
      	
                    6.340%

                  	 
      	
                    Series
      F 2

                  	 
      	
                    12/10/27

                  	 
      	
                    20,000

                  	 
      	
                    SU

                  
	
                    Indiana
      Gas Company

                  	 
      	
                    6.360%

                  	 
      	
                    Series
      F 5

                  	 
      	
                    05/01/28

                  	 
      	
                    10,000

                  	 
      	
                    SU

                  
	
                    Indiana
      Gas Company

                  	 
      	
                    6.550%

                  	 
      	
                    Series
      F 6

                  	 
      	
                    06/30/28

                  	 
      	
                    20,000

                  	 
      	
                    SU

                  
	
                    Indiana
      Gas Company

                  	 
      	
                    7.080%

                  	 
      	
                    Series
      G

                  	 
      	
                    10/05/29

                  	 
      	
                    30,000

                  	 
      	
                    SU

                  
	
                    SIGECO

                  	 
      	
                    .550%

                  	
                    a

                  	
                    1985
      Series A

                  	 
      	
                    07/01/15

                  	 
      	
                    9,775

                  	 
      	
                    FMB

                  
	
                    SIGECO

                  	 
      	
                    8.875%

                  	 
      	
                    1986
      Series

                  	 
      	
                    06/01/16

                  	 
      	
                    13,000

                  	 
      	
                    FMB

                  
	
                    SIGECO

                  	 
      	
                    4.500%

                  	 
      	
                    1998
      Series B

                  	 
      	
                    03/01/20

                  	 
      	
                    4,640

                  	 
      	
                    FMB

                  
	
                    SIGECO

                  	 
      	
                    5.150%

                  	 
      	
                    1993
      Series B

                  	 
      	
                    05/01/23

                  	 
      	
                    22,550

                  	 
      	
                    FMB

                  
	
                    SIGECO

                  	 
      	
                    4.650%

                  	 
      	
                    2000
      Series A

                  	 
      	
                    03/01/24

                  	 
      	
                    22,500

                  	 
      	
                    FMB

                  
	
                    SIGECO

                  	 
      	
                    .550%

                  	
                    a

                  	
                    1998
      Series A

                  	 
      	
                    03/01/25

                  	 
      	
                    31,500

                  	 
      	
                    FMB

                  
	
                    SIGECO

                  	 
      	
                    6.720%

                  	 
      	
                    1999
      Sr Notes

                  	 
      	
                    08/01/29

                  	 
      	
                    80,000

                  	 
      	
                    FMB

                  
	
                    SIGECO

                  	 
      	
                    5.000%

                  	 
      	
                    1998
      Series B

                  	 
      	
                    03/01/30

                  	 
      	
                    22,000

                  	 
      	
                    FMB

                  
	
                    SIGECO

                  	 
      	
                    5.350%

                  	 
      	
                    1998
      Series C

                  	 
      	
                    03/01/30

                  	 
      	
                    22,200

                  	 
      	
                    FMB

                  
	
                    SIGECO

                  	 
      	
                    5.450%

                  	 
      	
                    2007
      Series

                  	 
      	
                    01/01/41

                  	 
      	
                    17,000

                  	 
      	
                    FMB

                  
	
                    Vectren
      Utility Holdings Inc.

                  	 
      	
                    5.950%

                  	 
      	
                    2006
      Sr Notes

                  	 
      	
                    10/01/36

                  	 
      	
                    98,989

                  	 
      	
                    SU

                  
	
                    Vectren
      Utility Holdings Inc.

                  	 
      	
                    6.250%

                  	 
      	
                    2008
      Sr Notes

                  	 
      	
                    04/01/39

                  	 
      	
                    123,837

                  	 
      	
                    SU

                  
	
                    Vectren
      Utility Holdings Inc.

                  	 
      	
                    6.625%

                  	 
      	
                    2001
      Sr Notes

                  	 
      	
                    12/01/11

                  	 
      	
                    250,000

                  	 
      	
                    SU

                  
	
                    Vectren
      Utility Holdings Inc.

                  	 
      	
                    5.250%

                  	 
      	
                    2003
      Sr Notes

                  	 
      	
                    08/01/13

                  	 
      	
                    100,000

                  	 
      	
                    SU

                  
	
                    Vectren
      Utility Holdings Inc.

                  	 
      	
                    5.750%

                  	 
      	
                    2003
      Sr Notes

                  	 
      	
                    08/01/18

                  	 
      	
                    100,000

                  	 
      	
                    SU

                  
	
                    Vectren
      Utility Holdings Inc.

                  	 
      	
                    6.100%

                  	 
      	
                    2005
      Sr Notes

                  	 
      	
                    12/01/35

                  	 
      	
                    75,000

                  	 
      	
                    SU

                  
	
                    Vectren
      Utility Holdings Inc.

                  	 
      	
                    5.450%

                  	 
      	
                    2005
      Sr Notes

                  	 
      	
                    12/01/15

                  	 
      	
                    75,000

                  	 
      	
                    SU

                  
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                    $1,188,991
      

                  	 
      	 
      

          

        

      

       

      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              a

            	
              This
      is Variable Rate Demand Bond with a weekly reset of the interest
      rate.

            	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
              Type:

            	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
              SU
      = Senior Unsecured

            	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
              FMB
      = First Mortgage Bonds

            	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

    

     

    The
Obligors are parties to a Credit Agreement, dated November 10, 2005, with
the Lenders signatory thereto with an aggregate commitment of $515,000,000
thereunder.

     

    Southern
Indiana Gas and Electric Company is party to a Master Commercial Note, dated
September 28, 2008, with Fifth Third Bank in the maximum principal amount of
$5,000,000.

    
      
        
          5.15-3

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    [Form
of Note]

     

    Vectren
Utility Holdings, Inc.

     

    6.28%
Senior Guaranteed Note Due April 7, 2020

     

    No.
[_____][Date]

    $[_______]PPN 92239M A*2

    

     

    For Value
Received, the undersigned, Vectren Utility Holdings, Inc. (herein called the
“Company”), a
corporation organized and existing under the laws of the State of Indiana,
hereby promises to pay to [____________], or registered assigns, the principal
sum of [_____________________] Dollars (or so much thereof as shall not have
been prepaid) on April 7, 2020, with interest (computed on the basis of a
360-day year of twelve 30-day months) (a) on the unpaid balance hereof at
the rate of 6.28% per annum from the date hereof, payable semiannually, on the
7th day of April and October in each year, commencing with the April or October
next succeeding the date hereof, until the principal hereof shall have become
due and payable, and (b) to the extent permitted by law, on any overdue
payment of interest and, during the continuance of an Event of Default, on such
unpaid balance and on any overdue payment of any Make-Whole Amount, at a rate
per annum from time to time equal to the greater of (i) 8.28% or (ii) 2%
over the rate of interest publicly announced by Bank of America, N.A. from time
to time in New York, New York as its “base” or “prime” rate, payable
semiannually as aforesaid (or, at the option of the registered holder hereof, on
demand).

     

    Payments
of principal of, interest on and any Make-Whole Amount with respect to this Note
are to be made in lawful money of the United States of America at Bank of
America, N.A. in New York, New York or at such other place as the Company shall
have designated by written notice to the holder of this Note as provided in the
Note Purchase Agreement referred to below.

     

    This Note
is one of a series of Senior Guaranteed Notes (herein called the “Notes”) issued pursuant to
the Note Purchase Agreement, dated as of April 7, 2009 (as from time to
time amended, the “Note
Purchase Agreement”), between the, Company, Indiana Gas Company, Inc.,
Southern Indiana Gas and Electric Company, and Vectren Energy Delivery of Ohio,
Inc., and the respective Purchasers named therein and is entitled to the
benefits thereof.  The payment and performance hereof is
unconditionally guaranteed by the Guarantors (as defined in the Note Purchase
Agreement) pursuant to the Subsidiary Guaranty (as defined in the Note Purchase
Agreement).  Each holder of this Note will be deemed, by its
acceptance hereof, to have (i) agreed to the confidentiality provisions set
forth in Section 21 of the Note Purchase Agreement and (ii) made the
representation set forth in Section 6.2 of the Note Purchase
Agreement.  Unless otherwise indicated, capitalized terms used in this
Note shall have the respective meanings ascribed to such terms in the Note
Purchase Agreement.

     

    The
Company and the Guarantors waive all relief from valuation and appraisement
laws.

     

    
      
        
          Exhibit
1

          (to Note
Purchase Agreement)

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    This Note
is a registered Note and, as provided in the Note Purchase Agreement, upon
surrender of this Note for registration of transfer accompanied by a written
instrument of transfer duly executed, by the registered holder hereof or such
holder’s attorney duly authorized in writing, a new Note for a like principal
amount will be issued to, and registered in the name of, the
transferee.  Prior to due presentment for registration of transfer,
the Company may treat the person in whose name this Note is registered as the
owner hereof for the purpose of receiving payment and for all other purposes,
and the Company will not be affected by any notice to the contrary.

     

    The
Company will make required prepayments of principal on the dates and in the
amounts specified in the Note Purchase Agreement.  This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreement, but not
otherwise.

     

    If an
Event of Default occurs and is continuing, the principal of this Note may be
declared or otherwise become due and payable in the manner, at the price
(including any applicable Make-Whole Amount) and with the effect provided in the
Note Purchase Agreement.

     

    This Note
shall be construed and enforced in accordance with, and the rights of the
Company and the holder of this Note shall be governed by, the law of the State
of Indiana excluding choice-of-law principles of the law of such State that
would permit the application of the laws of a jurisdiction other than such
State.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
 

    
      	
               
      

            	
              Vectren
      Utility Holdings, Inc.

            

    

    

    

    
      	
               
      

            	
              By____________________________________________

            

    

    
      	
               
      

            	
              Name:

            

    

    
      	
               
      

            	
              Title:

            

    

    

    
      	
               
      

            	
              Indiana
      Gas Company, Inc.

            

    

    

    

    
      	
               
      

            	
              By____________________________________________

            

    

    
      	
               
      

            	
              Name:

            

    

    
      	
               
      

            	
              Its:

            

    

    

    

    
      	
               
      

            	
              Southern
      Indiana Gas and Electric Company

            

    

    

    

    
      	
               
      

            	
              By____________________________________________

            

    

    
      	
               
      

            	
              Name:

            

    

    
      	
               
      

            	
              Its:

            

    

    

    

    
      	
               
      

            	
              Vectren
      Energy Delivery of Ohio, Inc.

            

    

    

    

    
      	
               
      

            	
              By____________________________________________

            

    

    
      	
               
      

            	
              Name:

            

    

    
      	
               
      

            	
              Its:

            

    

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
 

    Form
of Opinion of Special Counsel

    to
the Company

     

    Matters
To Be Covered in

    Opinion
of Special Counsel to the Obligors

     

    1. 
Each of the Obligors and its Subsidiaries being duly incorporated, validly
existing and in good standing and having requisite corporate power and authority
to issue and sell Financing Agreements to which it is a party and to execute and
deliver the documents.

     

    2. 
Each Obligor and its Subsidiaries being duly qualified and in good standing as a
foreign corporation in appropriate jurisdictions.

     

    3. 
Due authorization and execution of the documents and such documents being legal,
valid, binding and enforceable.

     

    4. 
No conflicts with charter documents, laws or other agreements.

     

    5. 
All consents required to issue and sell the Notes and to execute and deliver the
documents having been obtained.

     

    6. 
No litigation questioning validity of documents.

     

    7. 
The Notes not requiring registration under the Securities Act of 1933, as
amended; no need to qualify an indenture under the Trust Indenture Act of 1939,
as amended.

     

    8. 
No violation of Regulations T, U or X of the Federal Reserve Board.

     

    9. 
Each Obligor is not an “investment company”, or a company “controlled” by an
“investment company”, under the Investment Company Act of 1940, as
amended.

     

     

    
      
        
          Exhibit
4.4(a)

          (to Note
Purchase Agreement)

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    Form
of Opinion of Special Counsel

     

    to
The Purchasers

     

    [To Be
Provided on a Case by Case Basis]

    
 

     

     

     

     

    
      Exhibit
4.4(b)

      (to Note
Purchase Agreement)

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